FOR IMMEDIATE RELEASE No.

17-107

Contact: Jonathon Taylor, Deputy Press Secretary (907) 465-3985

Governor Walker Signs $4.9 Billion Operating Budget Bills into Law
Reduced $145 million in department spending; protected education and public safety funding

June 30, 2017 ANCHORAGEGovernor Bill Walker today signed into law House Bills 57 and 59,
approving the $4.9 billion operating budget bills the legislature passed for fiscal year 2018 (July 1, 2017
June 30, 2018), without vetoes. State spending for department operations has been cut $145 million
from the previous year, and total state spending on the operating budget has been cut $1.9 billion since
fiscal year 2015a 27 percent decrease in three years. Overall state spending has been reduced 44
percent in the past five years.

In passing its budget this year, the legislature set permanent fund dividends at $1,100 for each eligible
Alaskanand chose to pay for the $2.5 billion deficit entirely from savings. That leaves only $2 billion in
the states main savings accountwhich pays for response to emergencies, like earthquakes, fires, and
floods.

I thank members of the legislature for coming together to avert a shutdown of government services,
Governor Walker said. However, the job is not complete. Without a complete fiscal plan in place,
uncertainty looms over our economy. Its 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 weeksif the
legislature is willing to engage.

Two days before the legislature passed the budget, Standard & Poors warned that the State of Alaska
would get another credit downgrade if it continued to fund government services from savings and
without a fiscal plan that includes revenue.

Significant cuts have been made since 2015, said Office of Management and Budget Director Pat
Pitney. Its imperative members of the legislature come together to pass the necessary revenue
components.

To view the detailed budget reports and OMB summary, click here.

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