Budget deficit grows as governor proposes spending to fix problems

Gov. Mike Dunleavy’s amended budget unveiled Feb. 15 attempts to address crisis areas in state public services, with the additional spending driving the anticipated budget deficit past $400 million.

The proposed budget for the next fiscal year is updated from his initial proposed budget announced in December. At that time, Dunleavy’s largely flat spending proposal for services had a $322 million deficit. The largest single expense in the governor’s proposed budget is $2.5 billion for a Permanent Fund dividend at roughly $3,900 per person this year.

Dunleavy said Feb. 15 that to bridge the fisc...