FY2020 BUDGET VETOES
PRESS BRIEFING - ITEMS OF INTEREST

Items of Significant Interest:
University of Alaska – Veto $130,253,100
- This line item veto impacts primarily the Anchorage and Fairbanks universities. Funding for all of
the community campuses, including University of Alaska Southeast, remains intact.
- The reduced funding equates to approximately $11,000 UGF/student, which is about 44% higher
than the national average.
Medicaid – Veto $50,000,000
- The Department of Health and Social Services is working with nationally renowned consultants
and the federal government to reform Alaska’s Medicaid program. These programs grew when
the fiscal picture allowed growth. The current fiscal reality compels us to reduce the budget and
work with federal counterparts to identify innovative reform options.
- Cost saving measures can be achieved in the Medicaid program through creativity, program
reform, and focusing on fraud.
Earnings Reserve Transfer to Corpus – Veto $5,579,800
- This transfer jeopardizes the fund and the future of the Permanent Fund Dividend program. A
transfer at a reduced level of $4 billion retains the legislatures intent to protect the earnings
reserve from spending.
POMV Transfer – Veto $1,000,000
- As enacted the POMV transfer provides significantly more revenue that is required for state
services. This veto action avoids drawing too much money from the earnings reserve.
Senior Benefits – Veto $20,786,100 (FY2020) and $800,000 (FY2019 Supplemental)
- This action eliminates the Senior Benefit Program
- With the state facing the challenge of aligning current state revenues with state expenditures,
this program is being eliminated to contain costs and reduce dependence of individuals on state
funds.
School Bond Debt Reimbursement – Veto 50% reduction to reimbursements Total: $48,910,250
- This action reduces School Debt Reimbursement by 50%.
- New debt issuances are currently in moratorium and voters and boroughs are aware that this
reimbursement is subject to appropriation.
- The Anchorage School District will see the largest impact at $20,500,000 and the Mat-Su
Borough School District will see the second largest impact at $9,200,000

 Items of Interest:
Alaska Marine Highway System - Funded at the level passed by the legislature: $46,000,000 UGF
- The Dunleavy administration has accepted the funding level passed by the legislature.
- Funding will allow AMHS to provide some level of service to most communities during the
fall/winter/spring of FY2020
Public Broadcasting – Veto $2,036,600 for Radio, $633,300 for TV, and $46,700 for the Commission
With access to grants, federal funding, or other innovative sources of funding, we believe the
Alaska Public Broadcasting, Inc., will continue to provide services to Alaskans and will prioritize
its services so it reaches the Alaskan communities that most need news and information
Village Public Safety Office Program – Veto $3,000,000 (FY2020) and $3,000,000 (FY2019
Supplemental)
- Unfortunately, the high point in the number of VPSOs employed occurred in FY 2012 when the
number of VPSOs peaked at 100, but has since steadily declined each year
- The Governor and Department remain committed to supporting this program and providing
safety and security for the people of rural Alaska
Ocean Rangers – Veto $3,409,100
- There are many permittees for air emissions and wastewater discharge across Alaska, but the
cruise ships are the only permittees to have around-the-clock observation for compliance
- After repeal of the Ocean Ranger program, permitting and compliance staff will still monitor
cruise ships for compliance with state wastewater and air quality permits and regulations
through records reviews, inspections in port, opacity monitoring, and vessel tracking
Education Funding – Veto the FY2021 “Forward Funding of Education”
- Per the Attorney General’s recent opinion, this is an unconstitutional inclusion on behalf of the
legislation and therefore not a valid appropriation
Positions Reductions – 62 Full Time, 2 Part Time, and 4 Non-Perm
- Through a variety of veto actions, 68 state positions have been reduced, including vacant funded
positions, totaling $11.9 million in reduced payroll costs across all fund sources.
Travel Reductions - $3,443,100 all funds
- State agency travel budgets, not covered under the exemptions of public safety, health, and
disaster management, were reduced 50% in the Governor’s FY2020 budget
- Veto action removes legislative increases to state travel
- Agencies will rely on technology and management efficiencies to reduce the amount of state
employee travel.