Alaska
Former Alaska revenue commissioner Crum defends committing $50M in state savings to digital infrastructure firm
Former Alaska Revenue Commissioner Adam Crum says he was following state law when he committed $50 million in state funds to invest in a digital infrastructure firm shortly before he departed public office.
Crum’s decision to commit the funds from the Constitutional Budget Reserve — the state’s rainy day fund — later led Gov. Mike Dunleavy to promise a third-party independent review of the investment. It also caused alarm from House Speaker Bryce Edgmon and Senate President Gary Stevens, who in a joint statement said that the investment “raises serious concerns about accountability, transparency, and fiscal responsibility.”
But Crum, who departed the Dunleavy administration in July and days later announced he was running for governor, said Friday that members of Dunleavy’s administration, including the governor himself and top attorneys in the Department of Law, had known about his investment plan for months.
Department of Revenue spokesperson Aimee Bushnell said in an email that Crum had informed the governor’s office of his plan, but Bushnell declined to answer when she was asked when, exactly, Dunleavy was informed. The governor’s office “cautioned that any investments made needed to be in accordance with established investment policies and procedures,” Bushnell said.
The idea for the $50 million investment in private equity, Crum said, was to resume a practice first initiated by lawmakers more than 20 years ago, of investing some funds from Alaska’s Constitutional Budget Reserve in a subaccount with the goal of yielding “higher returns than might be feasible to obtain with other money in the budget reserve fund,” assuming that the funds would not be needed for at least five years, according to state statute.
But lawmakers liquidated the subaccount’s nearly $7 billion in 2015 amid a decline in oil revenue, and hadn’t used it since, though its existence remained prescribed in law. Since 2020, the Department of Revenue’s policy has remained to keep the funds from the Constitutional Budget Reserve — which currently stand at roughly $3 billion — in short-term investments, under the assumption that the funds might be needed in the near term. Indeed, under Dunleavy’s most recent budget proposal, the funds in that account would have been fully spent by 2028, far before the five-year timeline prescribed in the subaccount statute.
Because the funds in the account for years have been invested accessibly and with lower rates of return, “simply leaving all of the money in the Constitutional Budget Reserve was actually irresponsible,” Crum concluded.
Crum said he asked former Alaska Attorney General Treg Taylor if he could revive the subaccount to “invest in alternatives” that would both have a higher rate of return and “help Alaska as a whole.”
“They said, ‘yes you can, make sure that you update the investment policy statement,’ ” Crum said.
The Department of Law did not respond to questions from the Daily News, including whether Taylor — who himself resigned in August to run for governor — reviewed the investment proposal.
Crum said that once he decided to revive the subaccount, he chose to invest in digital infrastructure — a category that includes data centers and cellphone towers — because these are “the things that we’re actually going to need more and more of because we don’t have enough power and we don’t have enough data.” He said he chose the firm DigitalBridge after meeting with members of the firm both in New York and in Alaska.
According to Crum’s public calendar, he met with DigitalBridge executives four times in November 2024, including one meeting to which both Dunleavy and Alaska Gasline Development Corp. President Frank Richards were invited. Dunleavy spokesperson Jeff Turner did not respond Friday when asked whether Dunleavy did, in fact, attend the meeting, and whether the potential investment was discussed.
DigitalBridge, headquartered in Florida with assets estimated at around $106 billion, was founded as Colony Capital by Thomas Barrack, an adviser and fundraiser for President Donald Trump. In 2024, the U.S. Securities and Exchange Commission charged the firm with breaches of its fiduciary duty.
Crum said DigitalBridge is “interested in Alaska for a lot of things” and “they’ve come up here a lot.” However, he said the $50 million he committed to the firm was not intended for in-state investment.
“It was actually directly written into the documents that this is not for in-state investment,” Crum said. “The idea on that is, you want to actually invest on the merits.”
“Over time, as we look to actually develop infrastructure and have this in Alaska, having a relationship with an investment firm like this actually draws attention from other investment firms,” Crum added.
