Economists: Dunleavy’s vetoes could result in job losses

Economists: Dunleavy’s vetoes could result in job losses

One of the many consequences.

ANCHORAGE — Budget vetoes of $444 million by Alaska’s governor could cause widespread job losses, economists said.

Analysts and business leaders predict lost jobs are only one of the consequences of Gov. Mike Dunleavey’s vetoes, The Anchorage Daily News reported Wednesday.

Losses from the vetoes would be roughly between 4,500 and 7,000 jobs, according to an analysis by the University of Alaska Anchorage Institute of Social and Economic Research.

Higher local property taxes could also result from the 182 line-item vetoes announced June 28, observers said.

“We believe by getting the government side under control, we open up real possibilities for the private sector to grow exponentially,” Dunleavy said Friday.

The state is quickly running through its savings and the Legislature has rejected attempts to increase taxes, said Dunleavy spokesman Matt Shuckerow.

Voters rejected using part of their annual Permanent Fund Dividend to pay for government when they elected Dunleavy, Shuckerow said.

Some experts expressed concerns about what the dramatic cuts will do to Alaska, which has more state government jobs per capita than most other states.

They worry budget cuts will slow the state’s recovery from a recession in which it has been mired for three years.

There is “no way” the cuts will not result in significant job losses rippling through the economy, said Jonathan King, owner of Anchorage economic firm Halcyon Consulting.

“We’re trading long-term jobs of highly educated, high-income individuals — teachers, professors, engineers, people who build roads, that sort of stuff — for a temporary bump in retail associated with the PFD,” he said.

More in News

Michael Penn / Juneau Empire File
The Aurora Borealis glows over the Mendenhall Glacier in 2014.
Aurora Forecast

Forecasts from the University of Alaska Fairbanks’ Geophysical Institute for the week of March. 19

An otter sleeps on the ice near an open channel (Courtesy Photo / Jos Bakker)
On the Trails: Spring comes slowly

As I await more and bigger signs of spring, there have been good things to see along the trails.

State Sen. Bert Stedman, center, co-chair of the Senate Finance Committee, presides over a committee hearing Thursday. The committee on Monday approved an $8.4 million fast-track supplemental budget to address staff shortages in processing food stamps, public defenders and legal advocates for vulnerable residents. (AP Photo/Becky Bohrer)
Bill with funds to address food stamps backlog goes to governor

Legislature gives near-unanimous approval to hiring extra staff to fix months-long backlog

(Michael Penn / Juneau Empire File)
Police calls for Tuesday, March 28, 2023

This report contains information from law enforcement and public safety agencies.

Hoonah’s Masters Bracket team poses for a group photo on Saturday after being crowned this year’s champs for the M bracket in the Gold Medal Basketball Tournament at JDHS. (Ben Hohenstatt / Juneau Empire)
Hoonah crowned Gold Medal Masters Bracket champs

Hoonah’s Albert Hinchman named MVP.

President Joe Biden speaks during an event in the East Room of the White House in Washington, Thursday, March 23, 2023, celebrating the 13th anniversary of the Affordable Care Act. Recent moves by President Joe Biden to pressure TikTok over its Chinese ownership and approve oil drilling in an untapped area of Alaska are testing the loyalty of young voters, a group that’s been largely in his corner. (AP Photo/Susan Walsh, File)
Biden’s moves on Willow, TikTok test young voters

A potential TikTok ban and the Alaska drilling could weigh down reelection bid.

Students dance their way toward exiting the Juneau-Douglas High School: Yadaa.at Kalé gymnasium near the end of a performance held before a Gold Medal Basketball Tournament game between Juneau and Hydaburg. (Ben Hohenstatt / Juneau Empire)
Over $2,500 raised for Tlingit language and culture program during Gold Medal performance

A flurry of regionwide generosity generated the funds in a matter of minutes.

Legislative fiscal analysts Alexei Painter, right, and Conor Bell explain the state’s financial outlook during the next decade to the Senate Finance Committee on Friday. (Mark Sabbatini / Juneau Empire)
Legislators eye oil and sales taxes due to fiscal woes

Bills to collect more from North Slope producers, enact new sales taxes get hearings next week.

The FBI Anchorage Field Office is seeking information about this man in relation to a Wednesday bank robbery in Anchorage, the agency announced Thursday afternoon. Anyone with information regarding the bank robbery can contact the FBI Anchorage Field Office at 907-276-4441 or tips.fbi.gov. Tips can be submitted anonymously.  (FBI)
FBI seeks info in Anchorage bank robbery

The robbery took place at 1:24 p.m. on Wednesday.

Most Read