Alaska
Gov. Dunleavy promised a fiscal plan. Alaska lawmakers aren’t so sure.
JUNEAU — On what would have been the 121st day of the first regular session of Alaska’s 34th Legislature, the co-chair of the House Finance Committee was wearing a Hawaiian shirt and piling paperwork into boxes.
Lawmakers had successfully adjourned on Tuesday, a day ahead of the constitutional deadline for the end of the first regular session, surprising even themselves after last year’s session ended one hour after the constitutional deadline.
“Yesterday was odd because we adjourned at 2 in the afternoon, and people started celebrating, but it’s like — ‘Wow, it’s daylight,’” Rep. Andy Josephson, D-Anchorage, said from his office Wednesday.
Lawmakers attributed their efficient passage of the budget and the relatively peaceful end of the session in part to the fact that the House and Senate are led by ideologically aligned majorities — something that hasn’t happened since 2016.
“We meet regularly and pretty much are in agreement. So that’s been one of the greatest things this whole session, I think, is the closeness we‘ve had with the House majority,” said Senate President Gary Stevens.
The broad agreement between the House and Senate — which allowed legislators to pass a budget plan and adjourn around 1:30 p.m. Tuesday — stands in contrast to lawmakers’ deepening divisions with Gov. Mike Dunleavy.
Dunleavy’s discord with the Legislature was in stark relief when lawmakers overrode his veto of an education bill Tuesday morning, just hours before adjourning. It was the first time in more than 15 years that lawmakers had mustered the votes to override a governor’s veto.
The fissure between lawmakers and the executive extends beyond education policy, and it has increasingly been playing out openly in the halls of the Capitol, after several years in which Dunleavy repeatedly vetoed bipartisan bills and budget items and left lawmakers to debate contentious plans to address Alaska’s ongoing fiscal crisis without his involvement.
Now in his seventh and penultimate year as governor, Dunleavy is calling lawmakers to work with his administration on a fiscal plan based on a legislative package that he will introduce in the coming months.
“I’ve said to the Legislature, not just this year, but years past, let’s get together and put together a long-term, sustainable approach to fiscals, sideboards, growing the economy in Alaska, competing with other states for investments, and I’m going to actually put together a package for that in the coming year,” Dunleavy said in a press conference Monday.
Dunleavy did not immediately provide details on what elements his fiscal plan would include. The announcement was met with some skepticism by legislative leaders, who said they wanted assurances from the governor that he would be directly involved in the talks.
“The administration has failed to invest early on, politically and intellectually, in overall fiscal policy,” said Josephson. “As a consequence, we‘re just standing in place.”
Dunleavy has not agreed to an interview with the Daily News, despite dozens of requests, since 2022. He declined another request Wednesday.
Dunleavy’s new call for a fiscal working group comes after lawmakers convened one in 2021 that failed to yield significant legislative changes.
To pay for basic state services that Alaskans have come to expect — like schools, troopers, roads and prisons — and still pay an annual Permanent Fund dividend, would require hundreds of millions of dollars more in dependable annual revenue than the state is currently bringing in, lawmakers have said.
Sen. Lyman Hoffman, a Bethel Democrat who has served in the Legislature for more than 38 years, said in February that Alaska is “probably facing its largest fiscal problem in 30 years.”
In response, the Senate majority took the lead this year in advancing three revenue measures that they say will help begin to address the state‘s structural deficit — one to tax online enterprises, most of which are based outside the state; one to impose corporate income tax on privately held oil companies; and one to reduce the per-barrel oil tax credits. Only the first was adopted by the Legislature this year, while the other two are poised for consideration when lawmakers reconvene in January.
But Dunleavy has said he will oppose those stand-alone revenue measures, despite the fact that his own revenue commissioner told lawmakers in 2021 that he would support those measures as part of a broader fiscal plan. (The governor’s office has since disavowed the commissioner’s statements.)
Leaders in the House and Senate say they are open to hearing what the governor is proposing, but Dunleavy’s ideas — coming in the final year of his governorship — may be too little, too late for lawmakers who have for months been asking Dunleavy to be more involved in their fiscal negotiations.
