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Falling oil prices leave Alaska lawmakers with a $925 million revenue hit, affecting budget and PFD

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Falling oil prices leave Alaska lawmakers with a 5 million revenue hit, affecting budget and PFD


JUNEAU — Falling oil costs are projected to go away Alaska’s state price range with a $925 million income hit, pushing lawmakers to cut back the dimensions of this 12 months’s proposed Everlasting Fund dividend.

Whereas the governor favors a $3,700 dividend, the Home majority has signaled its help for a $2,700 dividend and the Senate majority has began discussing a extra modest $1,300 dividend over the long-term, which might permit the state to additionally pay for better college funding with out drawing down the state’s sole remaining financial savings account.

And regardless that Gov. Mike Dunleavy has not amended his request for a full statutory dividend, he has acknowledged that final result is unlikely. “I doubt it’s going to be a totally statutory (dividend),” he mentioned Tuesday. “In the long run, the Legislature appropriates, so we’ll see what that quantity lands on.”

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The Division of Income launched its newest projections Tuesday, estimating that the value of oil would common $85 per barrel over the present fiscal 12 months, which ends June 30, and $73 per barrel for the 2023-24 fiscal 12 months. The division’s newest projections estimate that lawmakers will see a $925 million income hit over each fiscal years, in comparison with projections made in December.

The governor’s amended price range plan introduced in February had a $400 million deficit that he proposed overlaying from financial savings. Dunleavy supported a full statutory dividend on the time, which might pay roughly $3,900 for each eligible Alaskan at a value of $2.5 billion. He reiterated his help for a full dividend Tuesday, regardless of the projected deficit below his proposal ballooning to over $900 million.

“I imagine that we should always do all the things we are able to to maintain as a lot cash within the fingers of the folks,” Dunleavy mentioned throughout a Tuesday press convention.

Gov. Mike Dunleavy press conference

The governor has proposed monetizing carbon as a technique to probably increase billions of {dollars} in new state income by storing carbon underground or promoting forestry offsets. Dunleavy’s proposals have superior from one committee within the Home, however they’ve obtained a extra lukewarm reception within the Senate. These proposals will not be anticipated to lift income over the subsequent fiscal 12 months.

[Alaska House leader calls for a vote to reject legislator pay increases]

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In anticipation of a worsening income forecast, the Home diminished the dimensions of the dividend in its price range plan throughout a finance committee listening to Monday to round $2,700 per Alaskan. The dividend would comply with the “50-50″ mannequin — the place 50% of a now-annual draw from the Everlasting Fund would go to state providers, and 50% would go to the dividend. However the Home’s price range would nonetheless be within the pink by over $400 million.

Palmer Republican DeLena Johnson, who manages the working price range within the Home, mentioned Tuesday that there had not been a caucus dialogue in regards to the measurement of this 12 months’s PFD. However she didn’t anticipate the Republican-led Home would need to go decrease than a $2,700 dividend.

Home Republicans, who beforehand have publicly supported calculating the dimensions of the dividend in accordance with the 1982 statutory components — which hasn’t been adopted since 2016 — mentioned their precedence just isn’t essentially passing a full dividend this 12 months.

“It’s actually this political soccer that will get kicked round forwards and backwards,” mentioned Fairbanks Republican Rep. Frank Tomaszewski. “What I actually need to see is a sound fiscal plan popping out of the Legislature.”

To bridge the hole for the present fiscal 12 months, the Legislature is planning to spend from the state’s principal financial savings account. The governor has mentioned a further $115 million is required for unanticipated price range gadgets within the present fiscal 12 months, together with over $50 million for final summer time’s hearth season.

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The Constitutional Funds Reserve — the state’s principal financial savings account — has a stability of roughly $2.3 billion. Legislators are planning to make use of it to fill the deficit and pay for a handful of fast-tracked price range gadgets, together with hiring employees to deal with the state’s meals stamps backlog and a scarcity of public defenders in Bethel and Nome. Three-quarters of legislators must vote to spend from that account for a draw to happen, however legislative leaders mentioned they count on their caucuses will help that spending.

