Alaska
Limited state revenue foreshadows fiscal tug-of-war in Alaska Legislature • Alaska Beacon
In a series of hearings this week within the Alaska State Capitol, public-school advocates from across the state presented hours of impassioned and often emotional testimony in favor of a bill that will sharply increase Alaska’s funding for public schools.
But a pair of cold-blooded financial hearings also showed that the request may have to compete with the Permanent Fund dividend and aid for aging state buildings.
In December, Gov. Mike Dunleavy proposed a $7.7 billion state budget for the fiscal year that starts June 1.
That spending would require the state to spend $1.5 billion from savings, and it isn’t too dissimilar from what the governor has proposed in each of the past two years.
In each of those years, the Legislature took the governor’s plan and slashed his proposed Permanent Fund dividend in order to avoid spending from savings.
The Legislature’s preferred dividend formula is called the 75-25, for the way it takes the annual transfer from the Alaska Permanent Fund to the state treasury, then divides it, 75% for services, and 25% for dividends.
“The last two years, the Legislature has put forward the 75-25 dividend and been able to have a balanced budget. This year, that is probably not enough,” Alexei Painter, director of the Legislative Finance Division, the Legislature’s budget analysis wing, told the Senate Finance Committee this week.
The problem is twofold: Lawmakers are preparing to spend more, and oil isn’t giving the state as much revenue as it used to.
When it comes to oil, the problem is one caused by success. State tax law allows oil companies to lower the amount they pay in production taxes through a deduction based on their operating expenses.
ConocoPhillips is spending hundreds of millions of dollars to develop the Willow project on federal land, and it can deduct its expenses from taxes it would otherwise pay this year. That makes it a money-loser for the state treasury in the next few years.
The nearby Pikka project is being developed by another company, which doesn’t currently produce oil. That company, Australia-based Santos, will be able to apply its deductions to future oil production, so even though the North Slope will be producing more oil, the state won’t be earning more money.
In the state Capitol, House Bill 69, an education-funding increase proposed by members of the state House, is expected to cost at least $300 million above what the governor has proposed spending on education. An official estimate isn’t yet available.
Add the cost of that legislation to already-expected cost increases, and there’s not enough money to go around, Painter told the Senate Finance Committee, then reiterated his comments to the House Finance Committee on Thursday.
“Simply switching the dividend to 75-25 is not going to be enough to balance the budget this year. You’re going to have to either find other budget reductions, reduce the dividend further or explore other revenue options. You can’t just do that one thing and it’s solved, which has worked the last two years,” he said.
To date, no legislators have introduced any legislation proposing to significantly change state taxes. During the first six years of his administration, Dunleavy has vetoed every tax bill to reach his desk, and legislators have never overridden any of his vetoes.
Painter also warned both committees that the governor’s proposed budget doesn’t include enough to keep up with maintenance at state facilities.
Alaska has a maintenance backlog of more than $2 billion, and many state buildings were built during the oil boom of the 1970s and 1980s. That leaves many of them overdue for replacement or repair.
The problem may be worse than official reports indicate, Painter said, offering the Fairbanks Pioneer Home as an example.
That building has a deferred maintenance list of a few million dollars, but it also needs a new roof and doesn’t meet federal standards for accessibility by handicapped people.
Replacing the building would cost $115 million, he said.
In the House Finance Committee on Thursday, Rep. Will Stapp, R-Fairbanks, asked Painter what would happen if average oil prices finished $10 below what the state is expecting in the coming years.
That would widen the expected deficit by $350 million to $400 million, Painter replied.
“Have you done any modeling on the 99-1 yet?” Stapp asked, jokingly referring to a dividend formula that would leave just 1% of the annual Permanent Fund transfer for dividends.
“I don’t even think that would cover the costs of running the PFD program,” Painter said.
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Alaska
‘Ticking time bomb’: Extreme snowfall fuels avalanche danger around Haines
Avalanche professionals are warning backcountry adventurers to stay out of risky terrain after snow slammed the Upper Lynn Canal in late December.
National Weather Service data shows the storm dumped at least 44 inches of snow in Haines, making it the sixth snowiest five-day period in more than two decades. Other reports documented closer to six or seven feet.
“It was definitely one of the higher snowfalls you’ve gotten in five days, pretty much out of all your time that the station’s been there,” said Juneau-based meteorologist Edward Liske.
The dumping has created a risky situation in the backcountry that warrants extreme caution, said Jeff Moskowitz, the director of the Haines Avalanche Center.
His main message: “Avoid being in or around avalanche terrain.”
