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After school funding dispute, 4 Alaska districts move on without federally promised money

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After school funding dispute, 4 Alaska districts move on without federally promised money


Until last month, the U.S. Department of Education said Alaska underfunded four of its largest school districts by $17.5 million. As a result of a recent agreement, the schools in Anchorage, Fairbanks, Juneau and Kenai Peninsula Borough won’t directly receive any of that money.

However, two of the districts said they weren’t counting on receiving the money as they planned their current budgets, while the other districts either didn’t respond or declined to comment.

The $17.5 million is part of COVID-era pandemic funding, and until last month, how Alaska distributed that funding was at the heart of a years-long dispute between federal and state officials, and whether it was spent fairly.

The state repeatedly defended their school spending plan, while the federal government asserted the state failed to comply with guidelines and reduced spending on these districts with high-need or high-poverty areas, and withheld the sum they said was owed.

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Federal officials said the state reduced spending to the Kenai Peninsula and Anchorage school districts by up to $11.89 million in the 2021 to 2022 school year, and all four districts by $5.56 million the following year.

Kenai Superintendent Clayton Holland said the district never budgeted for this particular federal COVID funding, as they were aware of the dispute.

“Had it gone through, we would have welcomed it, as we are facing a potential deficit of $17 million for next year” and have nearly exhausted the balance of funding the district can spend without restrictions, Holland said.

Anchorage School District officials did not respond to requests for comment.

The dispute came to an end on Dec. 20,  when the federal department told the state it was releasing the funding, citing a review of the state’s one-time funding boosts in the last two budgets, and considered the matter closed.

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Alaska Education Commissioner Deena Bishop led the state’s defense effort, including appealing the penalty, and applauded the move by the federal Department of Education. She said the state always followed the state law governing school funding.

“The department said, ‘We don’t agree with your formula, you should have given these guys more.’ And we said, ‘No, no, no. Only our Legislature can make the law about our formula. That’s why we stood behind it,” she said in an interview Tuesday.

The dispute centered around what was known as a “maintenance of equity” provision of a federal COVID aid law, which banned states from dropping per-pupil spending during the pandemic. Bishop said that decreases in funding in the four districts were due to drops in enrollment, according to the state’s spending formula.

Bishop defended the formula as equitable, noting that it factors in geographic area, local tax bases, and other issues. “I just felt strongly that there’s no way that they can say that we’re inequitable, because there are third-party assessments and research that has been done that Alaska actually has one of the most equitable formulas,” she said.

“Our funding formula is a state entity. Our districts are funded according to that,” Bishop said. “And so basically, they [U.S. Department of Education] argued that the distribution of funds from the state funding formula, the state’s own money, right, nothing to do with the Feds, was inequitable.

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“So they picked these districts to say, ‘You need to give them more.’ And we’re saying, ‘No, you don’t have a right to say that. We spent your money, how you said, but only the state Legislature can say’” how to spend state money, she said.

She said the state felt confident about their spending plan for American Rescue Plan Act funding.

In addition to temporarily withholding the funding, the federal government further penalized Alaska by designating it a “high risk” grantee.

Federal and state officials went back and forth on compliance, with the state doubling down, defending their school spending. By May, the state had racked up another $1 million in frozen federal funds.

Bishop said despite the holds from the feds, they continued to award the funds to districts.

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“We felt as though we would prevail. So we never wanted to harm school districts who were appropriated those funds the way that they were supposed to,” she said. School districts followed the dispute closely.

Juneau School District’ Superintendent Frank Hauser said the district did not expect or budget for the funds.

“JSD was slated only to receive approximately $90,000 of the “maintenance of equity” funds, much less than Kenai, Fairbanks, or Anchorage,” he said in an email. “JSD will not receive that money now; however, we had not anticipated receiving it and had not included it in our budget projection.”

The Fairbanks North Star Borough School District declined to comment on the issue. A spokesperson said the district administration is awaiting clarification from the state education department.

On Monday, the administration announced a recommended consolidation plan for five elementary schools to be closed, citing a $16 million deficit for next year. A final vote on whether to close the schools is set for early February.

