A $4.9 billion state operating budget for fiscal year 2018, with cuts to state department operations spending of $145 million, was signed into law in Juneau on June 30 by Gov. Bill Walker.
“I thank members of the Legislature for coming together to avert a shutdown of government services,” Walker said, who approved House Bills 57 and 59.
Total state spending on the operating budget has been cut $1.9 billion since fiscal year 201, a 27 percent decrease in three years, and overall state spending is down 44 percent in the last five years.
At the same time, Walker noted that a compromise fiscal plan is still needed.
“Without a complete fiscal plan in place, uncertainty looms over our economy,” he said. “It’s time to fix this problem for good to ensure a stable foundation for generations to come. A compromise fiscal plan can be achieved in the coming weeks- if the Legislature is willing to engage.”
With this budget, the Legislature set permanent fund dividends at $1,100 for each eligible Alaskan, and chose to pay for the $2.5 billion deficit entirely from savings. That leaves just $2 billion in the state’s main savings account, to pay for emergencies, like earthquakes, fires and floods.
Just two days before the Legislature passed the budget, Standard & Poor’s warned the state would get another credit downgrade if it continued to fund government services from savings and without a fiscal plan that includes revenue.
Detailed budget reports and the Office of Management and Budget summary are online at https://www.omb.alaska.gov/html/budget-report/fy2018-budget/enacted.html
