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Dunleavy: Spending needs to match revenue
Governor’s state-of-state address focused on meeting campaign promises; budget will be centralized under OMB, due out in February
Gov. Mike Dunleavy gave his first state-of-the-state address Jan. 23, with a focus on meeting promises made during his campaign last year. Five promises were to make the state safe, get spending in line with revenue, protect Permanent Fund dividends, grow the economy and restore public trust in government.
Oil and gas, which have been the state’s main source of revenue, and continue to be through earnings from the Permanent Fund, got only passing mention in the governor’s remarks.
As far as spending goes, he emphasized creating what he called “a real, honest budget,” rather than what he called a “wish list.” He emphasized that the state can no longer spend what it doesn’t have in revenues.
He promised a budget that will be straightforward, with no more shuffling of numbers and said that to get a handle on the budget, one of his first administrative orders was to remove budgeting from departments and centralize it in the Office of Management and Budget.
Permanent fiscal plan He said that to address fiscal issues the state needs a permanent fiscal plan and said he would introduce constitutional amendments as the basis of a permanent fiscal plan, including a spending limit and savings plan; no change to the PFD without a vote of the people; and no change in taxes without a vote of the people.
Those changes, Dunleavy said, would require both the people of the state and elected officials to work together. Without the support of the people, he said, any plan the Legislature puts in place will be in doubt.
Growing the economy Growing jobs was another focus. Dunleavy said our economy is struggling and said he would be “a relentless advocate” for turning the economy around and making Alaska “open for business.”
He said years ago, Alaska had a more diversified economy - with fishing, mining, agriculture and a robust timer industry - than it has today. Since Prudhoe Bay, Alaska has been more “narrowly focused on oil,” along with government programs, as the basis of the state’s economy.
Other opportunities have been neglected.
Alaska has advantages, he said: its location on the globe; the third-busiest cargo hub in the world; proximity to Asia and Europe; and the state’s quality of life.
“Alaska doesn’t have to be just a resource state,” Dunleavy said, adding that he wants to see new industries come to the state.
Safety of citizens The governor said keeping citizens safe was the most important role of government and said crime is out of control and the state has the highest sexual assault rate in the nation.
Resources will be spent for additional state troopers, he said, more local control and more prosecutors, with courts open a full five days a week to hear cases.
Senate Bill 91 - the 2016 reform bill - will be repealed and replaced, he said, and asked legislators to make public safety a priority, something he said would be reflected in his budget.
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