Alaska
Limited state revenue foreshadows fiscal tug-of-war in Alaska Legislature • Alaska Beacon
In a series of hearings this week within the Alaska State Capitol, public-school advocates from across the state presented hours of impassioned and often emotional testimony in favor of a bill that will sharply increase Alaska’s funding for public schools.
But a pair of cold-blooded financial hearings also showed that the request may have to compete with the Permanent Fund dividend and aid for aging state buildings.
In December, Gov. Mike Dunleavy proposed a $7.7 billion state budget for the fiscal year that starts June 1.
That spending would require the state to spend $1.5 billion from savings, and it isn’t too dissimilar from what the governor has proposed in each of the past two years.
In each of those years, the Legislature took the governor’s plan and slashed his proposed Permanent Fund dividend in order to avoid spending from savings.
The Legislature’s preferred dividend formula is called the 75-25, for the way it takes the annual transfer from the Alaska Permanent Fund to the state treasury, then divides it, 75% for services, and 25% for dividends.
“The last two years, the Legislature has put forward the 75-25 dividend and been able to have a balanced budget. This year, that is probably not enough,” Alexei Painter, director of the Legislative Finance Division, the Legislature’s budget analysis wing, told the Senate Finance Committee this week.
The problem is twofold: Lawmakers are preparing to spend more, and oil isn’t giving the state as much revenue as it used to.
When it comes to oil, the problem is one caused by success. State tax law allows oil companies to lower the amount they pay in production taxes through a deduction based on their operating expenses.
ConocoPhillips is spending hundreds of millions of dollars to develop the Willow project on federal land, and it can deduct its expenses from taxes it would otherwise pay this year. That makes it a money-loser for the state treasury in the next few years.
The nearby Pikka project is being developed by another company, which doesn’t currently produce oil. That company, Australia-based Santos, will be able to apply its deductions to future oil production, so even though the North Slope will be producing more oil, the state won’t be earning more money.
In the state Capitol, House Bill 69, an education-funding increase proposed by members of the state House, is expected to cost at least $300 million above what the governor has proposed spending on education. An official estimate isn’t yet available.
Add the cost of that legislation to already-expected cost increases, and there’s not enough money to go around, Painter told the Senate Finance Committee, then reiterated his comments to the House Finance Committee on Thursday.
“Simply switching the dividend to 75-25 is not going to be enough to balance the budget this year. You’re going to have to either find other budget reductions, reduce the dividend further or explore other revenue options. You can’t just do that one thing and it’s solved, which has worked the last two years,” he said.
To date, no legislators have introduced any legislation proposing to significantly change state taxes. During the first six years of his administration, Dunleavy has vetoed every tax bill to reach his desk, and legislators have never overridden any of his vetoes.
Painter also warned both committees that the governor’s proposed budget doesn’t include enough to keep up with maintenance at state facilities.
Alaska has a maintenance backlog of more than $2 billion, and many state buildings were built during the oil boom of the 1970s and 1980s. That leaves many of them overdue for replacement or repair.
The problem may be worse than official reports indicate, Painter said, offering the Fairbanks Pioneer Home as an example.
That building has a deferred maintenance list of a few million dollars, but it also needs a new roof and doesn’t meet federal standards for accessibility by handicapped people.
Replacing the building would cost $115 million, he said.
In the House Finance Committee on Thursday, Rep. Will Stapp, R-Fairbanks, asked Painter what would happen if average oil prices finished $10 below what the state is expecting in the coming years.
That would widen the expected deficit by $350 million to $400 million, Painter replied.
“Have you done any modeling on the 99-1 yet?” Stapp asked, jokingly referring to a dividend formula that would leave just 1% of the annual Permanent Fund transfer for dividends.
“I don’t even think that would cover the costs of running the PFD program,” Painter said.
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Alaska
Opinion: Life lessons learned from mushing and old-time Alaska
This is the beginning of the Iditarod spring, signaled by the burst of sun and what used to be the long wait for dog teams to pass under the arch in Nome, the finish line a thousand miles away from Anchorage. For old-timers, it’s the story of the way Alaska used to be. What once was a 30-day wait has become about 10 days for winners to celebrate and the rest of us to shout, “Well done.”
