Alaska
Legislative budgeters say Dunleavy’s proposed 2024 Permanent Fund dividend is a no-go • Alaska Beacon
Leading Alaska legislators said on Tuesday that there’s little appetite for spending from savings to pay a super-sized Permanent Fund dividend this year, likely killing a proposal from Gov. Mike Dunleavy.
In December, the governor proposed spending almost $2.3 billion on a dividend of roughly $3,500 per recipient under a formula in state law. That would result in a $1 billion deficit and require spending from the state’s Constitutional Budget Reserve, but as a draft budget takes shape in the House, top members of both the House and Senate said they’re unlikely to spend from the reserve this year.
“I don’t think it’s a wise thing to draw from savings,” said Rep. Will Stapp, R-Fairbanks and a member of the House Finance Committee. “I personally would not be in favor of tapping the state’s savings.”
Rep. DeLena Johnson, R-Palmer and co-chair of the House Finance Committee, said that at this time, she has not been having conversations with the House’s 16-member minority caucus about spending from the reserve.
Minority support would be needed because 30 votes are needed in the House to spend from the reserve, and the majority caucus has 23 members. (Rep. David Eastman, R-Wasilla, is not a member of either caucus.)
When the budget leaves the House, Johnson said, she expects the dividend to be whatever can be afforded under a balanced budget.
“We are not awash in cash. Let me put it that way. So it’s based on revenue,” she said.
Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee, said that a “25% dividend” — so named because it would be paid for with ¼ of the annual transfer from the Permanent Fund to the state treasury — could fit within a balanced budget alongside the Legislature’s just-passed education funding increase, though there wouldn’t be a lot of excess room, he said.
The 25% dividend would be worth about $1,360 per recipient and cost about $914 million, according to estimates published by the Legislative Finance Division last week.
Last year’s budget law allows a bonus on top of that amount, depending on the price of oil in the current fiscal year.
Officials from the Alaska Department of Revenue are expected to present an updated state revenue forecast to legislators on or about March 15, which will begin the process of finalizing the Legislature’s preferred budget.
The House will write the first draft of the state operating budget, and the Senate will have the first draft of the state’s annual construction and renovation budget, called the capital budget.
Disputes over the handling of last year’s budget bills created distrust between the House and Senate majorities, and to avoid a similar problem, the House and Senate intend to pass their budget bills on the same day, then hand-deliver copies to the other half of the Legislature, literally crossing in the hallways as they do so, Johnson said.
That is expected to take place in mid-April, leaving about a month for legislators to finalize the budget before the end of the regular legislative session in mid-May.
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Alaska
Opinion: Don’t trade salmon wealth for timber pennies
As the U.S. Forest Service considers the future management of the Tongass National Forest, I hope that Alaska’s congressional delegation will listen to what Southeast Alaskans already know: Wild salmon are one of the Tongass’ most valuable resources. If we leave the trees standing and protect the habitat that fish need, the Tongass will continue to generate billions of dollars in natural dividends, in turn supporting thousands of fishing jobs and providing millions of pounds of nutritious seafood year after year.
Southeast Alaska, where I live and fish, runs on seafood. Seafood is the bedrock of our local economy and supports our intergenerational way of life. The economic output of Southeast’s seafood industry exceeds $800 million annually, accounting for 15% of regional employment, with 4,400 resident commercial fishermen and 2,900 processing jobs across more than 30 coastal communities. Salmon are a key driver of our region’s fishing industry, accounting for more than half of Southeast’s total commercial catch most years while also supporting significant subsistence harvests, tourism and sport fisheries. Salmon keep Southeast’s fishermen employed year-round, which is critical in our rural communities where employment options are limited.
Southeast Alaska’s salmon abundance is not an accident — and it also cannot be taken for granted. Hundreds of intact and diverse watersheds around the region form a complex mosaic of prime salmon habitat. The Tongass’ watersheds, which are globally unique in their water quality and productive capacity, pump out 50 million salmon per year. With the largest tracts of undisturbed coastal temperate rainforest in the world, the Tongass is unmatched in its biological diversity and productivity.
For decades, Southeast Alaska’s communities and fishermen have fought industrial logging in the Tongass. Despite the recorded ecological degradation, dwindling economic return, and growing local opposition, there are a few decision-makers who remain committed to subsidizing industrial timber extraction. We know where that leads. In the Pacific Northwest, industrial logging and road construction have destroyed salmon spawning and rearing habitat. Taxpayers have spent billions of dollars trying to recover local salmon populations through hatcheries and habitat restoration — with limited success. Why would Alaska repeat that mistake, especially when timber, in recent sales, is going for less than the price of a Big Mac at $2 per thousand board feet? Alaska has the chance to get it right, to protect the natural capital that supports our fisheries and sustains our local economies. We can harvest the rewards of bountiful salmon runs and save money on habitat restoration — it’s a win/win.
