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Alaska Senate approves austere budget with $1,000 PFD ahead of final negotiations

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Alaska Senate approves austere budget with ,000 PFD ahead of final negotiations


The entrance to the Senate Chamber at the Alaska State Capitol in Juneau on February 26, 2024. (Marc Lester / ADN)

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.

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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.

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Bethel Democratic Sen. Lyman Hoffman discusses the Senate’s austere operating budget for the next fiscal year before a final vote in Juneau on Wednesday, May 7, 2025. (Sean Maguire/ADN)

“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.

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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.

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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.





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Ranked choice voting opponents say they have gathered 48,000 signatures in effort to repeal Alaska’s election system

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Ranked choice voting opponents say they have gathered 48,000 signatures in effort to repeal Alaska’s election system


Randy Eledge and Bethany Marcum, supporters of an effort seeking to repeal ranked choice voting in Alaska, submitted signatures to the Alaska Division of Elections on Thursday, Nov. 6. (Bill Roth / ADN)

A group seeking to repeal Alaska’s ranked choice voting and open primary system says it has gathered enough signatures to put the repeal question on the 2026 ballot.

The group formed after the 2024 election, when a similar effort narrowly failed to pass.

It began gathering signatures in February, looking to collect more than 34,000 signatures from three-quarters of state House districts.

Supporters of the repeal effort now say they have gathered more than 48,000 signatures. Once they’re submitted to the Division of Elections, state workers will review the signatures to ensure they come from registered Alaska voters, were collected according to state laws, and meet the geographic distribution requirements. If approved by the state Division of Elections, the repeal question will appear on the 2026 ballot.

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The petition was formed by former state Rep. Ken McCarty, an Eagle River Republican, along with Republican candidate for governor Bernadette Wilson and Judy Eledge, president of the Anchorage Republican Women’s Club.

Ahead of submitting their petition to the Division of Elections for verification, a group of repeal supporters gathered in an Anchorage parking lot to celebrate the milestone. Among the group were McCarty, Eledge, Alaska GOP Chair Carmela Warfield and Bethany Marcum, a former Americans for Prosperity-Alaska director who has taken a leading role in orchestrating the repeal effort.

The roughly two dozen supporters marched across a parking lot to the Division of Elections, following a dump truck festooned with a hand-painted “dump RCV” sign, while blasting the “Rocky” theme song from a portable speaker. At the state office’s doorstep, the truck ceremonially dropped a pile of empty cardboard boxes. The signature booklets were delivered later in the day.

Bethany Marcum, left, and Mikaela Emswiler take a selfie as supporters of an effort seeking to repeal ranked choice voting and open primaries in Alaska prepare to submit what they said were more than 48,000 signatures to the Division of Elections on Thursday, Nov. 6. (Bill Roth / ADN)

While the effort so far has been led and orchestrated by Republican politicians and activists, McCarty said he did not want it to be perceived as partisan. McCarty himself lost a state Senate race last year to a more moderate Republican, Sen. Kelly Merrick of Eagle River.

Alaska voters approved ranked choice voting and open primaries by a small margin through a ballot measure in 2020.

The voting method has since been used in state and federal elections. It has been celebrated by some elected Alaska politicians who say it favors moderate candidates more likely to work across the aisle. But conservative Republicans have largely decried the election reform, warning that it makes it harder for farther-right GOP members to win elections, and reduces the power of the GOP to pick its own candidates through a closed primary system.

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A group funding the repeal effort had raised more than $247,000 by early October. Nearly three-quarters of its funding — $181,000 — came from Aurora Action Network, a political action committee registered with the Federal Election Commission.

The Aurora Action Network formed on June 6. Later that month, it began giving money to the repeal effort. According to federal reports covering June, the committee is funded by Damien Stella, an Alaska engineering consultant, and Michael Rydin, a Texas political activist who has donated large sums to conservative causes.

Most of the group’s spending has gone to Upward LLC, a Florida-based signature gathering company.

Marcum said Thursday that 65% of the petition signatures were gathered by volunteers. The remainder were gathered by paid workers who traveled to rural parts of the state where the group did not find volunteers.

Already, a group called Protect Alaska’s Elections has registered its intent with the state to spend money to defend Alaska’s election system. In 2024, a similar group opposing the previous repeal initiative spent $15 million on a campaign in defense of open primaries and ranked choice voting.

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SEACAD seizes over 2,200 grams of meth in Southeast Alaska

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SEACAD seizes over 2,200 grams of meth in Southeast Alaska


JUNEAU, Alaska (KTUU) – Two men were arrested in separate drug investigations led by the Southeast Alaska Cities Against Drugs (SEACAD) task force in Southeast Alaska after authorities intercepted packages containing methamphetamine, according to the Juneau Police Department.

In one case, investigators in Ketchikan identified a suspicious package on Oct. 28, that was determined to contain around 2,056 grams – roughly 4.5 pounds – of methamphetamine. The package was delivered on Nov. 1 and picked up by 33-year-old Louisiana resident Adidas Nike Zion Brown, who took it to his residence on the 1000 block of Dunton Street, according to the Juneau Police Department.

After Brown opened the package, officers seized the drugs, which have an estimated street value of $315,960. Officers also seized a firearm at the scene. Brown was arrested and taken to the Ketchikan Correctional Center.

Brown is facing three counts of misconduct involving a controlled substance in the third degree, two counts of misconduct involving a controlled substance in the fourth degree and two counts of misconduct involving a weapon in the third degree.

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In a separate investigation, SEACAD identified two suspicious packages shipped to Haines between Oct. 27 and Nov. 4. The packages were found to contain about 235 – about half a pound – of methamphetamine combined.

On Nov. 5, the packages were delivered in Haines and picked up by 30-year-old resident Austin Elmer Benedict Hotch, who took it to a residence on the 200 block of 2nd Avenue, according to the Juneau Police Department. Investigators later seized the drugs, valued at about $50,000. Officers also seized roughly $24,000 in cash.

Hotch was arrested and taken to the Haines Borough Community Jail on a charge of misconduct involving a controlled substance in the third degree.

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Egan Center closes as shelter for Halong victims

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Egan Center closes as shelter for Halong victims


ANCHORAGE, Alaska (KTUU) – The Egan Civic and Convention Center in downtown Anchorage closed Tuesday night as a shelter for hundreds of Alaskans displaced by ex-Typhoon Halong last month.

The announcement came as over 300 people who were evacuated from Western Alaska communities were being moved from both the Egan Center and Alaska Airlines Center on the University of Alaska Anchorage campus into private, non-congregate shelters.

Shelter operations from the Egan moved to the Spenard Community Recreation Center at 2020 West 48th Avenue. That location will be open daily from 8 a.m. to 8 p.m., according to the Alaska Division of Homeland Security and Emergency Management.

The strong storm made landfall over Oct. 11-12 on Alaska’s western coast, leaving a path of destruction in dozens of villages in the Kuskokwim delta area. One person was confirmed dead and two others were still missing.

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The Spenard rec center shelter will be temporary, according to Bryan Fisher, director of the homeland security division.

“Closing the Egan Center doesn’t signal the end of our shelter support mission or diminish the urgent need to transition more people into non-congregate housing,” Fisher said in a prepared release.

While shelter operations ended at the Egan Center, the building will still be used as a United States Postal Service center for incoming mail for those displaced by Halong. That service will stop at the end of November, authorities said.

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