Note to the governor,

During the Sheffield administration, the price of oil dropped dramatically causing a substantial deficit in state spending. Governor Sheffield took immediate action and cut the state budget 10% across the all agencies. As a consequence, through his actions, he happens to be the most conservative governor in Alaskan history. 

Governor Dunleavy, you are the governor who has the most vested power than any other governor in America. You surely know the State of Alaska has a major deficit. It is time for you to take the playbook of Sheffield out, dust it off, and execute an executive order to cut all agencies across the board 10%. This will save the State of Alaska $1 billion directly in savings. 

Additionally, it is the position of Miission Critical to take the lead like President Trump, to immediately execute  Administration Orders and Executive orders to do the following:

1. Return all Medicaid funding for native health services as this is the SOLE responsibility of the federal government.

2. Institute a reduction in force - Hiring Freeze

3. Immediately call for a citizens advisory vote on the traditional PFD.

4. Issue a directive to the legislature and demand that they follow the laws they have created. 



Administrative Order Recommendations

Administrative Order No. XXX

 

STATE OF ALASKA
OFFICE OF THE GOVERNOR

 

ADMINISTRATIVE ORDER NO. XXX

 

BY: Governor Michael J. Dunleavy, Governor of the State of Alaska

 

DATE: April 13, 2025

 

AUTHORITY:
Under the authority vested in the Governor by Article III, Sections 1, 23, and 24 of the Alaska Constitution, and Alaska Statutes AS 37.07.080(f) and (g), AS 44.17.060, and AS 44.19.060, this Administrative Order is issued to address the projected $850 million budget deficit for Fiscal Year 2025, protect the full statutory Permanent Fund Dividend (PFD) for eligible Alaskans, maximize the private economy’s impact, eliminate government waste and inefficiency, and ensure sustainable fiscal health.

 

PURPOSE:
To implement immediate and targeted cost-saving measures, enhance revenue without new taxes, eliminate waste, and ensure the full PFD is paid, thereby supporting both the state’s fiscal stability and the economic well-being of Alaskans.

 

SECTION 1: PROTECTION OF THE FULL PERMANENT FUND DIVIDEND

• The State of Alaska shall pay the full statutory Permanent Fund Dividend (PFD) for Fiscal Year 2025, as calculated under AS 37.13.140 and AS 37.13.145.

• This commitment ensures that the maximum amount of funds remains in the hands of Alaskans, supporting the private economy and providing direct economic relief to households.

 

SECTION 2: IMMEDIATE COST-SAVING MEASURES

To reduce government spending without requiring legislative appropriation changes, the following measures are enacted:

 

• Statewide Hiring Freeze:

  • All non-essential vacant state positions (approximately 2,900 PCNs) are frozen, saving an estimated $322 million annually.

  • Exemptions for critical roles (e.g., public safety, health) must be approved by the Office of Management and Budget (OMB).

 

• Travel and Discretionary Spending Cuts:

  • All non-essential state travel is suspended, saving approximately $62 million annually.

  • Discretionary spending (e.g., contracts, supplies) is reduced by 10% across all agencies.

• Administrative Efficiency:

  • The Department of Administration shall streamline processes to cut overhead costs by 5% statewide.

  • A task force is established to review agency consolidation, targeting $5-10 million in annual savings.

 

SECTION 2.5: TARGETED WITHHOLDING OF EXPENDITURE AUTHORITY

The following withholding measures are implemented to further reduce non-essential spending while protecting critical services:

 

• 10% Withholding for Non-Essential Programs:

  • The Commissioner of Administration shall withhold 10% of appropriations for non-essential programs, such as economic development grants and cultural programs, as identified by the OMB.

 

• 50% Withholding for Capital Projects:

  • For capital projects, 50% of appropriations shall be withheld, with priority given to projects critical for public safety, infrastructure, and economic development.

 

• Exemptions and Reduced Withholding for Essential Services:

  • Essential services, including public safety, healthcare, and education, are exempt or subject to a maximum 5% withholding.

 

• Review of Encumbrances:

  • All state agencies shall review existing encumbrances and lapse those not critical to current operations, freeing up additional funds.

 

SECTION 3: REVENUE-ENHANCING STRATEGIES

To increase state revenue without new taxes, the following actions are directed:

 

• Service Fee Adjustments:

  • Departments shall update fees for licenses, permits, and services under AS 44.17.060 to reflect current costs.

 

• Federal Funding Pursuit:

  • The OMB shall aggressively seek additional federal grants, particularly for infrastructure and public safety.

 

• Economic Growth Initiatives:

  • The Department of Commerce shall expand programs to attract private investment, broadening the tax base over time.

 

SECTION 4: ELIMINATING WASTE AND INEFFICIENCY

To ensure efficient use of taxpayer dollars, the following measures are enacted:

 

• Targeted Audits:

  • The Division of Legislative Audit shall audit high-spending departments, aiming to cut waste by 3-5% (up to $50 million).

 

• Performance-Based Budgeting:

  • All agencies shall adopt performance-based budgeting by Fiscal Year 2026, linking funds to measurable outcomes.

 

• Innovation Incentives:

  • A $1 million fund is established to reward employees for cost-saving ideas.

 

SECTION 4.5: LEGISLATIVE ENGAGEMENT AND OVERSIGHT

To ensure transparency and legal compliance, the following steps are taken:

 

• Joint Task Force with the Legislature:

  • A joint task force shall be established to review withholding measures, propose long-term fiscal solutions, and provide bipartisan oversight.

 

• Regular Reporting:

  • The OMB shall provide quarterly reports to the legislature on the status of withholding measures, savings achieved, and impacts on state services.

 

SECTION 5: MAXIMIZING PRIVATE ECONOMY IMPACT

To amplify the economic benefits of the PFD, the following actions are directed:

 

• Regulatory Relief:

  • The Department of Commerce shall streamline business permitting and reduce regulatory burdens to encourage entrepreneurship.

 

• Infrastructure Prioritization:

  • The Department of Transportation shall focus existing funds on projects that enhance market access, particularly in rural areas.

 

SECTION 6: LEGAL COMPLIANCE AND TRANSPARENCY

• This order respects legislative appropriation powers under the Alaska Constitution, focusing on executive-controlled actions.

 

• Quarterly reports shall be issued to ensure public accountability regarding deficit reduction and PFD protection.

 

SECTION 7: GOALS, METRICS, AND COLLABORATION

• Goals:

  • Reduce the budget deficit below $850 million by the end of Fiscal Year 2025.

  • Achieve $500-600 million in savings and revenue combined.

  • Pay the full statutory PFD.

 

• Metrics:

  • Track savings by category (e.g., hiring freeze, withholding).

  • Monitor economic indicators tied to PFD spending.

 

• Legislative Partnership:

  • The joint task force shall craft long-term fiscal solutions to ensure sustainability.

 

SECTION 8: EFFECTIVE DATE

This order takes effect immediately and remains active until the deficit is resolved or legislative action supersedes it.

 

 

BY ORDER OF THE GOVERNOR:
[Signature]
Governor Michael J. Dunleavy
State of Alaska

 

 

This Administrative Order provides a comprehensive framework to address Alaska’s $850 million budget deficit while ensuring the full Permanent Fund Dividend is paid to eligible Alaskans. It incorporates immediate cost-saving measures, targeted withholding of expenditure authority, revenue-enhancing strategies, and efforts to eliminate waste, all while maintaining transparency and collaboration with the legislature.