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
‘Ticking time bomb’: Extreme snowfall fuels avalanche danger around Haines
Avalanche professionals are warning backcountry adventurers to stay out of risky terrain after snow slammed the Upper Lynn Canal in late December.
National Weather Service data shows the storm dumped at least 44 inches of snow in Haines, making it the sixth snowiest five-day period in more than two decades. Other reports documented closer to six or seven feet.
“It was definitely one of the higher snowfalls you’ve gotten in five days, pretty much out of all your time that the station’s been there,” said Juneau-based meteorologist Edward Liske.
The dumping has created a risky situation in the backcountry that warrants extreme caution, said Jeff Moskowitz, the director of the Haines Avalanche Center.
His main message: “Avoid being in or around avalanche terrain.”
Earlier this week, Moskowitz dug a snow pit in town – in front of Haines’ historic Fort Seward – that confirmed his assessment. Standing chest-deep in the pit, he pointed out layers of snow stacked on top of each other, each representing a different storm.
There was a somewhat fluffy layer on top, from the snowfall in early January. Below that, there was a roughly three-foot-deep layer that was more compact, from the late December storm.
And then there was a thin, feeble layer of snow just inches from the ground that crumbled like sugar when Moskowitz ran his hand through it. That snow was on the ground before the big storm – it’s the layer that could collapse and trigger an avalanche under the weight of more precipitation, snowmachines or humans.
“We have about a meter of really strong snow just sitting over this sugar,” Moskowitz said, calling it a “dangerous combination for avalanches.”
Starting Dec. 27, the situation prompted the center to issue warnings about high avalanche risk in the Haines area. Moskowitz said people should stay off slopes that are greater than 30 degrees – and avoid traveling beneath them.
“It’s just a tricky situation, because there’s lots of snow, and we want to go play,” he said. “But we still have this strong-over-weak layering in most places.”
In some places, he said, the weak layer may be buried so deep that a human or snowmachine wouldn’t trigger it. But in shallower areas, like near trees or rocks. the layer would be closer to the surface and more likely to trigger an avalanche.
“People could ride that slope numerous times until one person finds that weak spot,” he said.
The deluge has stopped for now. But the situation could get worse before it gets better, as temperatures rise and the top layer of snow consolidates into a heavier, thicker slab. New precipitation or other conditions could trigger a natural avalanche cycle, wiping that weak layer out.
“Otherwise, it’s a little bit like a ticking time bomb,” Moskowitz said.
Haines Avalanche Center
The Haines Avalanche Center is a nonprofit and the main source of avalanche information in the Chilkat Valley, which draws backcountry adventurers from around the world. Moskowitz emphasized the importance of donations, grants and borough funding to make that work possible.
In the past, the Haines Borough has asked nonprofits to apply for funding from a $100,000 bucket. But Haines Mayor Tom Morphet said that, amid a steep budget deficit, the assembly discontinued that grant process for fiscal year 2026, which runs through June.
That has meant less funding than usual for the Avalanche Center, which has just three part-time employees, including Moskowitz.
“Less funding means less staff time,” Moskowitz said. “And staff time means that locals who are avalanche professionals and have certifications are out there, digging in the snow, making assessments, posting that information publicly.”
The center posts a general avalanche information product every week, plus a weather forecast and season summary. They also issue advisories when avalanche danger is high, including three days in a row in late December.
But the center does not currently have the funding or staff capacity to consistently publish advisories when avalanche risk is low, moderate or considerable.
“What we don’t want, is that there’s an accident that sparks the public interest in supporting the Avalanche Center,” Moskowitz said. “We just need to maintain the services we provide and just keep it going year after year after year.”
Morphet, the mayor, said the borough and assembly are “acutely aware” of the center’s importance.
Moskowitz said people who recreate in the backcountry can help by paying close attention to their surroundings – and he urged them to send in their observations online.
That could mean details about a human-triggered or natural avalanche, about where the sun has hit the mountains on a particular day, or an observation that feathery crystals – known as surface hoar – have started forming on the snow’s surface.
“There’s very little information that we’re not going to find useful,” Moskowitz said. “All of that is very valuable, and it helps to inform this bigger picture.”
Alaska
Alaska delegation mixed on Venezuela capture legality, day before presidential war powers vote
ANCHORAGE, Alaska (KTUU) – Alaska’s congressional delegation had mixed reactions Wednesday on the legality of the Trump administration’s actions in Venezuela over the weekend, just a day before they’re set to vote on a bill ending “hostilities” in Venezuela.
It comes days after former Venezuelan Nicolás Maduro was captured by American forces and brought to the United States in handcuffs to face federal drug trafficking charges.
All U.S. Senators were to be briefed by the administration members at 10 a.m. ET Wednesday, including Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, according to CBS News.
Spokespersons for Alaska Sens. Lisa Murkowski, R-Alaska, and Dan Sullivan, R-Alaska, say they were at that meeting, but from their responses, the two shared different takeaways.