Crum said he committed $50 million to DigitalBridge with an intention of expanding the subaccount investments up to 10% of the value of the Constitutional Budget Reserve — which would amount to roughly $300 million — but that didn’t happen before he left the department.
On Sept. 30, Acting Revenue Commissioner Janelle Earls wrote to legislative auditor Kris Curtis to inform her of the investment decision, noting the letter was part of the department’s protocol for “non-routine investments.” On the same day, Dunleavy called Edgmon and Stevens to tell them about the investment.
Edgmon said in an interview that his impression from the call was that Dunleavy had not been aware of the $50 million obligation before Crum resigned.
Edgmon, a Dillingham independent, said he’s “confused” about Crum’s assertion that he ran the investment decision by Dunleavy and the Department of Law.
“It’s my understanding that the governor’s office is saying otherwise, and it’s troubling that we don’t know what took place,” said Edgmon.
Edgmon said that Dunleavy promised him and Stevens that an independent third-party review of the investment agreement would be conducted.
The Department of Revenue and the governor’s office did not answer questions on who is conducting that review or when its results were expected.
Crum, meanwhile, said Friday that “the whole claim that no one knew this was coming is a complete and utter lie.”
Crum said that Dunleavy likely reached out to lawmakers to inform them of the investment commitment “as an olive branch.” As for the independent review of the investment decision, Crum said he sees it as Dunleavy ensuring “transparency for the public.”
That’s not how the Department of Revenue portrayed it. In an email, Bushnell said that “after the former Commissioner left state service, the newly appointed Acting Commissioner (Earls) expressed concern over the process utilized for making the investment. After being advised of the acting commissioner’s concerns, the governor apprised legislative leadership of the transaction, forwarded documents to the legislative auditor for review, and directed an outside third-party review be conducted to determine whether there were in fact any violations of policy and make process recommendations as appropriate.”
Bushnell did not answer questions on the specific cause for Earls’ concern.
Edgmon said that lawmakers will review the investment when the Legislature convenes in January.
“The whole situation is eyebrow-raising,” Edgmon said, “and until reasonable answers are provided and we can all get to the bottom of this, I think it’s going to remain an issue of concern.”
Alaska
Opinion: The cost of waiting on Alaska LNG is already showing up
As former mayors of Anchorage, we each had the responsibility of leading Alaska’s largest city through moments of challenge and opportunity. While our administrations differed in time and approach, one priority remained constant: ensuring that Anchorage and Alaska have access to reliable, affordable energy.
Energy keeps our homes warm through long winters, powers our schools and hospitals, and fuels the businesses that employ our neighbors. It literally fuels every aspect of our economy and our quality of life. When energy becomes uncertain or unaffordable, the consequences are felt immediately by families, employers and communities across the state.
Today, Alaska faces a generational energy challenge. Cook Inlet natural gas production has been declining for decades. Like the frog in a pot on the stove, the problem around us has slowly grown but is about to reach a raging boil. Declining supplies of inexpensive Cook Inlet gas, rising demand and a lack of long-term certainty jeopardize the stability we rely on. Without action — right now — we will lose control over energy costs and availability.
We have faced moments like this before. During his tenure as mayor, Dan Sullivan recognized early the urgency created by declining Cook Inlet gas production. He convened an Energy Task Force that brought together industry leaders, policymakers and stakeholders to confront the issue directly. That work helped lay the foundation for the Cook Inlet Recovery Act, which the Legislature passed quickly to spur new investment and extend the life of the basin. It showed what is possible when Alaska acts with focus and urgency. It also showed the legislature can move fast when aligned on policy.
This is not a new conversation. For years, studies commissioned by both the Alaska Legislature and multiple administrations have identified the need to modernize Alaska’s tax structure and energy policies to remain competitive for large-scale investment and infrastructure projects. Again and again, those reviews reached the same conclusion: If Alaska wants to attract and keep transformational projects, the state must provide a stable, competitive framework that reflects the realities of modern energy development.
