Alaska lawmakers from fishing-dependent communities say they have ideas for ways to rescue the state’s beleaguered seafood industry, with a series of bills likely to follow.
Members of a legislative task force created last spring now have draft recommendations that range from the international level, where they say marketing of Alaska fish can be much more robust, to the hyper-local level, where projects like shared community cold-storage facilities can cut costs.
The draft was reviewed at a two-day hearing in Anchorage Thursday and Friday of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry. It will be refined in the coming days, members said.
The bill that created the task force, Senate Concurrent Resolution 10, sets a deadline for a report to the full Legislature of Jan. 21, which is the scheduled first day of the session. However, a final task force report may take a little longer and be submitted as late as Feb. 1, said Senate President Gary Stevens, R-Kodiak, the group’s chair.
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The draft is a good start to what is expected to be a session-long process, said Rep. Louise Stutes, R-Kodiak, a task force member.
“We can hit the ground running because we’re got some good solid ideas,” Stutes said in closing comments on Friday. The session can last until May 20 without the Legislature voting to extend it.
Another task force member, Sen. Jesse Bjorkman, R-Nikiski, urged his colleagues to focus on the big picture and the main goals.
“We need to take a look at how we can increase market share for Alaska seafood and how we can increase value. Those two things aren’t easy, but those are the only two things that are going to matter long term. Everything else is just throwing deck chairs off the Titanic,” he said Friday.
Many of the recommended actions on subjects like insurance and allocations, if carried out, are important but incremental, Bjorkman said. “If the ship’s going down, that stuff isn’t going to matter,” he said.
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Alaska’s seafood industry is beset by crises in nearly all fishing regions of the state and affecting nearly all species.
Economic forces, heavily influenced by international turmoil and a glut of competing Russian fish dumped on world markets, have depressed prices. Meanwhile, operating costs have risen sharply. Climate change and other environmental factors have triggered crashes in stocks that usually support economically important fisheries; Bering Sea king and snow crab fisheries, for example, were closed for consecutive years because stocks were wiped out after a sustained and severe marine heatwave.
Senate President Gary Stevens, R-Kodiak, and Rep. Louise Stutes, R-Kodiak, listen to testimony on Thursday from Nicole Kimball of the Pacific Seafood Processors Association. Kimball was among the industry representatives who presented information at the two-day hearing, held on Thursday and Friday, of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry. (Photo by Yereth Rosen/Alaska Beacon)
In all, the Alaska seafood industry lost $1.8 billion from 2022 to 2023, according to the National Oceanic and Atmospheric Administration.
Those problems inspired the creation of the task force last spring. The group has been meeting regularly since the summer.
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The draft recommendations that have emerged from the task force’s work address marketing, product development, workforce shortages, financing, operating costs, insurance and other aspects of seafood harvesting, processing and sales.
One set of recommendations focuses on fisheries research. These call for more state and federal funding and an easy system for fisheries and environmental scientists from the state, federal government and other entities to share data quickly.
The draft recommends several steps to encourage development of new products and markets for them, including non-traditional products like protein powder, nutritional supplements and fish oil. Mariculture should be expanded, with permitting and financing made easier, according to the draft.
The draft recommendations also propose some changes in the structure of seafood taxes levied on harvesters and processors, along with new tax incentives for companies to invest in modernization, product diversification and sustainability.
Other recommendations are for direct aid to fishery workers and fishing-dependent communities in the form of housing subsidies or even development of housing projects. Shortages of affordable housing have proved to be a major challenge for communities and companies, the draft notes. More investment in worker training — using public-private partnerships — and the creation of tax credits or grants to encourage Alaska-resident hire, are also called for in the draft recommendations.
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Expanded duties for ASMI?
The Alaska Seafood Marketing Institute, the state agency that promotes Alaska seafood domestically and internationally, figures large in the draft recommendations.
The draft calls for more emphasis on the quality and sustainability of Alaska fish and, in general, more responsibilities for ASMI. An example is the recommended expansion of ASMI’s duties to include promotion of Alaska mariculture. That would require legislation, such as an early version of bill that was sponsored by outgoing Rep. Dan Ortiz, I-Ketchikan. It would also require mariculture operators’ willingness to pay into the program.
But ASMI, as it is currently configured, is not equipped to tackle such expanded operations, lawmakers said. Even obtaining modest increases in funding for ASMI has proved to be a challenge. A $10 million increase approved by the Legislature last year was vetoed by Gov. Mike Dunleavy, who cited a failure by ASMI to develop a required plan for the money.
The governor’s proposed budget released in December includes an increase in state money for ASMI, but his suggestion that $10 million in new funding be spread over three years falls far short of what the organization needs, Stevens said at the time.
Incoming House Speaker and task force member Bryce Edgmon, I-Dillingham, said there will probably be a need to reorganize or restructure ASMI to make it more autonomous. That might mean partnering with a third party and the creation of more managerial and financial independence from whoever happens to be in political office at the time, as he explained it.