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Now the state is in the process of applying for reimbursements from the federal Department of Education, and expects to receive that full $17.5 million award, Bishop said. If districts have outstanding pandemic-related expenses, she said those can be submitted to the state, and will be reimbursed according to the state’s COVID-19 funding guidelines. “We’ll process that, and then we’ll go to the Feds and get that money back,” she said.

In December, Gov. Mike Dunleavy applauded the federal announcement, calling the dispute “a tremendous waste of time,” in a prepared statement. He repeated his support for President-elect Donald Trump’s calls to eliminate the U.S. Department of Education.

“On the bright side, this saga is a wonderful case study of the U.S. Department of Education’s abuse of power and serves as further evidence for why I support the concept of eliminating it,” he said.

Dunleavy linked to a social media post he made on X, which read, in part, that eliminating the department “would restore local control of education back to the states, reduce bureaucratic inefficiency and reduce cost. Long overdue.”

Sen. Löki Tobin, D-Anchorage and chair of the Senate Education Committee, pointed to the timing for the outgoing Biden administration and federal leaders’ desire to release funding to Alaska schools.

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“It’s very clear that if the presidential election had ended in a different result, we would not be having this conversation,” she said. “Instead, they would be continuing to work with the department to find a more elegant, a more clean solution.”

She said the federal letter announcing the end to the long dispute doesn’t mean the issue of equity was resolved.

“I think their letter to the Department of Education and Early Development here in Alaska was very clear that Alaska never did fully comply with the guidelines, but instead, due to a want and a fervent hope that the resources would get into the schools and into the communities that so desperately needed them, that they would choose to not pursue further compliance measures,” she said.

Last year, the Legislature passed a budget with $11.89 million included for the state to comply with the federal requirements, but that funding was vetoed by Dunleavy, who defended the state’s position, saying the “need for funds is indeterminate.”

The budget did include a one-time funding boost to all districts, but Tobin said the annual school aid debate left districts in limbo for future budget planning.

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“We can see how this has cost school districts, how it has created instability, how it has resulted in a system that is unpredictable for funding streams for our schools,” Tobin said.

Kenai Superintendent Holland expressed hope that school funding would be prioritized by elected officials this year.

“The bigger issue for us, and for all Alaskan school districts, is what our legislators and governor will decide regarding education funding in the upcoming legislative session,” Holland said.



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Alaska

These lines are adding Alaska cruises. Is your favorite on the list?

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These lines are adding Alaska cruises. Is your favorite on the list?



New Alaska voyages debut in 2026 as lines like MSC Cruises and Virgin Voyages expand into the booming market.

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Travelers will have new ways to see Alaska this year.

A number of cruise lines are launching sailings to the Last Frontier in 2026, from luxury to large family-friendly and adults-only ships. About 65% of people visiting the state during the summer do so by cruise ship, according to Cruise Lines International Association Alaska, and demand is high.

“I think Alaska is always very popular, but we’re seeing that ships are selling out way quicker than they used to,” Joanna Kuther, a travel agent and owner of Port Side Travel Consultants, told USA TODAY. 

With new inventory opening up this season, here’s what travelers should know about Alaska cruises.

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Which cruise lines are adding Alaska sailings?

  • MSC Cruises will launch its first-ever Alaska sailings aboard MSC Poesia on May 11. The ship will be fresh from dry dock to add enhancements, including the line’s luxe ship-within-a-ship concept, the MSC Yacht Club.
  • Virgin Voyages’ newest ship, Brilliant Lady, will operate the company’s inaugural Alaska cruises. The adults-only cruise line will set sail there starting on May 21.
  • The Ritz-Carlton Yacht Collection will debut its first Alaska cruises this year on its Luminara vessel. The first of those sailings will depart on May 28.

Those join other operators like Holland America Line, Princess Cruises, American Cruise Lines, Norwegian Cruise Line, Royal Caribbean International, Disney Cruise Line, Celebrity Cruises and more.

What are the draws of Alaska cruises?

Glaciers are a major attraction for visitors. “One of the major (draws) is Glacier Bay,” said Kuther. “…And then the other one is definitely the wildlife.”

