WATCH LIVE: Gov. Dunleavy unveils new budget for Alaska

ANCHORAGE (KTUU) – Governor Mike Dunleavy is revealing his first budget Wednesday morning. The press conference can be streamed live on KTUU.com, or followed on social media courtesy of the Channel 2 Facebook page below:


In the press conference, Dunleavy said a $1.6 billion deficit was the driving force behind the deep cuts, which he said would impact all Alaskans. According to the administration, the budget will show a little over 600 lost jobs. The exact jobs being cut were not announced.

Dunleavy said keeping the PFD intact was a priority, as well as public safety, but overall the message was that many departments would be reduced, including the University of Alaska, which looks to see $150 million in cuts.












In an interview with KTUU this weekend, Gov. Dunleavy said the prioritized items in the budget are what he called “core services”: Public Safety, Transportation, Natural Resources and Education.

Though education was named a core service along with , people in the education sector, traditionally one of the larger parts of the budget, were weary, and said there isn’t anything left to cut.

“It’s going to compel school districts to evaluate how they spend their money,” Dunleavy said at the Wednesday press conference. “It’s a local control issue.”

Dunleavy said the two biggest cost drivers for the state are education and health and social services, which he said would receive much less money than they did last year.

The public safety increase is commensurate with Dunleavy’s previously proposed crime bills, including a investigators being consolidated in the Department of Justice.

In an interview with KTUU this weekend, Gov. Dunleavy said the prioritized items in the budget are what he called “core services”: Public Safety, Transportation, Natural Resources and Education.












In addition to the cuts to education, Dunleavy’s budget includes big cuts to the Alaska Marine Highway System and Medicaid.

An expansion to Medicaid was signed into law by previous Governor Bill Walker, and Gov. Dunleavy said this expansion is not being repealed as of now.

Privatization was also mentioned in the Marine Highway System, according to Donna Arduin, the head of the state’s Office of Management and Budget. Arduin also said that 500 Alaska inmates will be sent out of state, generating roughly $12 million.

This is a developing story and will be updated as details of the budget are announced.