Alaska Governor's Budget: $1 Billion Deficit, No New Revenue, and Large PFDs

Alaska Governor Mike Dunleavy has proposed a budget for FY 2025 that includes a $1 billion deficit and no new revenue sources. The budget plan maintains last year's spending levels for state services but includes an estimated $3,400 Permanent Fund dividend per eligible Alaskan. However, it does not increase funding for the state public school system, which educators argue is urgently needed. The proposal will serve as the basis for budget discussions in the Legislature, but leaders have already rejected the idea of using the state's rainy day fund to cover the deficit.