Alaska
Alaska Senate approves austere budget with $1,000 PFD ahead of final negotiations
JUNEAU — The Alaska Senate on Wednesday approved an austere operating budget for the next fiscal year ahead of final negotiations expected with the House.
Legislators are grappling this year with a dire fiscal outlook due to diminished oil revenue. The Legislature is facing a $680 million-plus deficit over two fiscal years based on status quo spending. In response, the Senate has proposed cuts across the board.
The Senate’s budget would pay a $1,000 Permanent Fund dividend and $172 million for a one-time school funding boost, in case a permanent increase is not approved this year.
The Senate approved the spending plan Wednesday on a 16-4 vote.
Republican Senate minority members applauded reductions in the budget before the final vote. But they called for a larger dividend to be paid this year.
All 14 members of the bipartisan Senate majority voted for the budget, alongside Republican minority Sens. Mike Cronk and James Kaufman. Four GOP minority members — Sens. Mike Shower, Shelley Hughes, Rob Yundt and Robert Myers — voted no.
In December, Alaska Gov. Mike Dunleavy proposed a budget with a statutory $3,900 dividend that was anticipated to lead to a roughly $2 billion deficit. Dunleavy also proposed around $60 million in additions to the budget that were rejected by the Senate. On Tuesday, Dunleavy formally requested that lawmakers withdraw most of his spending requests, citing a “precipitous” drop in state revenue.
Members of the bipartisan Senate majority have favored new revenue measures, and opposed using savings, to balance the budget. The Legislature approved a bill Wednesday that was intended to raise revenue by taxing out-of-state businesses that operate online. But the House has shown little appetite for other Senate bills that would hike oil taxes.
Bethel Democratic Sen. Lyman Hoffman, who manages the Senate’s operating budget, said this year’s spending plan was preparing for fiscal “headwinds” that could hit Alaska. He cited potential deep cuts at a federal level and diminishing oil revenue. He said that the state’s fiscal outlook could be even more dire next year.

“We all wish we could provide all the services that every Alaskan desires, but that is not reality. The bottom line is our constituents want and deserve more,” he said.
The Senate’s budget for the fiscal year that starts July 1 would make reductions across state agencies. It includes $25 million in cuts to the Department of Corrections, around $15 million in cuts to the Alaska Permanent Fund Corp., and $12 million in reductions to the Department of Public Safety by rejecting Dunleavy’s plans to reopen an Alaska State Troopers post in Talkeetna, along with additional Village Public Safety Officers in the Arctic.
Some of the Senate’s proposed cuts have proven controversial. Child care advocates are urging the Legislature to keep at least $14 million in the budget for subsidies and grants for a sector in crisis.
Wasilla Republican Sen. Shower, the Senate minority leader, voted no on the budget, but he joined his colleagues in thanking the majority for a collaborative process. He said the state’s fiscal picture meant the Senate Finance Committee was “handed a bag of lemons and was told to make lemons.” But he said that he remained concerned how the state’s budget would be sustainable in the long term.
The Senate’s budget is substantially different from one approved by the House last month. The House’s budget was projected to have a roughly $250 million deficit. It includes a $1,400 dividend and a backup, one-time, $253 million increase in school funding. The Legislature in April failed to override Dunleavy’s veto of a school funding boost of that size.
Lawmakers noted that the Senate’s $1,000 PFD would be the smallest dividend ever paid to Alaskans when adjusted for inflation. But it would free up $264 million in revenue for other spending.
The Republican Senate minority proposed a handful of amendments. Most were withdrawn before a vote was held.
Shower proposed the same $1,400 dividend as the House, which follows the “75-25” formula where three-quarters of an annual draw from the Permanent Fund goes to the state services, and the rest goes to the dividend.
The $1,400 PFD would be paid by overdrawing the Permanent Fund beyond an annual limit in state law that is intended to protect the fund. Shower’s amendment was rejected along caucus lines on a 14-6 vote.
North Pole Republican Sen. Myers suggested that overdrawing the Permanent Fund would not necessarily be “a bad thing.” He said that would help the Legislature prioritize the private sector over the public sector.
The Senate’s budget bill now heads to the House for a concurrence vote. The House could agree to the Senate’s changes to the budget or reject them and continue negotiations.
Typically, a conference committee hammers out differences between the two legislative chambers’ budgets. That way, the same budget bill can pass through both chambers and onto Dunleavy’s desk for his consideration.
Senators said that they expect a budget conference committee to start its work next week. The regular legislative session must end by midnight of May 21.
Alaska
This Day in Alaska History-March 27th, 1964

It was on this day in 1964 that a massive 9.2 earthquake in Southcentral Alaska.
The massive quake at 5:36 pm on March 27th caused much devastation throughout the region and generated a huge tsunami that inundated many communities in the region.
