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Alaska Senate passes draft budget, confirming $175M in bonus public-school funding

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Alaska Senate passes draft budget, confirming 5M in bonus public-school funding



Sen. Bert Stedman, R-Sitka, puts away his notes after debate on the state operating budget, Wednesday, May 1, 2024, as the Senate’s tally board displays the vote on the budget’s effective date. (Photo by James Brooks/Alaska Beacon)

The Alaska Senate on Wednesday approved a draft $12.25 billion state operating budget and in the process, finalized legislative plans to offer public schools a one-time, $175 million funding bonus.

The Senate’s proposed Permanent Fund dividend is about $1,580 per recipient, including an estimated $222 energy relief payment. That’s below the $2,270 figure included in a competing draft passed by the House, and the final figure will be subject to further debate. 

The smaller amount reduces the risk of the state spending down savings.

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“We’re living within our means. This is what it looks like,” said Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee.

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Sen. Bert Stedman, R-Sitka, speaks on the floor of the Alaska Senate, Wednesday, May 1, 2024. (Photo by James Brooks/Alaska Beacon)

Stedman said the budget balances if the state’s oil production hits estimates and if North Slope oil prices average $78 per barrel between July 1, 2024, and June 30, 2025.

Oil and other sources of revenue would be enough to pay for state operations, as well as new legislation and the state’s capital budget, which pays for construction and renovation projects statewide. 

Wednesday’s 17-3 vote, which follows the state House’s passage of its own draft operating budget, triggers the final phase of the Alaska Legislature’s annual budget process, where legislators negotiate a compromise between the two drafts.

In places where the drafts match, the relevant item is final, except that Gov. Mike Dunleavy has the ability to reduce or eliminate final items with his line-item veto power. He cannot increase them or add new ones.

On education, the Senate included a $680 one-time boost to the state’s Base Student Allocation, the core of Alaska’s per-student funding formula. 

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That’s worth about $175 million statewide, and the same language is in the House’s draft budget, making the item final, except for the governor.

Last year, Dunleavy vetoed half of an identical one-time boost, but in a news conference with reporters on Wednesday, the governor signaled that he may not repeat his veto.

“I’ve told people I’m open to the increase,” Dunleavy said, “an increase in one-time funding, especially to help with the inflationary issues.”

The Senate budget also includes a House-adopted plan to spend $5.2 million more on reading programs for students in kindergarten through third grade.  

Senators included additional money for student transportation, something that will have to be negotiated with the House, which did not include it.

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Also subject to further negotiation is $11.9 million in education money added after the federal Department of Education warned that the state underfunded some school districts during the COVID-19 pandemic.

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Senate President Gary Stevens, R-Kodiak (center), listens to Sen. Bert Stedman, R-Sitka (left) and Senate Majority Leader Cathy Giessel, R-Anchorage (right) during a break from debates Wednesday, May 1, 2024. (Photo by James Brooks/Alaska Beacon)

The Senate is led by a supermajority of nine Democrats and eight Republicans, and Wednesday’s draft budget was crafted by that supermajority. 

Before the final vote, the three Republicans outside the majority offered 21 amendments containing a variety of priorities, but all failed.

The most contentious amendments dealt with the amount of this year’s Permanent Fund dividend, which Stedman labeled “the focal point of most budgets.”

Sen. Mike Shower, R-Wasilla, proposed taking extra money from the Alaska Permanent Fund to increase the Senate’s proposed dividend to a figure above the House’s amount, once the energy relief payment is included. 

While much of the fund is constitutionally protected, lawmakers need only a simple majority to break a law that limits spending from the fund’s earnings reserve, which contains money accumulated from the fund’s investments.

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Sen. Robert Myers, R-North Pole, speaks Wednesday, May 1, 2024, during debates on the state operating budget. (Photo by James Brooks/Alaska Beacon)

Shower said his proposed dividend is what was recommended by a bipartisan, bicameral working group and implied that passage could encourage work on a plan to bring the state’s long-term finances into balance.

He had support from Sen. Shelley Hughes, R-Palmer, who said, “If we were to pass this, we would start on the road toward a fiscal plan.”

But a majority of other senators opposed the idea. Stedman said he believed the amendment would instantly create a billion-dollar deficit.

