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Alaska lawmakers return to Juneau on Tuesday. Here’s what to expect.

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Alaska lawmakers return to Juneau on Tuesday. Here’s what to expect.


Lawmakers return to the Alaska State Capitol on Tuesday and, as always, they’ve got a long agenda to tackle, from health care and energy to the state’s persistent budget struggles.

Alaska Public Media’s state government reporter, Eric Stone, will be tracking the session in Juneau. He joined Wesley Early on Alaska News Nightly to give a sense of what the session will bring.

The following transcript has been lightly edited for clarity.

Wesley Early: So, Eric — lots to do, only four months to do it. What are lawmakers prioritizing ahead of the session?

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Eric Stone: Well, Wesley, as you said, there’s a lot to do. And there will always be some surprises. But what’s not a surprise is how difficult the budget will be this year. We heard a lot last year about how this might be a painful year.

Maybe this will set the tone — last year, we had a $1,000 Permanent Fund dividend, the smallest ever when you adjust for inflation. And this year, what I keep hearing is that even a $1,000 dividend will be a challenge. Here’s Fairbanks Republican Rep. Will Stapp — he sits on the House Finance Committee.

Rep. Will Stapp, R-Fairbanks: At the current level of spending and revenue, I don’t see how that’s possible without large savings draws, and I don’t know how people are going to feel about that.

ES: This has been an issue for years, of course. Lawmakers and the governor have worked to cut state spending in a variety of areas, though there’s some dispute about how much there is left to cut.

Stapp says he’d like lawmakers to take a closer look at department budgets with something known as zero-based budgeting. Basically, rather than starting from a baseline of “what did we spend last year,” this would be starting at zero and building the budget from scratch. Stapp included an amendment in last year’s budget asking the governor’s office to try that for one department of their choice, but he says as far as he can tell, that didn’t happen.

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So he says he’s renewing his efforts this year.

Stapp: Because you don’t really want to tell people the state needs a lot more money in terms of taxes … when you can’t really articulate where the money goes initially and what the money does. 

ES: Gov. Mike Dunleavy’s budget, as usual, contains what he calls a statutory PFD, $3,800 or so. But that, and the expenses they have to catch up on from this current year, mean that the governor’s budget would require spending more than half of what the state has in savings.

But it’s a bit incomplete. The governor has said he plans to introduce a fiscal plan. Last we heard, when he released his budget in December, it was still a work in progress. But the governor has his last State of the State speech this session — usually those come pretty early in the session, so a fiscal plan would be something to watch for there. Then again, a few years ago, Dunleavy said he was planning to introduce a sales tax and never did.

Democratic Anchorage Rep. Andrew Gray says he hopes Dunleavy does propose some kind of tax.

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Rep. Andrew Gray, D-Anchorage: He’s not running for reelection, so he can afford to take that risk …. He could, going forward into the future, have established a reliable source of revenue to fund our state. I mean, there could be no more worthy legacy for him. It would be monumental.

ES: Gray says he’d prefer an income tax — he says that would be fairer to low-income Alaskans — but if the governor proposes a sales tax, Gray says he thinks lawmakers would have to find a way to get it passed. He says he thinks lawmakers on both sides would be willing to discuss just about any solution to secure the state’s financial future.

But it’s an election year, and a fiscal plan requires some hard votes, so it’ll take some gumption for lawmakers and the governor to actually come together rather than kick the can down the road yet again.

WE: Alright, so we have the perennial budget debate with a bit more urgency this year. That’ll be something to watch. What else is on your radar?

ES: This one came up recently — health care. You might have heard of this Rural Health Transformation Program. That’ll send more than a billion dollars to the state over the next five years to, essentially, improve health care. There are a bunch of restrictions on how it can be spent, and most of that decision-making will happen inside the executive branch in the Department of Health.

