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Petersburg’s school district approved a budget last week that will draw down nearly $700,000 dollars from its reserves to make up for school funding vetoed by Gov. Mike Dunleavy. Dunleavy reduced education funding for school districts statewide with a line-item veto on June 12, just weeks before districts start their next fiscal years. The Legislature originally approved a $700 increase in per-student funding, known as the base student allocation (BSA). It was the first substantial increase since 2017. Dunleavy didn’t approve enough money to fu...
Gov. Mike Dunleavy used his veto powers last week to take away $50 million in state funding approved by the Legislature for local school districts across Alaska. He said low oil prices had cut into revenues, and the state could not afford to spend the money. He used the same oily excuse for his other budget vetoes, including cutting two-thirds of the money legislators had appropriated for major maintenance work at nine schools in Alaska, leaving behind $13 million in funding for just three projects from a list that exceeds $300 million....
Alaska’s public schools may see the largest permanent funding boost in well over a decade, after the Alaska Legislature voted for the first time since 2002 to override a sitting governor’s veto. With a 46-14 vote, lawmakers significantly increased Alaska’s per-student public funding formula, overriding Gov. Mike Dunleavy’s decision to reject House Bill 57. Forty votes were needed for an override. “This was a truly bipartisan vote reflective of everyone in Alaska,” said Speaker of the House Bryce Edgmon, I-Dillingham. While the new law changes s... Full story
The Legislature is in its 10th year of struggling to balance Alaskans’ wishes and wants for a large Permanent Fund dividend with the checkbook reality that is much less than the wants. It’s been an annual political and fiscal battle ever since Gov. Bill Walker in 2016 bravely cut that year’s PFD in half after legislators had approved an unaffordable dividend while the state budget was in a deep billion-dollar deficit, made worse by low oil prices. Mike Dunleavy, who was then a state senator, vowed to push legislation to undo the gover...
Members of the Alaska Senate issued warnings Wednesday as they approved a draft operating budget for the upcoming fiscal year. Senators’ draft, which includes an estimated $1,000 Permanent Fund dividend for eligible Alaskans and a small year-over-year increase for K-12 education, also cuts services. The proposal would cut proposed funding increases for early education programs, reduce funding for state prisons, eliminate the state’s office of citizenship assistance, mostly defund the state militia, reduce road maintenance, and deny salary inc... Full story
Alaska’s public schools might get more money, after all. Nine days after Gov. Mike Dunleavy vetoed a significant increase to the state’s K-12 public school funding formula, the Alaska Senate has approved a compromise education bill that includes a smaller increase. The bill includes some — but not all — of the policy changes that Dunleavy said were necessary to prevent another veto. House Bill 57, originally drafted to restrict public school students’ cellphone use, was amended by the Senate before being approved on a bipartisan, 19-1 vote... Full story
The Alaska Legislature has voted to uphold Gov. Mike Dunleavy’s veto of a bill that would have significantly increased the funding formula for Alaska’s K-12 public schools. Dunleavy vetoed House Bill 69 last week, citing cost concerns and the lack of policy measures he endorsed. With the House and Senate meeting in joint session, the vote to override Dunleavy was 33-27, sustaining the veto. Forty of the Legislature’s 60 members were needed for an override. In its final version, HB 69 would have increased the state’s base student allocat... Full story
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...
"The Senate's new education bill is a joke!" declared Governor Mike Dunleavy in a social media post last week. "It does absolutely nothing to improve educational achievement... Welcome to Alaska: 51st in the nation in educational outcomes. In what world does one write a blank check with no expectations?" The governor's comments came as the Alaska Legislature passed House Bill 69 on Friday, April 11, which would increase the Base Student Allocation (BSA) by $1,000 per student. Dunleavy...
A constitutional convention along with candid discussions of difficult federal and state issues that have surfaced in recent months are scheduled during the three-day 90th annual Tribal Assembly by the Central Council of the Tlingit and Haida Indian Tribes of Alaska starting Wednesday. More than 120 delegates from 21 communities in Alaska, Washington and California are scheduled to gather at Elizabeth Peratrovich Hall where they will also consider resolutions and elect some tribal positions. It will be the first constitutional convention by Tli...
A month after the Dunleavy administration put the Juneau Access Road back on the political map, the Alaska State Senate has clawed back $37 million in funds set aside in years past for the project as lawmakers try to scrap together enough funds to pass a balanced budget by next month. The Juneau Access funds are being redirected to the state Department of Transportation and Public Facilities as part of the annual capital budget unanimously passed Tuesday by the Senate. Nearly all of the $2.9 billion budget consists of federal funds for...
