On June 24, 2026, Governor Mike Dunleavy signed the State of Alaska Fiscal Year 2027 budget into law, providing needed investments in school infrastructure and additional funding to districts to offset increased energy and related costs.
Addressing Energy Costs and School Needs
The unforeseen events in the Persian Gulf led to a temporary increase in oil prices over the past several months, leading to higher-than-expected revenues to the State. However, the increase in oil prices resulted in dramatically higher costs for energy during the time of year when rural school districts purchase fuel in advance.
The administration and the Legislature chose to direct a portion of the state’s one-time revenue toward addressing energy-related costs and overdue capital needs in schools across Alaska. Governor Dunleavy stated, “This was an anomaly, not a trend, and it created both an opportunity and a responsibility.”
The Governor’s vetoes preserve $57.8 million of state general funds and $31.7 million of designated general funds, federal receipts, and other funds. The budget also provides $57 million for the Disaster Relief Fund and $60.6 million for the Fire Suppression Fund.
Original reporting: Must Read Alaska (Anchorage) — read the source article.
