Alaska
Majority lawmakers say Alaska schools need more money from state
Lawmakers succeeded last year in their effort to permanently boost the state’s per-student funding formula for K-12 public schools, twice overriding Gov. Mike Dunleavy’s vetoes to cement an increase that educators had long asked for.
But after years of flat funding from the state and declining enrollment, districts across Alaska this year say they are still in dire straits. The Anchorage School District, which last year spent down its budget reserve amid state funding uncertainty, is facing a $90 million deficit. The Matanuska-Susitna Borough School District has a $23 million deficit. The Kenai Peninsula Borough School District is estimating a deficit of $8.5 million. Juneau schools face a deficit of more than $5 million.
Senate Education Committee Chair Löki Tobin called the funding increase approved last year “woefully insufficient.”
The bipartisan majority coalition in the Alaska House is still prioritizing school funding, said House Education Committee Co-Chair Rep. Rebecca Himschoot, a Sitka independent, in an interview on Tuesday. But the mechanism by which that funding stability will be achieved remains unclear, she said.
“Education remains one of our No. 1 priorities, so we’re not backing away from it in the House Majority coalition, in any way at all,” said Himschoot. “Now the political reality of what’s possible is a different story. So whatever is possible — we’re committed to doing — and the limitation is what is actually possible.”
That political reality is shaped by limited revenue and “advocacy fatigue” that has left Alaskans tired of again asking for a funding boost after making it a flagship issue during the preceding two legislative sessions.
Last year’s boost to the state’s education formula was hailed by districts as a success, though it amounted to less than half the funding amount that public educators requested in 2024. Last year’s legislation yielded no effective revenue increase to most schools, because it came on the heels of an outside-the-formula spending boost of equal size in the preceding fiscal year.
In effect, the state’s K-12 education budget dropped between last year and the current year, by roughly $20 million, following a student enrollment drop of nearly 1,000 students.
Alaska has 125,317 public school students this year, according to data collected in the fall by the state. That’s down from 126,284 in 2024; 127,931 in 2023; and 128,088 in 2022.
Despite lawmakers’ hard-fought battles over education funding in recent years, the state’s effective spending on K-12 schools has remained virtually unchanged, going from $1.29 billion in the 2023 fiscal year to $1.33 billion in the current fiscal year, a roughly 3% increase, far below the inflation rate in the same period.
The governor’s budget draft introduced in December accounts for no new education funding this year, even as Dunleavy asked for spending increases for most other executive branch departments, to account for salary increases and other inflation-driven costs.
“Everything that our state government does requires increases every year, and yet we’re not providing those increases to education,” said Himschoot.
Funding woes have translated to different challenges across the state. In urban areas, including Anchorage, stagnant state funding has led districts to shutter enrichment programs and sports and grow class sizes. In rural areas, districts are struggling to keep buildings operational and qualified teachers in classrooms.
Ideas for shoring up education funding this year abound, said Himschoot and Tobin. They include pegging the state’s funding formula, known as the Base Student Allocation, to an inflation metric; providing dedicated funding streams for high-value budget items like reading coaches and vocational instructors; and upping state spending on the maintenance and repair of school buildings.
But three weeks into the legislative session, it is not immediately clear which of those ideas — if any — could garner enough support from the House and Senate to become law and fit into a tight budget process.
“We’ve got to get 11 votes in the Senate, 21 votes in the House, and hopefully get it past the governor. If that’s not the case, then I’m going to be working to get 40 (votes),” said Tobin, alluding to the threshold needed to override the governor.
Senate leaders said Tuesday that they are focused on addressing a backlog that has left school buildings with deferred maintenance and repair projects worth more than $2 billion.
The Legislature has in recent years funded only a fraction of maintenance projects identified as priorities by schools. The identified priorities are themselves an undercount of needed projects, lawmakers say, because some districts have stopped applying to the state for funding.
Dunleavy has during his tenure repeatedly slashed education funding to the tune of tens of millions of dollars annually for both school operations and maintenance. He has not commented publicly this year on whether he would allow an education funding increase to become law or again use his veto pen.
“The Senate majority is continuing to look for pathways to help support our struggling public school infrastructure, and also our public school services, and we are going to use every opportunity and everything available to us to invest in the best and most important resource our state has, which is our children,” said Tobin, an Anchorage Democrat.
Himschoot said she doesn’t think it’s realistic “at all” to again increase the Base Student Allocation by $700, which is what lawmakers did last year — bringing it from $5,960 to $6,660. But a smaller increase may be possible, she said.
“Will there be some kind of BSA inflationary adjustment? I think that’s on the table. Will there be funding to other programs that bring relief to districts? I think that’s on the table. In the absence of a solid fiscal plan, it’s really hard to talk about what’s possible,” Himschoot said.
Dunleavy last year vetoed a bill approved by lawmakers that would have raised between $25 million and $65 million by applying the state’s corporate income tax to Outside companies providing online services to Alaskans. That bill would have directed the new revenue to reading assistance and vocational programs in Alaska schools. After lawmakers failed to override Dunleavy’s veto last month, House majority members reintroduced the revenue bill. It is scheduled for a hearing later this week.
