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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...
State officials and industry leaders trying to rescue the ailing Alaska seafood industry are facing daunting challenges, recently released numbers show. The industry lost $1.8 billion last year, the result of low prices, closed harvests and other problems, according to the National Oceanic and Atmospheric Administration. Direct employment of harvesters last year fell by 8% to the lowest level since 2001, when counts of harvesting jobs began, the Alaska Department of Labor and Workforce Development said. The monthly average for... Full story
The next two years may be Alaska’s last chance for productive, bipartisan legislative action. The state House and Senate have both organized in bipartisan coalitions, with Democrats, Republicans and independents pledging to work together on the big issues facing Alaska. Sadly, that across-the-political-aisle cooperation could end in two years. Alaska’s switch to open primaries and ranked-choice voting for the 2022 and 2024 elections encouraged candidates, particularly Republican candidates, to appeal to moderate and nonpartisan voters ins...
On a Thursday morning in Petersburg High School's room 206, algebra II students sit around the edge of the classroom, forming a big U. Their teacher, Megan Smith, asks them if it's possible to take the square root of a negative fraction. "Noooooooo" they chorus, "No solution!" Together they work through a series of problems. Then, even though class is only halfway over, she tells them to get started on their homework. She turns to four students who had been ignoring the lesson, curled over...
This year's Permanent Fund dividend, plus a one-time energy rebate bonus, will be a combined $1,702 per recipient, the Alaska Department of Revenue announced Thursday. The amount is slightly higher than previous estimates from the spring, in part because the number of recipients is lower than expected. The payments will be direct-deposited into Alaskans' bank accounts starting Oct. 3. Paper checks, for those Alaskans who requested them, will be mailed later in October. This year's combined... Full story
Clear skies on Monday morning showed the extent of Sunday afternoon's landslide that swept 1,100 feet down the steep, wooded hillside above a Ketchikan neighborhood, taking out a portion of the Rainbird Trail and pouring across the Third Avenue Bypass before damaging several homes in the Second Avenue area just west of Whitecliff Avenue. The landslide resulted in the death of one person, Sean Griffin, a City of Ketchikan Public Works senior maintenance technician who was on the Third Avenue...
A bill aimed at attracting and keeping quality teachers in Alaska classrooms became law on Monday without Gov. Mike Dunleavy’s signature. The law’s changes to current education policy are threefold: It eliminates a state limit on experience-based compensation for teachers, allows retired teachers to serve as long-term substitutes and provides financial incentives for current teachers to seek certification from the National Board for Professional Teaching Standards. Rep. Rebecca Himschoot, I-Sitka and a former teacher, sponsored the bill, whi... Full story
Republican Lt. Gov. Nancy Dahlstrom is withdrawing from the race for the state's lone U.S. House seat, she announced Friday via social media. With most votes counted, Dahlstrom is expected to finish third in the state's top-four primary election, behind Democratic incumbent Mary Peltola and fellow Republican challenger Nick Begich. Her withdrawal means the expected No. 4 finisher, Republican Matt Salisbury, will likely advance to the general election alongside Begich and Peltola, as would... Full story
Democratic U.S. Rep. Mary Peltola received more than half of the votes in primary results released Tuesday night, well ahead of Republican challengers, businessman Nick Begich III and Lt. Gov. Nancy Dahlstrom. With 387 of 403 precincts reporting through 1 a.m. on Wednesday, the incumbent Peltola had received 50.4% of the votes counted. She was running well ahead of her 36.8% share of the vote in the 2022 primary, which was held the same day as the special election she won to fill the seat left vacant by the death of 49-year Congressman Don... Full story
Jill Lenhard moved to Ketchikan last August to take a teaching job at Ketchikan High School, but she – and her husband, music teacher Matt Lenhard – both got caught up in this year's teacher layoffs that impacted public school districts across the state. Fortunately for Petersburg, this meant the perfect candidate was unexpectedly available to fill a new teaching vacancy at Mitkof Middle School. Lenhard had spent over 20 years in Petersburg as a vital component of the school district's Eng...
Forty-three people spent the night in Juneau's emergency shelter at Floyd Dryden Middle School on Monday night as a record-high flood from the Mendenhall Glacier inundated homes. Deputy City Manager Robert Barr said the total number of people who evacuated their homes is likely several times that; shelters are usually a last resort for people who cannot stay with family, friends or in a hotel. "You can imagine how hard it would be to wake up with water in your house, not expecting there to be... Full story
Technically, Gov. Mike Dunleavy’s veto blocked five bills from becoming law that the state House passed after the constitutional adjournment deadline. But don’t blame him for killing the new laws. The House is the guilty party. The 40-member House, managed the past two years by a splintered and often disorganized 23-member Republican-led majority, couldn’t manage to get its work done before the clock struck midnight. The governor did not hold them up; no power outage set them back; there was no IT meltdown or online hack; nothing slowed them...
