BREAKING NEWS: Governor Signs FY2021 Budget

Governor Dunleavy signed HB 205 – Operating Budget today. There were several education items vetoed but it was announced they would funded through the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The question was posed during the budget press conference, “How can you be assured that the funding of these budget line items are allowed to be funded under the CARES Act.” The Governor responded that this was the interpretation of the administration as well as with consultation of officials in Washington, D.C.

Education Items Vetoed in HB 205 but Funded Through CARES Act:

• REAA & Small Municipalities Construction Fund – $36,739,000
• School Bond Debt Reimbursement – $100,154,200
• Anchorage Earthquake Response Grant – $2,700,000
• One-Time Outside-the-Formula Education Funding – $30,000,000

Vetoed Items of Interest to Education

• Alaska Marine Highway System – veto of $15,548,300 from both UGF & DGF. The budget documents indicate the remaining funding is an increase from FY20. Additionally, Capital funds will ensure work is completed on the Aurora.
• University of Alaska veto of $12, 500,000 to bring the funding into alignment with the compact between the administration and the university. It was noted that the university will also receive additional funding through the CARES Act.
• Pre-K grant veto of $4,300,000. Funding for Headstart, Pre-K, Early Childhood, Parents as Teachers, and Best Beginnings remain in the budget but there is no expansion of programs.

Additional budget detail can be found at these links:

Press Release: Governor Signs FY2021 Budget, Utilizes Federal COVID-19 Funds

Vetoes of State Funding: FY2021 Budget Items of Interest

Fiscal Year 2021 Enacted Budget detail from Alaska Office of Management and Budget