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But Health Commissioner Heidi Hedberg said on a call with reporters recently that there is a role for the Legislature to play. To make Alaska’s grant application more competitive, the state said it would do a bunch of things by the end of 2027. Those include expanding what pharmacists are allowed to do, and joining a variety of “license compacts” for EMS workers, nurses and a few others. The deal is, if you’re licensed in some states, you can also practice in Alaska without a need for retraining.

That’s an issue the Legislature has not made a focus in past years, though there are some pending bills. And Gray says he could see those scrambling caucus lines.

Gray: In terms of where people land and what they support, I think that it’s not going to be clear-cut. It’s not going to be a majority-versus-minority. I think that that it’s going to be all over the place.

ES: But Gray, who is also a physician assistant, says he supports the policy changes.

Stapp, for his part, says he’s on board — he says he’s still reviewing what all is needed, but he says from what he’s seen so far, he doesn’t see why those policy changes will be a problem.

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WE: Finally, Eric, what about the Alaska LNG project? Are you expecting movement on that front?

ES: That one is interesting. The gas pipeline developer, Glenfarne, has yet to announce what’s known as a final investment decision — a green light to move forward. Lawmakers heard last year from its consultants about a variety of changes they could make to ensure the project is profitable enough and stable enough to go forward. We could see some movement on that — for instance, Gov. Dunleavy says he’d like to see lawmakers offer some property tax relief to the gas line project to help it pencil out. And a lot of lawmakers say they support efforts to help the gas line move forward — but I think they’ll approach that question with some caution. They don’t want their home communities to get taken to the cleaners, so to speak.



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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska

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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska


 

Artists rendering of the future Arctic Security Cutter that the U.S. Coast Guard said would first be homeported in Alaska. The first of the icebreaking cutters are scheduled for delivery in 2028. (Davie Defense, Inc.)

WASHINGTON — The U.S. Coast Guard announced Thursday that the first two Arctic Security Cutters will be homeported in the State of Alaska. Anticipating delivery of the first Arctic Security Cutters by the end of 2028, the Coast Guard has begun planning to ensure necessary infrastructure and support are in place to receive two icebreakers. Ensuring these vessels are supported by trained and ready crews, and ready homeport facilities including housing, will be essential to delivering full, enduring operational capability required to meet emerging Arctic security challenges.

Homeporting these two Arctic Security Cutters in Alaska is a decisive step forward in securing America’s Arctic frontier,” said Secretary of Homeland Security Markwayne Mullin“I want to thank President Trump for his bold leadership and vision in directing this critical investment, as well as Senator Sullivan and the entire Alaskan Congressional delegation for championing the funding that made these icebreakers possible. These vessels will deliver the enduring operational presence our nation needs to protect sovereignty, deter foreign adversaries, and safeguard vital resources for the American people..

The homeporting of the first two Arctic Security Cutters in Alaska builds on the historic expansion of the Coast Guard’s icebreaker fleet and underscores an unprecedented investment in the Arctic. This announcement marks a national milestone in U.S. Arctic capability, following contract awards for up to 11 Arctic Security Cutters. Fueled by $3.5 billion in funding in the Fiscal Year 2025 Reconciliation Bill and facilitated by a groundbreaking Memorandum of Understanding (MOU) between the United States and Finland in October 2025, the acquisition of Arctic Security Cutters will fulfill President Trump’s directive to rapidly deliver America’s newest icebreaker fleet.

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“Homeporting Arctic Security Cutters in Alaska underscores the United States’ leadership as a maritime power in the Arctic,” said Adm. Kevin E. Lunday, commandant of the Coast Guard. “By strategically positioning these state-of-the-art icebreakers in Alaska, the Coast Guard will maximize our ability to defend our northern border and approaches, while reinforcing America’s maritime dominance in a crucial region of strategic importance.”

