Alaska
Dunleavy proposes alternative tax for LNG project in place of property taxes
Gov. Mike Dunleavy on Friday introduced a bill in the state Legislature that would eliminate property taxes for the Alaska LNG megaproject, but create an alternative tax that would generate a smaller amount of revenue.
Lawmakers said Friday that they were still reviewing the bill, but one said it appears to be a “massive tax cut” that could exceed $1 billion in lost potential revenue to the state.
A borough mayor also indicated that municipalities that would host project infrastructure would lose out on significant property taxes and don’t currently support the measure, though they are working with the governor’s office and project officials on options.
Dunleavy said in an interview Friday that the goal is removing a financial barrier for the project so that it can be built.
At that point, it will provide an array of long-running benefits that the state does not currently receive from the North Slope’s vast but long-stranded natural gas, he said.
That includes a large number of jobs and affordable gas for Alaskans and businesses, including to support potential new undertakings such as data farms or fertilizer manufacturing, he said.
Also, even if his bill is passed, the project still would bring in significant royalties and production taxes, he said.
Over 30 years, the project still will generate $26 billion for state and local taxes and royalty revenue, Dunleavy said, referring to figures from the Alaska Department of Revenue. An oil and gas analyst interviewed for this article questioned those numbers.
Jeff Turner, a spokesperson for the governor, said in an email that the Department of Revenue is updating its Alaska LNG analysis “to incorporate spring modeling” and will share information on those figures next week.
Dunleavy said that if nothing is built, the state gets nothing from the project.
Recent events involving the U.S. war on Iran, including Israel and Iran bombing major gas infrastructure, underscore the need for a project that can safely export gas to meet strong demand in Asia, he said.
“So it’s a catalyst to billions upon billions upon billions of dollars and decades of future (revenue), not to mention the thousands of jobs and the other economic benefits from that,” Dunleavy said of the project.
Awaiting a final investment decision
The state has unsuccessfully pursued a version of Alaska LNG for generations.
Government agencies, private developers and major oil companies have never been able to get it built. The huge price tag has been a key impediment.
Under the current plan, majority owner Glenfarne is working with the Alaska Gasline Development Corp., a state agency and 25% project owner.
Alaska LNG has preliminary but nonbinding deals in hand with gas producers and buyers. Many observers say this project is farther along than past ones that failed.
Dunleavy said he recently met with the Taiwanese ambassador, Alexander Tah-Ray Yui.
“The country is very excited about moving ahead on hard agreements, especially now,” he said, following events in the Middle East.
Glenfarne has not yet made a final investment decision to build the project, a step originally expected in December.
Phase one calls for building an 800-mile pipeline to deliver natural gas from the North Slope to Southcentral Alaska, starting in 2029.
Phase two includes construction of a plant and shipping terminal in Nikiski. At that point, vast quantities of liquefied natural gas, or LNG, can be shipped overseas to Asian companies. That would start in 2031.
Glenfarne has recently updated an old cost figure of $44 billion for the project. But the company, based in New York, has not disclosed the new estimate, as well as other financial details.
Dunleavy said it’s common for a privately led project seeking investors and customers to hold on to proprietary information.
“I think there’s going to be enough information that can be shared publicly that will give legislators enough comfort that Alaska is better off with a massive project such as this, as opposed to better off without it,” he said.
Some Alaska lawmakers, who must decide what fiscal terms they should provide the project, if any, have said Glenfarne has not given them the financial information to judge the project’s potential benefits and risks.
A big ‘buzz cut’
The governor’s new measure proposes taxing the volume of gas flowing through the pipe, rather than taxing the assessed value of the oil and gas infrastructure, the governor’s office said in a prepared statement.
The alternative tax would be 6 cents per every thousand cubic feet of gas. That tax rate would increase 1% annually.
The alternative tax would not kick in until the project reaches an average flow of 1 billion cubic feet daily or 10 years after gas starts flowing, whichever comes first.
The project, once in full production with exports to Asia, is expected to move 3.5 billion cubic feet daily.
The bill removes the front-end tax burden for the project, reducing risks for potential investors, the governor’s office said.
It creates a predictable revenue stream, unlike property tax assessments that can be challenged, his office said.
Those benefits can help result in cheaper natural gas prices for Alaskans, the statement said.
Larry Persily, an oil and gas analyst and former Alaska deputy commissioner of revenue, said the alternative tax would provide a little over $75 million in the tax’s first year, if the project moves 3.5 billion cubic feet of gas daily.
In comparison, the property tax currently on the books would bring in $1 billion annually, for a project assessed at $50 billion.