The quake was the largest in the history of the United States and initially killed 15 people while the resulting tsunami killed an additional 100 people in the new state and another 13 in California as well as five in Oregon.
The megathrust earthquake endured for four minutes and thirty-eight seconds and ruptured over 600 miles of fault and moved up to 60 feet in places.
The deadly quake occurred 15 and a half miles deep 40 miles west of Valdez and generated a ocean floor shift that created a wave 220 feet high.
As many as 20 other smaller tsunamis were generated by submarine landslides.
Alaska
Opinion: Alaska’s public schools were once incredible. They can be that way again.
I grew up greeting friends and neighbors on my walk to my neighborhood Anchorage public school, just as my kids do now. It’s an essential, and value-added, part of living in our community.
In the late 1990s, when I attended Service High School, I had amazing teachers. My AP chemistry teacher left the oil and gas industry to teach. He could have earned significantly more money in another field, but teaching was competitive enough, given pensions and compensation, that he stayed in the job he loved and gave a generation of students a solid foundation in chemistry.
Now, my kids, who are in first, third and fifth grade, face a different reality. Teachers across our state are leaving in droves. Neighborhood schools across Alaska are closing. Art and music are being combined, which is nonsensical — they are not the same and they are both valuable independently. When he was in second grade, my oldest had a cohort of more than 60 students in his grade — split between two teachers. When he enters sixth grade next year, there will be no middle school sports and he will lose out on electives. Support systems and specialists to help when kids are falling behind have been cut. I’m lucky that my children have had amazing teachers, but many excellent teachers are nearing retirement age or don’t have a pension and are pursuing other careers. What happens then?
Despite skyrocketing inflation, last year was the first time in years that our schools received a significant increase in the Base Student Allocation — and that money doesn’t begin to make up for what they have lost over the years. Even that increase had to overcome two vetoes from what a recent teacher of the year calls “possibly the most anti-public education governor in the history of Alaska.” Shockingly, my own representative, Mia Costello, despite voting for the increase, failed to join the override to support education. She has failed to explain that decision when asked.
State spending on corrections is up 54% since 2019; meanwhile, spending on education is up only 12% in the same timeframe. Schools are now working with 77% of the funding they had 15 years ago when accounting for inflation.
When we starve our public schools of funding, Alaska families leave. No one wants their child to suffer from a subpar education and the lower test scores and opportunities that come with it. A significant number of people are working in Alaska but choosing not to raise their families here.
To the elected officials who preach school “choice” but starve public schools: our family’s choice is our neighborhood school. It’s our community. It’s where our friends are. Neighborhood public schools, which are required to accept all children, should be the best option out there. Public schools should be a good, strong, viable option for communities and neighborhoods across our great state. Once, they were.
I am thankful for those in the Legislature working to solve these problems. This includes HB 374, which raises the BSA by $630, and HB 261, which would make education funding less volatile.
It breaks my heart that across the state, dedicated teachers keep showing up for our kids while being underpaid and undervalued. Underfunding our schools is also a violation of Alaska’s constitution, which requires “adequate funding so as to accord to schools the ability to provide instruction in the standards.”
Not so long ago, Alaska’s public schools were adequately funded, and they produced well-educated students and retained excellent teachers. It’s up to all of us to reach out to our elected officials and urge them to make that the case once again.
Colleen Bolling is a lifelong Alaskan and mother of three who cares deeply about Alaska’s schools.
• • •
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Alaska
Alaska volunteer dedicates 600 hours a year to food bank after husband’s death
ANCHORAGE, Alaska — Karen Burnett spends most days in the sorting room at the Food Bank of Alaska, ensuring every donated item finds its place.
The Anchorage woman dedicates her time to sorting, packing and organizing food donations.
Finding purpose after loss
Burnett’s journey at the Food Bank of Alaska began after a personal loss. Following the death of her husband, Burnett said she found herself with time on her hands and a desire to help.
“I had a friend who had talked to me about it, and it just sounded like a good thing to be out doing,” she said.
Burnett now volunteers between 500 and 600 hours each year.
“I started, but it got to be so fun. I spent more and more time here,” Burnett added.
Understanding community need
Burnett has witnessed the growing need in the community, particularly as more families struggle to make ends meet.
“If you took a look at the pantry and saw those empty shelves, it’s hard sometimes when you know people are coming in and looking for something, for their clients, and there’s absolutely nothing in there,” Burnett said.
Her dedication has made a lasting impact on countless families.
“I just feel real involvement in a way that is appreciated,” Burnett said. “You know, people need this food. They need people to put it out for them.”
See the full story by Ariane Aramburo and John Perry.
Copyright 2025 Gray Media Group, Inc. All rights reserved.
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