Through contract awards to Rauma Marine Constructions Oy of Rauma, Finland, Bollinger Shipyards Lockport, L.L.C., and Davie Defense, Inc. of Vienna, VA, the U.S. will immediately benefit from our Finnish partners’ icebreaker expertise while coordinating the onshoring of that expertise and shipbuilding to the United States. Under the MOU, Finland will construct up to four ASCs for the U.S Coast Guard. U.S. shipyards will build and deliver up to seven additional ASCs. Delivery of the first Arctic Security Cutters is expected by the end of 2028.

Arctic Security Cutters will form the backbone of a revitalized U.S. icebreaker fleet, strengthening American maritime dominance in the Arctic. Fielding specialized capabilities, these icebreakers will defend U.S. sovereignty, secure critical shipping lanes, protect energy and mineral resources, and counter foreign malign influence in the Arctic region. A robust icebreaker fleet will enable the Coast Guard to control, secure and defend U.S. Alaskan borders and Arctic maritime approaches, facilitate maritime commerce vital to economic prosperity and strategic mobility, and respond to crises and contingencies in the region.

Acquisition of Arctic Security Cutters supports the Coast Guard’s ongoing modernization, through which the Service is transforming into a more agile, capable and responsive fighting force.

Memorandum on ASC Homeporting

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‘We never forgot her’: Friends, family of longtime Alaska teacher gather for 100th birthday celebration

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‘We never forgot her’: Friends, family of longtime Alaska teacher gather for 100th birthday celebration


ANCHORAGE, Alaska (KTUU) – Phyllis Sullivan has certainly led a life worth celebrating.

Born in 1926, Sullivan moved to Alaska with her husband and three children in 1959 to teach, first in the village of Kwethluk in Western Alaska and later at Wendler and Mears Middle Schools in Anchorage.

All the while, she left strong impressions with countless students and acquaintances, some of whom gathered in the basement of Anchor Park United Methodist Church in Anchorage Saturday to celebrate Sullivan’s century of life.

“Education has been the primary thing in her entire life,” her son Dennis Sullivan said. “She’s always been a school teacher and she’s been one of the sweetest people in the entire world.”

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As a slideshow featuring vintage photos from her life and time in Alaska played, Phyllis, wheelchair-bound but high in spirit, stopped to chat with every new person who entered the room, some of whom she hadn’t seen in years.

“It’s impressive that this many people are here,” she said. “That’s very encouraging. Makes me think maybe I did something right along the way.”

Aside from family members, most visitors were there because of the impression Phyllis Sullivan left on them during her many years in the classroom.

“She gave us this one assignment: to memorize a poem,” former Mears student Tina Arend recalled. She said Phyllis Sullivan was her 8th grade English teacher.

“And when she gave us the assignment, she said, ‘I’ve had students come back many, many, many years later and recite the poem to me.’ And we actually still remember the poem,” Arend said of her and her husband, who was also in attendance. They both went on to become teachers at Mears as well.

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Matthew Nicolai, whom Phyllis Sullivan taught in Kwethluk, has similarly fond memories.

“The Bureau had ordered that teachers do corporal punishment for speaking Yup’ik,” Nicolai remembered. “Even though we spoke Yup’ik, she never did that, never cracked our hands. Other teachers did, but not her. That’s why we never forgot her.”

In addition to teaching, Phyllis Sullivan also found time to open her home to those in need. She and her husband once took in a family with seven kids who had been displaced by flooding in Fairbanks in 1967.

“It touched our heart because they bought us a lot of stuff that we needed because we lost a lot of stuff during the flood,” David Solomon, one of those seven kids, said. “We stayed there for over three years.”

Phyllis Sullivan said she is enjoying life and is doing fine.

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“My mother made it to 103,” she said. “So, I’ve got a while yet.”

See a spelling or grammar error? Report it to web@ktuu.com

Copyright 2026 KTUU. All rights reserved.



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Alaska Senate committee advances draft capital budget, boosting funds for school maintenance

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Alaska Senate committee advances draft capital budget, boosting funds for school maintenance


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.



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