House Finance Committee Co-Chairs Rep. Tammie Wilson, R-North Pole, and Rep. Neal Foster, D-Nome, listen to testimony on Tuesday, July 9, 2019, at the Capitol about how Gov. Mike Dunleavy’s budget vetoes will affect local communities around the state. (Michael Penn | Juneau Empire)

House Finance Committee Co-Chairs Rep. Tammie Wilson, R-North Pole, and Rep. Neal Foster, D-Nome, listen to testimony on Tuesday, July 9, 2019, at the Capitol about how Gov. Mike Dunleavy’s budget vetoes will affect local communities around the state. (Michael Penn | Juneau Empire)

Even ‘right-leaning’ groups, bankers and builders are calling for an override

Testimony universally pans vetoes

Bankers, home builders, Alaska Natives, health care professionals, nonprofit leaders and more all had one message for the Legislature: Override the governor’s vetoes.

During Tuesday afternoon’s House Finance Committee meeting, there were almost two hours of invited testimony delivered in support of overriding Gov. Mike Dunleavy’s 182 line-item budget vetoes totalling over $400 million. At 11:30 a.m. Wednesday, a joint session of the House and Senate is scheduled for consideration of veto overrides.

“I can’t put into words how serious this is and how important it is to override the governor’s veto package,” said Steve Lundgren, who spoke on behalf of the Alaska Bankers Association.

He said while the association generally favors smaller government, it does not support governor’s approach — more than $400 million in vetoes — to the Legislature-approved budget is the best option.

Lundgren said slashes to support for the University of Alaska and school bond debt reimbursement could hurt bond ratings and banks throughout the state.

[Live: Coverage of Tuesday’s talk of ‘the sweep’ and veto overrides]

Rep. Tammie Wilson, R-North Pole, co-chair of the committee, asked if spending at a defecit hurts bond ratings.

Lundgren said over a long enough timeline it could but in the immediate future it would not be as damaging as the the governor’s vetoes.

“We do believe that a step-down approach would be looked at favorably by the rating agencies, but the significant decrease will create so many unknowns, and I think that’s what got the attention of rating agencies,” he said.

Similarly, Jeff Twait of the “right-leaning” Alaska State Home Building Association voiced his organization’s support for a veto override out of concern that the vetoes could cause an economic downturn.

[Economists say vetoes could cause job losses]

Diane Kaplan, CEO and President for the Rasmuson Foundation, and Laurie Wolf, President and CEO of the Foraker Group, each called in to say that the vetoes would undermine their efforts as nonprofits.

Wolf said while not all the nonprofits with which the Anchorage-based Foraker Group works receive state funding, many would still be impacted by the vetoes. Other entities, such as homeless shelters, would directly see less funding as a result of the vetoes.

“Our most vulnerable will be the most harmed,” Wolf said.

Kaplan said the Rasmuson Foundation has generally tried to stay neutral while partnering itself with the state on efforts it supports, such as providing one-third of the Alaska State Council on the Arts’ funding. However, she was insistent the governor’s vetoes must be overridden.

She said anyone who believes that the private sector will plug the funding gap created by the vetoes is fooling themselves.

“It’s impossible,” Kaplan said.

She also said the foundation will have to rethink the efforts — such as supporting endeavors to decrease homelessness — in light of the state’s lack of committed funds.

“We feel our very ability to do this work will be impacted by these vetoes,” Kaplan said.

University of Alaska President Jim Johnsen was the first to call in to the meeting to again raise concerns that losing $130 million in state funding — a 41-percent cut — would be “devastating” for the university.

[Live: Governor announces vetoes, legislators and University of Alaska responds]

He said a conservative estimate puts the number of layoffs that would be cause by the vetoes at 1,300, but there would likely be more than that. That’s because the university anticipates a reduction in tuition revenue as a result of program and cuts and possibly campus closures that would result from lost funding.

“I would ask your consideration of the override,” Johnsen said. “This is very disruptive and an unprecedented interruption in investment in higher education.”


• Contact reporter Ben Hohenstatt at (907)523-2243 or bhohenstatt@juneauempire.com. Follow him on Twitter at @BenHohenstatt.


More in News

The Norwegian Cruise Line’s Norwegian Encore docks in Juneau in October, 2022. (Clarise Larson / Juneau Empire File)
Ships in Port for t​​he Week of Oct. 1

Here’s what to expect this week.

This image from House Television shows Rep. Steve Womack, R-Ark., the Speaker Pro Tempore, presiding as the House passes a 45-day funding bill on Saturday at the Capitol in Washington. The House vote was 335-91. The measure now goes to the Senate, which also is meeting Saturday. (House Television via AP)
On the brink of a federal shutdown, the House passes a 45-day funding plan and sends it to Senate

Peltola, still in Alaska after husband’s death, abstains from vote, but offers statement of support.

This is a photo taken at the Mendenhall Glacier Visitor Center in July. (Clarise Larson / Juneau Empire File)
Forest Service, Tlingit and Haida to co-steward Mendenhall Glacier Recreation Area

Tribe dedicated to “protection of the historic and cultural resources in the area,” president says.

Retiring Deputy Chief David Campbell, left, and City and Borough of Juneau Manager Rorie Watt, right, smile for a photo Friday afternoon during a ceremony held at the Juneau Police Station. (Clarise Larson / Juneau Empire)
Juneau’s deputy and interim police chief retires after 28 years

David Campbell honored for his service during a ceremony Friday afternoon.

Violinist/vocalist Chelsey Green, seen here with her Green Project ensemble in 2022, is scheduled to perform Oct. 4 and 5 during the Juneau Jazz and Classics Fall Music Festival. (Photo courtesy of Chelsey Green)
This fall’s Juneau Jazz and Classics offers the world on a string

Cellos and violins will be playing rock, folk, baroque, fusion and traditional at five-day festival.

(Clarise Larson / Juneau Empire File)
Police investigate ‘random’ drive-by pellet gun attack downtown

A person in a white SUV reportedly shot at two women Wednesday night.

(Michael Penn / Juneau Empire File)
Police calls for Wednesday, Sept. 27, 2023

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

Derek Bos of Colorado smiles for a photo Thursday evening outside of City Hall. Bos is one of two finalists seeking the chief position at the Juneau Police Department. (Clarise Larson / Juneau Empire)
Chief finalist says building trust in schools and faith-based communities a priority

He addresses past controversial arrests of two school district administrators in Colorado.

Most Read