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.
Advertisement
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.
Advertisement
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.
Advertisement
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.
Advertisement
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 Airlines has given its chief financial officer, Shane Tackett, another responsibility — president. Tackett will assume his additional role at the SeaTac-based airline on June 29. (M. Scott Brauer/Bloomberg)
Alaska Airlines has given its chief financial officer, Shane Tackett, another responsibility — president.
Tackett will assume his additional role at the SeaTac-based airline on June 29, according to a news release Wednesday.
Tackett will continue leading the organization’s finance, fleet management, investor relations, supply chain, internal audit and information technology functions, according to the release. His new responsibilities as president include oversight of Alaska Airlines’ commercial division.
Tackett previously held positions in labor relations, e-commerce and financial planning at the company, according to his LinkedIn profile.
Advertisement
“I started at Alaska more than 25 years ago, and over that time we’ve built a stronger, more resilient airline with a clear strategy for the future,” Tackett said in a statement.
He said he is excited to lead more of the organization in his new role and deliver to guests, employees and owners.
In a statement, Alaska Airlines CEO Ben Minicucci said Tackett has led the company through challenges and helped it grow over his 25-year tenure.
“Bringing commercial and finance leadership together under Shane will strengthen alignment and accelerate our priorities as we continue advancing our strategy and creating long-term value for our stakeholders, said Minicucci, who also serves as CEO and president of the airline’s parent company, Alaska Air Group.
Tackett’s promotion comes as the airline navigates challenging macroeconomic factors, including rising fuel costs and weakening consumer demand for travel.
Advertisement
Alaska Air Group — which includes Alaska and Hawaiian Airlines, as well as regional carrier Horizon Air and ground support company McGee Air Services — saw its profits drop 70% in 2025 year over year. It continued to face financial woes in 2026.
The company lost $193 million in the first three months of 2026 as it dealt with skyrocketing jet fuel prices due to the war in Iran.
Alaska study sees mixed results on links between kelp farms and CO2 levels
Published 5:30 am Thursday, June 18, 2026
A study into the amount of CO2 absorbed at a pair of Alaska kelp farms is throwing some cold water on hopes that seaweed could be an answer to climate change.
Alaska kelp farms, which have been viewed as a potential boon for reducing local carbon-dioxide levels, have surprisingly murky effects on atmospheric CO2 removal, according to a new study.
A University of Alaska Fairbanks-led project measured the amount of CO2 that was emitted and absorbed at two kelp farms in the Gulf of Alaska during the 2023-2024 growing season. The outcome was mixed — one farm slightly reduced carbon dioxide in the local environment while the other added more to it.
Advertisement
Marine carbon dioxide removal (mCDR) has been touted as a potential strategy to reduce atmospheric carbon dioxide levels, with the ocean serving as a sink for human-produced CO2.
The study, which was recently published in the journal Ocean Science, is the first to measure mCDR in Alaska waters. It focused on kelp farms, which can draw down CO2 through the process of photosynthesis.
“It’s easy to jump on the bandwagon that seaweed is going to change the world, but ultimately we want to be honest to the public,” said Amanda Kelley, an associate professor at UAF’s College of Fisheries and Ocean Sciences and a contributor to the study.
“Really, it’s very nuanced, and there are a lot of factors that affect kelp’s ability to do that.”
Josianne Haag, who led the project as a UAF doctoral student, installed sensors both inside and outside kelp farms in Windy Bay near Cordova and Kalsin Bay on Kodiak Island. From seeding to harvest, hourly data was collected on ocean chemistry, temperature, salinity and oxygen levels.
Advertisement
The two sites had numerous differences, including the type of seaweed being planted, the timing of their growing seasons and the size of the farms. Also, Windy Bay’s tides are more extreme than Kalsin Bay’s.
The results were striking and varied. The farms flipped between absorbing and releasing carbon dioxide depending on the amount of sunlight and the time of day. Extreme low tides affected CO2 levels by flushing groundwater into the area, briefly raising carbon dioxide levels.
A film of marine fauna grew on some of the farm equipment in Kalsin Bay, leading to a burst of carbon dioxide production through their respiration.
Overall, the Windy Bay farm slightly reduced nearby atmospheric marine carbon dioxide levels while the Kalsin Bay farm boosted them. Measurements will continue at the farms for at least two more years, but the first season revealed that a kelp farm’s recipe for carbon intake and output is surprising and complex.
“It’s really not doing much in either direction,” Haag said. “The farms aren’t necessarily harming anything, but we shouldn’t be blowing out of proportion that they’re going to save us from climate change.”
Advertisement
The study was part of the Mariculture Research and Restoration Consortium project, which is an ongoing effort to look at the impacts and benefits of mariculture in Alaska. Mar ReCon research is funded by the Exxon Valdez Oil Spill Trustee Council.
By Alaska Division of Forestry & Fire Protectionon
At approximately 7:30 p.m. Wednesday evening, a fire was reported off Healy Spur Road. The Division of Forestry & Fire Protection, along with the Tri-Valley Volunteer Fire Department and Anderson Fire Department, responded to the Gagnon Coal Seam Fire (#206).
Estimated at 3 acres, the fire was burning in grass with approximately 50% of the perimeter actively burning. A five person Initial Attack squad, helicopter, and engine responded. Light rain was reported at the incident upon arrival.
There are no structures threatened, and there are no evacuations in place. This will be the last update on this incident, unless conditions change.
Advertisement
This map shows the location of the Gagnon Coal Seam Fire (#206) located on the Healy Spur Road east of Usibelli on Wednesday, June 17, 2026. Click on the image to download a PDF type file to enlarge or print.
‹ DFFP is responding to the Bulchitna Fire in the Fish Lakes area of the Yentna River
Categories: Active Wildland Fire, Alaska DNR – Division of Forestry & Fire Protection (DFFP)
Tags: 2026 Alaska Fire Season, coal seam, DFFP Northern Region, Gagnon Coal Seam Fire
