Dunleavy vetoes PFD

ANCHORAGE — Governor Mike Dunleavy signed the budget passed by the Legislature following a special session, but issued vetoes totaling $1,130,663 on Thursday. Dunleavy’s vetoes include the Permanent Fund Dividend set at $500 and legislative per diem pay during the upcoming special session in August to deal with the PFD.

“With regard to the budget, the state is open. There was concern that the state wouldn’t have a functional budget on July 1. We have a budget that functions, but there are issues with that budget,” said Dunleavy. “We’re not necessarily interested in growing the size of our agencies or growing the size of our government, so that is again an issue I wanted to highlight as well that we continue to put downward pressure on the size our agency spend.”

Dunleavy began his press conference by wishing Alaskans a happy Independence Day ahead of the 4th of July weekend. He then discussed how far Alaska has come in battling the coronavirus pandemic and welcomed the return of cruise tourists and tourism activity around the state. Dunleavy lauded Alaska’s fiscal situation, with oil at $75 a barrel and the permanent fund over $81 billion.

“There is going to be a number of items in the budget that were vetoed, a number of items that would have grown government that we dont believe we need at this time. The permanent fund was vetoed, the permanent fund dividend was vetoed, the per diem was vetoed, but we have an opportunity to come back here in a few weeks sit down together and work out the problems together,” said Dunleavy. “A PFD came out of the budgetary process of only $500. When you look at adjustments for inflation, this is the lowest PFD in the history of the program going back decades. It’s simply wrong. As a matter of fact, most people know it’s wrong. In talking with some legislators, they know it’s wrong. They know that $500 is really to some degree it’s a slap in the face to Alaskans, so that PFD is going to be vetoed because we’re going to come back, we’re going to fix the permanent fund. We’re going to fix the permanent fund so it is permanent. We need it in the constitution and we need to have a PFD that is going to follow a formula, not just picked out of the air.”

Dunleavy’s budget vetoes include subsidies for public broadcasting, the statewide online library system, the Alaska tribal child welfare compact and public health nursing.

“You’ve got to fight for what you think is right. To be honest with you it would be a lot easier for me to just go along to get along,” said Dunleavy. “One thing I’m not going to do is give up on the idea that we can solve problems. We sent people to the moon in the sixties, this is not rocket science, this is just political will. And what I’m asking the legislature to do is what the people of Alaska want us to do. Solve the problems, put pettiness aside, sit down and work together, come up with a compromise. That’s what we need to do.”

Dunleavy noted that he felt with the state’s fiscal situation and Federal dollars pouring into the state, a proposed income tax would not be necessary and a PFD larger than $500 could be paid out. Dunleavy also voiced his desire to continue to develop natural resources in Alaska without Federal overreach.

“A $500 PFD, which would be the lowest PFD in history especially when you look at inflation, in the midst of billions of dollars coming to Alaska, the idea that government needs to be protected at the expense of the people I think is a concept that most Alaskans don’t agree with, and so we need to get back. We can do so much better for the people of Alaska than a $500 PFD,” said Dunleavy. “We need to fix it. We need to do it right. We shouldn’t have half measures, half approaches, we shouldn’t be throwing crumbs to the people of Alaska.”

Also included in Dunleavy’s vetoes released on Thursday were funds directed to the Alaska Travel Industry Association, Mount Edgecumbe High School Repairs, Alaska Vocational and Technical Education Center upgrades, Pre-Kindergarten grants from the Department of Education and Early Development, and funds for the Alaska Marine Highway System. Among the Valley projects to be vetoed was the connector trail between Government Peak Recreation Area and Skeetawk ski area.

“We’re setting up a situation where in a few weeks, a lot of these issues can be fixed working together and so I’m optimistic,” said Dunleavy. “The people should come first. This issue has been around for a long time, there’s no doubt about it. It’s stunting our discussions on other issues and so to accept a $500 PFD when we know that this state could do better for its people, it doesn’t make any sense to me.”