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More than likely, the Legislature and Gov. Mike Dunleavy will strike a deal next month to increase state funding for K-12 education in Alaska. That’s the big checkbook fight as lawmakers face a May 21 constitutional deadline to finish their work. The increase in state aid will not be enough to solve all the money problems at school districts across Alaska, but it will be enough to prevent the worst of the crisis from hitting students, teachers and parents for the 2025-2026 school year. In Wrangell’s case, it probably will be enough money to...
Fiscal conservatives like to say that Alaska has a spending problem. Solve it, cut programs, and the good tax-free life can continue — along with a fat Permanent Fund dividend every fall. The other side in the budget debate says the state has a revenue problem. They cite the political refusal to consider changes in oil taxes, mining taxes or corporate taxes, the rejection of a return to the pre-oil-days personal income tax, even the denial of an increase in the lowest-in-the-nation motor fuel tax rate. They say raise new revenues and a good l...
Along with announcing his veto of an education funding bill on April 17, Gov. Mike Dunleavy introduced new legislation with less of an increase in the state’s per-student funding formula, along with additional funding and policy items to benefit charter schools and homeschool programs. At a news conference in the state Capitol, the governor said there were two reasons for his veto. “One of the reasons is that the (state) revenue situation has deteriorated a lot” in recent months, Dunleavy said. “And the second reason for the veto is there’s...
A change to Alaska’s corporate income tax structure could add as much as $65 million a year to the state treasury by expanding the tax code to collect more from digital businesses, such as online merchants located outside the state. The Alaska Senate voted 16-4 on April 15 to approve Senate Bill 113, which changes the state’s corporate income tax code to require online merchants and other businesses pay taxes in Alaska based on their sales into the state, even if they have no employees or property in Alaska. Selling goods or services to Alaskan...
As Alaska legislators confront a major state budget deficit, the state Senate on April 15 voted unanimously to approve a “bare bones” $162 million capital budget to pay for construction and renovation projects across the state. The spending plan, which would take effect July 1, remains a draft subject to approval by the House. Gov. Mike Dunleavy could also veto individual items in the spending plan. The budget bill passed by the Senate is almost entirely limited to the minimum in state money needed to unlock more than $2.5 billion in fed...
The Alaska Legislature last week passed a major increase in the state’s per-pupil base funding formula for schools, but Gov. Mike Dunleavy said he will veto the measure because it lacks any of the provisions he wants such as more state support for homeschooling. The formula change passed the Senate and the House with no votes to spare — 11 votes in the 20-member Senate and 21 votes in the 40-member House. Assuming the governor makes good on his veto pledge — he called the legislation “a joke” last week — it would take a supermajori...
The Alaska Department of Health is at risk of losing federal funding because of an ongoing backlog in reviewing food assistance applications, federal officials told the state last month. The state has repeatedly failed to comply with deadlines to process applications for the Supplemental Nutrition Assistance Program, or SNAP, leaving thousands of Alaskans waiting months for help. The processing backlog has persisted despite the state spending tens of millions of dollars to address it, and despite orders from state and federal judges for the...
The Alaska Legislature has voted to allow teenagers as young as 18 to serve alcohol in the state. The Alaska House of Representatives voted 32-8 on April 2 to pass Senate Bill 15, which lowers the minimum alcohol-serving age in restaurants, breweries, wineries, distilleries, resorts and similar businesses. The minimum age to serve alcohol at a bar or sell it at a package store remains 21. A separate provision of the bill requires alcohol-serving businesses to post a sign stating that alcohol causes cancer. The House’s vote follows a 19-0 v...
Midway through the decade, Alaskans have failed to make significant progress toward the 2030 health targets in numerous categories, according to an annual tracking report issued by state and tribal officials. The latest Healthy Alaskans update, compiled as of December, shows a lack of progress in reducing rates of drug- and alcohol-related deaths, continued sedentary behavior among adolescents, failure to improve inadequate rates of prenatal care for pregnant women and well-child care for young children, and continued high rates of death from...
Gov. Mike Dunleavy has been traveling a lot to Asia, Houston and Washington, D.C., working hard to sell government officials and the private sector on the decades-old vision of an Alaska North Slope natural gas pipeline to make the state rich again. But while peddling the dubious prospects of a megaproject — one of the most expensive natural gas developments anywhere in the world — the governor has been absent from his day job. He hasn’t been fiddling, and the state isn’t burning like it does during the wildfire season, but he has been playing...
Troy Sauve, a Fairbanks resident, submitted his applications for food and heating assistance to the Alaska Division of Public Assistance on Oct. 24. His eligibility hearing was held more than four months later. Sauve, who works seasonally as a cook at a resort, relies on the Supplemental Nutrition Assistance Program, or SNAP, to make ends meet. He is one of hundreds of Alaskans who have been waiting longer than three months for food assistance amid an ongoing backlog in the state office charged with processing aid applications. Sauve spent...
Vacation rental: Historic six-bedroom, 10-bathroom mansion with eight fireplaces and ballroom. Vacant much of the year. Conveniently located in the heart of downtown Juneau, within easy walking distance of the Alaska State Capitol and other attractions. A bill introduced on March 17 by Fairbanks Rep. Will Stapp would turn the Alaska Governor’s House into a short-term rental. House Bill 139 would allow rentals at the three-story, 14,400-square-foot residence “when the legislature is not in session and the governor has not reserved the mansion in...
The Alaska Department of Revenue forecast on March 12 that the state will see a bigger budget deficit in the next fiscal year due to lower oil prices. Oil prices have dropped about $10 a barrel since early January as the market reacts to risks of U.S.-instigated trade wars, a weakened global economy and new oil supplies exceeding demand. Oil taxes and royalties are the second-largest source of general fund revenue for the state budget, behind only Permanent Fund earnings. The Alaska Legislature is facing a combined $650 million shortfall over...