“I don’t think this is a prudent amendment,” he said.

Sen. Forrest Dunbar, D-Anchorage, said he’d like to see larger dividends, but thus far, the Legislature hasn’t advanced other needed components of the financial plan, including new state revenue.

Shower’s amendment failed, 6-14. 

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The House and Senate are expected to appoint lawmakers to a budgetary conference committee on Monday, starting work on a final budget draft.

The budget is typically the final item passed before the Legislature adjourns for the summer.

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From left to right, Sens. Loki Tobin, D-Anchorage; Bert Stedman, R-Sitka; and David Wilson, R-Wasilla, discuss a proposed budget amendment on Wednesday, May 1, 2024. (Photo by James Brooks/Alaska Beacon)


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Alaska Beacon is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Alaska Beacon maintains editorial independence. Contact Editor Andrew Kitchenman for questions: info@alaskabeacon.com. Follow Alaska Beacon on Facebook and X.

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Alaska’s embattled economic development agency approves $700,000 PR budget

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Alaska’s embattled economic development agency approves 0,000 PR budget


The Anchorage headquarters of the Alaska Industrial Development and Export Authority, or AIDEA. (Nathaniel Herz/Northern Journal)

The state agency leading some of Alaska’s most polarizing development projects has approved a new communications budget, saying it needs to do a better job telling its own story amid attacks from critics.

The state-owned Alaska Industrial Development and Export Authority is run by a former chief of staff to Gov. Mike Dunleavy and is charged with promoting economic growth and expanding natural resource extraction and exports.

It is leading work to develop state-owned oil leases in the Arctic National Wildlife Refuge and also hopes to build two controversial new roads to access mining prospects in Northwest Alaska and outside of Anchorage.

Those projects have drawn sharp opposition from conservation organizations and other critics, including lawsuits, critical op-eds and campaigns that have labeled the agency “Bad AIDEA” and caricatured its leaders.

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At a meeting in Ketchikan this month, board members, with no public discussion, authorized AIDEA’s staff to spend up to $700,000 a year on a new communications budget — formalizing a plan that the agency says was previously budgeted inconsistently through spending on individual projects.

The new communications plan, the agency said in its formal resolution authorizing the spending, will “ensure proper public engagement, transparency, and stewardship of the authority’s mission.” The money could go toward trade shows and conferences, responding to media inquiries and “other communications-related needs,” according to the resolution.

The agency’s executive director, Randy Ruaro, referred questions about the plan to Dave Stieren, an AIDEA employee who ran an advertising agency and hosted a conservative talk radio show before joining the Dunleavy administration.

AIDEA Executive Director Randy Ruaro listens to comments during a news conference held by Gov. Mike Dunleavy to discuss the future of energy in Alaska in Anchorage on Jan. 6, 2025. (Marc Lester / ADN)

Stieren said he could not provide exact figures on AIDEA’s past communications spending, but he acknowledged that the new plan should allow the agency to meaningfully boost its public profile.

The $700,000 a year, he added, is a limit, and the agency will set a final budget through a request for proposals process.

“Mothership AIDEA has done, frankly, little to nothing on a consistent basis to tell our story,” Stieren said in an email — particularly when it comes to its loan programs that have helped finance tourism and hospitality businesses, like the Alaska Club fitness chain and Anchorage’s Bear Tooth pizza restaurant and theater.

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“We’re far more than roads,” Stieren said. “But since we’ve really not promoted or showcased our efforts in traditional finance areas, I understand the narrative or lack thereof that folks may have.”

Stieren has also personally defended AIDEA on social media, including over the weekend — when he posted a conservative news website’s positive story about an agency-owned shipyard and said that “when commie libs attack AIDEA, they attack projects like this.”

A social media post by AIDEA employee Dave Stieren. (Screenshot)

AIDEA’s board chair, Bill Kendig, declined to answer questions about approval of the new communications budget when reached by phone.

At the Ketchikan meeting, one AIDEA critic, Melis Coady, credited the agency with formalizing communications spending as a “step toward accountability.” But she said that the plan doesn’t “deliver the transparency it describes” because it gives Ruaro, the executive director, authority to approve communications spending, and only requires that he report it to the board if asked.

“The authorization is broad, the dollar amount is undefined, and expenditures are approved solely by the executive director,” said Coady, who leads a conservation group called the Susitna River Coalition.