“The bill today is not even a hair cut,” Persily said.
“It’s like a buzz cut on property taxes. It’s pretty substantial,” he said.
About a decade ago, when Persily was chief of staff to former Kenai Peninsula Borough Mayor Mike Navarre, he worked with a group of municipalities that tried to determine a fair property tax for an earlier, failed version of the project.
The group realized property taxes needed to be reduced to help make the project economic against global competitors.
But they still believed some property taxes were needed to support services provided by the state and boroughs.
They looked at a reduction that would still bring in about $630 million annually in property taxes, he said.
“The question is, how much of a discount should you provide and how should you structure it, to cover costs to the municipalities for all the services they will need to provide in association with the project,” he said.
Persily also said he doesn’t think the project will generate $26 billion in state and local taxes and royalties over 30 years.
He said a key source of revenue, production taxes and royalties, are based on the sale of gas as it first comes out of the ground, when its value is expected to be low compared to what it finally sells for.
“It seems a little gold-plated,” he said of the long-term revenue estimate. “Many Alaskans feel like this will be next Prudhoe Bay. But it’s not the same as oil in terms of profitability and tax revenue.”
Sen. Bill Wielechowski, a Democrat and vice chair of Senate Resources, said early Friday that his office is still reviewing the bill.
It appears the proposal could remove more than $1 billion in annual taxes from the state, compared to current statutes, he said.
“The rough look so far is that is a massive tax cut,” he said.
Glenfarne calls for swift action
GaffneyCline, a consultant for the Alaska Legislature, has said that legislative action will likely be needed on issues such as property taxes and “fiscal stability” before the project developer can make a final decision on investment.
The consultant has said property tax relief can provide critical savings early in the life of the project when costs are high.
Adam Prestidge, president of Glenfarne Alaska LNG, said in a prepared statement Friday that the state is facing a growing energy crisis, as natural gas production from the aging Cook Inlet basin near Anchorage continues to wane.
Glenfarne has been discussing property taxes with state and local leaders with the idea of minimizing energy costs for Alaskans, Prestidge said.
“State and local policymakers including members of the legislature, independent analysts, and the legislature’s own oil and gas consultants have all recognized that reforming Alaska’s current system is a key step in advancing a North Slope natural gas project,” Prestidge said.
“Acting swiftly on this measure is the most important step the Legislature can take to ensure that Alaskans will finally benefit from bringing Alaska’s North Slope natural gas to market,” he said of the bill.
Grier Hopkins, mayor of the Fairbanks North Star Borough, said in an interview Friday that officials from his borough and others that would host some of the project’s infrastructure do not agree with the terms of the bill.
The borough officials have been meeting regularly with officials from the governor’s office, the Alaska Gasline Development Corp. and Glenfarne, he said.
“The conversations have gone well, but this is not what we agree on, and I don’t support this specifically for Fairbanks,” he said.
Only 2 miles of the pipeline will travel through the Fairbanks borough. But the proposed bill will remove about $350,000 in annual property tax revenue, based on his own rough estimate, he said.
Other boroughs would see larger reductions, such as the North Slope and Kenai Peninsula boroughs, whose boundaries would encompass some of the project’s major facilities.
The Fairbanks borough is focused on getting affordable gas from the project, he said.
“So we still need to keep working with the governor and the Legislature to come up with something that’s going to work for the municipalities, which all have really different needs,” he said.
Lawmakers looking for more project details
Senate Majority Leader Cathy Giessel, a Republican and chair of the Senate Resources Committee, told reporters this week that lawmakers have not received enough information from Glenfarne about the costs of the project.
That makes it hard to know what steps should be taken to support it, she said.
The Senate Resources Committee has introduced a bill that proposes new guidelines on the project, including allowing the Legislative Budget and Audit Committee to conduct annual audits of the Alaska Gasline Development Corp.
Among many other steps, it would allow legislators to sign non-disclosure agreements in order to receive critical financial information.
Giessel said in an interview Friday that the members of the committee support Alaska LNG. They want to make sure it’s properly structured to benefit Alaskans, she said.
She plans to soon call on the borough mayors to appear before the committee to provide input on the bill.
She’ll also be looking to hear from GaffneyCline and other experts about their views on the bill, she said.
“It’s great that the public can now see what the governor is proposing,” she said. “These are local taxes that are being curtailed.”
“This affects their revenue to manage a large increase in their population and a huge increase in their property use” that will come with the project, she said.
Wielechowski, the Senate Resources vice chair, said the Dunleavy administration also needs to provide details to lawmakers about the project and the bill.