The House Education Committee is currently considering a bill from Rep. Andi Story, a Juneau Democrat who co-chairs the committee, which would change the way the state allocates money to districts. The bill would allow the districts to average out their attendance numbers over a three-year period, rather than using a single-year figure, among other changes. That would provide districts with more funding stability even as their enrollment numbers fluctuate.
The change is based on recommendations that appeared in a 2015 report commissioned by lawmakers.
According to Dunleavy administration education officials, the change could increase state spending on schools more than $70 million in the coming fiscal year. Of that, roughly $23 million would go to the Anchorage School District; nearly $10 million would go to the Matanuska-Susitna Borough School District; and more than $8 million would go to the Kenai Peninsula borough School District.
But it’s not immediately clear whether that bill will get the support needed to advance.
“I don’t see $70 million low-hanging fruit anywhere in the state right now,” said Himschoot.
“To me, it’s reasonable,” she said on the prospect of spending that amount from state savings. “To some of my colleagues, it’s not reasonable at all.”
Daily News reporter Mari Kanagy contributed from Juneau.
Alaska
Anchorage international airport jumps into first for cargo volume in the US
The Ted Stevens Anchorage International Airport has reached new heights, becoming the largest cargo hub in the U.S. last year.
It may be a first for the Anchorage airport, based on historical data from the Airports Council International.
The ascendance is based partly on the airport’s steady growth in cargo volume landed there in recent years, according to figures from the group.
It came even as President Donald Trump’s tariffs upended global trade patterns, the group’s latest rankings show.
A key part of the rise? The state’s strategic perch near much of the industrialized world.
But perhaps more important in the latest figures was the large decline in cargo volume at the Memphis International Airport last year.
The FedEx superhub has long been the dominant cargo airport in the U.S., and sometimes the world. But FedEx has restructured its operations, contributing to the airport’s drop in cargo volume.
That helped the Anchorage airport leapfrog past Memphis last year.
With 3.9 million tons of cargo landed, Anchorage was behind only the Hong Kong and Shanghai airports, globally.
In recent years in particular, the Anchorage airport has become a critical crossroads for aviation shippers, in part due to the increase in e-commerce packages moving between Asia and the U.S.
Carriers often drop into Anchorage to refuel, allowing them to haul more of their valuable payload, and less fuel traveling between continents.
“Aircraft can reach 90% of the industrialized world within 9 1/2 hours from the airport,” said Teri Lindseth, the airport’s development manager, in an interview Friday.
Also important is the “targeted effort by the airport development team and the (Alaska) Department of Transportation to expand Anchorage’s cargo presence and overall airport development,” she said. “We’ve focused on supporting our existing partners at the airlines, creating opportunities for growth, and we’re seeing that strategy pay off.”
Over 30 cargo carriers using the airport have helped boost those numbers, Lindseth said.
Some of the carriers have significantly increased their cargo landings in Anchorage last year, she said, including China Airlines and Taiwan-based EVA Air Cargo, and Kalitta Air and Atlas Air, based in the U.S., she said.
Greg Wolf, head of the Alaska International Business Center, said that the airport has done a good job marketing the benefits of the Alaska route to cargo carriers.
The extra cargo each jet can carry as it lands in Anchorage helps give extra oomph to the numbers, compared to other airports, he said.
The Anchorage airport’s rise to first place came as Alaska reached its highest-ever volume in foreign exports, at $6.7 billion, Wolf said.
Some of that product moved by air, adding to the airport’s cargo numbers, he said.
And while Trump has slapped extra-high tariffs on China, Alaska exports still traveled there, apparently after first reaching other Asian countries with lower tariffs before making their way to China, Wolf said.
Alaska’s export value to China fell to fourth last year — behind Korea, Australia and Japan — though it’s typically been the state’s top export partner.
“I’ve talked to businesses, not just from Alaska, but other American businesses, and they’ve done their best to work around the tariffs,” he said.
Alaska
Senators express skepticism about passing Alaska LNG bill before session’s end
Facing pressure from Alaska Gov. Mike Dunleavy to quickly finalize a bill to support the Alaska LNG megaproject, key members of the Senate on Tuesday expressed skepticism that they’ll finish the task before the session ends later this month.
Senate President Gary Stevens told reporters that he doesn’t think the lawmakers can finalize a bill by May 20, which could open the door to an immediate special session, or whenever the governor chooses to call one.
Senators are being asked to move quickly, creating the possibility of unexpected outcomes if a bill is passed now, said Stevens, a Kodiak Republican.
“There’s a lot of work yet to do, and I think you’re seeing the concern around this table of the mistakes we could easily make,” he said during a press conference alongside other leaders of the Senate Majority.
The concerns came one day after Dunleavy urged lawmakers in both chambers to quickly pass a bill to give the LNG developer Glenfarne a substantial property tax break, so North Slope gas can be delivered to Southcentral Alaska and overseas to large Asian buyers.
The governor argued Alaska LNG will generate billions of dollars in production taxes, gas royalties and other revenues, create thousands of jobs, lower energy costs and resolve a looming shortage of locally produced gas.