Members of the Alaska Legislature said this week that they’re likely to use the state’s Constitutional Budget Reserve to fix a roughly $173 million budget deficit for the 12 months that end June 30. Lawmakers are confronting another, larger deficit as they craft the budget for the fiscal year that begins July 1, but it remains possible that some tax increases — on oil, business income and online sales — could offset the need to spend from savings for that year. When it comes to the current fiscal year, things are more certain. Passing new tax... Full story
The state of Alaska is still facing a significant budget deficit despite a revised state revenue forecast published Wednesday by the Alaska Department of Revenue. Oil revenue makes up about 40% of Alaska’s general-purpose revenue, leaving state finances unstable and dependent upon estimated oil prices. The Department of Revenue updates its outlook twice per year, and its changes can radically alter the state’s budget process. For the 2025 fiscal year, which ends June 30, the department is estimating $6.23 billion in general-purpose rev... Full story
JUNEAU — President Donald Trump has issued several executive orders in recent weeks to expand logging in the nation’s forests, but stakeholders say the recent mass firings of U.S. Forest Service employees could hinder the administration’s plans in Alaska. Trump’s actions are the latest chapter in a decades-long tug-of-war between conservation and development in Southeast Alaska’s Tongass National Forest — by far the largest of the nation’s forests. On his first day back in the White House, Trump signed an executive order to boost development o...
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...
Gov. Mike Dunleavy says “it’s like Christmas every day now” since Donald Trump’s return to the White House. Some other state Republican leaders spent Tuesday talking of a winter blunderland. “It’s Christmas every day if all you expect is coal in your stocking, “ Senate President Gary Stevens, a Kodiak Republican, said in response to Dunleavy’s assessment. “It’s a tough, tough time for all of us.” Dunleavy’s holiday-season cheer is based largely on the prospect of uninhibited oil drilling and similar industrial activity that might or might not h...
No matter what any crowd-pleasing elected official says, Alaska cannot afford a long-deserved increase in state funding for schools and a large Permanent Fund dividend. There just isn’t enough money in the state checkbook to do both this year — not unless Alaskans want to start paying an income tax or a state sales tax, which are both even less popular than a middle seat in the last row of a six-hour flight. More than 90% of the spendable dollars in the state budget comes from two sources: An annual draw on Permanent Fund investment ear...
The state of Alaska 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 Tuesday. Lacey Sanders, Gov. Mike Dunleavy's top budget official, told the Senate Finance Committee that spending from the Constitutional Budget Reserve likely will be needed to close the gap. To do this would require support from three-quarters of the House and three-quarters of the Senate. That's a critical... Full story
President Donald Trump’s order to pause the spending of billions of dollars in federal grants triggered a wave of anxiety, fear and uncertainty on Tuesday in Alaska, a state dependent more than any other on federal spending. “For me, it was pandemic-level chaotic,” said Nils Andreassen, director of the Alaska Municipal League, which works with cities and boroughs statewide. A federal judge’s ruling late Tuesday temporarily blocked the presidential order, but that only defers an act with broad consequences. “We’re waiting for the other shoe... Full story
The Petersburg Borough Assembly approved a wishlist of community projects during their first meeting of the year on Jan. 6. Every year, the Alaska Legislature puts together a capital budget - money to fund big ticket projects around the state. And every year, the Petersburg Borough requests some of that money for local projects, and names its top ten priorities. Assembly member Jeigh Stanton Gregor said he isn't very optimistic the projects will receive large amounts of funding, but he likes...
Gov. Mike Dunleavy’s transition report to the Trump administration accuses the Biden administration of carrying out a four-year assault on Alaska’s economy and that the Trump administration needs to repair the damage. Somehow in the equation for what constitutes creating economic opportunity and being pro-Alaska, the massive Willow project doesn’t count. Nor does the $10.1 billion in public investments in clean energy, infrastructure, and manufacturing. Nor does aiding Alaska’s visitor industry in a time of post-pandemic need. What about b...
January 2024 A prized Mental Health Trust lot by Blind River Rapids, a popular recreation site for sport fishing, was sold at auction to a USCG family. Toler and Jessie Alexander are eager to return to Petersburg after retiring from the Coast Guard in a few years. The borough listed its top priority capital projects, and the Petersburg Medical Center replacement was first and second on the list – for the main hospital construction and the main hospital interior build out. Petersburg Indian A...
Alaska Gov. Mike Dunleavy announced a state budget proposal on Thursday that would draw down roughly half the amount remaining in the state's budget reserve fund. "We're going to follow the laws and we have the savings," the governor said at a news conference announcing the spending plan. "That's why you have the budget designed as it is." The $16.8 billion draft budget for the 12 months beginning in July is $344 million more than the amount the state plans to spend in the current budget. The in... Full story
Alaska is a land of unmatched potential and opportunity. It always has been, and it always will be if we choose the right policies and priorities. This past week, I fulfilled my Constitutional and statutory duties to introduce a budget for the 2026 fiscal year that will begin next July 1. The budget follows the law by fully funding education and the Permanent Fund Dividend and provides funding to address the top priorities of my administration: public safety, energy and resource development, food security, and increased affordability for the...
Gov. Mike Dunleavy has a choice for his final two years on the job: He can continue talking about how state law requires him to include an outrageously large Permanent Fund dividend in the budget — even though it would dig a deep budget hole which, thankfully, legislators will never approve — or he can help solve the problem. It looks like he is sticking with the irresponsible approach. He proposed a budget last week that is politically popular with his supporters but which he knows the state cannot afford without drawing down its rem...