“The burden is on him to come forward and explain to the people of Alaska why he needs to give away a billion dollars a year,” he said.
Alaska
Opinion: Alaska’s public schools were once incredible. They can be that way again.
I grew up greeting friends and neighbors on my walk to my neighborhood Anchorage public school, just as my kids do now. It’s an essential, and value-added, part of living in our community.
In the late 1990s, when I attended Service High School, I had amazing teachers. My AP chemistry teacher left the oil and gas industry to teach. He could have earned significantly more money in another field, but teaching was competitive enough, given pensions and compensation, that he stayed in the job he loved and gave a generation of students a solid foundation in chemistry.
Now, my kids, who are in first, third and fifth grade, face a different reality. Teachers across our state are leaving in droves. Neighborhood schools across Alaska are closing. Art and music are being combined, which is nonsensical — they are not the same and they are both valuable independently. When he was in second grade, my oldest had a cohort of more than 60 students in his grade — split between two teachers. When he enters sixth grade next year, there will be no middle school sports and he will lose out on electives. Support systems and specialists to help when kids are falling behind have been cut. I’m lucky that my children have had amazing teachers, but many excellent teachers are nearing retirement age or don’t have a pension and are pursuing other careers. What happens then?
Despite skyrocketing inflation, last year was the first time in years that our schools received a significant increase in the Base Student Allocation — and that money doesn’t begin to make up for what they have lost over the years. Even that increase had to overcome two vetoes from what a recent teacher of the year calls “possibly the most anti-public education governor in the history of Alaska.” Shockingly, my own representative, Mia Costello, despite voting for the increase, failed to join the override to support education. She has failed to explain that decision when asked.
State spending on corrections is up 54% since 2019; meanwhile, spending on education is up only 12% in the same timeframe. Schools are now working with 77% of the funding they had 15 years ago when accounting for inflation.
When we starve our public schools of funding, Alaska families leave. No one wants their child to suffer from a subpar education and the lower test scores and opportunities that come with it. A significant number of people are working in Alaska but choosing not to raise their families here.
To the elected officials who preach school “choice” but starve public schools: our family’s choice is our neighborhood school. It’s our community. It’s where our friends are. Neighborhood public schools, which are required to accept all children, should be the best option out there. Public schools should be a good, strong, viable option for communities and neighborhoods across our great state. Once, they were.
I am thankful for those in the Legislature working to solve these problems. This includes HB 374, which raises the BSA by $630, and HB 261, which would make education funding less volatile.
It breaks my heart that across the state, dedicated teachers keep showing up for our kids while being underpaid and undervalued. Underfunding our schools is also a violation of Alaska’s constitution, which requires “adequate funding so as to accord to schools the ability to provide instruction in the standards.”
Not so long ago, Alaska’s public schools were adequately funded, and they produced well-educated students and retained excellent teachers. It’s up to all of us to reach out to our elected officials and urge them to make that the case once again.
Colleen Bolling is a lifelong Alaskan and mother of three who cares deeply about Alaska’s schools.
• • •
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Alaska
Alaska volunteer dedicates 600 hours a year to food bank after husband’s death
ANCHORAGE, Alaska — Karen Burnett spends most days in the sorting room at the Food Bank of Alaska, ensuring every donated item finds its place.
The Anchorage woman dedicates her time to sorting, packing and organizing food donations.
Finding purpose after loss
Burnett’s journey at the Food Bank of Alaska began after a personal loss. Following the death of her husband, Burnett said she found herself with time on her hands and a desire to help.
“I had a friend who had talked to me about it, and it just sounded like a good thing to be out doing,” she said.
Burnett now volunteers between 500 and 600 hours each year.
“I started, but it got to be so fun. I spent more and more time here,” Burnett added.
Understanding community need
Burnett has witnessed the growing need in the community, particularly as more families struggle to make ends meet.
“If you took a look at the pantry and saw those empty shelves, it’s hard sometimes when you know people are coming in and looking for something, for their clients, and there’s absolutely nothing in there,” Burnett said.
Her dedication has made a lasting impact on countless families.
“I just feel real involvement in a way that is appreciated,” Burnett said. “You know, people need this food. They need people to put it out for them.”
See the full story by Ariane Aramburo and John Perry.
Copyright 2025 Gray Media Group, Inc. All rights reserved.