My story is about family that welcomed immigrants from all over the world to be among the last groups of Indigenous people in the country, a life of taking good care of dog teams, and of parents who taught their children how to live in a wild, rugged frontier.
I came to be in a different age, a time of dog teams that ruled the trails to mining camps and where the salmon ran strongest — before the introduction of the snowmachine that revolutionized rural and Native Alaska.
For the Blatchford family, it is a recognition that some things will always stay the same and everything else changes. All four of my grandparents were noncitizens. My mother Lena’s parents of Elim were Alaska Natives, as was my dad Ernie’s mother, Mae, of Shishmaref. The name Blatchford comes from his father, the Englishman who was born in Cornwall and arrived in Nome during the gold rush. His brother, William, was one of the early immigrants, and by 1899 there was a creek just outside Nome named after him. He discovered gold. My grandfather, Percy, found gold, too, but it was a different kind of wealth, a finding that he had found home and never left.
I was born in Nome, delivered by an Iñupiaq Eskimo midwife in a one-room cabin where the frozen Bering Sea met the treeless tundra’s permafrost. Dad had a dog team. I like to think that the dogs were anxious for me to be born because it was hunting time for Dad to hitch them up and mush out to where the sea mammals, snowshoe hares, ptarmigan and other game thrived in the winter. My earliest memories are of dogs; all of them working as a team to bring home the game so we could have a fine meal cooked by Lena. In the Arctic, dogs were essential for family survival. If you didn’t hunt, you didn’t eat.
There are several memories that remain strong. I suppose I can call them lessons of the Arctic.
The first is to take care of the dogs and treat them well. Dog lovers all over the world know very well that a dog, whatever the breed, is loyal and will die to protect the one who feeds and pets it. If you don’t feed a husky, it won’t pull, and it could mean a long time before the family eats. When a dog team is hungry, it will race back home to be fed a healthy meal. Mother Lena must have been a great cook because Dad said the dog team always raced back to the edge of Nome, where Lena was waiting beside the propane stove. For Mike, Tom and me, our job was to take the rifle, shotgun and .22 into the cabin to be cleaned and oiled. Once that was quickly done, we unhitched the dogs and then fed the team.
All three of us boys had special responsibilities to Tim, Buttons and Girlie. Tim, the lead dog, was brother Mike’s pet; Tom had Buttons, and I had Girlie. We made sure they were healthy and well cared for. Dad would often comment that “Papa,” our grandfather Percy, the Englishman, took good care of his dog teams, being kind to the dogs and feeding them. Dad was the oldest of a large family that lived in Teller and later Nome.
“Papa” Percy was a prospector, fox farmer and a contestant in the All-Alaska Sweepstakes, the dog team race from Nome to the mining camp of Candle, a 400-mile race. He didn’t win, but he finished well, very well. The stories of the Sweepstakes have remained with the family for over a century. At a memorial service in Palmer for “Doc” Blatchford, Aunt Marge, without a question or a prompt, said that Papa took good care of his dogs.
Percy Blatchford was a legend in the Alaska Territory. As a teacher of Alaska newspapers, I would find headlines similar to one in the Fairbanks Daily News-Miner that blazed on the front page: “Blatchford Wins Solomon Derby.” There was even a story in The New York Times.
There’s probably no other sport in Alaska that brought Alaskans together like dog mushing. When old-timers would visit over strong coffee, dogs and dog team racing would come up. In the territory, there were few high schools and fewer gymnasiums, so the only team sport was dog mushing. It was something to talk about that was unique to Alaskans.
I used to travel in rural Alaska quite a bit. In the smaller communities, I would see the teams and would wonder how long they would power the engines that brought the mail and the foodstuffs down and up the trails. When I think of dog teaming, I think of the Iditarod and wonder, and then come to know, what the strength of the story would mean for bringing generations together from Papa Blatchford to his eldest son Ernie and to the fourth generation of Blatchfords in Alaska.
