Not only is it robbing our schools, but it takes was from local revenue that provides emergency services. This will require a greater burden on property taxes. It takes away from a bond sharing measure, which will also place the burden on local taxes. It's cutting a local prison and shipping the inmates out of state, cutting a large employer in the area. By cutting jobs, fewer people will live here, further increasing the tax burden on those who stay.
The budget is only a proposed budget; however, in Alaska, the governor has the ability to line-item veto to make any budget he receives to meet exactly his terms. The only way to override this is if 45 of the 60 legislators agree to do so.
Here's how this goes down. Political agreements are made, and a "compromise" in cuts will be instituted (perhaps from devastating to merely decimating). After having strapped local areas from being able to adequately fund themselves, a provision will be introduced to allow a specially appointed "consultant" (perhaps called an "emergency manager") to take over those governments and agencies that are in financial distress. These mini-dictators will have the power to nullify contracts (including negotiated benefits and contracts) with no oversight other than the governor himself. They will eradicate local control of areas, cutting services while providing tax breaks to large businesses.
More people will leave the state. The recession (directly caused not by the drop in revenue, but by a poorly thought-out tax rebate program to the state's main industry when times were better) will intensify. Despite a conservative majority in the legislative, executive, and judicial branches, somehow "liberal" policies will be blamed, further cuts will be made, and suddenly a major city is without potable drinking water for years.
Sure, what happened in Michigan less than a decade ago might not happen in Alaska. After all, the cuts proposed by Governor Dunleavy are greater than the ones proposed (and instituted) by Governor Snyder. It could be much, much worse.