The Alaska LNG project is the only viable path to meet that need. It would deliver a stable, long-term supply of natural gas to Southcentral Alaska, helping ensure that homes, schools and businesses have dependable energy at predictable prices. It would also create jobs, strengthen the economy and generate revenue that supports essential public services.
For Anchorage and the entire Southcentral region, the stakes could not be higher. As the economic center of the state, Anchorage depends on dependable energy to sustain growth and opportunity. Utilities, employers and families all need certainty to plan ahead.
If the Legislature fails to pass meaningful property tax reform for Alaska LNG, this opportunity will slip away like other projects have done. Alaska’s property tax system was not designed for a megaproject like Alaska LNG. Because of that, tax reform legislation was introduced in March that will lower our energy bills and speed the delivery of natural gas from the North Slope. Our legislators must act quickly on a targeted solution and avoid making changes that raise energy costs or slow this project. Otherwise, Anchorage and all Southcentral Alaska will be forced to rely on imported gas for decades.
That outcome exposes us to higher and more volatile costs, shrinks our economy, prevents job growth and sends billions of dollars out of state.
Every day of delay increases that risk. As our electric and gas bills made clear this winter, costs are already rising. Without fast action, consumers should be prepared for increases of 30% to 40% or more. Our state will become an even harder place to start a family or a business.
A project of this scale requires careful consideration and responsible decision-making. But waiting carries its own consequences. The longer Alaska delays, the fewer options remain and the more expensive those options become.
As former mayors of Anchorage, we each had unique approaches to problem-solving. But now we speak with one voice: State leaders and legislators must act with urgency and purpose to enact tax changes that propel this project and unlock the revenue, economic, energy security and other benefits from our North Slope natural gas. Decisions now will shape the state’s economic future for generations.
George Wuerch (Anchorage mayor from 2000-2003) previously served as governmental affairs manager for the Northwest Alaskan Gasline, was founder/president of Fluor Daniel Alaska Engineering and served as vice president of corporate affairs for Alyeska Pipeline Service Co.
Mark Begich (Anchorage mayor from 2003-2009 and U.S. senator from 2009-2015) is a strategic consulting adviser hired by Gov. Dunleavy’s office to help advance the Alaska LNG project.
Dan Sullivan (Anchorage mayor from 2009-2015) previously served on the Regulatory Commission of Alaska and the Alaska Natural Gas Development Authority board.
Dave Bronson (Anchorage mayor from 2021-2024) is a candidate for governor of Alaska.
• • •
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Alaska
Alaska Republicans reelect Carmela Warfield as party chair
SOLDOTNA — Alaska Republican Party leaders on Saturday reelected Carmela Warfield to continue serving as chair, two years after she was first chosen for the role.
The vote took place during a statewide convention in Soldotna, where more than 200 delegates from across the state gathered under garlands of Alaska and U.S. flags to update the party platform and hobnob with both elected officials and candidates.
Warfield was challenged for the chairmanship by Zackary Gottshall, who called on Alaska GOP leaders to do more to oppose elected Alaska Republicans who work across the political aisle.
Warfield beat Gottshall in a 165-45 vote, after Gottshall accused Warfield of appearing “more focused on building personal political visibility and securing endorsements for another term than organizing a serious effort to replace the seven Republican legislators caucusing with Democrats or challenge Sen. Lisa Murkowski.”
Warfield, ahead of Saturday’s vote, said “the Alaska Republican Party is stronger when we focus on what unites us instead of what divides us.”
Warfield now enters her third year at the helm of Alaska’s largest political organization. She has tightly controlled the party’s public image, declining numerous interview requests from the Daily News during her tenure.
In a departure from the norm, Warfield allowed reporters to attend only five hours out of the two-day convention, denying reporters access to debates on the party rules and a forum featuring several gubernatorial candidates.
Cheerful party staffers were stationed at the entrance to the Soldotna Field House to ensure no reporters had access to the building beyond the allotted window.