There are times when I think that old-time Alaska is gone. But then my faith and confidence in the old-time spirit are ignited when I see what others in the Lower 48 see. When I was walking in downtown Philadelphia, I looked up and saw on an ancient federal building a stamped concrete sculpture of a dog musher leaning into a blizzard. Such is the way I think of the Iditarod and the lessons I learned growing up with the dog team, preserved in my memories.
Edgar Blatchford is former mayor of Seward, Mile 0 of the Iditarod Trail.
• • •
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Alaska
These lines are adding Alaska cruises. Is your favorite on the list?
New Alaska voyages debut in 2026 as lines like MSC Cruises and Virgin Voyages expand into the booming market.
How to find the best price, perks when booking a cruise
Find the cruise that works for your budget with these tips.
Problem Solved
Travelers will have new ways to see Alaska this year.
A number of cruise lines are launching sailings to the Last Frontier in 2026, from luxury to large family-friendly and adults-only ships. About 65% of people visiting the state during the summer do so by cruise ship, according to Cruise Lines International Association Alaska, and demand is high.
“I think Alaska is always very popular, but we’re seeing that ships are selling out way quicker than they used to,” Joanna Kuther, a travel agent and owner of Port Side Travel Consultants, told USA TODAY.
With new inventory opening up this season, here’s what travelers should know about Alaska cruises.
Which cruise lines are adding Alaska sailings?
- MSC Cruises will launch its first-ever Alaska sailings aboard MSC Poesia on May 11. The ship will be fresh from dry dock to add enhancements, including the line’s luxe ship-within-a-ship concept, the MSC Yacht Club.
- Virgin Voyages’ newest ship, Brilliant Lady, will operate the company’s inaugural Alaska cruises. The adults-only cruise line will set sail there starting on May 21.
- The Ritz-Carlton Yacht Collection will debut its first Alaska cruises this year on its Luminara vessel. The first of those sailings will depart on May 28.
Those join other operators like Holland America Line, Princess Cruises, American Cruise Lines, Norwegian Cruise Line, Royal Caribbean International, Disney Cruise Line, Celebrity Cruises and more.
What are the draws of Alaska cruises?
Glaciers are a major attraction for visitors. “One of the major (draws) is Glacier Bay,” said Kuther. “…And then the other one is definitely the wildlife.”
That includes bears, whales, moose and salmon. In addition to its many natural wonders, the state is also a cultural destination where visitors can learn about its Native peoples.
When is the best time to take an Alaska cruise?
That depends what you’re looking for. The Alaska cruise season generally runs from April through October, and Kuther said visitors will tend to see more wildlife between the end of June through August.
“That’s super peak season,” she said. “That’s also where you’re going to have more families, more crowds.” Some locals have also said those crowds are putting a strain on the very environment tourists are there to see.
Travelers may find less packed ships and ports by visiting earlier or later in the season – and there are other perks. If passengers go in May “it’s still a little bit snowy, so your scenery is going to be really cool,” Kuther said. Travelers visiting in September or October, meanwhile, could have a better shot at seeing the northern lights.
Where do ships usually sail?
The most popular itinerary is the Inside Passage, according to Kuther. That often sails round-trip from Seattle or Vancouver with stops such as Juneau, Skagway and Ketchikan. “People will go back to Alaska and do different routes,” she said. “This is a very good way to start.”
Other options include one-way cruises between Vancouver or Seattle and Anchorage. Travelers can also take cruisetours that combine sailings with land-based exploration, including train rides and tours of Denali National Park and Preserve.
Tips for Alaska cruises
- Book early: Alaska itineraries sell out quickly, and so do shore excursions. Unique offerings like helicopter tours and dog sledding are popular, and there are only so many spots.
- Consider a balcony cabin: This is “almost a must” in Kuther’s opinion. Crew members may make announcements about whales or other sightings near the ship, and guests with their own private viewing spot won’t have to race out on deck.
- Pack carefully: “Packing is an art when it comes to Alaska,” Kuther said. “It really is, because you need so many things.” Her top three picks are bug spray, layers of clothing for the fluctuating temperatures and a waterproof jacket in case of rain.
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
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