Budget Cycle

Governor Submits Budget
December 15

Fiscal Year Begins
July 1
Governor Signs Budget 

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Enacted Budget – Fiscal Year 2023

Alaska Governor Mike Dunleavy signed the state’s fiscal 2023 budget into law on June 28, while also announcing line-item vetoes. The budget provides for total operating expenditures of $9.6 billion from all funds (a 16.3 percent decline), including $4.8 billion in unrestricted general fund spending (a 1.2 percent decline) and $3.2 billion in federal fund spending (a 52.9 percent decline). Additionally, the budget provides for total capital appropriations of $2.6 billion, including $734 million in unrestricted general fund spending and $1.8 billion in federal fund spending. The budget assumes unrestricted general fund revenues totaling $5.0 billion, a 28 percent increase from fiscal 2022 estimated levels. The budget projects additional revenue of $3.4 billion from a statutory drawdown from the Permanent Fund, with $2.1 billion of that revenue used to provide Permanent Fund Dividend (PFD) payments to state residents and the remaining $1.3 billion available to support government services. Additional revenue from carryforward and adjustments – including American Rescue Plan Act revenue replacement funds of $187 million – total $1.2 billion. The projected general fund surplus (or ending balance) is $1.9 billion before transfers to savings. After deposits, the Constitutional Budget Reserve (or rainy day fund) is projected to have a fiscal 2023 ending balance of $3.0 billion. The budget invests in public safety, education, and infrastructure projects, as well as funds broadband projects in rural communities and agriculture initiatives. The spending plan also calls for the highest ever PFD payment of $3,200 per eligible Alaskan and for replenishing state savings accounts.

Proposed Budget - Fiscal Year 2023

On December 15, Alaska Governor Mike Dunleavy released his recommended budget for fiscal 2023. Total state spending from all fund sources for fiscal 2023 is $10.9 billion in the governor’s budget, a 12.8 percent decline from fiscal 2022 appropriations, with that decline driven by reduced federal funds. The fiscal 2023 budget calls for federal fund expenditures of $4.6 billion, a 24.3 percent decline from fiscal 2022 appropriated levels. The operating, mental health and capital budget calls for $4.6 billion in unrestricted general fund (UGF) spending in fiscal 2023, representing flat growth over fiscal 2022 appropriated levels. The governor’s UGF budget is based on $2.6 billion in unrestricted revenue (a 3 percent decline from fiscal 2022 estimate) combined with a drawdown of $1.7 billion from the Permanent Fund Earnings Reserve Account (ERA) for government services and $375 million in carryforward revenue. The budget calls for an additional $1.7 billion drawdown from the ERA to be used for Permanent Fund Dividend payments. According to the state’s 10-year plan, the budget includes unrestricted federal revenue replacement from the American Rescue Plan Act (ARPA) of $250 million for fiscal 2022 and $375 million for fiscal 2023. The budget also proposes supplemental spending for fiscal 2022. The state’s combined rainy day fund balance in the Statutory Budget Reserve and Constitutional Budget Reserve is projected to be $1.51 billion at the end of fiscal 2023, 32.7 percent as a share of unrestricted general fund spending.

Proposed Budget Highlights 
The governor’s budget prioritizes public safety, education, infrastructure, and the Permanent Fund Dividend (PFD) without increasing or creating new taxes. The budget proposal also emphasizes small, sustainable government, with fiscal 2023 UGF spending 7 percent below the approved fiscal 2019 budget.

Public Safety

  • $7.3 million for the People First Initiative, a multi-agency strategy to tackle domestic violence, sexual assault, human trafficking, homelessness, and violence against indigenous peoples
  • $5.1 million for Village Public Safety Officer program, public safety support services for rural communities
  • Funds for 15 new state troopers and additional administrative support
  • More than $25 million in operating support and $35 million for capital projects for other public safety programs, including the body worn camera initiative


  • $79 million for 100 percent school bond debt reimbursement
  • Full funding for base student allocation formula and for school construction and maintenance
  • $55 million to replace a public school affected by river erosion
  • $23 million in ARPA funds for new university research programs and $95 million in federal grant funds for a university marine center


  • $310 million general obligation transportation and infrastructure bond to finance projects for ports and harbors, surface transportation, airports, education, public safety and community infrastructure
  • $200 to $250 million in federal highway funds to replace the Tustumena ferry and re-energize the Alaska Marine Highway System
  • $72 million (including $19.5 million UGF) for clean water systems in rural areas
  • $17 million for Rural Power System Upgrades program, in addition to other energy investments.

Permanent Fund Dividend

  • $1.7 billion drawdown from the Earnings Reserve Account (ERA) for a 2022 Permanent Fund Dividend (PFD) payment of $2,564 to eligible state residents
  • $796 million to fund remainder of the 2021 PFD (estimated at $1,200 per resident)
  • Proposed PFD payments reflect the Governor’s 50/50 Permanent Fund constitutional amendment