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Former Alaska revenue commissioner Crum defends committing $50M in state savings to digital infrastructure firm

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Former Alaska revenue commissioner Crum defends committing M in state savings to digital infrastructure firm


Revenue Commissioner Adam Crum gives comments to the House Finance Committee on January 23, 2025. (Marc Lester / ADN)

Former Alaska Revenue Commissioner Adam Crum says he was following state law when he committed $50 million in state funds to invest in a digital infrastructure firm shortly before he departed public office.

Crum’s decision to commit the funds from the Constitutional Budget Reserve — the state’s rainy day fund — later led Gov. Mike Dunleavy to promise a third-party independent review of the investment. It also caused alarm from House Speaker Bryce Edgmon and Senate President Gary Stevens, who in a joint statement said that the investment “raises serious concerns about accountability, transparency, and fiscal responsibility.”

But Crum, who departed the Dunleavy administration in July and days later announced he was running for governor, said Friday that members of Dunleavy’s administration, including the governor himself and top attorneys in the Department of Law, had known about his investment plan for months.

Department of Revenue spokesperson Aimee Bushnell said in an email that Crum had informed the governor’s office of his plan, but Bushnell declined to answer when she was asked when, exactly, Dunleavy was informed. The governor’s office “cautioned that any investments made needed to be in accordance with established investment policies and procedures,” Bushnell said.

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The idea for the $50 million investment in private equity, Crum said, was to resume a practice first initiated by lawmakers more than 20 years ago, of investing some funds from Alaska’s Constitutional Budget Reserve in a subaccount with the goal of yielding “higher returns than might be feasible to obtain with other money in the budget reserve fund,” assuming that the funds would not be needed for at least five years, according to state statute.

But lawmakers liquidated the subaccount’s nearly $7 billion in 2015 amid a decline in oil revenue, and hadn’t used it since, though its existence remained prescribed in law. Since 2020, the Department of Revenue’s policy has remained to keep the funds from the Constitutional Budget Reserve — which currently stand at roughly $3 billion — in short-term investments, under the assumption that the funds might be needed in the near term. Indeed, under Dunleavy’s most recent budget proposal, the funds in that account would have been fully spent by 2028, far before the five-year timeline prescribed in the subaccount statute.

Because the funds in the account for years have been invested accessibly and with lower rates of return, “simply leaving all of the money in the Constitutional Budget Reserve was actually irresponsible,” Crum concluded.

Crum said he asked former Alaska Attorney General Treg Taylor if he could revive the subaccount to “invest in alternatives” that would both have a higher rate of return and “help Alaska as a whole.”

“They said, ‘yes you can, make sure that you update the investment policy statement,’ ” Crum said.

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The Department of Law did not respond to questions from the Daily News, including whether Taylor — who himself resigned in August to run for governor — reviewed the investment proposal.

Crum said that once he decided to revive the subaccount, he chose to invest in digital infrastructure — a category that includes data centers and cellphone towers — because these are “the things that we’re actually going to need more and more of because we don’t have enough power and we don’t have enough data.” He said he chose the firm DigitalBridge after meeting with members of the firm both in New York and in Alaska.

According to Crum’s public calendar, he met with DigitalBridge executives four times in November 2024, including one meeting to which both Dunleavy and Alaska Gasline Development Corp. President Frank Richards were invited. Dunleavy spokesperson Jeff Turner did not respond Friday when asked whether Dunleavy did, in fact, attend the meeting, and whether the potential investment was discussed.

DigitalBridge, headquartered in Florida with assets estimated at around $106 billion, was founded as Colony Capital by Thomas Barrack, an adviser and fundraiser for President Donald Trump. In 2024, the U.S. Securities and Exchange Commission charged the firm with breaches of its fiduciary duty.

Crum said DigitalBridge is “interested in Alaska for a lot of things” and “they’ve come up here a lot.” However, he said the $50 million he committed to the firm was not intended for in-state investment.

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“It was actually directly written into the documents that this is not for in-state investment,” Crum said. “The idea on that is, you want to actually invest on the merits.”

“Over time, as we look to actually develop infrastructure and have this in Alaska, having a relationship with an investment firm like this actually draws attention from other investment firms,” Crum added.

Crum said he committed $50 million to DigitalBridge with an intention of expanding the subaccount investments up to 10% of the value of the Constitutional Budget Reserve — which would amount to roughly $300 million — but that didn’t happen before he left the department.

On Sept. 30, Acting Revenue Commissioner Janelle Earls wrote to legislative auditor Kris Curtis to inform her of the investment decision, noting the letter was part of the department’s protocol for “non-routine investments.” On the same day, Dunleavy called Edgmon and Stevens to tell them about the investment.