Alaska
8 Of The Quietest Alaska Towns
Alaska is home to some of the most remote and quietest communities in the US, where year-round populations are often well under 3,000. Their isolation has shaped communities along fjords and glaciers, with hundreds of Alaskan communities accessible only by air or water, including Tenakee Springs on Chichagof Island and Sitka on Baranof Island. Girdwood is another tranquil spot right in the heart of the wilderness, but it is home to Alyeska Resort, for those travelers who want comfort during their trip. Tour historic fishing villages on the Kenai Peninsula and ferry-linked communities in the Inside Passage, in these quietest Alaska towns.
Girdwood
Girdwood is a mountain valley community in the Chugach Mountains and a haven for nature lovers seeking a quieter environment. Despite its size, Girdwood supports a concentrated outdoor recreation sector, including guided hikes, kayaking, flightseeing, ATV rides, and seasonal dog-sledding adventures. Only a one-hour drive from Anchorage, this small town is defined by its mountain setting and glacier-fed rivers.
One of the biggest drivers of traffic to Girdwood is Alyeska Resort, a luxury resort at the base of Mount Alyeska. The resort features alpine ski slopes in winter and meadows of wildflowers in summer. For visitors wanting to explore beyond the resort itself, Alyeska also coordinates guided excursions into nearby wilderness areas.
Girdwood also sits near the Chugach National Forest trail system, where forest hikes and wildlife viewing opportunities are widely available. Chugach is the second-largest national forest in the United States, covering 5.4 million acres and offering more than 60 trails through temperate rainforest, alpine terrain, and glacial valleys. Another scenic way to experience the area is aboard the Alaska Railroad. The railway runs through coastal and alpine landscapes and connects travelers to excursions such as Kenai Fjords cruises, Resurrection Bay wildlife tours, and other regional sightseeing trips.
Haines
Haines sits between fjords and snow-covered peaks. Its mountain-enclosed coastal setting, laid-back pace, and frequent wildlife sightings make it a notable destination for outdoor recreation. Glacier-fed waters support activities such as fishing and kayaking, while nearby trails allow hikers to explore the surrounding landscape.
Haines is home to the Chilkat Bald Eagle Preserve, which protects roughly 48,000 acres of habitat supporting the world’s largest recorded population of bald eagles. The preserve also safeguards the salmon run and supports other wildlife, including mountain goats, moose, swans, and bears. Visitors are asked to remain in designated viewing areas to minimize disruption to wildlife.
The town also preserves a historic military site. Fort William H. Seward, built in 1902 during a border dispute period between the United States and Canada, is the last remaining Gold Rush-era military post in Alaska. Located only a ten-minute walk from downtown along the waterfront, the site includes preserved barracks, officers’ homes, and parade grounds that can typically be explored in one to two hours.
The surrounding waterways further define Haines’ landscape. Lutak Inlet and Chilkoot Lake sit at the foot of the Takshanuk Mountains and provide opportunities for boating, canoeing, kayaking, and fishing. The ten-mile drive to Chilkoot Lake features several scenic pull-offs overlooking the inlet where birds and marine life are often visible.
Ninilchik
This fishing village on the Kenai Peninsula is known for its coastal sunsets and quiet beaches. Located 180 miles south of Anchorage and 35 miles north of Homer, Ninilchik is a historic settlement and an active fishing village. A prominent local landmark is the Holy Transfiguration of Our Lord Chapel, an iconic Russian Orthodox church often photographed by visitors. Built in 1901, the bluff-top structure features five golden onion domes and stands beside a historic Russian Orthodox cemetery. From the site, there are sweeping views across the Cook Inlet toward volcanoes on the western horizon.
For outdoor recreation, the Ninilchik River and Cook Inlet provide fishing areas and beach access. Tide-walking and coastal fishing are common activities, and the beaches offer clear views of the volcanoes across the water.
Ninilchik also hosts Salmonfest each summer. The three-day event features more than 60 bands across four stages along with camping, food vendors, local brews, and salmon-themed artwork, while also supporting educational programming and conservation initiatives focused on Alaska’s salmon fisheries.
Sitka
The seaside community of Sitka on Baranof Island, known for its Indigenous heritage with visible Russian historical influence, is only accessible by air and sea. The town is surrounded by fjords, boreal forest, and glacial landscapes along Alaska’s Inside Passage. Marine wildlife viewing is a common activity in Sitka’s coastal waters. Whale-watching tours, sea kayaking excursions, and guided boat trips provide opportunities to see humpback whales, sea otters, and other marine species. Visitors who prefer to stay on land can visit Whale Park, where shoreline viewpoints sometimes offer glimpses of whales offshore.
One of Sitka’s most recognizable landmarks is St. Michael’s Cathedral. Constructed between 1844 and 1848, the Russian Orthodox cathedral features traditional onion domes and gold-colored crosses, reflecting Russia’s cultural presence in Alaska during the 19th century.
