Alaska Governor Mike Dunleavy presented his $14.2 billion budget for Fiscal Year 2026, highlighting a record-high Permanent Fund Dividend (PFD) and no cuts to education funding. The budget proposes a $3,892 PFD per eligible Alaskan, contributing to a projected $1.52 billion deficit. To balance the budget, the plan draws heavily on the Constitutional Budget Reserve, raising concerns about long-term financial sustainability.
ANCHORAGE, Alaska (KTUU) - Gov. Mike Dunleavy unveiled his $14.2 billion budget for FY 2026 on Thursday, including no cuts in education funding and a full statutory PFD . During a roughly one-hour press conference, he said that as governor, he swore an oath to uphold the Constitution and the laws of Alaska , which includes proposing a full statutory Permanent Fund Dividend that will contribute to a $1.52 billion budget deficit that will have to be balanced by dipping into reserves.
The governor’s budget proposes a $3,892 PFD per eligible Alaskan, which would be a record amount. The current richest PFD payout was in 2022, when Alaskans received $3,284 each. Department of Revenue (DOR) Commissioner Adam Crum said the revenue outlook had decreased slightly compared to the spring 2024 forecast. He said this is due to lower oil prices and higher lease expenditures. He said the DOR is forecasting a $220 million decrease for FY 2025 and a $240 million decrease for FY 2026. Furthermore, DOR said in FY 2024, the Alaska North Slope oil prices averaged $85.24 per barrel. The oil price for FY 2025 is projected at $73.86 per barrel and $70.00 for FY 2026. Office of Management and Budget Director Lacey Sanders said due to reduced oil prices, $150 million is being drawn from the Constitutional Budget Reserve in 2025, and in 2026 the proposed budget will draw $1.5 billion from that savings account, roughly half the current value of the reserve.as part of Dunleavy’s budget plan shows the state’s reserve being $1 billion in debt in three years and $12 billion in debt by 2035. Taking questions about the increased risk of taking money out of reserves to — in part — fund a full statutory PFD, with decreased revenues and increased operating costs, Dunleavy said the same question could be proposed to the new moderate majorities in the state legislature that want public pension reform and increases to base student allocation formul
Alaska Budget PFD Governor Dunleavy Oil Prices Reserves Deficit
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