“This is his legacy at stake,” said Sen. Bill Wielechowski, an Anchorage Democrat who has taken the lead in crafting some of the Senate‘s revenue proposals.
Dunleavy “is on the verge of being, categorically, without question, the worst governor in the history of our state,” Wielechowski added. “If he wants that to be his legacy, that’s his choice. If he wants his legacy to be that he ran on a full PFD and now the PFD is on the verge of disappearing, and he ran as the education governor and now our schools are in shambles, that will be his legacy. It is up to him how he wants to approach the upcoming vetoes and his last year in office.”
Dunleavy began his tenure as governor promising Alaskans that he would deliver statutory dividends by slashing funding for state services. Facing unprecedented pushback, Dunleavy changed tack, calling instead for a fiscal plan predicated on new revenue measures and sideboards on how that revenue could be used.
Dunleavy called several special sessions in 2021 that yielded minimal results. At the time, Dunleavy unveiled a new dividend formula, which he has since abandoned. In 2023, Dunleavy decided against calling lawmakers into a special session amid divisions between the House and Senate leadership.
During his tenure, Dunleavy repeatedly backed off the revenue measures he promised. A plan to create a statewide lottery was abandoned early in his tenure. A statewide sales tax was promised in 2023 but never materialized. A carbon sequestration measure was introduced in 2023, but has not yet yielded the billions of dollars in revenue that Dunleavy initially touted.
Dunleavy began this year by introducing a 10-year plan that projected $12 billion in new state debt by 2035, starting with a $1.5 billion deficit for the coming fiscal year. Asked in December about his vision for balancing the budget in the long term, Dunleavy made no indication that a fiscal plan would be introduced by his administration. Instead, he said he would look to the Legislature for ideas.
In the following months, Senate majority members doubled down on their efforts to both balance the coming year’s budget and to introduce revenue measures that they thought could be palatable to the governor.
“The Senate has been working quite a bit on revenue issues,” said Stevens. “The hope is that as time passes, there‘ll be support for additional revenue that solves a lot of the problems we are facing right now.”
The three revenue measures ultimately introduced in the Senate were taken from a list presented by Dunleavy’s former Revenue Commissioner Lucinda Mahoney in August 2021.
That list included reducing the per-barrel tax credit; requiring all oil and gas companies to pay corporate income tax (eliminating a loophole that exempts Hilcorp from the tax); implementing a statewide sales tax; establishing legalized gambling in Alaska; implementing a tax on businesses that operate online, also called the “internet tax bill”; monetizing carbon offsets; and increasing motor fuel taxes, among other ideas.
“If the Legislature supports these measures, these are revenue measures that the governor supports as well,” Mahoney told lawmakers in August 2021. She resigned a year later, and Dunleavy has since distanced himself from some of the proposals, including the sales tax idea.
Dunleavy spokesperson Jeff Turner said earlier this year in an email that Mahoney “misspoke when she said the governor is willing to introduce a tax credit bill. That was not the governor’s plan.”
That has left lawmakers with limited willingness to take on politically risky revenue proposals — knowing that their efforts could be thwarted by Dunleavy’s veto pen.
“Unless the governor personally gets involved, but more importantly, puts political capital into making some hard choice, the whole thing will be for naught,” House Speaker Bryce Edgmon said Tuesday, shortly after the House adjourned.
Dunleavy on Monday promised to heed lawmakers’ request that he be actively involved in fiscal plan negotiations, but he also made light of the idea that his presence was necessary.
“I’ll be in the room. I’m willing to come in with a package, but there‘s also got to be agreement on sideboards, which is difficult for some folks,” Dunleavy said. Then he added, “I’m not the 61st legislator — Big Daddy, or whatever they want to call somebody — I am an executive. I’ve got a state to run. It’s a big state, so I can’t be here all the time.”
Alaska
University of Alaska names U.S. Army commander as new UAF chancellor
Officials with the University of Alaska have tapped the commander of the U.S. Army 11th Airborne Division’s Arctic Aviation Command as the new permanent chancellor of the University of Alaska Fairbanks.
