Dunleavy proposes cutting funds for schools to supplement cost for Medicaid and disaster relief

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FAIRBANKS, Alaska - Governor Mike Dunleavy has proposed cutting the extra $20 million for schools that lawmakers approved during last year's legislative session. According to the Associated Press, Dunleavy's budget office says that money hasn't been paid out yet and the cut is needed to meet other state obligations.

The office says agencies were asked where money might be available to help offset costs of supplemental spending. Dunleavy proposed two supplemental bills Monday. One deals with state operating and capital issues, including Medicaid. Another named the Disaster Bill would address recovery from the 7.0 earthquake that impacted South Central in November. Funds for firefighting is also incorporated which amounts to roughly $37.3 million in state funds.