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Alaska Senate leaders suggest new revenue measures to address looming budget deficit

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Alaska Senate leaders suggest new revenue measures to address looming budget deficit


Sen. Lyman Hoffman, D-Bethel, talks with colleagues on Jan. 22. (Marc Lester / ADN)

Alaska Senate leaders signaled Tuesday that they were open to considering new revenue measures this year to help stabilize the state’s looming budget deficit.

“We haven’t addressed revenue for decades,” Sen. Lyman Hoffman, a Bethel Democrat, told reporters. “I think it’s high time the Legislature looks at raising new revenues if we want to accomplish the many things that we want to do. If not, I don’t see a clear path forward to balancing not only this year’s budget, but next year’s budget.”

Budget analysts predict that without additional revenue, the state could face a $500 million shortfall during the coming year, even without increasing the state’s education budget — a top priority for leaders of both the House and Senate.

Hoffman, who has served in the Legislature for more than 38 years, said “the state of Alaska is probably facing its largest fiscal problem in 30 years.”

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He said the fiscal crisis is driven in part by the Legislature’s efforts this year to significantly increase education funding, a task lawmakers have not undertaken in more than a decade. A bill backed by House leaders would increase the state’s education budget by around $150 million in the coming fiscal year compared to the current one, and hundreds of millions more in the following two years.

Hoffman said the Senate majority had already discussed new revenue measures during a retreat before the beginning of the session.

“I’m glad to report that new revenues are on the Senate’s list of things that need to be addressed this year,” he said.

Rep. Andy Josephson, an Anchorage Democrat who co-chairs the House Finance Committee, said the House majority had not collectively discussed new revenue measures.

“I suppose we would entertain other revenue measures, but we’re also very aware that this governor vetoed a tobacco tax bill, he vetoed a Turo tax bill,” said Josephson. “So I think the 21 of us don’t want to just chase windmills and pursue things that simply aren’t going to happen.”

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Gov. Mike Dunleavy in December proposed a largely status quo budget with a projected deficit of $1.5 billion. He has not introduced new revenue measures this year.

In 2023, Dunleavy introduced legislation to allow the state to bring in revenue from carbon sequestration. The law has yet to yield income for the state. He signaled two years ago that he would introduce a sales tax in the final weeks of the legislative session. But he never introduced the measure.

Senate President Gary Stevens, a Kodiak Republican, said the Senate majority has not discussed a sales tax or an income tax. Instead, both Hoffman and Sen. Bill Wielechowski, an Anchorage Democrat, pointed to possible measures that could increase taxation of oil and gas companies in the state by hundreds of millions annually.

“I think there are things that can be done which would have very little impact on investment, very little impact on Alaskans, and would help us solve our budget deficit,” said Wielechowski.

Those include a reduction in the per-barrel tax credits given to oil companies, and an amendment to the state’s tax code to apply corporate income tax on certain private corporations, including Hilcorp Alaska.

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Sen. Robert Yundt, a freshman Republican from Wasilla who serves in the minority, on Monday introduced legislation meant to ensure the state’s corporate income tax is applied equally to companies in the state.

Robert Yundt, R-Wasilla, represents District N in the Alaska Senate. Photographed in Juneau on January 24, 2025, in Juneau. (Marc Lester / ADN)

Stevens said his caucus was “really pleased” to see that legislation introduced by Yundt and said the Senate would be “moving forward” with that bill.

A similar measure considered by the Senate — and ultimately abandoned — last year would have increased taxation on Hilcorp, one of Alaska’s top-producing oil companies, by over $100 million.

In a written statement, Yundt said he introduced his bill because he thinks all companies should be “treated and taxed exactly the same — which, unfortunately, is not currently happening.”

“This legislation has the ability to create the even playing field that will benefit both industry and residents alike,” Yundt said.

Sean Maguire reported from Juneau and Iris Samuels from Anchorage.

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Dozens of vehicle accidents reported, Anchorage after-school activities canceled, as snowfall buries Southcentral Alaska

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Dozens of vehicle accidents reported, Anchorage after-school activities canceled, as snowfall buries Southcentral Alaska


ANCHORAGE, Alaska (KTUU) – Up to a foot of snow has fallen in areas across Southcentral as of Tuesday, with more expected into Wednesday morning.

All sports and after-school activities — except high school basketball and hockey activities — were canceled Tuesday for the Anchorage School District. The decision was made to allow crews to clear school parking lots and manage traffic for snow removal, district officials said.

“These efforts are critical to ensuring schools can safely remain open [Wednesday],” ASD said in a statement.

The Anchorage Police Department’s accident count for the past two days shows there have been 55 car accidents since Monday, as of 9:45 a.m. Tuesday. In addition, there have been 86 vehicles in distress reported by the department.

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Snow measuring up to 17 inches deep in Anchorage, Alaska, on Jan. 6, 2026.(Alaska’s News Source)

The snowfall — which has brought up to 13 inches along areas of Turnagain Arm and 12 inches in Wasilla — is expected to continue Tuesday, according to latest forecast models. Numerous winter weather alerts are in effect, and inland areas of Southcentral could see winds up to 25 mph, with coastal areas potentially seeing winds over 45 mph.