Increased state investment in marketing would help the battered Alaska seafood industry seize an opportunity to improve sales within the United States, the head of the Alaska Seafood Marketing Institute told state lawmakers. Jeremy Woodrow, ASMI’s executive director, attempted to make his organization’s case to the state Senate Finance Committee for $10 million in state funding. The money could be put to work to promote Alaska seafood at a time when there is no competition in the domestic market from Russian seafood, which was banned from the...
A proposed 20-year plan seeking to restore the ailing Alaska Marine Highway System to a more reliable and sustainable operation calls for a major increase in funding for operations and building several new ships. The six new ferries and shoreside improvements could cost $3 billion. The draft plan also envisions an ambitious increase in service to smaller communities, including Wrangell, while shrinking the total fleet from nine ships to eight. The draft plan published Feb. 28 seeks about $3 billion in vessel and infrastructure spending, plus...
British Columbia Premier David Eby said on March 6 that he intends to introduce legislation that would place tolls on commercial trucks traveling from the Lower 48 states to Alaska through his province. Speaking at the Legislative Assembly building in Victoria, Eby said the move is one of several that he is taking in response to President Donald Trump’s erratic Canadian tariff plans. “I’m here to share that we will be introducing a new law in the coming days to respond to this historic challenge: unprecedented legislation. It will inclu...
All seven members of the powerful state Senate Finance Committee on Feb. 24 proposed rewriting the payment formula in state law for the annual Permanent Fund dividend, renewing the Senate’s effort to replace an obsolete, 43-year-old law that hasn’t been followed since 2015. If signed into law, Senate Bill 109 would split the annual earnings transfer from the Alaska Permanent Fund to the state treasury: 75% of that transfer would be reserved for state services, and 25% would be used for dividends. This year, the PFD would be about $1,420 per...
Measures to raise new state revenue were introduced in the Alaska Senate on Feb. 26, including one that would substantially increase taxes on oil companies. Legislators are facing a widening deficit this year and a worsening fiscal outlook due to declining oil revenue. The Republican-led Congress is also expected to make deep cuts to programs such as Medicaid, adding to Alaska legislators’ concerns that costs will be shifted to the state. The nonpartisan Legislative Finance Division has projected that the state faces a $536 million deficit o...
Gov. Mike Dunleavy has introduced a bill that would partially reverse Alaska’s 35-year-old ban on fish farms. If it makes it into law, the bill would not allow salmon farming but would allow farming of “any bony fish belonging to the osteichthyes class.” That includes species like tilapia, catfish or carp — the world’s most widely farmed fish. The chair of the House Fisheries Committee, Kodiak Rep. Louise Stutes, disagrees with the governor’s proposal. “Alaska’s commercial fishing industry, our coastal communities and fishing families across...
In a series of hearings last week, members of the Alaska Legislature heard emotional testimony about the need for more education funding. As lawmakers consider the idea, it’s becoming increasingly clear within the Capitol that more funding for public schools will come at the expense of the Permanent Fund dividend. “The state of Alaska is probably facing its largest fiscal problem … in 30 years,” said Bethel Sen. Lyman Hoffman, chair of the Senate Finance Committee, on Feb. 11. Hoffman has been a legislator since 1987. Under the governo...
Almost one-quarter of the jobs in the state ferry system are unfilled, and the vacancy rate is highest among the positions that require the most training, Alaska Marine Highway System Director Craig Tornga told state lawmakers last week. Among wheelhouse positions, the vacancy rate is above 30%, he said at a House committee hearing on Feb. 11. The ferry system has been short crew for the past few years, limiting the number of vessels it can put into service and further eroding its passenger revenues. To operate the cross-gulf route between...
Passenger and vehicle traffic aboard the Alaska Marine Highway System moved slightly higher in 2024 from 2023, but still is less than half its peak from the early 1990s. The state ferries carried just over 185,000 passengers and about 65,000 vehicles last year on its routes stretching from Southeast to Prince William Sound and into several Gulf of Alaska coastal communities. That’s down from more than 400,000 passengers and 110,000 vehicles 1990-1992. And it’s down from more than 325,000 passengers as recently as the early 2010s. Marine Dir...
Mass layoffs in the federal workforce ordered by President Donald Trump began to hit Alaska employees last week, with workers losing jobs at multiple agencies across the state. The scale of the Alaska layoffs wasn’t fully clear, but by Friday, Feb. 14, included around 30 Alaska employees at the U.S. Forest Service and 30 with the National Park Service, according to employees and union representatives. U.S. Sen. Lisa Murkowski said late Friday that “dozens of Alaskans — potentially over 100 in total” had lost their jobs, criticizing what sh...
The state is bringing in less money than it is spending and is on pace to finish the current fiscal year with a deficit of $171 million, according to figures presented Feb. 4. Lacey Sanders, Gov. Mike Dunleavy’s top budget official, told the Senate Finance Committee that spending from the Constitutional Budget Reserve Fund likely will be needed to close the gap before the Legislature’s scheduled adjournment in May. That would require support from three-quarters of the House and three-quarters of the Senate — usually a politically fraught negot...
The Alaska Senate rejected giving themselves and other state leaders automatic pay raises linked to inflation with the unanimous passage of a bill Friday, Feb. 7, declining a commission’s recommendation to implement such raises. Senate Bill 87 rejects recommendations made Jan. 29 by the three-member State Officers Compensation Commission that would adjust salaries every two years for the Legislature, Gov. Mike Dunleavy and top officials at state agencies to match the Consumer Price Index — up or down — after the 2026 state election. The recom...