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Reporters press Dunleavy on multi‑billion long‑term deficits; governor points to resource development and carbon monetization

Office of the Governor · December 18, 2024

Summary

Multiple reporters highlighted the administration's 10‑year plan that shows growing deficits; Governor Dunleavy argued the solution is to increase resource production (oil, gas, timber, mining) and pursue carbon monetization rather than taxes, and he declined to propose income or sales taxes in the budget.

Reporters raised repeated concerns about the administration's 10‑year plan, which several journalists cited as showing a structural deficit that grows to the billions by the 2030s and would exhaust the Constitutional Budget Reserve (CBR) under current assumptions. Mark Sabatini and Sean Maguire pressed the governor on whether he considers that long‑range outlook responsible and what policies he plans to introduce to avoid leaving the next governor with similar fiscal challenges.

Governor Dunleavy acknowledged the projections but repeatedly argued that resource development is the policy path to close structural gaps. "We began the process in earnest to monetize a resource known as carbon," he said, adding that increased oil and gas production (citing projects such as Willow and Pikka) and interest from investors in carbon strategies can increase revenues. He told one reporter, "I'm not going to — I'm not advocating [an income or sales tax] in the budget," and said legislative proposals to change the PFD or introduce taxes would be subject to the legislative process.

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