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

A Princess Cruise Line ship is docked in Juneau on Aug. 25, 2021. (Michael Lockett / Juneau Empire File)
Ships in Port for the week of June 26

Here’s what to expect this week.

Courtesy Photo / Office of Gov. Mike Dunleavy 
Gov. Mike Dunleavy on Tuesday signed the budget for the upcoming fiscal year.
Gov. Dunleavy signs budget

PFD of about $3,200, $400 million in vetoes to Legislature-approved items among declared highlights

The Alaska Department of Health And Social Services building in Juneau has no visible signs indicating the department is splitting into two agencies as of Friday. Top officials at the department said many of the changes, both physical and in services, are likely weeks and in some cases months away. (Mark Sabbatini / Juneau Empire)
Little sign of big change for DHSS

No commissioner at new department, other Dept. of Health and Social Services changes may take months

Elizabeth Peratrovich Hall, 320 W. Willoughby Ave., will be open as a cooling center through Wednesday for elders who need a cool place during the ongoing heatwave. (Michael S. Lockett / Juneau Empire)
Tlingit and Haida opens cooling center for elders

Keep your cool during the heatwave.

An Alaska Seaplanes Cessna 208A, seen here on the tarmac, suffered damage after failing to achieve takeoff near Elfin Cove on Sunday, June 26, 2022. (Courtesy photo / Alaska Seaplanes)
No one hurt after plane’s takeoff goes awry

The aircraft failed to achieve take off and hit the beach while leaving Elfin Cove.

A 13-year-old girl was medevaced Saturday after being struck by a vehicle near the crosswalk across Egan Drive by Gold Creek. (Michael S. Lockett / Juneau Empire)
Teen in serious condition after SUV strikes bike

Juneau Police Department is investigating.

The Norwegian Sun sat moored in Juneau on Monday after striking striking ice Saturday afternoon near Yakutat Bay on its way to Skagway. (Michael S. Lockett / Juneau Empire)
Update: Cruise ship that struck iceberg departs Juneau

It’s heading to Seattle for repairs.

Molly Smith directs Brad Oscar and the cast of Damn Yankees in 2005 at Arena Stage. (Courtesy Photo / Arena Stage)
Americana exceptionalism: Perseverance Theatre founder Molly Smith to retire from Arena Stage in Washington, D.C.

Perseverance Theatre founder Molly Smith retiring at Arena Stage after 25 years in Washington, D.C.

It's a police car until you look closely and see the details don't quite match. (Juneau Empire File / Michael Penn)
Police calls for Tuesday, June 28, 2022

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

Most Read