One other precedence with vast help within the state Capitol is addressing college funding. Legislators have heard from training stakeholders throughout Alaska of an ongoing price range disaster plaguing faculties across the state. However the Home’s present spending plan doesn’t embody a proposed improve for Alaska’s college districts or a lift for instructor salaries, which might improve the deficit additional.

The Senate is listening to laws that may improve the Base Scholar Allocation — the per-student funding components — by $1,348 over two years. The nonpartisan Legislative Finance Division estimated that may value $257 million throughout this 12 months’s price range cycle, rising to $347 million subsequent 12 months.

Within the Senate Finance Committee, discussions turned Tuesday to rewriting the dividend components in state statute. A Senate invoice launched final week would set up a 75-25 break up from a Everlasting Fund draw between providers and the dividend. Below that proposal, the PFD could be roughly $1,300 this 12 months, rising to an estimated $1,500 by the tip of the last decade.

“That’s in all probability the one most vital piece of laws to get our toes again on the bottom,” mentioned Sen. Lyman Hoffman, D-Bethel, throughout a Tuesday information convention. He mentioned that there was not a united place among the many 17-member bipartisan Senate majority caucus on the dimensions of this 12 months’s dividend, however {that a} bigger PFD would require new state income.

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Alaska

Northern highlights: Alaska's energy, security policies are the guide feds need amid transition, group says

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Northern highlights: Alaska's energy, security policies are the guide feds need amid transition, group says


EXCLUSIVE: Private citizens — right up to the governor himself — are primed to be part of a new Alaskan initiative aimed at promoting policies that have been effective in Juneau at a national level as a new administration signals a willingness to listen and adapt to new strategies.

Just as Florida’s education policy under Gov. Jeb Bush served as a blueprint for national education reform, the nonprofit Future 49 aims to position Alaska as today’s model, focusing primarily on national security and energy.

Its top funders are a group of Alaskans of all stripes as well as a few Washington, D.C.-based advocates. It is nonpartisan and simply pro-Alaskan, according to one of its proponents.

It also seeks to dispatch with what one source familiar with its founding called the “out of sight, out of mind” feeling of some in the Lower 48 when it comes to how far-flung Alaska can translate its own successes in the cold north to a federal government that could benefit from its advice.

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One of Future 49’s founders is a commercial airline pilot whose family has lived in Alaska for more than 125 years. He said he wanted to show Washington issues Alaska deals with every day.

AK GOV: BIDEN SEARCHING FOR OIL ANYWHERE BUT AT HOME

Anchorage skyline (Getty)

Bob Griffin’s family has lived in Alaska since 1899, he said, remarking he is an example of grassroots support behind showcasing Alaska’s potential to be the driving force in key sectors for the rest of the country.

Griffin said while there has not been any direct contact yet with the new administration, Gov. Mike Dunleavy is an ally of Trump’s and, in turn, primed to have a role in the group.

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“We’re focused on not only the Trump administration, but other decision makers, to just highlight and advertise that the successes we’ve had in Alaska in energy, natural resources and other policy priorities are a good fit and benefit to all Americans.”

He noted the Arctic National Wildlife Refuge region spans the size of West Virginia, but the part of it federally budgeted for exploration in a recent fiscal year was only an area half the size of Ted Stevens International Airport in Anchorage, illustrating how Juneau must guide Washington.

FLASHBACK: ALASKAN F-35s PREPARE FOR MAJOR SUB-ZERO ARCTIC WARFARE

A source familiar with the founding of Future 49 told Fox News Digital how the group’s launch comes at a key juncture as one advice-averse administration transitions into one that has signaled its openness to undertake recommendations from states and local groups.

“The resources our nation needs to be energy-dominant are in Alaska, not in unfriendly nations like Russia and Iran who despise what we stand for and commit egregious environmental offenses on a daily basis,” the source said.