Sullivan, who previously commended the Trump administration for the operation in Venezuela, told KDLL after his briefing that the next steps in Venezuela would be done in three phases.
“One is just stabilization. They don’t want chaos,” he said.
“The second is to have an economic recovery phase … and then finally, the third phase is a transition to conduct free and fair elections and perhaps install the real winner of the 2024 election there, which was not Maduro.”
Murkowski spokesperson Joe Plesha said she had similar takeaways to Sullivan on the ousting of Maduro, but still held concerns on the legality.
“Nicolás Maduro is a dictator who led a brutally oppressive regime, and Venezuela and the world are better places without him in power,” Plesha said in a statement Wednesday. “While [Murkowski] continues to question the legal and policy framework that led to the military operation, the bigger question now is what happens next.”
Thursday, the Senate will decide what happens next when they vote on a war powers resolution which would require congressional approval to “be engaged in hostilities within or against Venezuela,” and directs the president to terminate the use of armed forces against Venezuela, “unless explicitly authorized by a declaration of war or specific authorization for use of military force.”
Several House leaders have also received a briefing from the administration according to CBS News. A spokesperson for Rep. Nick Begich, R-Alaska, said he received a House briefing and left believing the actions taken by the administration were legal.
“The information provided in today’s classified House briefing further confirmed that the actions taken by the Administration to obtain Maduro were necessary, time-dependent, and justified; and I applaud our military and the intelligence community for their exceptional work in executing this operation,” Begich said in a statement.
Looming vote
Sen. Tim Kaine, D-VA, authored the war powers resolution scheduled for debate Thursday at 11 a.m. ET — 7 a.m. AKST.
It’s a resolution which was one of the biggest topics of discussion on the chamber floors Wednesday.
Sen. Rand Paul, R-KY, said on the Senate floor Wednesdya that the actions taken by the administration were an “act of war,” and the president’s capture of Maduro violated the checks and balances established in the constitution, ending his remarks by encouraging his colleagues to vote in favor of the resolution.
“The constitution is clear,” Paul said. “Only Congress can declare a war.”
If all Democrats and independents vote for the Kaine resolution, and Paul keeps to his support, the bill will need three more votes to pass. If there is a tie, the vice president is the deciding vote.
“It’s as if a magical dust of soma has descended through the ventilation systems of congressional office buildings,” Paul continued Wednesday, referring to a particular type of muscle relaxant.
“Vague faces in permanent smiles and obedient applause indicate the degree that the majority party has lost its grip and have become eunuchs in the thrall of presidential domination.”
Legality of actions under scrutiny
U.S. forces arrested Maduro and his wife, Cilia Flores, from their Caracas home in an overnight operation early Saturday morning, Alaska time. Strikes accompanying the capture killed about 75 people, including military personnel and civilians, according to U.S. government officials granted anonymity by The Washington Post.
Maduro pleaded not guilty Monday in a New York courtroom to drug trafficking charges that include leading the “Cartel of the Suns,” a narco-trafficking organization comprised of high-ranking Venezuelan officials. The U.S. offered a $50 million reward for information leading to his capture.
Whether the U.S. was legally able to capture Maduro under both domestic and international law has been scrutinized in the halls of Congress. Members of the administration, like Secretary of State Marco Rubio, have been open in defending what they say was a law enforcement operation carrying out an arrest warrant, The Hill reports. Lawmakers, like Paul or Sen. Chuck Schumer, D-NY, say the actions were an act of war and a violation of the constitution.
While the president controls the military as commander in chief, Congress constitutionally has the power to declare wars. Congressional Democrats have accused Trump of skirting the Constitution by not seeking congressional authorization before the operation.
Murkowski has not outright condemned or supported the actions taken by the administration, saying in a statement she was hopeful the world was safer without Maduro in power, but the way the operation was handled is “important.”
Sullivan, on the other hand, commended Trump and those involved in the operation for forcing Maduro to “face American justice,” in an online statement.
Begich spokesperson Silver Prout told Alaska’s News Source Monday the Congressman believed the operation was “a lawful execution of a valid U.S. arrest warrant on longstanding criminal charges against Nicolás Maduro.”
The legality of U.S. military actions against Venezuela has taken significant focus in Washington over the past several months, highlighted by a “double-tap” strike — a second attack on the same target after an initial strike — which the Washington Post reported killed people clinging to the wreckage of a vessel after the military already struck it. The White House has confirmed the follow-up attack.
Sullivan, who saw classified video of the strike, previously told Alaska’s News Source in December he believed actions taken by the U.S. did not violate international law.
“I support them doing it, but they have to get it right,” he said. “I think so far they’re getting it right.”
Murkowski, who has not seen the video, previously said at an Anchorage press event the takeaways on that strike’s legality seem to be divided along party lines.
“I spoke to a colleague who is on the Intelligence Committee, a Republican, and I spoke to a colleague, a Democrat, who is on the Senate Armed Services Committee … their recollection or their retelling of what they saw [was] vastly different.”
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