News from the Alaska State Legislature, the Office of Majority Office
For Immediate Release: June 10, 2019
Legislature Delivers Smallest Budget in 15 Years
JUNEAU – The Alaska Senate today voted unanimously for the smallest operating budget in 15 years, resulting in a $600 million surplus.
The budget provides $4.4 billion in unrestricted general funds for agency and statewide operations for fiscal year 2020 – a reduction of $190 million over last year – and transfers $10.5 billion from the Permanent Fund’s earnings reserve account into the fund’s constitutionally protected principal.
“This budget delivers real reductions, keeps Alaskans safe and protects the Permanent Fund for our descendants,” said Senator Bert Stedman, R-Southeast Islands, co-chair of the Senate Finance Committee. “Today we made the largest ever transfer to the Permanent Fund’s constitutionally protected principal in history. Within 15 years, we can expect the fund’s principal to grow to about $100 billion.”
$19 billion of Alaska’s $65.3 billion Permanent Fund currently sits in an earnings reserve account that can be spent by the Legislature with a simple majority vote. To protect these funds, the Legislature’s proposed budget moves over $10.5 billion from the earnings reserve into the constitutionally protected corpus, which cannot be accessed without amending the state’s constitution. This does not affect the ability of the fund to pay dividends.
“The people of Alaska sent us here to make the hard decisions for the long-term benefit of all Alaskans,” said Senator Natasha von Imhof, R-Anchorage, co-chair of the Senate Finance Committee. “Today locked away more than $10 billion into the Permanent Fund’s principal, taking more than half the earnings off the table, forcing all state spending to be in line with our annual revenues and protecting our savings accounts for emergencies.”
The Legislature’s proposed budget is the smallest since fiscal year 2005, adjusted for inflation and population.
“This budget is good for Alaska’s families and businesses,” said Senate President Cathy Giessel, R-Anchorage. “Government spending has been reversed by 15 years – that’s a significant achievement, one that we can all be proud of.”
House Bill 39 passed the Senate 20-0 and the House 22-15, for a combined vote of 42-15. The bill is now on its way to Governor Mike Dunleavy’s desk for his signature.
For more information, contact Senate Majority Communications Director Daniel McDonald at (907) 465-4066.
News & Videos more >
JUNEAU – The Alaska Senate today unanimously passed a bill establishing Walter Harper Day on June 7 of each year.
JUNEAU – The Alaska State Senate today unanimously passed a resolution supporting the creation of the first Arctic Department of Defense Regional Center for Security Studies....
JUNEAU – Senator Bert Stedman, R-Southeast Islands, today expressed disappointment with comments made by Department of Transportation (DOT) officials casting blame on the...
JUNEAU – Senate President Cathy Giessel today released the following statement on the Alaska Reads Act, a new statewide early education and K-3 reading program by Governor Mike...
Alaska Senators congratulated Alyeska Pipeline Service Company today for transporting the eighteen billionth barrel of Alaska North Slope crude oil safely through the Trans Alaska...
SOLDOTNA – Senator Peter Micciche, R-Soldotna, sent a letter Thursday requesting a meeting with federal officials to investigate why efforts to fully extinguish the Swan Lake Fire...
JUNEAU – Today, the U.S. Department of Agriculture announced it is seeking public comment on a draft environmental impact statement offering alternatives to roadless management and a...
WASILLA – Sen. David Wilson, R-Wasilla, Chairman of the Senate Health and Social Services Committee, welcomed the approval Tuesday of the state’s behavioral health portion of its...
ANCHORAGE – BP today announced that it has agreed to sell its entire business in Alaska to Hilcorp Alaska.
JUNEAU – Anchorage Senator Chris Birch passed away on Wednesday. He was 68 years old.
Find your Senator full map
- Chugiak/Peters Creek
- Eagle River
- Jewel Lake, Kincaid, Turnagain, Lake Hood, Sand Lake, Spenard, Dimond, Campbell Lake
- Midtown, Dimond, Huffman, Klatt, Southport, Bayshore, Oceanview
- Huffman, O'Malley, Abbott, Loop, Independence Park, East Dowling
- Northeast Anchorage, Anchorage Hillside, Indian, Bird, Girdwood and Portage
- Downtown, Airport Heights, Fairview, Government Hill, Mountain View, Russian Jack, South Addition
- Spenard, Midtown, UMed
- Muldoon, JBER, College Gate, Nunaka Valley, Wonder Park
- Palmer, Butte, Eklutna, Fairview, Lazy Mountain Knik, Gateway
- Wasilla, Meadow Lakes, Knik Big Lake, Point MacKenzie, Goose Bay, North Fairview
- Mat-Su, Delta Junction, Valdez, Copper River Valley, Talkeetna, Valdez
- North Pole, Farmers Loop
- UAF & University West, Chena Ridge, Cantwell, Nenana, Tanana, Kenny Lake, Tok, Copper Center & Tanana
- Adak, Bethel, Cold Bay, King Cove, Sand Point & Unalaska
- Barrow, Nome, Kotzebue, Hooper Bay, Northeast + Northwest Alaska