Another well-known site is the Alaska Raptor Center, which rehabilitates injured birds of prey before releasing them back into the wild. Located on a 17-acre campus bordering Tongass National Forest, the facility includes a large flight-training aviary where visitors can watch eagles, hawks, and owls during rehabilitation.
Petersburg
Often called “Little Norway,” Petersburg maintains strong Scandinavian cultural traditions alongside its active fishing industry. Each year, the community hosts the Little Norway Festival, celebrating Norwegian Independence Day with parades, folk dancing, traditional costumes, and food booths featuring local seafood and Norwegian dishes. Local history is also preserved at the Clausen Memorial Museum, where exhibits highlight the town’s fishing heritage through historic gear and artifacts such as a traditional Tlingit dugout canoe and the largest king salmon caught in the region.
This is another town this is only accessible by air or water. Just outside town lies LeConte Glacier, the southernmost tidewater glacier in Alaska. Located at the end of a 12-mile fjord roughly 20 miles by boat from Petersburg, the glacier can be viewed through flightseeing trips, kayaking excursions, or charter boat tours that travel through the fjord.
Tenakee Springs
Located on Chichagof Island, Tenakee Springs is accessible primarily by water or small aircraft. Its remote setting and small population contribute to a slower pace of life along the waterfront community. Despite its size, Tenakee Springs maintains two long-standing institutions that draw seasonal visitors. The first is the Hot Springs Bath House. Construction began in 1900 around the natural hot spring that originally attracted settlers, and residents and visiting boaters still gather here for communal soaking.
Tenakee Springs is also home to the Tenakee Springs Market, founded in 1899. The store serves as the town’s main supply hub and carries groceries, household items, and locally made goods. Across the street, the Tenakee Museum displays photographs and household artifacts that document daily life in the community’s early years.
The town is surrounded by Tongass National Forest, which spans roughly 17 million acres and is recognized as the largest intact temperate rainforest in the United States. The forest supports abundant wildlife, including eagles, bears, and spawning salmon.
Skagway
Skagway developed during the Klondike Gold Rush and remains closely tied to that period of frontier history. The town sits between steep mountains and coastal waterways at the northern end of the Inside Passage, where transportation routes first built for stampeders still shape the landscape.
The White Pass and Yukon Route Railway is one of Skagway’s defining attractions. Built in 1898 during the Gold Rush, the railroad climbs steep mountain passes above town. The popular White Pass Summit excursion passes landmarks such as Bridal Veil Falls, Inspiration Point, and Dead Horse Gulch while traveling through alpine scenery.
Six blocks of downtown Skagway form a designated Historic District. Private, city, state, and federal organizations have worked together to preserve many late-1890s buildings, including former saloons, hotels, and storefronts now interpreted by Klondike Gold Rush National Historical Park.
Visitors can learn more about this history at the Skagway Museum, located in the historic McCabe Building, constructed in 1899. Exhibits include historic photographs of early Skagway streets and personal belongings from stampeders who traveled the Chilkoot and White Pass trails. Documents and photographs of early life in Skagway provide visitors with a look into the town’s rich history.
Whittier
At the head of Prince William Sound, steep mountains and tidewater glaciers surround the small community of Whittier. About 90 minutes from Anchorage by car, the town serves as a gateway to the surrounding marine environment. Day cruises departing from Whittier travel through Prince William Sound and often pass tidewater glaciers such as Blackstone Glacier and Beloit Glacier. These trips frequently provide sightings of marine wildlife, including humpback whales, sea otters, and harbor seals.
Although small, Whittier has a history tied to World War II and the Cold War. A self-guided walking route highlights preserved military buildings and explains the town’s role as an ice-free port and logistics hub during those periods.
Access to Whittier is controlled by the Anton Anderson Memorial Tunnel, the longest highway tunnel in North America at roughly two and a half miles. Built in the mid-20th century, the tunnel alternates traffic direction on a timed entry schedule and was engineered to withstand the region’s extreme weather conditions.
Alaska’s scale often draws attention, but in these smaller communities, the landscape becomes part of everyday life. Fjords, forests, and rivers shape how people travel, work, and spend their time. With small populations and limited development, these towns maintain a slower pace that stands apart from busier destinations.
For travelers hoping to experience a quieter side of Alaska, these communities offer something increasingly rare: space, quiet, and a close connection to the surrounding environment. Many also preserve historic districts, cultural traditions, and working waterfronts that continue to define local life.
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