Col. Russell “Russ” Vander Lugt was selected from four finalists after an eight-month search process. He will be the top executive of Alaska’s leading research institution, which describes itself as “America’s Arctic university.” He will replace interim chancellor, and former U.S. Ambassador to the Arctic, Mike Sfraga, who succeeded former chancellor Dan White who announced his retirement in May of last year.
Vander Lugt is a senior U.S. Army officer, an Arctic scholar and UAF alumni, with over two decades of executive leadership experience, according to a university announcement on May 27. He has served as commander of the 11th Airborne Division’s Arctic Aviation Command at Fort Wainwright in Fairbanks since Aug. 2024.
“I’m humbled to be selected to lead the University of Alaska Fairbanks during this pivotal time,” Vander Lugt said in a statement with the announcement.
“I look forward to leading through trust, transparency, and teamwork as we see Alaska and the Arctic transformed through education, research, and public service. I’m committed to building on the strong foundation Chancellors Sfraga and White have established, and working closely with university leadership and governance to support and advance UAF’s mission,” he said.
Vander Lugt will step into the permanent chancellor role on Sept. 8. Sfraga’s last day was Friday, and university officials have selected Larry Hinzman, director of the UA Arctic Leadership Initiative, to serve as interim chancellor through the summer.
Vander Lugt has had a long career with the U.S. Army in various roles in Alaska, where he is stationed in Fairbanks, and across the U.S. His resume lists deployments to Europe and the Middle East.
He served in executive leadership roles that include the Alaskan Command, a division of the U.S. Northern Command, the 601st Aviation Support Battalion, and the 1st Stryker Brigade Combat team. He also taught history and military leadership as an assistant professor at the U.S. Military Academy at West Point and was a professor of military science and department chair at Embry-Riddle Aeronautical University in Prescott, Arizona.
He holds a master’s degree and doctoral degree in Arctic and Northern Studies, which he completed in 2022 at the University of Alaska Fairbanks.
Vander Lugt’s hire is the latest in major leadership changes in the University of Alaska system — former UA President Pat Pitney retired last month and former university attorney Matt Cooper was named as her successor. Cooper will begin as university president in early August, and Michelle Rizk, vice president of university relations and chief strategy, planning and budget officer, is serving as interim president. Cheryl Siemers was appointed permanent chancellor of the University of Alaska Anchorage in March, after serving as interim chancellor since the retirement of former chancellor Sean Parnell last year.
Vander Lugt’s base salary will be $309,000, according to the university’s announcement.
The University of Alaska Fairbanks serves roughly 7,500 students. It employs more than 800 faculty and nearly 2,000 staff across urban and rural campuses in Fairbanks, Kotzebue, Nome, Bethel and Dillingham.
Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.
Alaska
Dutch Harbor Remembrance Day 2026 – Mike Dunleavy
WHEREAS, on June 3, 1942, six months after the attack on Pearl Harbor, World War II arrived in Alaska when Dutch Harbor on Amaknak Island was bombed by Japanese – the first aerial attack by an enemy on the continental United States; and
WHEREAS, the Japanese pilots expected little resistance; but because of an intercepted message three weeks earlier, the installation was on high alert, and Navy and Marine personnel were prepared with anti-aircraft defenses; and
WHEREAS, encountering unexpected resistance at Dutch Harbor, installation, Japanese forces shifted their focus to the Margaret Bay Naval Barracks, where the attack claimed the lives of 25 servicemen; and
WHEREAS, following the initial attack on Dutch Harbor, Japanese forces launched additional assaults on Dutch Harbor, Adak, Kiska, and Attu, resulting in the Aleut people being evacuated and held in internment camps in Southeast Alaska for three years, through which many did not survive; and
WHEREAS, the brave soldiers of the United States Armed Forces and allied Canadian Forces fought valiantly for more than a year to reclaim the remaining Aleutian Islands. The battle of Attu stands as one of the most costly American assaults in the Pacific, with hundreds of servicemen making the ultimate sacrifice to liberate Alaska; and
WHEREAS, on the 84th anniversary of the bombing of Dutch Harbor, we remember and honor all who were affected by the attack, paying tribute both to the military personnel who served and died to defend our Nation and to the Aleut people who died while imprisoned.
