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.