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ALASKA OUTRAGED AT BIDEN OIL LEASE SALE SETUP BEING ‘FITTING FINALE’ FOR FOSSIL FUEL AVERSE PRESIDENCY

While the group is primed to express a pro-development approach to energy, it will remain nonpartisan and offer Washington successful strategies to develop both green and traditional energy based on work done in Alaska.

Dunleavy has offered a similarly two-fold approach, saying in a recent interview that opening the Arctic National Wildlife Refuge to responsible development may yield just as much economic growth for the nation as emerging green technology, such as a proposal to harness the second-strongest tides in the world churning in Cook Inlet outside Anchorage.

Those parallels show why Future 49’s advent is coming at the right time, a source told Fox News Digital.

Future 49’s plan to use Alaska’s long-term goal to utilize its energy resources as a roadmap was a sentiment also voiced in another confirmation hearing Thursday. Interior nominee Doug Burgum highlighted the need for domestic “energy dominance” for both economic and security reasons.

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Doug Burgum, the former governor of North Dakota and nominee for U.S. secretary of the interior, during a Senate Energy and Natural Resources Committee confirmation hearing in Washington, D.C., Jan. 16, 2025.  (Al Drago)

With Russia having invaded Ukraine, Dunleavy said most sensitive national defense assets are housed in Alaska, so the state has a deep background in what is needed to deter malign actors.

“We’re very close to the bear,” he said.

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Lessons learned from managing a National Guard force so closely tied to top-level national security concerns is another avenue Future 49 will likely seek to aid Washington in.

The group plans to commission a survey of Lower 48 Americans on their view of the Last Frontier and how they perceive Alaska from thousands of miles away, said Alaska pollster Matt Larkin.

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‘Prolonged’ internet outage in North Slope & Northwest: Quintillion blames optic cable break

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‘Prolonged’ internet outage in North Slope & Northwest: Quintillion blames optic cable break


ANCHORAGE, Alaska (KTUU) – The president of Quintilian blamed an optic cable break for a North Slope & Northwest Alaska internet outage that will take an undefined amount of time to fix.

“It appears there was a subsea fiber optic cable break near Oliktok Point, and the outage will be prolonged,” Quintillion President Michael “Mac” McHale said in a short statement provided by a company spokesperson. “We are working with our partners and customers on alternative solutions.”

The statement mirrored what the company released Saturday morning on social media.

So far, the company has not provided a specific timeline for the repair’s next steps.

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Opinion: Alaska’s court system has had solutions for expensive, unnecessary delays since 2009. What’s lacking is accountability.

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Opinion: Alaska’s court system has had solutions for expensive, unnecessary delays since 2009. What’s lacking is accountability.


As a former prosecutor, I was shocked and saddened to read reporter Kyle Hopkins’ recent reporting in the Anchorage Daily News and ProPublica on pervasive, unconstitutional, heartbreaking delays of violent felony cases. Judges granting continuances 50 to 70 times over seven to 10 years — with “typically” no opposition from the prosecution, and no mention of the victims. Victims and their families suffering years before the closure that a trial can bring, some even dying during the delays.

Hopkins’ reporting is recent. The problem isn’t. The Office of Victims’ Rights (OVR) has been covering delays for years in annual reports to the Legislature, beginning in 2014. In 2018, after monitoring nearly 200 cases, OVR said judges were mostly to blame.

Other causes have been noted: understaffed public defender and prosecutor offices; the incentive for defendants to delay because witnesses’ memories fade. But in 2019, OVR said, “It is up to the judges to control the docket, to adhere to standing court orders, to follow the law and to protect victims’ rights as well as defendants’ rights.”

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In 1994, 86% of Alaskans who voted supported a crime victims’ rights ballot. That overwhelming mandate was enshrined in our state constitution. It includes victims’ “right to timely disposition of the case.” For years, Anchorage Superior Court judges have ignored this right.

After reading the recent coverage, I began searching. Maybe other jurisdictions had found solutions to similar delays. What I discovered shocked me even more.

