Happy Father’s Day to all the dads out there! I have been in New Mexico the last week visiting my parents so I’ve have been a little checked out from Alaska politics. The big news this week was Governor Mike Dunleavy (R – Alaska) signed the budget and announced his vetoes – the majority of which targeted education funding and federal match. Another Republican filed to run for governor. And anti-Trump protests were held all over Alaska by many people suffering from severe cases of Trump Derangement Syndrome. 

A friendly message and reminder to all our readers. The Landmine is made possible by myself and a team of awesome Alaskans. I have been covering the legislative session in Juneau for the last seven years and recently returned from Juneau. If you enjoy the content we provide, please consider making a one time or recurring monthly donation. You can click here to donate. We have a system that makes it super easy. We would really appreciate it. And thanks to everyone who has been supportive. 

Gov. Dunleavy’s FY2026 vetoes target education and federal match

The following is an excerpt from a special edition of the Alaska Political Report. You can click here for more information about the Political Report. A subscription is $1,299/year per organization. Discounted pricing is available for non-profits and government entities. Our coverage of the budget starts with the governor’s proposed budget, and we track everything in detail through the entire process. If you have any questions or would like to subscribe, please email jeff@akpoliticalreport.com.

On Thursday June 12, about a week ahead of the deadline, GOP Gov. Mike Dunleavy signed the FY2026 operating, mental health, and capital budgets. He exercised his line-item authority to veto $334.7 million in total appropriations, $128.2 million from Unrestricted General Funds (UGF).

The FY2026 budget, after vetoes, has a surplus of $179 million at the current forecast, however, there are several holes left in the budget that are likely to require attention next session which may eat into that surplus.

Current Fiscal Year

FY2025 will finish in just over two weeks, revenues, however, are expected to come in short of expenditures by $188 million. The budget passed by the Legislature directed that deficit to come from two sources, $100 million from the reserves of the Alaska Industrial Development and Export Authority (AIDEA) and the remaining $88 million from the Higher Education Investment Fund (HEIF). The Governor vetoed the language drawing funding from AIDEA, leaving the full $188 million to be drawn from the HEIF (see the below section on education vetoes for analysis of the impacts).

Education Vetoes

In total, the Governor’s vetoes have a roughly $185 million negative impact on available funding for education. Some comes from direct vetoes to school operations and maintenance funding, but there is also a veto that could permanently reduce available funding for scholarships in future years.

K-12 Formula Program

What will likely prove to be both the least surprising and most controversial of his decisions was to veto education funding below the level of basic need defined in statute. After enactment of House Bill 57, the base student allocation (BSA), which is used to calculate the level of education funding for each district, is $6,660 per student. The Governor vetoed $50 million from the K-12 funding line in the budget, allowing for a BSA of approximately $6,460 per student.

This is a bit of a philosophical departure from previous statements made by the Governor regarding statutory formula programs. He has often stated that it is the obligation of the state to fully fund statutory formulas, most notably for the Permanent Fund Dividend, until such time that they are amended by law.

The veto action brings with it a couple of complications that may cause issues in implementing the education foundation program this year.

If you would like to see the rest of this section, as well as a comprehensive list of all vetoes, consider subscribing to the Alaska Political Report. Email jeff@akpoliticalreport.com for a copy of the latest special report. 

Other Happenings 

Mat-Su Borough Mayor Edna DeVries, a Republican who turns 84 next month, filed a letter of intent to run for governor this week. This makes four Republicans in the race now: DeVries, Lieutenant Governor Nancy Dahlstrom (R – Alaska), former Senator Click Bishop, and Bernadette Wilson. Wilson has been the only one actively campaigning so far, but she has been perpetuating the dividend delusion, which means she is either ignorant or lying. 

Some other people also filed letters of intent to run for the Legislature this week: 

• Representative Dan Saddler (R – Eagle River) filed for re-election.
• Independent Brittani Robbins filed to run for the Senate. She lives in Senator Bert Stedman’s (R – Ketchikan) district, who is up for re-election next year. He has not yet filed a letter of intent. 
• Republican Aimee Sims filed but did not indicate an office. She unsuccessfully challenged Representative Donna Mears (D – Anchorage) last year. She will probably challenge Mears again as running against Senator Bill Wielechowski (D – Anchorage) would be a waste of her time. 

This is very interesting as it could potentially have a big impact on Alaska. Santos has been working for years to develop the Pikka unit on the North Slope. 

This is too bad. I have gotten to know Sean well since 2019 while covering the Legislature in Juneau. He’s a great reporter and an Aussie legend! He will definitely be missed. The Anchorage Daily News sure has been gutted over the last few months. 

So much for that state travel ban from Governor Dunleavy! And what the hell is the Alaska Last Frontier Index anyway? Revenue Commissioner Adam Crum should really enlighten all of us. 

The Landmine’s Paxson Woelber was at the anti-Trump protest on Saturday in Anchorage. You can see his photos on our Flickr account or at this Facebook link.

This Week’s Loose Unit

This was an easy week. This week’s Loose Unit is Governor Mike Dunleavy (R – Alaska). You are probably aware that Dunleavy vetoed down the $700 increase to the Base Student Allocation (BSA) the Legislature passed this year (and later voted to override when Dunleavy vetoed it) to a $500 increase. 

While Dunleavy definitely has the ability to veto down the appropriation, it’s maximum loose for a guy who ran on, and has consistently decried, “follow the law or change the law!” when referring to the Permanent Fund Dividend statutory formula. There is nothing more to say. It’s just classic Loose Unit behavior. 

If you have a nomination for this week’s Loose Unit, or if you have any political news, stories or gossip (or any old pics of politicians or public officials) please email me at jeff@alaskalandmine.com.