But during a brief window of access, divisions over the GOP’s direction and operations were on full display. Delegates spent roughly an hour debating whether to add a sentence to the party platform supporting “granting personhood of the unborn at conception.” The motion ultimately failed 89-109.
Factions of the Alaska GOP have long been critical of elected party members who work with Democrats or deviate from the party platform, which already formally opposes same-sex marriage and abortion access, and supports teaching “the historical Judeo-Christian foundation” of the U.S. in schools.
The party has a long history of attempting to keep its elected members in line and punishing those who stray.
Party leaders in 2021 censured Murkowski, a Republican who has served in the U.S. Senate since 2002, after she voted to impeach President Donald Trump. They also voted in 2021 to censure Republican Eagle River state lawmaker Kelly Merrick after she supported a bipartisan coalition in the Alaska House. But after both Murkowski and Merrick won reelection in 2022, defeating party-backed challengers from the right, party leaders promised to turn away from censuring GOP candidates for a period of at least two years.
Since then, the number of Republicans in the Legislature joining bipartisan legislative coalitions has grown, despite party leaders’ consternation.
In the Alaska Senate, a 14-member bipartisan majority includes five Republicans. In the House, the 21-member majority includes two Republicans. Republican leaders of the bipartisan coalitions did not attend the Saturday convention.
Under Warfield’s leadership, the Alaska Republican Party has aligned itself closely with Trump, who in turn has endorsed Warfield, along with U.S. Rep. Nick Begich and U.S. Sen. Dan Sullivan, who are running for reelection this year.
Trump has also voiced support for the repeal of Alaska’s open primary and ranked choice voting system, which has weakened the party’s tight control over candidate selection.
Both opponents and supporters of Alaska’s voting system, which was adopted by Alaskans in 2020 and withstood a repeal effort in 2024, say it had aided moderate political candidates who are willing to work across the political aisle, ensuring they can more easily withstand challengers from the right.
The Alaska GOP has made repealing the voting system a key tenet of its efforts in the 2026 election. A successful repeal would enable the party to again assert more control over the Republican primary process,
Party leaders on Saturday also elected Jason Perry, a Baptist pastor, as the new Alaska GOP vice chair. Perry received 161 votes in a three-way race against Paul Bauer Jr., a former Anchorage Assembly member who received 23 votes, and Jeanne Reveal, a party district chair on the Kenai Peninsula who received 22 votes.
Voting on party leaders and resolutions was almost derailed — again — by party leaders’ concerns over using an online system to tally the votes of more than 220 delegates.
Several party members said they wanted to use paper ballots instead of “clickers” that allow delegates to cast votes in real time. A similar motion was made during the 2024 convention.
But the idea this year was met with exasperation and outright derision from some longtime party members. Brett Huber — state director for Alaska’s chapter of Americans for Prosperity, a conservative advocacy group — openly chided some of the delegates.
“Everybody agrees on God and country. Everybody. And then we forget that and fight amongst ourselves,” said Huber.
“If we remember what brought us here — God and country — and we quit misbehaving, we may win,” he added.
Alaska
Book review: A fictional exploration of an honorable man’s life, infused with Territorial Guard history
“Honor at Last”
By Aurora Hardy; Epicenter Press, 2026; 146 pages; $14.95 paperback; $7.99 Ebook.
How does one write about a family member she hardly knew? In Aurora Hardy’s case, the answer came as a “fictional biography.” Although her new book never says outright that her novel is anything other than “based on a true story,” a reader might infer that the main character — Sonny — is her own father. In interviews, she has said that is the case, and that she built her story from what she could research and learn from other family members about the man who left his wife and daughter when she was 4.
The portrayal, a sympathetic one, swings back and forth between the life of an ailing Yup’ik man sitting outside his sister’s fish camp in 1978 and his memories of everything that has come before.