Ruaro, in an email, said AIDEA will issue reports on communications to board members “whether requested or not.”

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Nathaniel Herz is an Anchorage-based reporter. Subscribe to his newsletter, Northern Journal, at northernjournal.com.





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Inside Alaska’s craft beer scene

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Inside Alaska’s craft beer scene


A server pours a beer at the 49th State Brewing Company location at Ted Stevens Anchorage International Airport on Tuesday, Sept. 12, 2023. (Loren Holmes / ADN)

In exchange for living in what is perhaps the country’s most beautiful state, Alaskans sometimes have to do without: professional sports teams, Trader Joe’s and, well, sunlight for half the year. But we make up for it with the Iditarod, reindeer sausages and chasing the aurora borealis. In other words, we often have to make our own fun. And by “fun” I mean “beer.” Those words are interchangeable, right?

Beer is a big part of life for Alaskans. We hike with it, camp with it, boat with it, cook with it and pair it with foods like the stuffiest of sommeliers. We throw it monthly birthday parties like the First Tap events at Broken Tooth Brewing Co. (otherwise known as Bear Tooth Theatrepub and Moose’s Tooth Pub & Pizzeria), complete with national musical acts like Modest Mouse, Clinton Fearon, and Norah Jones. We even occasionally do yoga with it (at downtown’s Williwaw Social). In other words, we take it everywhere and we take it seriously.

Beers from the state’s biggest brewery, Alaskan Brewing Co. based in Juneau, might already be in your refrigerator if you live in one of the 25 states where it’s available. Established in 1986 by Marcy and Geoff Larson, it was the 67th independent brewery to open in the country. With a steady line of signature brews, including their most recent “Wildness” beer, it’s the most well-established of all the state’s breweries. Expect seasonal specialties that incorporate ingredients like cranberries, raspberries, locally roasted coffee, locally grown white wheat from the Matanuska-Susitna area and even Alaska spruce tips. Ubiquitous around Alaska, this is our Papa Beer, if you will (I’ll show myself out).

But Alaskan Brewing is just one out of the more-than 50 breweries, distilleries, meaderies and cideries in the state (for an excellent list visit brewersguildofalaska.org). And while almost half of them are in Anchorage or within a short drive of our state’s largest city (including the relatively populous communities of Girdwood, Eagle River, Palmer and Wasilla), some of our most remote ports of call and tiniest towns are also in on the brewing action (I’m looking at you, Cooper Landing Brewing Company in Cooper Landing, population 231).

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The ever-expanding Denali Brewing Co. in Talkeetna (population 997) may be a small-town hero, but it’s anything but small. Their four signature beers — Mother Ale, Chuli Stout, Single Engine Red and the ever-popular Twister Creek IPA, as well seasonal brews like Slow Down Brown and Flag Stop Milepost #3 — are year-round mainstays of summer barbecues and winter bonfires around the state.

This brewery is also home to the more recently established Alaska Cider Works, Alaska Meadery (featuring “Razzery,” a mead made with raspberries, sour cherries and apples) and Denali Spirits (featuring vodka, gin, whiskey, and “smoke” whiskey), because when you’ve fermented one, why not ferment them all?

(Denali Spirits’ canned cocktails, especially their blueberry mojito, have been so popular in Anchorage that at one time there was a Facebook page largely dedicated to tracking them down. Luckily, supply has since caught up with demand.)

The Kodiak Island Brewing Company on Jan. 24, 2019. (Loren Holmes / ADN)

Some breweries are even more remote. Ports of call and island hopping here can be one way to get your fill of hops. Breweries can be found in Ketchikan (Bawden Street Brewing Co.), Kodiak (Kodiak Island Brewing & Still, Double Shovel Kodiak Cidery, and Olds River Inn), Homer (Homer Brewing Co. and Grace Ridge Brewing Co. for beer, and you can also check out Sweetgale Meadworks & Cider House for hard cider and locally sourced meads featuring ingredients like nagoonberry), Sitka (Harbor Mountain Brewing), Seward (Seward Brewing Co. and Stoney Creek Brewhouse), Valdez (Valdez Brewing and Growler Bay Brewing), and Skagway (Klondike Brewing Co. and Skagway Brewing Co.).

