Alaska

At Anchorage town hall, a rallying cry emerges: More taxes, please

Published

11 months ago

April 6, 2025

At Anchorage town hall, a rallying cry emerges: More taxes, please

Sen. Bill Wielechowski takes a selfie with Sen. Löki Tobin, Sen. Kelly Merrick, and Sen. Cathy Giessel before the start of a legislative town hall on Saturday, April 5, 2025 at the University of Alaska Anchorage. (Loren Holmes / ADN)

Twenty state legislators convened in Anchorage on Saturday for an annual town hall that brings together the delegation representing the state’s biggest city.

Like last year, the town hall was used by education advocates to call for what they say is a desperately needed increase in the state’s education budget, which has not kept up with inflation for years. But speakers at the two-hour meeting had a new addition to their plea: To make education funding possible, impose more taxes.

A third of the Alaska Legislature — including Democrats, Republicans and independents representing every neighborhood of Anchorage — listened to request after request for an increase to the Base Student Allocation, along with laments from students who fear the elimination of beloved theater and sports programs.

Lawmakers on both sides of the political aisle, along with Alaska Gov. Mike Dunleavy, a Republican, have said some amount of education funding increase would be needed this year. But they have also pointed to the state’s dwindling revenue — which comes primarily from oil taxes and Permanent Fund earnings — to reason that an increase that meets the demands of school districts may not be viable this year.

Several Anchorage residents who attended the town hall on Saturday had a ready reply: “Tax me.”

West High English teacher Brian Lyke rallies the crowd before the start of a legislative town hall on Saturday, April 5, 2025 at the University of Alaska Anchorage. Lyke, who was recently given notice that his position had been eliminated, was the director of a well-received West High production of “Hadestown.” (Loren Holmes / ADN)

Alaska had a state income tax until 1980, when booming revenue from the oil industry compelled the state’s political leaders to eliminate it. Oil revenue is no longer booming, but political appetite to reinstate a personal income tax — or any new taxes, for that matter — has been slim.

Lawmakers in the Senate this year have floated several ideas that would increase taxes on Alaska’s oil industry and other corporations, but have stopped short of introducing any personal taxes. Republicans in the House last month largely rejected ideas for new taxes on the resource industry. Dunleavy has shown no interest in introducing or signing off on new taxes, ever since he promised in 2023 to introduce a statewide sales tax — and then never did.

[Anchorage School District ‘displacements’ could shutter or shrink 5 high school choir programs]

“I hear some of you are not wanting to tax the people and industries that can afford to contribute — no statewide income tax, no S-corp tax, corporate oil breaks still in place,” Rozlyn Grady-Wyche, an education graduate student, told lawmakers during the town hall. “You have options, you have power. What’s missing is the will.”

“We need a revenue plan — a fair, equitable one that asks for more from those with more,” Grady-Wyche added.

The question of whether — and how — to establish new revenue has long been treated with hesitancy by state lawmakers, amid fears of backlash from voters. But speakers during the packed-to-the-gills town hall meeting often elicited loud cheers and applause from the crowd when they spoke about the prospect of new taxes as a tool to afford new education spending.

“There’s an old adage in business — I don’t know if anybody knows it — revenue fixes everything,” said Ben Kellie, an entrepreneur and former SpaceX engineer who lives in West Anchorage.

“Amen!” someone shouted from the crowd, as others and clapped.

Business owner Ben Kellie advocates for increasing and diversifying state revenue during a legislative town hall on Saturday, April 5, 2025 at the University of Alaska Anchorage. (Loren Holmes / ADN)

“It’s not enough to throw your hands up and say you can’t do it. Figure it out. Do your jobs,” Kellie said.

Nick Moe, representing thread, a child care nonprofit, told lawmakers that critical child care funding is “at risk if we do not find new revenue and a solution to this budget crisis.”

“The thread board has taken the unprecedented step of supporting new and diverse revenue as a way to fund essential searches, so that’s my message: Please pass new revenue. Pass it now,” said Moe.

Moe said he’s “heard eight good revenue ideas” in the Capitol in Juneau.

“I think you should pass them all,” he said.

People hold up signs designed with a tombstone, denoting programs that are targets for cuts absent an increase in education funding, during a legislative town hall on Saturday, April 5, 2025 at the University of Alaska Anchorage. (Loren Holmes / ADN)

Pat Higgins, a member of the Anchorage School Board, excoriated lawmakers for refusing to levy taxes that would allow the state to more easily send the district the funding it says it needs.

“You make up the decisions on where the funds are going to come from. You decide the oil taxes. You decide corporate taxes. I’m willing to pay an income tax. I’m willing to pay a sales tax,” said Higgins.

“I demand to be taxed. Tax me now,” said Erin Dougherty Lynch, an attorney who lives in South Anchorage. “It is patriotic to pay taxes.”

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Alaska

Over $150K worth of drugs seized from man in Juneau, police say

Published

4 hours ago

February 27, 2026

Press Room

Over 0K worth of drugs seized from man in Juneau, police say

JUNEAU, Alaska (KTUU) – An Alaska drug task force seized roughly $162,000 worth of controlled substances during an operation in Juneau Thursday, according to the Juneau Police Department.

Around 3 p.m. Thursday, investigators with the Southeast Alaska Cities Against Drugs (SEACAD) approached 50-year-old Juneau resident Jermiah Pond in the Nugget Mall parking lot while he was sitting in his car, according to JPD.

A probation search of the car revealed a container holding about 7.3 gross grams of a substance that tested presumptively positive for methamphetamine, as well as about 1.21 gross grams of a substance that tested presumptively positive for fentanyl.

As part of the investigation, investigators executed a search warrant at Pond’s residence, during which they found about 46.63 gross grams of ketamine, 293.56 gross grams of fentanyl, 25.84 gross grams of methamphetamine and 25.5 gross grams of MDMA.

In all, it amounted to just less than a pound of drugs worth $162,500.

Investigators also seized $102,640 in cash and multiple recreational vehicles believed to be associated with the investigation.

Pond was lodged on charges of second-degree misconduct involving a controlled substance, two counts of third-degree misconduct involving a controlled substance, five counts of fourth-degree misconduct involving a substance and an outstanding felony probation warrant.

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

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Alaska

Sand Point teen found 3 days after going missing in lake

Published

17 hours ago

February 27, 2026

Press Room

Sand Point teen found 3 days after going missing in lake

SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.

Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.

Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.

A search and rescue operation ensued shortly after.

Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.

“We are glad we could bring closure to his family, friends and community,” the post said.

This is a breaking news story and will be updated when more details become available.

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Alaska

Opinion: Homework for Alaska: Sales tax or income tax?

Published

1 day ago

February 26, 2026

Press Room

Opinion: Homework for Alaska: Sales tax or income tax?

iStock / Getty Images

This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.

Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.

But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.

This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.

Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.

But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.

One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.

Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.

Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.

That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.

An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.

Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.

Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.

Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.

However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.

Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.

It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.

Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.

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