Fifteen Alaska local governments are set to share around $300 million to pay for old school construction costs as part of the budget passed by the Alaska Legislature last month that was signed into law by Gov. Mike Dunleavy on Tuesday.
Nils Andreassen, executive director of the Alaska Municipal League, said those vetoes had a “drastic” effect on some small communities’ bottom lines that expected the state to pay its share.
An ongoing windfall from high oil prices has changed the state’s fiscal picture, turning a billion-dollar deficit into a multibillion-dollar surplus. The Legislature appropriated roughly $300 million during the last legislative session to reimburse municipalities for school bond debt for this year, and each of the three years of Dunleavy’s vetoes.
In addition, the Legislature appropriated $116 million for school districts in the Regional Education Attendance Area to pay their school debt for this year, and for the past three years of vetoes.
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