Governor plans another push for large PFDs in new budget plan

Gov. Mike Dunleavy laid out an ambitious program for infrastructure and public safety in his proposed state budget for next year. The plan was rolled out Wednesday, Dec. 15, the date set by statute in which a government presents a budget to the Legislature.

As expected, the spending includes large Permanent Fund Dividends both for 2022 and a supplemental payment for the 2022 PFD, with a combined pricetag of $2.495 billion. Dunleavy, who is running for reelection, hopes to persuade the Legislature to fund the larger dividends this year after having been unsuccessful last year.

In total, the plan would spend 10.88 billion in state and federal funds in Fiscal Year 2022, which begins next July. This is down from $12.64 billion in all funds being spent in the current budget year, FY 2021, the financial year ending next June 30..

As he did last year the governor is proposing a large capita lprojects bond program that would total $310 million, which includes $175 million for Knik Arm port improvements. It isn’t clear which, or possibly both, of two ports on Knik Arm would receive the money, the Port MacKenzie port in the Matanuska-Susitna Borough or the Port of Anchorage.

Both ports sit on Knik Arm across from each other. Both need money, Port MacKenzie for expansion and the Port of Anchorage for badly-needed reconstruction.

The propoeed bond issue also includes $25 million to restart the “Juneau Access Project,” a plan for a road connecting the capital city with a proposed terminal on upper Lynn Canal that could shuttle vehicles to nearby Haines and Skagway, which have year-around highway access.

One focus for the budget is public safety, which part of broader initiative announced by Dunleavy on Tuesday, Dec. 14. Funding for the University of Alaska, some of which was vetoed by Dunleavy last year, and for a series of rural school capital and major maintenance projects was also included.

The rural Power Cost Equalization program and state support for school districts through the school foundation program, are also maintained.

“Keeping Alaskans safe, educating our children for the challenges ahead, developing infrastructure and creating jobs are the policy goals built into the spending plan,” Dunleavy said in a statement.

“The budget is more than a collection of numbers and financial data, it reflects both the values and aspirations of the Alaskans it was created for,” he said.