Governor Dunleavy | Office of Governor Mike Dunleavy
Governor Dunleavy | Office of Governor Mike Dunleavy
Governor Mike Dunleavy today unveiled his proposed Fiscal Year 2025 state budget.
The proposal comes amidst a period of significant inflation, which has surged more than 20 percent since Governor Dunleavy assumed office in December 2018. Despite this economic challenge, the FY2025 operating budget continues the administration's efforts to curtail the cost of State government. According to data, the Governor's proposed budgets have restrained agency growth to approximately 1% per year since FY2019, a figure that remains significantly below the rate of inflation during the same period.
The total amount proposed for the budget stands at $13.9 billion. Given forecasts of declining oil prices and production, this figure translates into a budget deficit of $987 million. This shortfall is expected to be offset by a draw from both the Constitutional Budget Reserve and the Statutory Budget Reserve.
In line with Governor Dunleavy's vision for Alaska as an ideal place to raise a family, provisions have been made for affordable housing, food, childcare, and energy. The importance of quality education is also emphasized in his proposal.
In terms of housing allocation, $25 million has been earmarked for Alaska Housing Finance Corporation Downpayment Assistance Grants primarily utilizing AHFC dividends. Furthermore, $62.6 million has been allocated for AHFC annual housing programs.
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