Earlier this week, Moskowitz dug a snow pit in town – in front of Haines’ historic Fort Seward – that confirmed his assessment. Standing chest-deep in the pit, he pointed out layers of snow stacked on top of each other, each representing a different storm.
There was a somewhat fluffy layer on top, from the snowfall in early January. Below that, there was a roughly three-foot-deep layer that was more compact, from the late December storm.
And then there was a thin, feeble layer of snow just inches from the ground that crumbled like sugar when Moskowitz ran his hand through it. That snow was on the ground before the big storm – it’s the layer that could collapse and trigger an avalanche under the weight of more precipitation, snowmachines or humans.
“We have about a meter of really strong snow just sitting over this sugar,” Moskowitz said, calling it a “dangerous combination for avalanches.”
Starting Dec. 27, the situation prompted the center to issue warnings about high avalanche risk in the Haines area. Moskowitz said people should stay off slopes that are greater than 30 degrees – and avoid traveling beneath them.
“It’s just a tricky situation, because there’s lots of snow, and we want to go play,” he said. “But we still have this strong-over-weak layering in most places.”
In some places, he said, the weak layer may be buried so deep that a human or snowmachine wouldn’t trigger it. But in shallower areas, like near trees or rocks. the layer would be closer to the surface and more likely to trigger an avalanche.
“People could ride that slope numerous times until one person finds that weak spot,” he said.
The deluge has stopped for now. But the situation could get worse before it gets better, as temperatures rise and the top layer of snow consolidates into a heavier, thicker slab. New precipitation or other conditions could trigger a natural avalanche cycle, wiping that weak layer out.
“Otherwise, it’s a little bit like a ticking time bomb,” Moskowitz said.
Haines Avalanche Center
The Haines Avalanche Center is a nonprofit and the main source of avalanche information in the Chilkat Valley, which draws backcountry adventurers from around the world. Moskowitz emphasized the importance of donations, grants and borough funding to make that work possible.
In the past, the Haines Borough has asked nonprofits to apply for funding from a $100,000 bucket. But Haines Mayor Tom Morphet said that, amid a steep budget deficit, the assembly discontinued that grant process for fiscal year 2026, which runs through June.
That has meant less funding than usual for the Avalanche Center, which has just three part-time employees, including Moskowitz.
“Less funding means less staff time,” Moskowitz said. “And staff time means that locals who are avalanche professionals and have certifications are out there, digging in the snow, making assessments, posting that information publicly.”
The center posts a general avalanche information product every week, plus a weather forecast and season summary. They also issue advisories when avalanche danger is high, including three days in a row in late December.
But the center does not currently have the funding or staff capacity to consistently publish advisories when avalanche risk is low, moderate or considerable.
“What we don’t want, is that there’s an accident that sparks the public interest in supporting the Avalanche Center,” Moskowitz said. “We just need to maintain the services we provide and just keep it going year after year after year.”
Morphet, the mayor, said the borough and assembly are “acutely aware” of the center’s importance.
Moskowitz said people who recreate in the backcountry can help by paying close attention to their surroundings – and he urged them to send in their observations online.
That could mean details about a human-triggered or natural avalanche, about where the sun has hit the mountains on a particular day, or an observation that feathery crystals – known as surface hoar – have started forming on the snow’s surface.
“There’s very little information that we’re not going to find useful,” Moskowitz said. “All of that is very valuable, and it helps to inform this bigger picture.”
Alaska
Alaska delegation mixed on Venezuela capture legality, day before presidential war powers vote
ANCHORAGE, Alaska (KTUU) – Alaska’s congressional delegation had mixed reactions Wednesday on the legality of the Trump administration’s actions in Venezuela over the weekend, just a day before they’re set to vote on a bill ending “hostilities” in Venezuela.
It comes days after former Venezuelan Nicolás Maduro was captured by American forces and brought to the United States in handcuffs to face federal drug trafficking charges.
All U.S. Senators were to be briefed by the administration members at 10 a.m. ET Wednesday, including Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, according to CBS News.
Spokespersons for Alaska Sens. Lisa Murkowski, R-Alaska, and Dan Sullivan, R-Alaska, say they were at that meeting, but from their responses, the two shared different takeaways.
Sullivan, who previously commended the Trump administration for the operation in Venezuela, told KDLL after his briefing that the next steps in Venezuela would be done in three phases.
“One is just stabilization. They don’t want chaos,” he said.
“The second is to have an economic recovery phase … and then finally, the third phase is a transition to conduct free and fair elections and perhaps install the real winner of the 2024 election there, which was not Maduro.”
