Proposed Budget Highlights
The governor’s proposed budget for fiscal 2027 continues to prioritize Alaskan families through K-12 education and public safety, as well as providing a statutory Permanent Fund Dividend allowing Alaskans to benefit from the state’s natural resource wealth. Due to oil prices being down, declining revenue forecasts, and increased costs driven by inflation, the proposed budget fully funds statutory obligations while restraining discretionary spending and is considered a base budget. The budget does require drawing $1.5 billion from the Constitutional Budget Reserve. In discussing the budget, the governor noted Alaska’s future is bright, but the state has to have discipline and be forward-thinking so that short-term budget challenges don’t turn into long-term burdens on Alaskan families and businesses. Highlights of the budget include:
- Full statutory funding for K-12 education.
- A full statutory Permanent Fund Dividend ($3650 per Alaskan).
- Continued support for public safety.
Additionally, the governor said that during the legislative session he will propose a long-term, sustainable fiscal plan that reverses the course of Alaska’s fiscal health by fostering economic growth, opportunity, and prosperity. The fiscal plan will include:
- Creating a business climate that brings new investment and good jobs.
- Developing new opportunities to make the most out of the state’s natural resources.
- Ensuring key projects such as the Alaska Liquified Natural Gas project continue to
move forward.
- Growing the Permanent Fund.
- Putting measures in place to make sure any growth of state government are small and responsible.
Creating a pro investment environment to ensure Alaska can compete for investment capital.