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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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Denali National Park offering unique holiday experience

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Denali National Park offering unique holiday experience


ANCHORAGE, Alaska (KTUU) – Denali National Park & Preserve is offering travelers a unique way to celebrate the holiday season at the base of North America’s tallest peak.

“It’s a great place to come if you’re into snow and being cold,” said Amber Smigiel, Public Affairs Officer for Denali National Park and Preserve.

“If you come at night, you probably have a chance to see the auroras, and it is really beautiful here during the winter.”

Despite the cold and storms associated with winter at Denali, Smigiel said adventure-seekers are still allowed to attempt a summit of Mount McKinley.

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“We don’t have any staff up there, so you’re pretty much on your own,” she said.

“We definitely don’t recommend doing it by yourself. Only, I think, 17 people have ever summited during winter, so it’s not a very realistic goal, but you know what? We’re not going to stop you if you want to try.”

For those looking for a calmer experience, Smigiel said there are several events and accommodations planned at the base of the mountain.

“The road is closed at mile 3 for cars, but you can ski, hike, snowshoe on the road and some of the hiking trails in the front country or even farther in the backcountry,” she said.

“You can winter camp if you’d like. We have our permits for that so you can come and sleep in the snow if that’s your thing. Our visitor center has snowshoes and the spikes, snow spikes, so you can go and rent some of that while you’re here.”

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While Denali’s iconic bears are mid-hibernation, Smigiel said animal lovers still have a chance to catch a glimpse of the local wildlife.

“The kennels are open from one to four on Saturday and Sunday, so you can come see the dogs and the puppies during the winter,” she said.

“There are still moose and caribou and wolves. The moose sometimes come closer to the front of the park because they like to use the road just as much as people do.”

While visitors are welcomed to book a stay at Denali, Smigiel told Alaska’s News Source that some amenities may not be available during the winter.

“The one thing that you need to remember when you come to Denali during the winter is that there’s one restaurant and one grocery store and two gas stations that are open and those are about 10 miles from the park,” she said.

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“Make sure that you have all your provisions with you, water, snacks, all that kind of stuff. We do have an indoor picnic area where you can go and get warm and, you know, fill your water bottles up and that kind of thing, but nothing that you can purchase while you’re in the park.”

Although current weather conditions have caused the park to reschedule, Smigiel said that rangers are planning to host a “Ski and Stroll” for the winter solstice, where visitors are invited to walk trails near the park.

See a spelling or grammar error? Report it to web@ktuu.com



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Alaska’s Maxime Germain named to US Olympic biathlon team

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Alaska’s Maxime Germain named to US Olympic biathlon team


Alaska’s Maxime Germain was named to the U.S. Olympic biathlon team to compete at the 2026 Milano-Cortina Olympic Winter Games. (Photo provided by U.S. Biathlon)

Alaska’s Maxime Germain has been named to the U.S. Olympic biathlon team and will compete at the 2026 Milano-Cortina Olympic Winter Games.

Germain, 24, who was born in Juneau and graduated from West Anchorage High School in 2019, will be making his Olympic debut.

“I am stoked to have qualified,” Germain said in a U.S. Biathlon release. “The goal is now to perform there! It is going to be my first Olympics, but it shouldn’t be any different from other racing. Same venue, same racing, different name!”

The announcement was made Sunday at the conclusion of the World Cup stop in France. He is currently 34th in World Cup rankings, the second-best American behind Olympic teammate Campbell Wright.

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Germain has raced for the APU Nordic Ski Center and trained with the Anchorage Biathlon Club.

“Maxime has worked really hard throughout the off season, improving his mental game and bringing an overall level up to the World Cup this year,” U.S. Biathlon High Performance Director Lowell Bailey said in the release. “This showed right away at the first World Cup in Ostersund, where he proved he can be among the world’s fastest and best biathletes. Maxime will be a great addition to the U.S. Olympic team!”

Before coming to Anchorage, Germain grew up in Chamonix, France, and started biathlon there at age 13.