Edgmon said in an interview that his impression from the call was that Dunleavy had not been aware of the $50 million obligation before Crum resigned.

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Edgmon, a Dillingham independent, said he’s “confused” about Crum’s assertion that he ran the investment decision by Dunleavy and the Department of Law.

“It’s my understanding that the governor’s office is saying otherwise, and it’s troubling that we don’t know what took place,” said Edgmon.

Edgmon said that Dunleavy promised him and Stevens that an independent third-party review of the investment agreement would be conducted.

The Department of Revenue and the governor’s office did not answer questions on who is conducting that review or when its results were expected.

Crum, meanwhile, said Friday that “the whole claim that no one knew this was coming is a complete and utter lie.”

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Crum said that Dunleavy likely reached out to lawmakers to inform them of the investment commitment “as an olive branch.” As for the independent review of the investment decision, Crum said he sees it as Dunleavy ensuring “transparency for the public.”

That’s not how the Department of Revenue portrayed it. In an email, Bushnell said that “after the former Commissioner left state service, the newly appointed Acting Commissioner (Earls) expressed concern over the process utilized for making the investment. After being advised of the acting commissioner’s concerns, the governor apprised legislative leadership of the transaction, forwarded documents to the legislative auditor for review, and directed an outside third-party review be conducted to determine whether there were in fact any violations of policy and make process recommendations as appropriate.”

Bushnell did not answer questions on the specific cause for Earls’ concern.

Edgmon said that lawmakers will review the investment when the Legislature convenes in January.

“The whole situation is eyebrow-raising,” Edgmon said, “and until reasonable answers are provided and we can all get to the bottom of this, I think it’s going to remain an issue of concern.”

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Anchorage celebrates Juneteenth with 3-day community event downtown

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Anchorage celebrates Juneteenth with 3-day community event downtown


The crowd reacts to a performance at the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)

Anchorage is commemorating Juneteenth with dancing, music and celebrations of Black excellence and culture this weekend.

The citywide Juneteenth celebration also includes opportunities for education, community gathering and reflection, and features vendors and guest speakers. The event kicked off Friday and continues from 1 to 6 p.m. Saturday and Sunday on the Delaney Park Strip.

A dancer performs during the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)
A young drummer performs during the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)
Tragil Wade, an entrepreneur, author and inspirational speaker, takes the stage at the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)

Tragil Wade, an entrepreneur, author and inspirational speaker who is the big sister of former NBA great Dwyane Wade, was Friday’s special guest.

Saturday’s festivities, spotlighting the theme “Community and Culture,” kicked off with a freedom rally and parade. Saturday also features a youth segment, hip-hop dancing, community line dancing, multiple DJs and a performance from Soul Society.

“Faith and Family” is the theme for Sunday’s festivities. There will be a special Father’s Day opening at 1 p.m., a praise cardio session on the grass and an HBCU gospel segment. The afternoon will close with a community praise dance.

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Juneteenth commemorates the day that the last slaves in the Confederacy were informed of their freedom following the Emancipation Proclamation on June 19, 1865. Long celebrated by Black Americans, Juneteenth became a federal holiday in 2021. In 2023, the Anchorage Assembly made Juneteenth an official city holiday, and in 2024, the Alaska Legislature passed a bill to designate Juneteenth as a state holiday.

Members of the crowd cheer during a performance at the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)
A young drummer focuses during a performance at the Juneteenth Citywide Celebration at the Delaney Park Strip in Anchorage on Friday, June 19, 2026. (Chris Bieri / ADN)





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Pilot dies in small plane crash southeast of Cordova

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Pilot dies in small plane crash southeast of Cordova


A pilot was killed in a plane crash in mountainous terrain near Cordova, Alaska State Troopers said Friday.

The agency was notified of the overdue Piper Pacer around 8 p.m. Thursday, troopers said in an online post. The pilot was believed to be the sole person on board the aircraft, which was thought to be flying between Yakutat and Fairbanks, troopers said.

Aircraft from the Alaska Air National Guard and Alaska Wildlife Troopers started searching for the plane, and a Guard helicopter crew found the overdue Piper Pacer around 4 p.m. Friday where it had crashed near Kanak Island, about 40 miles southeast of Cordova, troopers said.

The pilot, whom troopers did not identify, was found dead in the crashed plane, troopers said. His body was take to the State Medical Examiner Office in Anchorage for autopsy and positive identification, according to troopers.

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Troopers said the pilot’s next of kin and the National Transportation Safety Board were notified.





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It’s the Alaska Legislature’s last day in special session. Here’s the latest.

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It’s the Alaska Legislature’s last day in special session. Here’s the latest.


