The state is quickly running through its savings and the Legislature has rejected attempts to increase taxes, said Dunleavy spokesman Matt Shuckerow.
Voters rejected using part of their annual Permanent Fund Dividend to pay for government when they elected Dunleavy, Shuckerow said.
Some experts expressed concerns about what the dramatic cuts will do to Alaska, which has more state government jobs per capita than most other states.
They worry budget cuts will slow the state’s recovery from a recession in which it has been mired for three years.
There is “no way” the cuts will not result in significant job losses rippling through the economy, said Jonathan King, owner of Anchorage economic firm Halcyon Consulting.
“We’re trading long-term jobs of highly educated, high-income individuals — teachers, professors, engineers, people who build roads, that sort of stuff — for a temporary bump in retail associated with the PFD,” he said.