In 2008, a working group co-chaired by an Alaska Supreme Court justice determined the average time to disposition for felony cases in Anchorage had nearly quadrupled. “This finding amounted to a ‘call to arms’ for improvements …(.)”

In November 2008, the state paid to send three judges, two court personnel, the Anchorage district attorney, the deputy attorney general and three public defenders to a workshop in Arizona about causes of delays, and solutions. David Steelman was a presenter. He worked with the Alaska group in Phoenix and Anchorage. That work resulted in a 59-page report dated March 2009.

I found Steelman’s report online (“Improving Criminal Caseflow Management in the Alaska Superior Court in Anchorage”). His findings are revealing.

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Delays resulted from informal attitudes, concerns and practices of the court, prosecutors and public defense lawyers. To change this “culture of continuances,” it was critical the court exercise leadership and the attorneys commit to change. Judges and the public-sector lawyers must recognize they were all responsible for making prudent use of the finite resources provided by taxpayers. Unnecessary delays wasted resources.

Steelman recommended the judges and lawyers agree to individual performance measurements, and the court engage in ongoing evaluation of his Caseflow Improvement Plan. The plan included a “Continuance Policy for Anchorage Felony Cases.”

I found an unsigned Anchorage court order dated May 1, 2009. It included Steelman’s Continuance Policy recommendation that the court log every requested continuance in the court file, name the party requesting it, the reasons given, whether the continuance was granted, and the delay incurred if it was granted.

More telling, it omitted Steelman’s recommendation that, “Every six months, the chief criminal judge shall report to the Presiding Judge on the number of continuances requested and granted during the previous period(.)”

That provision might have ensured accountability.

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After years of only bad news, in 2018, OVR reported a glimmer of “good news” — a pre-trial delay working group was formed by Anchorage Presiding Judge Morse and the court system. In September 2018, Judge Morse issued a Felony Pre-Trial Order. Its goals included reducing delays of felony case dispositions and minimizing the number of calendaring hearings. (Sound familiar?)

But, OVR added, “The real test will be whether judges will hold to the new plan and hold parties accountable for delays. The jury is out on whether the will to change is actually present, but the court ultimately will be responsible for improving this problem unless the legislature steps in and passes new laws to resolve this continuing violation of victims’ rights.”

The jury has been out since 2009. The court failed that test. Based on the ADN/ProPublica reporting, the court failed the test of 2018. Things are worse than ever.

And the court’s response? A spokesperson told Kyle Hopkins there was “new” training for judges on managing case flows, as well as an Anchorage presiding judge’s order limiting when postponements may be used. (Sound familiar?)

I also reached out to the court. I requested documentation of this “new” training and a copy of the latest order. I also asked about the unsigned May 2009 court order. I’ve received no response. Similarly, when Hopkins reached out to Anchorage Superior Court judges, none of the criminal docket judges responded directly.

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There are two things courts and judges will respond to: their budget and retention elections.

First, the Alaska Senate and House Judiciary and Finance Committees should hold the court system accountable for its proposed budget. Require it to cost out delays from past years. According to a 2011 report by Steelman, just two Anchorage cases (each with over 70 scheduling hearings), “(M)ay have cost the State of Alaska the full-time equivalent of an extra prosecutor or public defender attorney.”

The court system has proven, since 2008, it can’t be trusted to not waste money on unnecessary delays. It must finally be held accountable by the Legislature.

Second, retention elections. Superior Court judges are appointed by the governor, but they must stand election for retention by the voters every six years. The Alaska Judicial Council evaluates each judge before their election and makes that information public. The council incorporates surveys of attorneys, law enforcement, child services professionals, court employees and jurors.

The Judicial Council does not survey victims, or those who assist them, such as OVR or Victims for Justice. It should. Other than the defendant, victims are the only ones with a constitutional right to a speedy trial. That right is being ignored by judges. Alaska voters who issued a mandate should know which judges are ignoring it.

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Val Van Brocklin is a former state and federal prosecutor in Alaska who now trains and writes on criminal justice topics nationwide.

The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





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