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Alaska House’s deadlocked budget sent back for further talks with $1.9B deficit

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Alaska House’s deadlocked budget sent back for further talks with .9B deficit


Rep. Chuck Kopp, R-Anchorage, Rep. Andy Josephson, D-Anchorage, House Speaker Bryce Edgmon, I-Dillingham, and Rep. Louise Stutes, R-Kodiak, discuss the state’s budget and fiscal situation in Juneau on Tuesday, April 8, 2025. (Sean Maguire / ADN)

JUNEAU — The Alaska House’s budget is stuck, with disagreements on the size of the Permanent Fund dividend, school funding and the size of the budget itself.

The House Finance Committee last week advanced its draft budget with a statutory PFD and a $1.9 billion deficit. The spending plan was set to be debated on the House floor this week. But leadership of the Democrat-dominated House majority say they will not send an unbalanced budget to the Senate.

“I’m really reaching out to the minority. Let’s negotiate,” said House Speaker Bryce Edgmon, a Dillingham independent, at a Tuesday media conference. “Let’s talk about some things that we can do to make ends meet in a way that doesn’t eviscerate basic services.”

Legislators are facing a $680 million deficit over two fiscal years based on status quo spending. That assumes lawmakers approve a roughly $1,400 dividend and a $174 million school funding boost.

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However, some members of the Legislature have supported a larger school funding increase: over $250 million per year to pay for a $1,000 boost to the $5,960 Base Student Allocation, the state’s per-student funding formula. Advocates have said that is desperately needed for a public school system in crisis.

To pay for that, some lawmakers have supported a smaller, $1,000 dividend to free up state revenue.

The nonpartisan Legislative Finance Division has estimated that with a $1,000 BSA boost and a $1,000 dividend, the House’s budget for the next fiscal year would still be roughly $167 million in deficit.

Anchorage Democratic Rep. Andy Josephson, a co-chair of the House Finance Committee, said Tuesday that the House majority was committed to the $1,000 BSA boost.

“We heard from scores of Anchorage citizens about the importance of that, and we have their back,” he said, referring to a packed town hall meeting over the weekend. “Come hell or high water. We’re going to stand for that principle,” he said.

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Alaska Republican Gov. Mike Dunleavy in December proposed a budget with a statutory dividend following the 1982 statutory formula. If approved, eligible Alaskans would receive a roughly $3,900 dividend this year. But a statutory PFD would also lead to a roughly $1.9 billion deficit.

The House’s draft budget currently contains a statutory PFD at a cost of $2.5 billion — by far the largest outlay in the spending plan.

The last time the Legislature approved a statutory PFD was 2016. Since then, legislators have determined the size of the dividend through the budget-making process.

The House majority has a one-seat margin, which effectively gives each member a veto over the budget. The caucus is split on the dividend, meaning Republican minority members will likely be needed to help pass the budget, and to draw from savings to fill the current fiscal year’s shortfall.

”We’re all in a pickle,” Edgmon said Tuesday. “It’s not just the House majority. It’s the House minority, it’s the governor, it’s the Senate majority, it’s the Senate minority. We all own the situation in front of us.”

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The House’s budget process has been marked by acrimony and finger-pointing between the majority and the all-Republican minority. Leadership of both caucuses have not articulated clear plans for how they want to balance the budget.

Anchorage GOP Rep. Mia Costello, the House minority leader, suggested at a separate Tuesday media conference that the minority has been largely shut out from budget debates.

“We are willing to be a part of the conversation, and we want to move forward, and we’re not often given that opportunity,” she said.

Anchorage Republican Rep. Chuck Kopp, the House majority leader, countered that the minority needs to come to the table.

“We need a House minority that’s willing to step up, take some very hard votes and agree that you can’t duck the question on the size of the dividend. It’s like rearranging the deck chairs on the Titanic when you’re going down,” he said.

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The Senate majority has introduced revenue measures to bridge the state’s deficit, including by raising oil taxes. But those measures appear to face long odds of passing through the narrowly divided House.

Adding to the fiscal uncertainty for lawmakers: Congress has signaled it could make deep cuts to programs such as Medicaid. Additionally, President Donald Trump’s announcement of sweeping tariffs on U.S. trading partners has sent the Permanent Fund and oil prices sliding, which could balloon the state’s deficit further.

Lawmakers have few good options to reduce the deficit and balance the budget.

Fairbanks GOP Rep. Will Stapp, a minority member, said Tuesday that both the statutory PFD and the $1,000 BSA boost would need to be reduced. Palmer Republican Rep. DeLena Johnson suggested recent budget additions should be pulled back.

But, when pressed on Tuesday, House majority and minority members did not offer specifics about how to reduce the deficit beyond generalities about budget cuts and working together.

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Typically, the House takes the lead on the annual operating budget, which funds state agencies and programs, and the Senate takes the lead on the capital budget, which funds infrastructure and maintenance projects. The spending plans are then exchanged and legislators finish work on the other chamber’s budgets.

The House and Senate had planned on exchanging budget bills on April 11. But that is being delayed with the House at a standstill.

Josephson, who manages the House’s operating budget, said Tuesday that the majority caucus anticipated the budget being on the House floor next week. That is typically the final step before legislation advances to the Senate for its consideration.

Dunleavy has been all but absent this year from the state Capitol and legislative debates. Edgmon urged the governor’s office and his Senate and House colleagues to work together.

“We’ll get through this, but if you leave us to our own designs, we are going to be stuck in this morass that unfortunately is going to carry forward into what none of us want — that’s a special session,” he said.

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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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Bear injures two US soldiers during military training in Alaska | The Jerusalem Post

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Bear injures two US soldiers during military training in Alaska | The Jerusalem Post


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.





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Travel prices are going up, up and away. Here’s what to watch.

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Travel prices are going up, up and away. Here’s what to watch.


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.





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