Enacted Budget – Fiscal Year 2025
Alaska Governor Mike Dunleavy signed the state’s fiscal 2025 budget into law on June 28, while also announcing a series of line-item vetoes. The budget provides for total expenditures (excluding the Permanent Fund) of $11.20 billion in fiscal 2025, a 4.0 percent decline from fiscal 2024 total expenditures (which includes supplementals). The enacted budget includes $4.97 billion in unrestricted general fund spending (a 3.3 percent decline from fiscal 2024), $932.1 million in designated general fund spending (a 1.5 percent increase), $1.74 billion in other spending (a 1.7 percent decrease), and $3.55 billion in federal spending (a 7.5 percent decrease). The budget also calls for $3.6 billion in total capital appropriations. In signing the budget, the governor announced line-item vetoes reducing the operating budget by $105.7 million and the capital budget by $126.3 million. Additionally, the budget includes a Permanent Fund Dividend of approximately $1,718 for each eligible Alaskan. Total state revenue (including unrestricted general fund revenue, restricted revenue, and federal revenue) is estimated at $16.52 billion in fiscal 2025 (a 6.8 percent increase from fiscal 2024), while total unrestricted general fund revenue is estimated at $6.45 billion in fiscal 2025 (a 1.5 percent decrease).
The fiscal 2025 budget invests in Alaska’s public education system, enhances energy security, increases public safety, and improves affordability for Alaskans. In the area of education, the enacted budget includes a $174.6 million one-time $680 Base Student Allocation (BSA) increase; a $7.3 million one-time Pupil Transportation increase; $62.8 million for School Major Maintenance, Relocations, Renovations, and Replacements; and $87.5 million for University of Alaska operations and deferred maintenance. Concerning energy, the budget provides $23.0 million for the Alaska Housing Finance Corporation Energy Efficiency Research and Energy Weatherization; $10.5 million for the Renewable Energy Grant Fund; and $11.1 million to the University of Alaska Fairbanks for Alaska Railbelt Carbon Capture & Sequestration Project. Under public safety, the budget includes $3.5 million for ten additional Village Public Safety Officer (VPSO) positions and VPSO salary increases; $700,000 for investigations, outreach, and education on missing and murdered Indigenous persons; and $9.5 million for replacement of a patrol vessel for southeast Alaska. Finally, to help address affordability the enacted budget provides $53.2 million for Alaska Housing Finance Corporation housing programs for home buyers, owners, and renters to provide safe, quality, affordable housing; $2.8 million for the Alaska Addiction Rehabilitation Services residential expansion project; and $1.5 million for the Denali Commission housing program.