The Latest: Budget plan includes cuts to education, Medicaid - InfoNews

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The Latest: Budget plan includes cuts to education, Medicaid

February 13, 2019 - 2:06 PM

JUNEAU, Alaska - The Latest on the Alaska budget (all times local):

12:55 p.m.

Gov. Mike Dunleavy's budget proposal includes deep cuts to public education, the university system, Medicaid and Alaska's ferry system.

The budget plan also eliminates state support for public broadcasting and proposes changes in petroleum property tax collections that will benefit the state but affect areas like the North Slope Borough.

Dunleavy says sacrifices are needed to resolve a deficit that's been forecast for the coming year at $1.6 billion.

His proposal includes cuts to the K-12 school funding formula and eliminating a $30 million, intended one-time boost to schools previously approved by lawmakers.

The University of Alaska system president calls proposed cuts to that system devastating. Dunleavy's plan would cut state support for the ferry system, with hopes that another management option will be found.

Changes to Medicaid reimbursement rates also are proposed.

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11:10 a.m.

Gov. Mike Dunleavy unveiled a pared down budget Wednesday that he says will impact every Alaskan.

Dunleavy is proposing a budget to cover a projected $1.6 billion deficit. Areas of impact include the University of Alaska system, K-12 public education and health and social services.

Dunleavy spoke in generalities during a news conference in Juneau before his budget team planned to outline specific proposals later Wednesday.

His budget director anticipated a potential loss of about 700 jobs though it wasn't clear if all those positions are currently filled.

Dunleavy says there's nothing currently in the budget that will do away with Medicaid expansion, but he says there could be further discussions on that.

News from © The Associated Press, 2019
The Associated Press

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