NOTN- Governor Mike Dunleavy on Thursday released his proposed Fiscal Year 2027 budget, a plan that would rely heavily on state savings to cover a substantial revenue gap.

The Office of Management and Budget projects the state will receive $15.3 billion in total revenue for the fiscal year beginning July 1, 2026, including $6.2 billion in unrestricted general funds available for lawmakers to appropriate, according to the statement release by Governor Dunleavy.

With declining revenue forecasts and rising costs attributed to inflation, Dunleavy’s proposal calls for withdrawing $1.5 billion from the Constitutional Budget Reserve, Alaska’s primary savings account, which currently holds about $3 billion.

Dunleavy said he plans to introduce a fiscal plan next session aimed at stabilizing state finances without raising taxes. He said the proposal will focus on expanding the private sector, controlling government growth and broadening the state’s economic base beyond oil.

Key elements of the governor’s FY 2027 budget include full statutory funding for K–12 public education, a full statutory Permanent Fund dividend of $3,650 per person and continued investment in public safety.

In an interview with KINY earlier this morning Juneau Senator Jessie Kiehl said, “The expectation is that it will be a budget that grapples with low oil prices. They’re closing below $64 a barrel, and that’s that’s really rough on the Treasury, and costs are going up for state services, just like they’re going up for Alaska. The governor has said that he’s submitting a fiscal plan, and that will be a very welcome change of pace, and if he is serious about that, it will give us a huge amount of work to do in this coming session, if we can get the state’s finances stabilized, not fat and happy, just stable, so we’re off the roller coaster. Alaska is poised for great things.”