That includes bears, whales, moose and salmon. In addition to its many natural wonders, the state is also a cultural destination where visitors can learn about its Native peoples.

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When is the best time to take an Alaska cruise?

That depends what you’re looking for. The Alaska cruise season generally runs from April through October, and Kuther said visitors will tend to see more wildlife between the end of June through August.

“That’s super peak season,” she said. “That’s also where you’re going to have more families, more crowds.” Some locals have also said those crowds are putting a strain on the very environment tourists are there to see.

Travelers may find less packed ships and ports by visiting earlier or later in the season – and there are other perks. If passengers go in May “it’s still a little bit snowy, so your scenery is going to be really cool,” Kuther said. Travelers visiting in September or October, meanwhile, could have a better shot at seeing the northern lights.

Where do ships usually sail?

The most popular itinerary is the Inside Passage, according to Kuther. That often sails round-trip from Seattle or Vancouver with stops such as Juneau, Skagway and Ketchikan. “People will go back to Alaska and do different routes,” she said. “This is a very good way to start.” 

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Other options include one-way cruises between Vancouver or Seattle and Anchorage. Travelers can also take cruisetours that combine sailings with land-based exploration, including train rides and tours of Denali National Park and Preserve.

Tips for Alaska cruises

  • Book early: Alaska itineraries sell out quickly, and so do shore excursions. Unique offerings like helicopter tours and dog sledding are popular, and there are only so many spots.
  • Consider a balcony cabin: This is “almost a must” in Kuther’s opinion. Crew members may make announcements about whales or other sightings near the ship, and guests with their own private viewing spot won’t have to race out on deck.
  • Pack carefully: “Packing is an art when it comes to Alaska,” Kuther said. “It really is, because you need so many things.” Her top three picks are bug spray, layers of clothing for the fluctuating temperatures and a waterproof jacket in case of rain.

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.



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Alaska lawmakers push Trump administration to waive $100k visa fee for international teachers

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Alaska lawmakers push Trump administration to waive 0k visa fee for international teachers


Some Alaska school districts say they can’t afford to hire and retain international teachers after the Trump administration hiked fees for highly skilled worker visas.  Alaska school districts have increasingly hired international teachers through the H-1B program amid an ongoing teacher shortage. Until last September, the annual fee for such visas was $5,000 per person. […]



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Alaska’s voter roll transfer: Republicans bash hearing questioning if lieutenant governor broke the law

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Alaska’s voter roll transfer: Republicans bash hearing questioning if lieutenant governor broke the law


JUNEAU, Alaska (KTUU) – A legislative hearing into the legality of Alaska’s voter roll transfer to the federal government ended in partisan accusations Monday, with one Republican calling it a “set-up” and others saying it was unnecessary, while Democrats defended it as needed oversight.

“Andrew (Gray) and the committee has a bias. I mean, that much is obvious from watching it,” Rep. Kevin McCabe, R-Big Lake, told Alaska’s News Source walking out of the hearing before it gaveled out. “Most of the testimony was slanted against the state and against the federal government.”

The House State Affairs and Judiciary committees met jointly Monday to hear testimony about whether Dahlstrom violated the law when she transferred the entirety of Alaska’s voter rolls to the federal government.

Rep. Steve St. Clair, R-Wasilla, agreed with his Big Lake counterpart that the hearing was unnecessary.

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“I think we’re speculating on what the intent of the DOJ is and I believe we need to wait and see,” he said.

Rep. Andrew Gray, D-Anchorage and chair of the House Judiciary Committee, pushed back when told of his Republican colleagues’ reaction.

“I think that I went above and beyond to try to include everybody,” Gray said as he left the meeting. “If people are saying that if the Obama administration had asked for the unredacted voter rolls from Alaska, that all these Republicans around here would have just been like, ‘oh, take it all. Take all of our information.’

“That is not true. That is absolutely not true,” Gray added.

Rep. Ted Eischeid, D-Anchorage, backed his House majority colleague, questioning whether Republicans would have preferred if the topic not be addressed at all.