Murkowski spokesperson Joe Plesha said she had similar takeaways to Sullivan on the ousting of Maduro, but still held concerns on the legality.
“Nicolás Maduro is a dictator who led a brutally oppressive regime, and Venezuela and the world are better places without him in power,” Plesha said in a statement Wednesday. “While [Murkowski] continues to question the legal and policy framework that led to the military operation, the bigger question now is what happens next.”
Thursday, the Senate will decide what happens next when they vote on a war powers resolution which would require congressional approval to “be engaged in hostilities within or against Venezuela,” and directs the president to terminate the use of armed forces against Venezuela, “unless explicitly authorized by a declaration of war or specific authorization for use of military force.”
Several House leaders have also received a briefing from the administration according to CBS News. A spokesperson for Rep. Nick Begich, R-Alaska, said he received a House briefing and left believing the actions taken by the administration were legal.
“The information provided in today’s classified House briefing further confirmed that the actions taken by the Administration to obtain Maduro were necessary, time-dependent, and justified; and I applaud our military and the intelligence community for their exceptional work in executing this operation,” Begich said in a statement.
Looming vote
Sen. Tim Kaine, D-VA, authored the war powers resolution scheduled for debate Thursday at 11 a.m. ET — 7 a.m. AKST.
It’s a resolution which was one of the biggest topics of discussion on the chamber floors Wednesday.
Sen. Rand Paul, R-KY, said on the Senate floor Wednesdya that the actions taken by the administration were an “act of war,” and the president’s capture of Maduro violated the checks and balances established in the constitution, ending his remarks by encouraging his colleagues to vote in favor of the resolution.
“The constitution is clear,” Paul said. “Only Congress can declare a war.”
If all Democrats and independents vote for the Kaine resolution, and Paul keeps to his support, the bill will need three more votes to pass. If there is a tie, the vice president is the deciding vote.
“It’s as if a magical dust of soma has descended through the ventilation systems of congressional office buildings,” Paul continued Wednesday, referring to a particular type of muscle relaxant.
“Vague faces in permanent smiles and obedient applause indicate the degree that the majority party has lost its grip and have become eunuchs in the thrall of presidential domination.”
Legality of actions under scrutiny
U.S. forces arrested Maduro and his wife, Cilia Flores, from their Caracas home in an overnight operation early Saturday morning, Alaska time. Strikes accompanying the capture killed about 75 people, including military personnel and civilians, according to U.S. government officials granted anonymity by The Washington Post.
Maduro pleaded not guilty Monday in a New York courtroom to drug trafficking charges that include leading the “Cartel of the Suns,” a narco-trafficking organization comprised of high-ranking Venezuelan officials. The U.S. offered a $50 million reward for information leading to his capture.
Whether the U.S. was legally able to capture Maduro under both domestic and international law has been scrutinized in the halls of Congress. Members of the administration, like Secretary of State Marco Rubio, have been open in defending what they say was a law enforcement operation carrying out an arrest warrant, The Hill reports. Lawmakers, like Paul or Sen. Chuck Schumer, D-NY, say the actions were an act of war and a violation of the constitution.
While the president controls the military as commander in chief, Congress constitutionally has the power to declare wars. Congressional Democrats have accused Trump of skirting the Constitution by not seeking congressional authorization before the operation.
Murkowski has not outright condemned or supported the actions taken by the administration, saying in a statement she was hopeful the world was safer without Maduro in power, but the way the operation was handled is “important.”
Sullivan, on the other hand, commended Trump and those involved in the operation for forcing Maduro to “face American justice,” in an online statement.
Begich spokesperson Silver Prout told Alaska’s News Source Monday the Congressman believed the operation was “a lawful execution of a valid U.S. arrest warrant on longstanding criminal charges against Nicolás Maduro.”
The legality of U.S. military actions against Venezuela has taken significant focus in Washington over the past several months, highlighted by a “double-tap” strike — a second attack on the same target after an initial strike — which the Washington Post reported killed people clinging to the wreckage of a vessel after the military already struck it. The White House has confirmed the follow-up attack.
Sullivan, who saw classified video of the strike, previously told Alaska’s News Source in December he believed actions taken by the U.S. did not violate international law.
“I support them doing it, but they have to get it right,” he said. “I think so far they’re getting it right.”
Murkowski, who has not seen the video, previously said at an Anchorage press event the takeaways on that strike’s legality seem to be divided along party lines.
“I spoke to a colleague who is on the Intelligence Committee, a Republican, and I spoke to a colleague, a Democrat, who is on the Senate Armed Services Committee … their recollection or their retelling of what they saw [was] vastly different.”
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