Alaska
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?
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.
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.
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.
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.
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.
Alaska
‘Extremely dangerous’ conditions on Glenn Highway due to snowfall, APD says
ANCHORAGE, Alaska (KTUU) – Relentless snowfall is contributing to dangerous road conditions Tuesday in Anchorage and other areas of Southcentral Alaska, authorities say.
The latest numbers around Anchorage as of 8:30 p.m. Tuesday included 53 crashes, 11 with injuries, and 124 vehicles in distress, according to an Anchorage police spokesperson.
The inbound Glenn Highway was closed at South Eagle Road just after 12 p.m., with southbound traffic being diverted through Eagle River.
The Glenn was reopened shortly after 3 p.m., APD said, adding that traffic was still slow-moving due to the winter conditions.
General conditions on the Glenn Highway are “extremely dangerous,” according to APD. Drivers are being asked to avoid the highway if possible, partly to give plow drivers time to do their work.
In one incident, a school bus slid off the road and into a ditch on the Glenn Highway between Anchorage and Eagle River.
An Anchorage School District spokesperson said the Reliant-owned bus had 29 students on board, and all were in school by 9 a.m. with no injuries reported.
A second school bus that was reported “in distress” near Inlet View Elementary was later revealed to have slid into a snow berm, although only the driver was on board, according to a district spokesperson.
APD Traffic Unit Supervisor David Noll said people who do have to hit the road should budget extra time and slow down to be safe, not just for themselves but also for the drivers around them who are already dealing with reduced visibility.
“Obviously you need to drive slow enough that you can control your vehicle, you can steer, you can stop,” Noll said. “But also, you need to be considerate of others around you that when you are driving fast, you are lofting a lot of that snow up and making it hard to see.”
Noll said state law requires at least two seconds stopping time between vehicles, but in bad weather, the recommended time is four seconds. He said drivers should have their headlights on, even during the day, and do their best to keep their windows and headlights clear of snow. If drivers encounter an unplowed road that is concerning, try to go a different route.
He said people who do get stuck or go off the road have options, but can always call police.
“If you end up stuck, you should consider what resources you have to help you get unstuck — so somebody with a tow strap, another tow company,” Noll said. “If you can’t get an adequate resource there and you need some assistance, call APD, call 311, unless there is an actual emergency, call 911.”
This is a developing story. We will update with more information as it becomes available.
See a spelling or grammar error? Report it to web@ktuu.com
Copyright 2026 KTUU. All rights reserved.
Alaska
Opinion: No one wants debt, and Alaska students are proving it
No one wants debt. This was the top finding of students and parents recently surveyed by the Education Trust of Alaska.
The Trust commissioned focus groups and a survey of current University of Alaska students and parents of University of Alaska students and eighth graders to gain a better understanding of existing awareness about the Alaska Performance Scholarship, Alaska 529 and University of Alaska scholarships; their college planning strategies; and motivations for attending the University of Alaska. Respondents in each group were clear: No one wants debt. They also shared that planning is overwhelming when the future seems so uncertain. Those who chose the University of Alaska were satisfied with their decision. Here’s a further, more detailed analysis:
Confusion and uncertainty can lead to decision paralysis: Investing in a 529 plan early can help alleviate future debt. However, awareness about how funds can be used, uncertainty about their child’s interest in future education after high school and the inability to save enough are barriers to planning or saving in advance. Many parent respondents said they avoid investing because they don’t think it will yield enough to cover the costs of education and training. Parents are worried about the portability of 529 accounts if their child attends an out-of-state school, doesn’t go to college or pursues a trade.
The truth about modern 529 plans: 529 accounts have become increasingly flexible; now, qualifying expenses include trades, apprenticeships, vocational training, college, professional credentialing and more. Every dollar saved is $2 they won’t have to pay back later, including interest, so any amount saved can help reduce future debt. 529s can be used at most colleges and universities nationally. Any earnings grow federal tax-free and as long as the funds are used for the qualifying expenses, they remain tax-free. If the account has unused funds, a solution is available thanks to recently enacted legislation that allows for rollovers into Roth IRA accounts. Most families don’t save for the full cost of attendance in- or out-of-state. Participants in Alaska’s state-sponsored Alaska 529 education savings plan have an average account balance of just over $17,000. Investing in a 529 plan early can help alleviate future debt, but it is not a standalone option for financing education.
Current University of Alaska students expressed satisfaction with their decision to attend UA: Students who chose to attend a school in the University of Alaska system were primarily responsible for covering the costs of their college education and debt avoidance was a major factor. The UA students were blown away by the diverse academic opportunities available to them in-state. Some respondents had applied to and were accepted to schools Outside. When they compared the costs of attending an out-of-state school with the options available in-state, it became clear that the financially prudent and responsible choice for them was to attend an in-state school. Students attending UA found that it was not only affordable but also that they had additional money on the table through the Alaska Performance Scholarship because they had taken eligible classes in high school, met the minimum GPA requirement and completed the FAFSA. Survey respondents indicated that they didn’t realize there were so many scholarship options in Alaska. They wished they had paid attention to information about Alaska scholarships earlier in high school. The real financial pie has many pieces. At UA, that might include a 529 plan, federal aid, the Alaska Performance Scholarship, the UA Scholars Award and other scholarships available to students from all academic and economic backgrounds.