The Alaska Senate plans to vote today on a new draft of a bill that would reduce taxes on the Alaska LNG project. It’s the last day of a special session Gov. Mike Dunleavy called to consider the issue.

Dunleavy and pipeline developer Glenfarne, which owns a 75% stake in the project, say a measure replacing a 2% annual property tax with a much smaller tax on gas throughput is essential to allowing the project to attract investors and court lenders. Dunleavy and Glenfarne applauded the version of the bill that passed the House a week ago.

The Alaska LNG project, estimated by the developer to cost up to $54.5 billion, includes an 807-mile pipeline, a conditioning facility on the North Slope to remove gas impurities such as carbon dioxide, and a liquefaction plant on the shores of Cook Inlet to export the gas to Asia. The project would be split into two phases: first, a shorter in-state pipeline to provide gas to Alaskans, and then the much more expensive — and much more lucrative — export infrastructure.

The Senate’s new draft retains many of the House’s provisions with some important changes.

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Perhaps the most significant changes are to the project’s timeline: to be eligible for tax relief, the developer must commit to a final investment decision for the first phase by Jan. 1, 2028, and construction of the in-state pipeline would need to be complete by the end of 2032.

The House’s version required only that construction begin by Jan. 1, 2032.

The faster timeline is an effort to address Southcentral’s looming shortage of natural gas, said Sen. Bert Stedman, a Sitka Republican and a co-chair of the Senate Finance Committee. The Department of Natural Resources’ production forecast envisions demand outstripping Cook Inlet gas production by 2032, requiring producers to dip into storage.

“There’s been a lot of concern out of the Railbelt with the declining volume in Cook Inlet,” Stedman said.

But the more aggressive timeline sparked concerns from minority Republicans on the committee; it increases the risk on an already risky, marginal project, they said.

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“That’s very damaging,” said Sen. Mike Cronk, a Tok Republican and the Senate minority leader. “There’s so many factors that we don’t control.”

Putting a “hard construction date” in the bill may be a “poison pill,” Cronk said.

Glenfarne and Gov. Mike Dunleavy did not immediately respond to requests for comment on the new version of the bill.

Stedman suggested future legislatures could revise the date to account for “unforeseen black swan events.”

“We can change these and modify these going forward,” Stedman said. “This is not in the Constitution, so I think there’d be some consideration under good faith trying to get the project constructed.”

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The tax rate at the heart of the bill — the so-called alternative volumetric tax on gas flowing through the pipeline from the North Slope to Southcentral Alaska — would be fixed, rather than a weighted average tied to the cost of each component of the project.

The Senate draft sets the tax initially at 6.2 cents per 1,000 cubic feet of gas throughput, starting five years after gas begins to flow through the pipeline. The tax would take effect sooner if throughput reaches 500 million cubic feet per day, which is more than double what Southcentral Alaska uses now.

The tax would rise to 10.6 cents per 1,000 cubic feet once Phase 2 of the project, which includes the liquefied natural gas export facility, is up and running. The tax revenue from that mirrors what the Department of Revenue estimates the weighted tax that passed the House would yield.

The rates would rise between 1% and 3% each year, depending on inflation.

The House backed 30-plus years of tax breaks. Some senators were skeptical of that, so their version doubles the tax rate ten years after exports begin, then doubles them again in 2060.

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The new bill retains key conditions for the tax relief included in the House’s version: the developer must commit to building a spur line to Fairbanks and negotiate project labor agreements with unions. It also includes up to $80 million in community impact funding for municipalities: $40 million due shortly after the final investment decision for each project phase.

It also includes House-passed price controls on in-state gas. Utilities would pay no more than $16 per million British thermal units, adjusted for inflation. That’s roughly $16.60 per 1,000 cubic feet, substantially higher than current Southcentral gas rates — about $10 — but likely cheaper than imported gas, according to Southcentral’s gas utility.

Also notable is an omission from the bill. It does not include a measure that had been under discussion that would subject large so-called S corporations and other pass-through entities in the oil and gas business, like LLCs, to the state’s corporate income tax.

Glenfarne, in its only comments so far on the new bill, urged lawmakers not to include that tax in the final version.

“If the Senate passes a bill with the proposed S Corp tax, it will introduce major hurdles for Alaska LNG to secure the right financing to build the project,” the company said in a statement provided by spokesperson Tim Fitzpatrick.

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Senators are due to amend the bill and take a final vote later today.

The special session expires at midnight tonight, but Gov. Mike Dunleavy has already signed a proclamation calling another special session to begin Saturday.

Asked whether the new special session represented a contingency plan in an event the bill failed to pass, Dunleavy spokesperson Jeff Turner declined to say.

“We will see what happens,” Turner said.

This is a developing story. Check back for updates.

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