Of course, many trips to Alaska begin and end in Anchorage. And if, during your travels, you’ve foolishly left some beers untasted, you can make up for lost time in our state’s biggest city which boasts — let’s face it — a ridiculous number of exceptional craft breweries.

Downtown’s Glacier Brewhouse specializes in oak-aged English and American West Coast-style beers, 13 of them, from blondes to stouts. Beneath the floor of the Brewhouse is a “Wall of Wood” comprised of casks of special release beers that are conditioned in oak barrels once used to age wine and bourbon. The history of the oak imparts “mother tongue” flavor characteristics, like vanilla and coconut, into these limited edition brews. Opt for one of these unique beers or choose from their flagship choices like raspberry wheat, oatmeal stout, imperial blonde, Bavarian hefeweizen or a flight that includes them all.

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Down the street is 49th State Brewing Co., which expanded into Anchorage from its original location in Healy, at the edge of Denali National Park and Preserve. If you are unable to visit their flagship location, where you can sip beer while playing bocce or horseshoes on the lawn, you can catch up with them here. There’s a unique selection that includes beers like Smok, a smoked lager, as well as seasonal offerings like the Tiger’s Blood Sour, an homage to shave ice described as ”ferociously fruity.” Or there’s “Apple Fritter Ale,” with hints of cinnamon, icing, caramel, and vanilla. This location also boasts some of the best views in Anchorage and an expansive outdoor rooftop patio.

Just about all of the full-service restaurants in downtown Anchorage proudly feature some variety of Alaskan beers. In the heart of downtown, Humpy’s Great Alaskan Alehouse prides itself on a huge selection of beers, both international and local. Tent City Taphouse offers a diverse and carefully curated list of 24 rotating local brews, including their house beer, Tent City Tangerine IPA brewed by Glacier Brewhouse. Tent City regularly hosts “Taste of the North” beer dinners featuring Alaskan brewers. One, in collaboration with Grace Ridge Brewing Company, featured smoked salmon canapes with Black Pepper IPA, classic beef Wellington with an Oystercatcher stout and roasted honey lamb chops with a Winter Cranberry Ale.

Tent City Taphouse on Thursday, April 29, 2021. (Bill Roth / ADN)

If you have transportation around the city, treat yourself to a brewery tasting-room tour. Found in unassuming little side streets in the more industrial areas of Anchorage, some of our best beers can be sipped and savored at the source. Finding these funky little spots can feel like being invited to a secret party. And it’s a glimpse into Anchorage’s most authentic beer culture.

In midtown, Onsite Brewing Co. has unique, small-batch brews in a funky relaxed environment. Further south, King Street Brewing Co., Turnagain Brewing, Cynosure Brewing, Magnetic North Brewing Company, Brewerks, and one of our newest, Ship Creek Brewing Company are all within a stone’s throw of one another. If you’re lucky, you might run into one of Anchorage’s popular food trucks parked outside, so you’ll have something to wash down with your flights. Depending on the day, you might find reindeer sausages, pad Thai, cheesesteaks or pupusas. On the weekends, Anchorage Brewing Company features a top-notch in-house pop-up restaurant, called Familia, with a rotating menu featuring local Alaskan ingredients.

Master brewer Coby McKinnon draws a sample from a fermentor to perform a gravity test on a Mexican lager at Ship Creek Brewing Company located at 5801 Arctic Boulevard on Thursday, Dec. 4, 2025. (Bill Roth / ADN)

One of the newest and furthest south breweries, while still in the Anchorage bowl, is Raven’s Ring Brewing Company, which is a brewery/winery and meadery. From a traditional IPA to a Concorde grape wine called Grape Juice to a rotating Vintner’s pour like Sweet Peach Jalapeno mead, this ambitious operation is challenging the notion that you can’t please everyone.

Other Anchorage points of interest for non-hoppy but still home-grown adult beverages include Anchorage Distillery, Zip Kombucha, Double Shovel Cidery and Hive Mind Meadery.

If your travels are over and you still haven’t had your fill, check out the Silver Gulch Brewing & Bottling Co. inside Terminal C at the Ted Stevens Anchorage International Airport on your way out of town. An offshoot of the flagship Silver Gulch brewery in Fox, Alaska (about 10 miles north of Fairbanks), this location has a bar and restaurant, and a retail shop carrying growlers of their own brews as well as those of other Alaskan brewers and distillers. Last-minute souvenir shopping never tasted so good.