Parents face pressures, information gaps and conflicting emotions in their efforts to support their students: In the survey, parents of eighth graders and current UA students said they want to help their child succeed, want to avoid debt but expect the student to pay their own way for education and training after high school. Parents of current UA students felt a strong sense of pride in Alaska and hoped that their child would live and work in Alaska after college. During the college search process, they felt some peer pressure to send their child out of state but felt satisfied with their child’s decision to attend an in-state school. They wished they had learned earlier, in eighth grade, about Alaska-based scholarships so they could have helped coach their child on high school course selection. When they were shown the Alaska Performance Scholarship planning worksheet available at acpe.alaska.gov, most didn’t recall seeing it before but thought it was the perfect planning tool.
Parents of eighth graders found the prospect of college planning, including the courses required to attain the Alaska Performance Scholarship and the requirements of the UA Scholars Award, to be overwhelming. They did not feel ready to learn about these scholarship programs or college planning. Parents were primarily focused on helping their middle schooler navigate the early teenage years, feel connected to activities and manage the stressors of middle school. They also expressed uncertainty about traditional college pathways, leaning more toward vocational training and trades.
The bottom line: Planning is key; however, it can be overwhelming, leading to decision paralysis. Seeking information and support starting in junior high and throughout high school is key to setting a student up for future success. Avoiding debt is doable. The numerous financial tools available in Alaska can help our kids start strong, debt-free and equipped with the training and education needed to secure fulfilling Alaska jobs.
Lael M. Oldmixon is the executive director of the Education Trust of Alaska.
• • •
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Alaska
Rounding to the nearest nickel for cash purchases proposed by Alaska lawmaker
HB 281 mirrors legislation in other states due to shortage of pennies resulting from Trump administration’s halt in production
Suzanne Cohen says she hasn’t had trouble coming up with enough pennies when making cash purchases. But since the copper coins are no longer being minted she doesn’t object if future purchases are rounded off to the nearest nickel.
“If they’ve gotten rid of it it seems like it’s only a matter of time, so this is probably the right thing to do eventually,” she said during the noon hour on Monday at Rainbow Foods.
A hour earlier and a block away at the Alaska State Capitol, a bill was introduced rounding cash purchases to the nearest five-cent sum by Rep. Dan Saddler, R-Eagle River. House Bill 281 is similar to legislation introduced in other states following the Trump administration’s decision last year to stop making new pennies.
“After the U.S. Treasury decided last fall to stop minting pennies, they’re disappearing from circulation faster than they expected,” Saddler stated in an email to the Juneau Independent on Monday. “As pennies get more scarce, we should make sure businesses can’t round transactions up or down to their advantage. My HB 281 simply sets consistent, fair standards for how cash transactions should be rounded to the nearest nickel, to protect Alaska consumers and businesses.”
Practically applied, it means a shopper handing $2 to a cashier would get no change back from a $1.98 purchase, but a nickel back from a $1.97 purchase.
“If the total ends in one cent, two cents, six cents, or seven cents, the total is rounded down to the nearest amount divisible by five cents; (2) if the total ends in three cents, four cents, eight cents, or nine cents, the total is rounded up to the nearest amount divisible by five cents,” the text of HB 281 states.
Dyoni Smith, a section manager at Rainbow Foods who was working at one of the registers on Monday, said there hasn’t been a noticeable shortage of pennies yet either at the store or for the cash purchases she still makes regularly.
“We have a few people who actually pay to the penny with cash,” she said. “And then we have some, like one guy who comes in and he’ll pay cash, and he’ll put the remainder in the donation jar. And then another guy who comes in and sometimes he’ll pay to the penny — sometimes he’ll get change out of the change jar. So there’s quite a few people who I see who use cash.”
President Donald Trump last February ordered the U.S. Treasury Department to stop minting new pennies — something long discussed by other policymakers since the coins cost more to make than they are worth. The U.S. Mint reported that a penny cost about 3.7 cents to make in fiscal 2024, up from 3.1 cents the previous year.
Among the factors to be considered in states implementing rounding laws are possible legal challenges, impacts to retailers and what happened when Canada stopped distributing its penny in 2012, according to a policy summary by the National Conference of State Legislatures. But generally the organization states such laws are worth supporting.
“While states may approach this issue differently due to their own unique circumstances, there is a growing consensus among retailers, economists, and other stakeholders, recognizing symmetrical rounding, (up or down) to the nearest nickel, as the fairest method to all parties when applying to cash transaction,” the policy summary notes.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
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