Dunleavy indicated that the Senate and House resources committees burdened the bill he introduced in March with excessive costs that would block the project. Although Dunleavy floated the idea of introducing his bill early in the session, he didn’t formally introduce it until March.
Those committee substitutes would sharply increase the alternative volumetric tax the governor had proposed to tax natural gas shipments in order to bring in more state revenue. That new “alternative volumetric tax” would replace the state’s property tax for the project.
Dunleavy said he will only support a bill that allows the project to receive financing to move forward. He said he would call a special session if a bill he doesn’t think makes the project workable fails to pass the Legislature.
Members of the Senate Resources Committee said Tuesday they lack a clear picture of the important financial details they need to determine what size of tax break the project should receive, if any.
Some of the missing pieces, they say, include a recent update to the project’s $46 billion price tag, a figure that’s been around for more than a decade, and a better understanding of the estimated cost of gas to Alaska ratepayers.
Before the project can receive a tax reduction, the developer needs “to help us with this bill, giving us actual numbers so that we can credibly set a realistic AVT, alternative volumetric tax,” said Sen. Cathy Giessel, R-Anchorage and chair of Senate Resources.
Adam Prestidge, with project developer Glenfarne, told Senate Resources on Tuesday morning the company can share financial details with lawmakers if the state takes a stake in the project, under confidentiality agreements or confidential executive sessions.
He said that publicly releasing the project’s cost estimate would put the project at a competitive disadvantage at a time when it’s negotiating agreements with contractors for work, and purchase agreements with entities that would buy and sell the gas, he said.
In such cases, he’s seen the “counterparty try to back calculate what they think the cost of the product is that we’re selling, using what they’ve seen as public information, and it creates a real challenge for being able to commercialize the product,” he said.
Giessel said confidential agreements are problem for lawmakers.
“Confidential executive sessions put us at a real disadvantage because now we have to craft a bill based on what you’ve told us privately, and yet we can’t tell the public what those numbers are,” she said. “It doesn’t work very well.”
Sen. Bill Wielechowski, D-Anchorage, and vice chair of Senate Resources, said he won’t vote on a bill that could remove potentially $1 billion in annual property tax revenue — referring to Dunleavy’s original version — without having solid numbers on the project.
“From my perspective, this bill should not go to the floor because, me personally, I don’t want to commit generations of Alaskans to billions of dollars in tax breaks without firm numbers,” he said.
Tim Fitzpatrick, a spokesperson with Glenfarne, said in a statement Tuesday that “the state, along with other potential investors, will have the information needed to make an informed investment decision.”
“The state has no financial risk in Alaska LNG and as testimony has made clear, publicly releasing sensitive cost information harms the project’s competitive position and ability to deliver reliable, low-cost energy for Alaskans,” he said.
“Alaska is rapidly running out of reliable, affordable energy, and state and local policymakers and the legislature’s own consultants have highlighted the need for tax reform for over a decade, during which no project has progressed,” he said.
Alaska
Alaska National Guard to deploy 25 service members to Washington DC
Alaska will deploy 25 National Guard soldiers and airmen to Washington D.C. this month, according to a Friday update from the Alaska Department of Military and Veteran Affairs.
The deployment is part of a response to President Trump’s August declaration of a “crime emergency” in the nation’s capital. In the nine months since, 2,500 troops remain, according to NBC4 Washington. Guard members have assisted with medical emergencies, arrests and beautification projects, as well as snow removal.
The division announcement said the Alaska service members will be focused on public safety: “Guard members provide support functions such as crowd management, perimeter security, and logistical and communications support.”
Alaska National Guard members will deploy for 60 days, according to the division, as part of a joint task force with the Metropolitan Police Department and federal law enforcement partners.
Gov. Mike Dunleavy approved a verbal request in November from the U.S. Secretary of the Army for Alaska to deploy 100 service members, following a national directive by the Pentagon to all 50 states to prepare National Guard service members to train for “civil disturbance operations.”
A spokesperson for Dunleavy’s office did not respond to a request for comment on the smaller deployment, the purpose and timing of the mission on Monday.
Lawmakers had raised concerns about the Pentagon’s national directive for an estimated 20,000 National Guard service members to be trained and prepared to deploy in U.S. cities within 24 hours. Alaska was initially charged with preparing 350 service members as part of a “quick reaction force” by Jan. 1.
Rep. Andrew Gray, D-Anchorage, co-chair of the Alaska Joint Armed Services Committee, and a veteran of the Alaska National Guard, was among those who had raised concerns.
On Monday, Gray said the smaller deployment for 60 days is less of an issue.
“I don’t think it’s in the best interest of the American taxpayer to be flying service members from Alaska to D.C. to do what I don’t believe is of grave consequence,” he said.
“At the end of the day, to me, it’s sort of a nothing burger. I do think that it shows that the Dunleavy administration and General (Torrence) Saxe are in alignment with Trump. They’re showing that they support Trump’s agenda. But again, this is just not that big of a deal, in my opinion.”
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