Neil Steininger, director of the Alaska Office of Management and Budget and speaks before House Finance Committee. House Finance Committee on Thursday February. 2 2023. (Photo from James Brooks/Alaska Beeacon)

Gov. Mike Dunleavy has replaced Alaska’s most senior executive-branch budget officer just when work is beginning to get underway on his draft state’s budget for fiscal year 2025.

The governor sacked Neil Steininger, head of the Office of Management and Budget on Friday. Steininger has been replaced with Lacey Sanders, formerly administrative services director of the Alaska Department of Education and Early Development.

The governor’s office has refused to provide a reason for the change in leadership and firing. In a statement issued on Tuesday on X previously known as Twitter the office of the governor said it is looking forward having a conversation with Sanders and believes her knowledge will be beneficial in the administration of state.

Sanders has many years of experience working for the state, which includes periods as budget director as well as working with his Legislative Finance Division, which provides advice on budgets and analyses for the legislative department of the government.

Steininger was in the post starting in January 2020, five months following the expiration of the term of Donna Arduin, Dunleavy’s first director of the budget.