The harmful impacts of industrial logging on Southeast Alaska’s salmon watersheds and our natural dividends are not hypothetical. The timber industry has caused extensive damage to some of Southeast’s most productive salmon watersheds through decades of old-growth logging and the construction of 5,000 miles of roads around the region. These activities have resulted in barriers to salmon passage, with failed culverts blocking over 240 miles of spawning streams and costing fishermen an estimated $2.5 million per year in forgone catch. Past logging has also driven changes in adjacent areas to stream flow and temperature, sedimentation, water quality, and the risk of landslides and floods. By allowing industrial logging to continue in the Tongass, we are undermining Southeast’s economy and future.
Protecting the Tongass is not a charitable act; it is the most cost-effective way to improve ecosystem productivity and ensure the prosperity and well-being for all who call Southeast home. We need our lawmakers and the Forest Service to prioritize protection of the natural capital that sustains our rural communities and local businesses. Our livelihoods depend on it.
Linda Behnken resides in Sitka, where she has commercial fished for over 40 years. She is the executive director of the Alaska Longline Fishermen’s Association and president of the Alaska Sustainable Fisheries Trust.
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The Anchorage Daily News 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.
Alaska
Opinion: When $100 stays home: Shopping small strengthens Alaska
The holiday season is a time of giving, but for many Alaskans, this season means tightening belts instead. Between rising costs, inflation and the lingering impacts of tariffs and supply chain disruptions, burdens may feel heavier than usual.
That’s exactly why it matters where we spend what we can, keeping dollars local.
This Small Business Saturday, on Nov. 29, the Alaska Small Business Development Center, Anchorage Downtown Partnership, Anchorage Chamber of Commerce, Visit Anchorage and the Small Business Administration are inviting Alaskans to take a small but meaningful step: pledge to spend at least 10% of your holiday gifting with local businesses.
Because in Alaska, sticking together isn’t just something we say, it’s a way of life.
Consider a $100 purchase. If bought from a major online retailer or national chain, about $22 stays in Alaska — mostly covering shipping, logistics and applicable local wages. The rest flows to corporate headquarters, distant warehouses and out-of-state shareholders.
Spend that same $100 at an Alaskan-owned business and about $63 stays here at home. It pays employee salary and benefits, allowing them to save for college or a first home, and to stay and grow their careers here. It supports local manufacturers and artists, suppliers and service providers. It funds youth sports, sponsorships and nonprofit donations. One purchase. Multiple local impacts.
The visible difference is keeping our main streets alive and our neighbors employed.
Buy Alaska: Go local first
We know shopping local isn’t always easy. Prices can feel higher, and options can be harder to find, especially across such a vast state.
That’s why BuyAlaska.com was created. This free online directory connects shoppers with more than 1,200 Alaskan-owned businesses across our great state. You can search by product, service or location, from Utqiagvik to Ketchikan, and discover just how many local options already exist. BuyAlaska also helps businesses find local suppliers through the B2B Exchange, keeping even more money circulating among Alaskans.
The 10% shift
Redirecting just 10% of your regular purchases to Alaska-owned businesses could keep hundreds of millions of dollars in our economy. That money fuels paychecks, keeps doors open and gives small-business owners breathing room to weather rising costs and invest in growth.
Before you click “add to cart,” check BuyAlaska.com. If there’s a local option, choose it. If not, that’s OK, just look for the next opportunity. Every small shift adds up.
Alaska’s entrepreneurs operate in one of the most complex business environments in the country: high shipping costs, unpredictable seasons and supply chains that stretch across oceans. Yet they continue to adapt, innovate and show up for their communities.
They’re not just business owners, they’re our neighbors, parents at the hockey rink, and volunteers at local schools. Nearly 140,000 Alaskans work for small businesses. When they thrive, so does Alaska.
Your economy, your choice
Downtown Anchorage will kick off Small Business Saturday with local deals, community events and the annual Holiday Tree Lighting, a bright start to the season. But the opportunity to support each other extends far beyond one weekend.
Leave a positive review on a small business you frequent. Share your favorite local finds. Take the 10% Challenge and encourage others to do the same.
Our state’s economy grows stronger when we grow together. Every purchase is a vote for the kind of community we want, one that is resilient, connected and uniquely Alaskan.
This Small Business Saturday, and every day, you have the power to help Alaska thrive, one meaningful choice at a time.
Kendra Conroy is acting state director and associate state director, UAA Alaska SBDC.
Gretchen Fauske is director of Special Programs & Strategy, UAA Alaska SBDC.
Radhika Krishna is executive director of the Anchorage Downtown Partnership.
Julie Saupe is president and CEO of Visit Anchorage.
Kathleen McArdle is president and CEO of the Anchorage Chamber of Commerce.
• • •
The Anchorage Daily News 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.
Alaska
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