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“The minority folks on the committee had a chance to ask questions,” he said. “I think this is a meeting we needed to have. Alaskans have asked for it. I think there’s still a lot of unanswered questions. So shedding light on the state’s actions, that’s bias?”

Dahlstrom did not attend the hearing. Gray said she was invited multiple times but cited scheduling conflicts. The lieutenant governor oversees the Alaska Division of Elections under state law.

In her most recent public statement — published Feb. 25 on her gubernatorial campaign website, not through her official office — Dahlstrom defended the voter roll transfer, saying the agreement with the DOJ was “lawful, limited” and that Alaska retains full authority over its voter rolls.

“The DOJ cannot remove a single voter from our rolls,” she wrote. “Its role is limited to identifying potential issues, such as duplicate registrations or individuals who may have moved or passed away.”

Representatives from the state’s Department of Law and Division of Elections both testified in defense of Dahlstrom’s decision. Rachel Witty, the Department of Law’s director of legal services, told the committee the state viewed the DOJ’s purview.

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“The DOJ’s enforcement authority is quite broad,” Witty said. “And so, we interpreted their request as being used to evaluate and enforce HAVA compliance.”

HAVA — the Help America Vote Act — is a federal law that sets election administration standards for states.

Lawmakers also heard from an assortment of outside witnesses who largely questioned the legality of Dahlstrom’s actions, including former Lt. Gov. Loren Leman, who served under Republican Gov. Frank Murkowski, and former Attorney General Bruce Botelho, who served under Democratic Gov. Tony Knowles.

The Documents: A Months-Long Timeline

As part of the hearing, the committee released months’ worth of documents between the Department of Justice — led by Attorney General Pam Bondi — and Dahlstrom’s office, detailing the effort to transfer Alaska’s voter rolls over to Washington.

The DOJ first asked Dahlstrom to release the voter rolls in July of last year, citing the 1993 National Voter Registration Act, which requires states to allow federal inspection of “official lists of eligible voters.”

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Dahlstrom agreed to release the records in August, providing a list of voters designated as “inactive” and “non-citizens,” along with their voting records and the statewide voter registration list — but it did not include what the DOJ wanted.

“As the Attorney General requested, the electronic copy of the statewide [voter registration list] must contain all fields,” reads an email sent 10 days after Dahlstrom agreed to release the data, “including the registrant’s full name, date of birth, residential address, his or her state driver’s license number or the last four digits of the registrant’s social security number.”

Dahlstrom agreed to provide the full details months later, in December, citing a state statute that permits sharing confidential information with a federal agency if it uses “the information only for governmental purposes authorized under law.” Those purposes, she wrote in the email, are to “test, analyze and assess the State’s compliance with federal laws.”

“I attach some significance to the fact that it took the State … nearly four months to respond to the Department of Justice’s demand,” former AG Botelho told the committee.

That same day, Dahlstrom, Alaska Division of Elections Director Carol Beecher and DOJ Assistant Attorney General Harmeet Dhillon signed a memorandum of understanding governing how the data could be accessed, used, and protected.

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Dahlstrom’s office publicly announced the transfer nine days after the MOU was signed — nearly six months after the DOJ first made its request.

“Alaska is committed to the integrity of our elections and to complying with applicable law,” Dahlstrom said in the December statement. “Upon receiving the DOJ’s request, the Division of Elections, in consultation with the Department of Law, provided the voter registration list in accordance with federal requirements and state authority, while ensuring appropriate safeguards for sensitive information.”

A 10-page legal analysis from legislative counsel Andrew Dunmire, requested by House Majority Whip Rep. Zack Fields, D-Anchorage, concluded that the DOJ’s demand defied legal bounds.

“The DOJ’s request for state voter data is unprecedented,” Dunmire’s analysis states, adding that the legal justification the DOJ used to demand access to the data has never been applied this way before.

“Multiple states refused DOJ’s request, which has resulted in litigation that is now working its way through federal courts across the country,” he adds.

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The Senate holds an identical hearing Wednesday, when its State Affairs and Judiciary committees take up the same questions.

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