Germain is a member of Vermont Army National Guard as an aviation operations specialist and is studying to become a commercial pilot. Germain has trained with the National Guard Biathlon Team and races as part of the US Army World Class Athlete Program.

Germain joins Wright, Deedra Irwin and Margie Freed as the first four qualifiers for the 2026 Olympic Biathlon Team. The remaining members of the team will be announced on Jan. 6 following completion of the U.S. Biathlon Timed Trials.

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The 2026 Winter Olympics run from Feb. 6-22 in Italy.





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Trump administration opens vast majority of Alaska petroleum reserve to oil activity

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Trump administration opens vast majority of Alaska petroleum reserve to oil activity


The northeastern part of the National Petroleum Reserve-Alaska is seen on June 26, 2014. (Photo by Bob Wick / U.S. Bureau of Land Management)

The Bureau of Land Management on Monday said it approved an updated management plan that opens about 82% of the National Petroleum Reserve-Alaska to oil and gas leasing.

The agency this winter will also hold the first lease sale in the reserve since 2019, potentially opening the door for expanded oil and gas activity in an area that has seen new interest from oil companies in recent years.

The sale will be the first of five oil and gas lease sales called for in the One Big Beautiful Bill Act that passed this summer.

The approval of the plan follow the agency’s withdrawal of the 2024 activity plan for the reserve that was approved under the Biden administration and limited oil and gas drilling in more than half the reserve.

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The 23-million-acre reserve is the largest tract of public land in the U.S. It’s home to ConocoPhillips’ giant Willow discovery on its eastern flank.

ConocoPhillips and other companies are increasingly eyeing the reserve for new discoveries. ConocoPhillips has proposed plans for a large exploration season with winter, though an Alaska Native group and conservation groups have filed a lawsuit challenging the effort.

The planned lease sale could open the door for more oil and gas activity deeper into the reserve.

The Voice of the Arctic Iñupiat, consisting of elected leaders from Alaska’s North Slope, where the reserve is located, said it supports the reversal of the Biden-era plan. Infrastructure from oil and gas activity provides tax revenues for education, health care and modern services like running water and sewer, the group said.

The decision “is a step in the right direction and lays the foundation for future economic, community, and cultural opportunities across our region — particularly for the communities within the (petroleum reserve),” said Rex Rock Sr., president of the Arctic Slope Regional Corp. representing Alaska Natives from the region, in the statement from the group.

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The reserve was established more than a century ago as an energy warehouse for the U.S. Navy. It contains an estimated 8.7 billion barrels of recoverable oil.

But it’s also home to rich populations of waterfowl and caribou sought by Alaska Native subsistence hunters from the region, as well as threatened polar bears.

The Wilderness Society said the Biden-era plan established science-based management of oil and gas activity and protected “Special Areas” as required by law.

It was developed after years of public meetings and analysis, and its conservation provisions were critical to subsistence users and wildlife, the group said.

The Trump administration “is abandoning balanced management of America’s largest tract of public land and catering to big oil companies at the expense of future generations of Alaskans,” said Matt Jackson, Alaska senior manager for The Wilderness Society. The decision threatens clean air, safe water and wildlife in the region, he said.

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The decision returns management of the reserve to the 2020 plan approved during the first Trump administration. It’s part of a broad effort by the administration to increase U.S. oil and gas production.

To update the 2020 plan, the Bureau of Land Management invited consultation with tribes and Alaska Native corporations and held a 14-day public comment period on the draft assessment, the agency said.

“The plan approved today gives us a clear framework and needed certainty to harness the incredible potential of the reserve,” said Kevin Pendergast, state director for the Bureau of Land Management. “We look forward to continuing to work with Alaskans, industry and local partners as we move decisively into the next phase of leasing and development.”

Congress voted to overturn the 2024 plan for the reserve, supporting bills from Alaska’s Republican congressional delegation to prevent a similar plan from being implemented in the future.





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