In his seventh State of the State address, Gov. Mike Dunleavy told a joint session of the Alaska Legislature that the state is “heading in the right direction.”
He started his 45-minute speech touting Alaska’s successes, including increases in population growth and job growth, decreases in unemployment, growth in the Permanent Fund and expanded airline service, before commending activity in the oil, mining and energy industries.
The governor compared state government to a football game, telling legislators that it was the fourth quarter for his time in office, and encouraged them to remember that they’re all on “Alaska’s team.”
Public safety is a top priority
Dunleavy emphasized an overall decrease in crime since 2018. He said his administration created additional public safety positions, cleared the backlog in sexual assault test kits and enhanced sentencing for drug dealers who sell fentanyl in Alaska.
“There is still much more work to be done to ensure every Alaskan, no matter who they are or where they live, can feel safe in their homes and communities,” he said.
Alaska State Troopers seized more than 1,262 pounds of illegal drugs in 2024, according to a report by the Statewide Drug Enforcement Unit, up from the seizure of 78 pounds of drugs in 2018, Dunleavy said.
Education reform
The Alaska Reads Act was implemented in 2023 to teach students to read at grade level by the third grade. Dunleavy said that “the early data is very encouraging” as data shows proficiency rates rising among students.
Dunleavy touted a 2023 Harvard University study on charter schools which ranked Alaska’s charter schools number one in the nation. The study drew conclusions from tests administered to fourth and eighth grade students and compared charter schools to those in other states, not traditional public schools.
“But despite the evidence that parents want choice in public education, despite the evidence that students can succeed in more than one type of environment, there are some very loud voices that show up down here like the swallows returning to Capistrano with megaphones and T-shirts telling you that the only thing that matters is money,” he said.
Educators have been advocating for an increase in the state’s per-pupil funding. The Fairbanks North Star Borough Board of Education is advocating for an increase in the BSA consistent with inflation, according to their legislative priorities.
Dunleavy advocated for increased opportunities for public school choice, such as charter schools and public homeschooling.
“I’ll talk to anyone about more money if the conversation is also about different approaches and better outcomes, and that’s what my education initiatives will include this year,” he said.
Fiscal responsibility
Dunleavy said that he has kept his promise for Alaska to live within its means by holding operating spending growth to 8% since 2019.
“Holding spending in check has helped us put money into savings for times when oil prices are low, pay down debt, and improve our credit ratings, all while providing the essential services Alaskans expect. But money doesn’t grow on trees. If we want more money for programs, we need more resources plays to fund them,” he said.
Dunleavy reminded Alaskans that the state budget is tied to resource development.
He also said he supports attracting business growth to Alaska through investments on the North Slope which are expected to bring in millions in economic development and oil production.
However, a semiannual forecast released by the state Department of Revenue in December found that oil revenues are expected to decline over the next few years.
“Forecasts are not written in stone, and decline is not inevitable,” Dunleavy said. “Decline is a choice, and I reject that choice.”
He said that while 2014 revenue forecasts predicted decreased oil production, production in 2024 was 150,000 barrels per day greater than the 2014 forecast.
He called ConocoPhillips’ Nuna and Willow projects and the Santos-Repsol Pikka Project reflect a “renaissance that will sustain our pipeline operations and stabilize our revenue for decades to come.” According to Dunleavy, these projects in addition to current production will bring Alaska’s oil production to 650,000 barrels per day.
Working with Trump
Dunleavy said that he is excited to work with President Donald Trump, who he considers “the most pro-Alaska president we’ve ever had.”
Trump signed an executive order rescinding Biden-era restrictions on development in Alaska on Jan. 20. The order allows for gas and oil exploration in the Arctic National Wildlife Refuge, calls for prioritizing Alaska’s liquefied natural gas potential, reverses the Biden administration’s rejection of a right-of-way permit to build the Ambler Road and reinstates rules to open up federal lands.
“This is unprecedented and demonstrates his view of the importance of Alaska as a solution to America’s energy, manufacturing and national security issues,” Dunleavy said.
Embrace opportunities
Dunleavy called on Alaskans to embrace opportunities for investment.
“Nobody can compete with our natural resources of every kind including timber, minerals, oil, gas, land, water and renewables,” he said.
Dunleavy said he’s introducing a comprehensive education bill, introducing legislation to ensure Alaska has the most competitive licensing process and initiatives for workforce development, and tapping timber resources.
He added that he sees opportunities to make Alaska safer, improve education, make Alaska more affordable, monetize carbon and increase food security.
“I’m an optimist because I believe in the people of Alaska and the great things we can accomplish together,” he said.
Reactions
Senate President Gary Stevens (R-Kodiak) said in a statement Tuesday night, “Alaska faces significant challenges, including inadequate education funding, a seafood industry in crisis, the need for affordable and reliable energy along the Railbelt, and ongoing workforce shortages. While there may be areas where the Governor and the Senate differ, we recognize the shared responsibility to address these challenges for the benefit of all Alaskans.”
Stevens wrote that education is one of the most urgent challenges in the state as class sizes grow, schools close and programs are cut.
“We must tackle this crisis now or risk falling further behind. Education is a cornerstone of our economy, and a strong public education system is essential if we want to attract young families to Alaska and provide them with opportunities for growth and success,” he said.
The Alaska House Republicans issued a statement Tuesday night that they support Dunleavy’s initiatives to expand economic opportunities, improve education, ensure public safety and make life more affordable for Alaskan families.
Alaska House minority caucus leader Representative Mia Costello (R-Anchorage) said, “With job growth, increased investments, and expanded resource development, we have a unique chance right now to create a stronger future for all Alaskans. Alaska’s future is bright, and we are committed to ensuring that every opportunity is met with bold leadership and responsible action.”