Gov. Mike Dunleavy ramped up his threats to school districts Thursday by declaring he will make a historic line-item veto of some per-student funding in next year’s budget unless his education policy priorities are passed, potentially leaving schools with significantly less money than they receive now during at least the first half of the coming school year.
The Republican governor issued his ultimatum during a Zoom call with the state’s district superintendents Thursday morning. It comes after the Legislature passed House Bill 57 increasing the $5,960 Base Student Allocation by $700 by a veto-proof majority that contains some, but not all, of the governor’s priorities.
Juneau School District Superintendent Frank Hauser said the governor vowed he will veto HB 57 and will also veto an unspecified amount of the BSA from the budget bill unless his policy goals get legislative approval.
A one-time BSA increase of $680 is in effect for the current fiscal year that ends June 30. A line-item budget veto of the extra $700 in HB 57 — presumably when the governor signs the budget in late June, well after the Legislature adjourns — means districts will see a drop in funding for the coming fiscal year unless the action is reversed by a legislative override vote or other legal action.
The Juneau Board of Education has passed a budget for next year that assumes a $400 BSA increase. The Anchorage School Board on Tuesday passed a revised budget reversing some drastic cuts based on the passage of HB 57 and the assumption a BSA increase will occur.
Hauser said the Juneau School District does have some money in its fund balance to cover an unexpected shortfall, and there are various scenarios the school board can consider if the Legislature waits until January to consider a veto override vote. He said he favors having legislators enact HB 57 into law with an override rather than conceding to the governor on his policy requests.
“I think that there’s a strong bipartisan bill in House Bill 57,” he said. “It had a lot of support from legislators and I know a number of the superintendents appreciate the Legislature coming together…And so I really want to focus on the work in the compromise, and the support that public schools and Alaska students have received from the legislators during this legislative session.”
Sen. Jesse Kiehl (D-Juneau) said there has never been a veto of funds from the BSA amount specified in state statute. Rep. Rebecca Himschoot (I-Sitka), co-chair of the House Education Committee, said she believes such a line-item veto would be illegal.
Dunleavy, who has line-item veto authority on discretionary budget items, did veto half of a one-time $680 BSA increase in the budget in 2023. He has vetoed two other increases since, including a $1,000 hike approved by the Legislature earlier this session that lawmakers failed to override.
HB57 passed the Legislature by a combined 48-11 vote (with one Republican absent). An override of the bill would take 40 votes and, since Dunleavy must act on the bill 15 days after it was transmitted to him on May 1 (excluding Sundays) there will be time for such a vote before the scheduled adjournment of the Legislature on May 21.
But if Dunleavy vetoes the funding in the budget itself then 45 votes are necessary for an override. Furthermore, the Legislature would need to call itself into special session — which requires a two-thirds majority — if they wanted to conduct an override vote before the session reconvenes in January.
Among the policies in HB 57 are increasing student transportation funding and easing regulations for forming new charter schools. The governor has stated he wants additional policies approved by lawmakers allowing open enrollment for students outside their home districts, and additional measures to expand charter schools..
“What I understand right now is the daylight between what the governor is asking for and what is left is very small — around open enrollment, maybe in charter school language perhaps,” Senate Minority Leader Mike Shower (R-Wasilla) said during a press availability Thursday when asked about the governor’s meeting with superintendents. “So I don’t know all the particulars, but there is a chance that we can find an agreement.”
Dunleavy, in a statement posted Thursday on social media, described his meeting with superintendents as “a productive conversation focused on our shared commitment to improving education for all children.”
“I want Alaskans to know that we’re not backing down when it comes to fighting for our kids and their future,” the governor wrote. “Parents deserve better. Students deserve better. And that means we need real reforms alongside responsible investments. Alaska’s test scores are near the bottom – and that is no longer acceptable. We need a system that delivers results, not just more spending.”
House Speaker Bryce Edgmon (I-Dillingham) said there isn’t enough time before the Legislature adjourns to give proper consideration to the policy proposals Dunleavy is seeking. Edgmon said all options including a special session will be considered if Dunleavy vetoes BSA funding in the budget.
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