Up to a foot or more of snow has fallen across Southcentral Alaska, with more snow expected...
Up to a foot or more of snow has fallen across Southcentral Alaska, with more snow expected through the day.(Alaska’s News Source)

Some areas of Southcentral could see more than 20 inches of snowfall by Wednesday, with the Anchorage and Eagle River Hillsides, as well as the foothills of the Talkeetna Mountain, among the areas seeing the most snowfall.

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



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Yundt Served: Formal Charges Submitted to Alaska Republican Party, Asks for Party Sanction and Censure of Senator Rob Yundt

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Yundt Served: Formal Charges Submitted to Alaska Republican Party, Asks for Party Sanction and Censure of Senator Rob Yundt


Sen. Rob Yundt

On January 3, 2026, Districts 27 and 28 of the Alaska Republican Party received formal charges against Senator Rob Yundt pursuant to Article VII of the Alaska Republican Party Rules.

According to the Alaska Republican Party Rules: “Any candidate or elected official may be sanctioned or censured for any of the following
reasons:
(a) Failure to follow the Party Platform.
(b) Engagement in any activities prohibited by or contrary to these rules or RNC Rules.
(c) Failure to carry out or perform the duties of their office.
(d) Engaging in prohibited discrimination.
(e) Forming a majority caucus in which non-Republicans are at least 1/3 or more of the
coalition.
(f) Engaging in other activities that may be reasonably assessed as bringing dishonor to
the ARP, such as commission of a serious crime.”

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Party Rules require the signatures of at least 3 registered Republican constituents for official charges to be filed. The formal charges were signed by registered Republican voters and District N constitutions Jerad McClure, Thomas W. Oels, Janice M. Norman, and Manda Gershon.

Yundt is charged with “failure to adhere and uphold the Alaska Republican Party Platform” and “engaging in conduct contrary to the principles and priorities of the Alaska Republican Party Rules.” The constituents request: “Senator Rob Yundt be provided proper notice of the charges and a full and fair opportunity to respond; and that, upon a finding by the required two-thirds (2/3) vote of the District Committees that the charges are valid, the Committees impose the maximum sanctions authorized under Article VII.”

If the Party finds Yundt guilty of the charges, Yundt may be disciplined with formal censure by the Alaska Republican Party, declaration of ineligibility for Party endorsement, withdrawal of political support, prohibition from participating in certain Party activities, and official and public declaration that Yundt’s conduct and voting record contradict the Party’s values and priorities.

Reasons for the charges are based on Yundt’s active support of House Bill 57, Senate Bill 113, and Senate Bill 92. Constituents who filed the charges argue that HB 57 opposes the Alaska Republican Party Platform by “expanding government surveillance and dramatically increasing education spending;” that SB 113 opposes the Party’s Platform by “impos[ing] new tax burdens on Alaskan consumers and small businesses;” and that SB 92 opposes the Party by “proposing a targeted 9.2% tax on major private-sector energy producer supplying natural gas to Southcentral Alaska.” Although the filed charges state that SB 92 proposes a 9.2% tax, the bill actually proposes a 9.4% tax on income from oil and gas production and transportation.

Many Alaskan conservatives have expressed frustration with Senator Yundt’s legislative decisions. Some, like Marcy Sowers, consider Yundt more like “a tax-loving social justice warrior” than a conservative.

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Pilot of Alaska flight that lost door plug over Portland sues Boeing, claims company blamed him

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Pilot of Alaska flight that lost door plug over Portland sues Boeing, claims company blamed him


The Alaska Airlines captain who piloted the Boeing 737 Max that lost a door plug over Portland two years ago is suing the plane’s manufacturer, alleging that the company has tried to shift blame to him to shield its own negligence.

The $10 million suit — filed in Multnomah County Circuit Court on Tuesday on behalf of captain Brandon Fisher — stems from the dramatic Jan. 5, 2024 mid-air depressurization of Flight 1282, when a door plug in the 26th row flew off six minutes after take off, creating a 2-by-4-foot hole in the plane that forced Fisher and co-pilot Emily Wiprud to perform an emergency landing back at PDX.

None of the 171 passengers or six crew members on board was seriously injured, but some aviation medical experts said that the consequences could have been “catastrophic” had the incident happened at a higher altitude.

Leani Benitez-Cardona, NTSB aerospace engineer, and Matthew Fox, NTSB chief technical advisor for materials, unpacking the door plug Sunday from Alaska Airlines flight 1282, a Boeing 737-9 MAX, in the materials laboratory at NTSB headquarters in Washington, D.C.NTSB

Fisher’s lawsuit is the latest in a series filed against Boeing, including dozens from Flight 1282 passengers. It also names Spirit AeroSystems, a subcontractor that worked on the plane.

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The lawsuit blames the incident on quality control issues with the door plug. It argues that Boeing caught five misinstalled rivets in the panel, and that Spirit employees painted over the rivets instead of reinstalling them correctly. Boeing inspectors caught the discrepancy again, the complaint alleges, but when employees finally reopened the panel to fix the rivets, they didn’t reattach four bolts that secured the door panel.

The complaint’s allegations that Boeing employees failed to secure the bolts is in line with a National Transportation Safety Board investigation that came to the conclusion that the bolts hadn’t been replaced.



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