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Before you start your great Northern beer safari, bear in mind that tasting rooms often have limited and varying hours, so always double-check before planning a visit.

Whether your travels take you to fine-dining restaurants, low-key alehouses or even rustic cabins in the woods, make like an Alaskan and fuel your adventures with one of our beloved, home-grown brews. When in Alaska, drink as the Alaskans do.

Mara Severin is a food writer who writes about restaurants in Southcentral Alaska for the Anchorage Daily News.





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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska

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U.S. Coast Guard announces homeporting of the first two Arctic Security Cutters in Alaska


 

Artists rendering of the future Arctic Security Cutter that the U.S. Coast Guard said would first be homeported in Alaska. The first of the icebreaking cutters are scheduled for delivery in 2028. (Davie Defense, Inc.)

WASHINGTON — The U.S. Coast Guard announced Thursday that the first two Arctic Security Cutters will be homeported in the State of Alaska. Anticipating delivery of the first Arctic Security Cutters by the end of 2028, the Coast Guard has begun planning to ensure necessary infrastructure and support are in place to receive two icebreakers. Ensuring these vessels are supported by trained and ready crews, and ready homeport facilities including housing, will be essential to delivering full, enduring operational capability required to meet emerging Arctic security challenges.

Homeporting these two Arctic Security Cutters in Alaska is a decisive step forward in securing America’s Arctic frontier,” said Secretary of Homeland Security Markwayne Mullin“I want to thank President Trump for his bold leadership and vision in directing this critical investment, as well as Senator Sullivan and the entire Alaskan Congressional delegation for championing the funding that made these icebreakers possible. These vessels will deliver the enduring operational presence our nation needs to protect sovereignty, deter foreign adversaries, and safeguard vital resources for the American people..

The homeporting of the first two Arctic Security Cutters in Alaska builds on the historic expansion of the Coast Guard’s icebreaker fleet and underscores an unprecedented investment in the Arctic. This announcement marks a national milestone in U.S. Arctic capability, following contract awards for up to 11 Arctic Security Cutters. Fueled by $3.5 billion in funding in the Fiscal Year 2025 Reconciliation Bill and facilitated by a groundbreaking Memorandum of Understanding (MOU) between the United States and Finland in October 2025, the acquisition of Arctic Security Cutters will fulfill President Trump’s directive to rapidly deliver America’s newest icebreaker fleet.

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“Homeporting Arctic Security Cutters in Alaska underscores the United States’ leadership as a maritime power in the Arctic,” said Adm. Kevin E. Lunday, commandant of the Coast Guard. “By strategically positioning these state-of-the-art icebreakers in Alaska, the Coast Guard will maximize our ability to defend our northern border and approaches, while reinforcing America’s maritime dominance in a crucial region of strategic importance.”

Through contract awards to Rauma Marine Constructions Oy of Rauma, Finland, Bollinger Shipyards Lockport, L.L.C., and Davie Defense, Inc. of Vienna, VA, the U.S. will immediately benefit from our Finnish partners’ icebreaker expertise while coordinating the onshoring of that expertise and shipbuilding to the United States. Under the MOU, Finland will construct up to four ASCs for the U.S Coast Guard. U.S. shipyards will build and deliver up to seven additional ASCs. Delivery of the first Arctic Security Cutters is expected by the end of 2028.

Arctic Security Cutters will form the backbone of a revitalized U.S. icebreaker fleet, strengthening American maritime dominance in the Arctic. Fielding specialized capabilities, these icebreakers will defend U.S. sovereignty, secure critical shipping lanes, protect energy and mineral resources, and counter foreign malign influence in the Arctic region. A robust icebreaker fleet will enable the Coast Guard to control, secure and defend U.S. Alaskan borders and Arctic maritime approaches, facilitate maritime commerce vital to economic prosperity and strategic mobility, and respond to crises and contingencies in the region.

Acquisition of Arctic Security Cutters supports the Coast Guard’s ongoing modernization, through which the Service is transforming into a more agile, capable and responsive fighting force.

Memorandum on ASC Homeporting

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