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House Speaker Bryce Edgmon, I-Dillingham, and Sen. Jesse Bjorkman, R-Nikiski, listen to information presented on Thursday at a hearing held by the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry. Edgmon and Bjorkman are two of the eight task force members. (Photo by Yereth Rosen/Alaska Beacon)
“The umbilical cord needs to be perhaps cut to some degree,” Edgmon said on Friday, during the hearing’s public comment period. The solution could be to make ASMI more of a private entity, he said.
“Because the world is changing. It’s a global marketplace. We need to have ASMI to have as large a presence as possible,” he said.
But for now, ASMI and plans for its operations have been constricted by political concerns. “People are afraid of how it’s going to go back to the governor’s office,” Edgmon said.
Federal assistance
U.S. Sen. Lisa Murkowski, R-Alaska, spoke to the task force on Thursday about ways the federal government could help the Alaska seafood industry.
One recent success, she said, is passage of the bipartisan Fishery Improvement to Streamline Untimely Regulatory Hurdles post Emergency Situation Act, known as the FISHES Act, which was signed into law a few days earlier.
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The act establishes a system to speed fisheries disaster aid. It can take two to three years after a fisheries disaster is declared for relief funds to reach affected individuals, businesses and communities, and that is “unacceptable,” Murkowski said. The bill addresses that situation, though not perfectly. “It’s still not the best that it could be,” she said.
Another helpful piece of federal legislation that is pending, she said, is the Working Waterfronts Bill she introduced in February. The bill contains provisions to improve coastal infrastructure, coastal energy systems and workforce development.
More broadly, Murkowski said she and others continue to push for legislation or policies to put seafood and fisheries on the same footing as agriculture. That includes the possibility of fishery disaster insurance similar to the crop insurance that is available to farmers, she said.
But getting federal action on seafood, or even attention to it, can be difficult, she said.
“It is a reality that we have faced, certainly since my time in the senate, that seafood has been viewed as kind of an afterthought by many when it comes to a food resource, a source of protein,” she said.
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Inclusion of seafood in even simple programs can be difficult to achieve, she said. She cited the U.S. Department of Agriculture’s decision, announced in April, to include canned salmon as a food eligible for the Special Supplemental Nutrition Program for Women, Infants, and Children, also known as WIC. She and others had been working for several years to win that approval, she said.
Tariffs a looming threat
Seafood can also be an afterthought in federal trade policy, Murkowski said.
Jeremy Woodrow, at right, fields questions from lawmakers on Thursday at an Anchorage hearing of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry. Woodrow is executive director of the Alaska Seafood Marketing Institute. Next to him is Tim Lamkin, a legislative aide for Senate President Gary Stevens, R-Kodiak, the task force chair. (Photo by Yereth Rosen/Alaska Beacon)
Tariffs that President-elect Donald Trump has said he intends to impose on U.S. trade partners pose a serious concern to Alaska’s seafood industry, she said.
“The president-elect has made very, very, very, very clear that this is going to be a new administration and we’re going to use tariffs to our advantage. I don’t know what exactly to expect from that,” she said.
In the past, tariffs imposed by the U.S. government have been answered with retaliatory tariffs that cause problems for seafood and other export-dependent industries.
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Jeremy Woodrow, ASMI’s executive director, has similar warnings about tariffs, noting that about 70% of the Alaska seafood, as measured by value, is sold to markets outside of the U.S.
“We tend to be, as an industry, collateral damage in a lot of trade relationships. We’re not the main issue. And that usually is a bad outcome for seafood,” he told the committee on Thursday.
To avoid or mitigate problems, Alaska leaders and the Alaska industry will have to respond quickly and try to educate trade officials about tariff impacts on seafood exports, Woodrow said.
Task force members expressed concerns about impacts to the export-dependent Alaska industry.
“If we raise tariffs on another country, won’t they simply turn around and raise tariffs on us?” asked Stevens.
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Tariffs on Chinese products, which Trump has suggested repeatedly, could cause particular problems for Alaska seafood, Stutes said. She pointed to the companies that send fish, after initial processing, to China for further processing in preparation for sale to final markets, some of which are back in the U.S.
“If there is a huge tariff put on products going and coming from China, that would seem to me to have another huge gut shot to those processors that are sending their fish out for processing,” Stutes said.
Bjorkman, a former high school government teacher, said history shows the dangers of aggressive tariff policies.
The isolationist “America-first” approach, as carried out at turns over the past 150 years, “hasn’t worked out very well. It’s been real bad,” Bjorkman said.” As an alternative, he suggested broader seafood promotions, backed by federal or multistate support, to better compete in the international marketplace.
The Alaska Senate Finance committee advanced a draft capital budget on Tuesday that would put nearly $250 million toward state facilities and maintenance projects next year.
The draft budget adds $88 million to Gov. Mike Dunleavy’s proposed capital budget of $159 million, with the largest additions going toward K-12 schools and university facilities maintenance.
That was a focused effort by the finance committee, said co-chair Sen. Bert Stedman, R-Sitka, who called funding for education facilities maintenance a “heavy concentration” on Wednesday.