NOW THEREFORE, I, Mike Dunleavy, GOVERNOR OF THE STATE OF ALASKA, do hereby proclaim June 3, 2026, as:
Dutch Harbor Remembrance Day
in Alaska and encourage all Alaskans to join with the people of Dutch Harbor, Unalaska, and the Aleutian Islands to honor all who were lost in Alaska during World War II, and I order the Alaska State Flag to be flown at half-staff in remembrance of those who perished.
Dated: June 3, 2026
Alaska
Photos show Alaska National Guard plane damaged in Iran war theater
A plane belonging to the Alaska National Guard appears to have been damaged during operations connected to Operation Epic Fury as part of American military efforts against Iran, according to online reports. Defense officials have so far declined to confirm whether Alaska National Guard personnel or equipment are taking part in the campaign.
Last week, defense industry news outlet The War Zone published photos of a KC-135 Stratotanker transiting through a British airbase. In the pictures, made by photographer Andrew McKelvey, the rear bottom of the fuselage and wing stabilizers are “peppered with temporary shrapnel damage repairs‚“ according to The War Zone’s article. The plane also appears to be missing its refueling boom, the proboscis extending from under the tail to pump off fuel to other aircraft.
In the photographs, the Stratotanker’s tail number is visible, identifying the refueling plane as belonging to the Alaska Air National Guard’s 168th Wing, based at Eielson Air Force Base outside of Fairbanks. The wing’s mission includes aerial refueling. That’s the tactic of large planes unloading vast quantities of fuel to aircraft, ranging from fighter jets to rescue helicopters, in midair.
Pictures from a different photographer published last week by another blog, The Aviationist, show the same plane. The tail includes the letters “AK” painted above a white polar bear.
In addition to the photographs, the reporting from The War Zone is based on publicly available flight data and social media posts scraped from a variety of sources.
According to information from Flight Radar 24, the Stratotanker left Eielson on March 5, just days after the U.S. and Israeli militaries began bombing Iranian targets on Feb. 28. Through March, according to public flight records, the plane was based at Ben Gurion Airport southeast of Tel Aviv, where, according to The War Zone, dozens of American refueling aircraft were staged as part of Operation Epic Fury.
There are no public flight records connected to the Stratotanker through April and most of May, until it appeared to fly through England on the way to the United States at the end of last month.
It is not clear how many Alaska Air National Guard planes, personnel or units are currently deployed in connection to the war effort against Iran.
A spokesperson for the Alaska National Guard referred all questions about Operation Epic Fury to the U.S. Central Command.
A spokesperson for CENTCOM, headquartered at MacDill Air Force Base in Florida, declined to answer questions on the record or provide any specific information about Alaska National Guard units deployed as part of ongoing military operations, citing the need to protect service members and operational security.
The Alaska National Guard has posted no informational releases or pictures connected to an overseas deployment during the last few months.
Much of Operation Epic Fury has been waged by military aircraft, and aerial refueling is critical to keeping planes supplied during long flights. A May 12 report from the Congressional Research Service composed of public damage reports to U.S. military aircraft noted that among the 42 records of damage or losses were seven KC-135 Stratotankers, though the findings were published before photos emerged of the Alaska-based plane. The report noted that the Defense Department “has not published a comprehensive assessment of combat losses” from Operation Epic Fury.
The tail number is associated with a Stratotanker manufactured in 1964, the year before Boeing ceased making them. All of the nearly 400 KC-135s currently in operation within the American military date back to that era of the Cold War.
The aircraft has the word “Tetlin” painted on the top of its tail. The name is an homage to the Interior Alaska village, one of several selected to honor longstanding bonds between military aviators and Alaska Native communities, according to photographs of a dedication ceremony posted by the Alaska National Guard last summer.
The 168th Wing currently has 12 Stratotankers attached to the unit. That number bumped up in April after a long campaign by Alaska Republican U.S. Sen. Dan Sullivan to allocate more tankers to the state’s portfolio given its vast geography and high number of advanced fighter jets.
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