The most detailed sections of the book come early, concerning Sonny’s birth, early years, and especially his time in the Alaska Territorial Guard, also known more commonly as the “Eskimo Scouts,” beginning when he was just 12. “Honor at Last” could be considered, at least in part, a history of the Guard. Hardy presents that history from the point of view of a young person living on the lower Yukon, frightened by news of the Japanese invasion of the Aleutians, and proud to be a protector of his homeland.
Early on, a plane arrives with Maj. Marvin “Muktuk” Marston and Territorial Gov. Ernest Gruening, who make patriotic appeals and enlist volunteers. Sonny, whose skill with a rifle is attested to, is allowed to join and then works with his father to drill, cache supplies, keep trails open, patrol the river and coastline, identify foreign planes, and radio authorities to give and receive reports. On two occasions — likely fiction, but representing the work of the Guard — Sonny and his father shoot down a Japanese bomb balloon and search for a missing plane.
[Book review: A scholarly new perspective on the roles of Alaska Natives in World War II]
Hardy emphasizes the many changes that came to Native villages during the war years, the intense patriotism of villagers, and the sacrifices they made by forgoing their normal routines, rituals and especially their subsistence practices. “The unity of purpose empowered the Yupik men. Old men dug deep into their remaining strength while young boys grew in purpose and care while serving in the Guard.”
By the end of the war years, Sonny had contracted tuberculosis. While he yearns to join his friends in signing up for additional military service, his health requires multiple hospitalizations in Bethel. There, removed from his village and its ways, he is exposed to white culture and meets and marries a blue-eyed nurse.
In Hardy’s telling, Nuliaq — Yup’ik for “wife,” the name used throughout — is loving but manipulative. She insists on moving to Kodiak, where she’d first worked as a nurse, and then, after the 1964 earthquake, to Fairbanks, where the couple experience overt racism, then to caretake a remote mining camp where they spend a very cold winter. Nuliaq learns of Native allotments and moves the family, now with a small daughter, Bun, to Chitina. There, they build a cozy home on land “abundant with life and natural resources.”
Sonny, always a hard worker and devoted family man, is twice cheated by men who hire him, once of an entire summer’s earnings. He had never learned to read and write and depended on trust. He is at last forced to go to Anchorage to find work, never to return to his embittered wife and confused daughter. He also never returns to his home village.
After he leaves, Nuliaq refuses to speak of Sonny or to allow any contact with him, and Bun grows up without knowing anything of her father except what she later learns from his relatives. She had felt loved by him and held onto one particular memory, a time when he “read” a familiar storybook to her; instead of reading the words she knew almost by heart, he made up his own story, one infused with Yup’ik knowledge and teachings.
Bun, seemingly a stand-in for Hardy herself, many years later comes across a news item about the U.S. Army discharging members of the Alaska Territorial Guard from service. Bun fills out the required paperwork and, in 2007, nearly 30 years after her father’s death, receives the document granting him an honorable discharge. Hardy concludes, imagining Bun’s reaction: “He had served as a Guard member when his country asked him to help fight the war. He had used his Guard training to overcome challenges for the rest of his life.”
Fiction serves history well when it brings to life people who lived it. Through her personal connection and research, Hardy has shown what the World War II experience in Western Alaska could have meant for a young man, and how his service may have influenced the rest of his life.
Between 1942 and 1947, 6,389 volunteers from 107 Alaska communities served in the Guard as a military reserve force of the U.S. Army. They were as young as 12 and as old as 80, mostly too young or old to be eligible for conscription. It wasn’t until 2000 that Sen. Ted Stevens introduced a bill to direct the Secretary of Defense to award Guard members honorary discharges; this was signed into law by President Clinton. Only then did Guard members receive veteran status and eligibility for federal benefits. The youngest of those who served, if still alive, were then in their 70s.
[Book review: ‘The North Face of Summer’ offers a compassionate look at an Alaska conflict]
[Book review: Steeped in Inuit culture, ‘Leave Our Bones Where They Lay’ offers a universal message]
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