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Earlier this year, students and school officials testified to lawmakers that decades of deferred maintenance has reached crisis levels — with many rural school districts in particular grappling with deteriorating facilities, failing water and sewer systems — which they say is degrading student and staff morale. Lawmakers have expressed support and increased funding in recent years, but point to Gov. Mike Dunleavy’s history of vetoes as a roadblock for funding education.
The Senate draft includes $57.8 million in additional funding toward K-12 school maintenance through the Alaska Department of Education and Early Development and $17 million toward the University of Alaska. It also includes $5.7 million for the Alaska Court System’s facilities and $8 million for community infrastructure and workforce development programs through the Alaska Department of Commerce, Community, and Economic Development.
The Legislature relies on state ranked lists to prioritize where to direct funding to capital projects for K-12 schools, the university system and the court system.
For K-12 schools, the state’s current major maintenance list totals over $400 million needed for 103 school projects and repairs. Stedman said he recognized this year’s capital budget will only fund a fraction of those.
“Hopefully we get a quarter of it done, or something like that, but it’d be nice to retire the entire list,” Stedman said.
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The draft budget would fund the top 15 school projects on the list, plus funds for three other schools in need of emergency fuel tank repairs. The top projects range from roof and boiler replacements to septic systems, fire suppression and safety upgrades in schools from Fairbanks to the Aleutian Islands.
In order to distribute funds more widely, members of the finance committee reduced funding for one project in Galena, in the Western Interior of Alaska, from roughly $35 million to $5 million for renovations to the Sydney C. Huntington Elementary and High Schools. They also allocated $17 million towards rebuilding the school in Stebbins in Western Alaska, after it burned down in 2024.
The Senate draft also adds nearly $14 million in funding for the state-run Mt. Edgecumbe High School, which has been the focus of public attention and concern after a quarter of students disenrolled this year. The additional facilities dollars include $10 million to remodel the dining hall, $3.1 million to replace dorm windows, $460,000 to replace dorm furniture, $50,000 to replace mattresses and $125,000 to replace aging laundry machines.
Finance members added $17 million to fund the top nine projects across the University of Alaska system — three projects each within the three major campuses.
Sen. Jesse Kiehl, D-Juneau, serves on the finance committee and his district includes University of Alaska Southeast. He described the proposed funds as a “nickel” compared to the “colossal” deferred maintenance needs of the university system.
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“That’s been built by Legislatures and Boards of Regents for 40 years,” he said on Wednesday, adding that it is a shared responsibility to put funding towards repairs and upgrades.
“The Constitution makes them a separate body within the executive branch that puts a lot of responsibility on them, too, more than the general state government,” he said “So university major maintenance is its own huge problem.”
The draft budget also includes $5.7 million for upgrades to state court facilities, mostly targeted to Anchorage and Sitka. It contains nearly $10 million for workforce development programs geared at the construction and oil and gas sectors, including for the Fairbanks Pipeline Training Center and Alaska Vocational Technical Center in Seward.
An amendment to add $25 million to the draft budget for the Port of Anchorage, sponsored by Sen. Kelly Merrick, R-Eagle River, was voted down on Tuesday by a 5 to 2 vote.
Before voting against the proposal, finance co-chair Sen. Lyman Hoffman, D-Bethel, said during committee deliberations the priority this year is to fund as many school maintenance projects on the list as possible, saying “schools are falling apart” and must be maintained to prevent further deterioration.
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“Students that are trying to learn deserve better,” Hoffman said. “And if we are not able to provide this major maintenance, we are going to see these schools continue to crumble, and the financial burden to the state of Alaska will be hundreds of millions of dollars to rebuild schools.”
More funding for school maintenance and other capital projects could be added by the Alaska House of Representatives, who will take up the draft budget bill after it’s approved by the Senate in the coming weeks.
Two US soldiers were wounded by a brown bear during a training exercise in Alaska on Thursday, the US Army stated.
Anchorage Daily News reported that the soldiers were from the 11th Airborne Division, and that the exercise had been a “land navigation training event” near Joint Base Elmendorf-Richardson.
State wildlife officials said that the bear attack seemed to be a defensive one, from a bear which had recently emerged from its den. Staff members from the Alaska Department of Fish and Game collected evidence at the scene in an attempt to learn more about the bear, such as its species and gender.
“The incident is currently under investigation, and we are working closely with installation authorities and local wildlife officials to gather all relevant information and ensure the safety of all personnel in the area,” the 11th Airborne Division said in a statement, reported ABC News.
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ABC News also cited an 11th Airborne Division spokesperson, Lt.-Col. Jo Nederhoed, who said that the two soldiers had been seriously wounded, but were receiving care at a hospital in Anchorage, and had shown improvement by Saturday morning.
“We hope both individuals have a full and quick recovery, and our thoughts are with them during this time,” Fish and Game Regional Supervisor Cyndi Wardlow said in a statement reported by Anchorage Daily News. “In this case, having bear spray with them in the field may have saved their lives.”
Both of the soldiers reportedly had and used bear spray during the attack.
The bear’s condition and whereabouts are currently unknown.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
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Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
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1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
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For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
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3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
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3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
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3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
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Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
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Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
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There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
