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OPINION: Alaska has made progress toward righting its financial picture

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OPINION: Alaska has made progress toward righting its financial picture


By Luke Welles

Updated: 1 hour ago Published: 1 hour ago

The State of Alaska’s financial outlook is not entirely negative. Serving as a volunteer commissioner on the State of Alaska Municipal Bond Bank since 2008, I have engaged with all major credit rating agencies, including Fitch, S&P, Moody’s and Kroll. The primary objective of these interactions has been to secure the most favorable and realistic credit ratings possible. Achieving this goal is crucial, as it directly contributes to minimizing the interest rates on general obligation bonded debt. This financial prudence directly benefits Alaskans, particularly those in communities and rural health entities that utilize the bond bank.

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Moreover, a strong credit rating does more than just lower interest rates. It offers a thoroughly analyzed perspective on the future economic outlook of the State of Alaska. This analysis is a valuable tool for investors considering the allocation of substantial capital investments in state projects. Thus, maintaining a good credit rating is a strategic measure that underpins both fiscal responsibility and economic development in Alaska.

I’m concerned about the perception of our state’s finances and economic outlook due to static, mandated fiscal reports like the 10-year forecast. A significant source of the problem lies in the rigidity of a few of our statutes mandating static reports which do not consider reality. Alaska Statute 37.07.020(b)(2) requires that the state “must balance sources and uses of funds held while providing for essential state services and protecting the economic stability of the state” which is the guiding light for the 10-year forecast. Also required, AS 37.13.145(b) states that: “At the end of each fiscal year, the corporation shall transfer from the earnings reserve account to the dividend fund established under AS 43.23.045 , 50% of the income available for distribution under AS 37.13.140 ” which drives the projected “statutorily defined” permanent fund distribution in the 10-year forecast. The result is a significantly misleading 10-year forecast; especially given what has occurred in the past decade.

In 2016, an impactful decision by Gov. Bill Walker to veto half of the funds allocated for the Permanent Fund dividend, which had been approved by the state Legislature, led to significant legal and fiscal implications. Sen. Bill Wielechowski initiated legal action, challenging the veto on the grounds that it contravened the constitutional amendment which established the Permanent Fund. He contended that funds dedicated to the Permanent Fund dividend should be immune to gubernatorial veto. However, Anchorage Superior Court Judge William Morse upheld the governor’s veto, stating that any alteration to the governor’s veto power necessitates explicit and formal legislative action.

Without a statute change, the governor is mandated to include a “full” dividend in the state budget forecasts, a requirement that constrains the presentation of a balanced budget meeting the requirements of AS 37.07.020. It is, therefore, prudent for the Legislature to consider amending the statutory language governing the Permanent Fund earnings distribution language. Such an amendment would grant the governor greater leeway to formulate more realistic budget forecasts that are aligned with projected balanced budgets. This change is crucial for fostering transparent communication with the public regarding the state’s financial outlook, considering the necessity for the governor and legislators to balance actual income against expenditures.

The current fiscal situation of the State of Alaska must be realistically presented to the public in context of the past decade. The state’s 2013 unrestricted operating and capital budget stood at $7.9 billion, which declined to $4.5 billion in 2017 and 2018, and is estimated to be approximately $5.2 billion by 2025. This represents a significant decrease of 34% in unrestricted revenue over the past decade. Consequently, the state has struggled to meet its operational needs as per AS 37.07.020(b)(2) and unable to disburse a “full” dividend in line with current statute language (AS 37.13.140).

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The reality is that the past Legislatures and governors have ultimately made significant cuts in the past decade and adopted the percentage-of-market-value, or POMV, rule in 2018 and implementing it 2019, with a 5.25% subject to appropriation draw through 2021 and 5% thereafter. As a result, dependence on the projected petroleum revenues has decreased from more than 80% of the state’s budget in the past to 16% of the state’s projected 2025 total budget and 33% of the state’s 2025 unrestricted general fund budget. POMV has proven to be very effective in stabilizing state revenues in the past five years and combining the earnings reserve account with the corpus account with an “up to” draw of 5% for future legislators will add even more stability for Alaska’s fiscal future.

The State of Alaska’s current financial situation reflects a stable position, attributable in part to substantial budgetary reductions and the imposition of a cap on the growth of state agency expenses at less than 2% per year. This fiscal discipline is evident when comparing the fiscal year 2019 state agencies’ expenditure of $3.95 billion with the projected budget for fiscal year 2025, which stands at $4.32 billion. Additionally, the state’s fiscal health is bolstered by the full funding of Public Employees’ Retirement System and Teachers’ Retirement System obligations.

Moreover, the state’s total debt service to maturity, inclusive of school debt reimbursement, is less than $1.5 billion. Notably, more than 71% of this debt is scheduled to be repaid within the next 10 years. This scenario underscores the state’s effective management of its financial obligations and its commitment to maintaining a robust fiscal framework.

Fiscal debates and discussions about expense priorities are vital components of good governance. Annual discussions are key to creating accurate, realistic, and transparent financial reports and projections. It is important that the fiscal documents conform to both the wording and the spirit of state statutes. My recommendation is for legislators to amend statutes related to the Permanent Fund dividend distribution during the current session and to enhance the accuracy of the 10-year forecast with associated financial reports.

Luke Welles is the chairman of the Alaska Municipal Bond Bank Authority’s board of directors. He is the Senior Director of Business Development & Strategic Partnerships for the Alaska Native Tribal Health Consortium. Prior to this position, Welles served as Vice President of Finance for the Arctic Slope Native Association.

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The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which 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.





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Delmonico’s Love Letter To America: A Red, White, And Blue Baked Alaska

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Delmonico’s Love Letter To America: A Red, White, And Blue Baked Alaska


In the conversation about the world’s greatest steakhouses, Delmonico’s is always among the shortlist of names.

The Lower Manhattan institution is a destination for New Yorkers and tourists alike, an attraction as much as a restaurant. First opened in 1837, it is widely recognized as America’s first fine-dining restaurant. It was here that dishes that have become cultural symbols of this country as much as they are cuisine were born: the Delmonico Steak, Lobster Newberg, Eggs Benedict, and perhaps most famously, Baked Alaska.

Now, as the United States prepares to celebrate its 250th birthday, Delmonico’s is giving one of its signature creations, a dessert that’s as much a cultural symbol as it is a sweet ending, a patriotic makeover.

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On July 4, the restaurant will debut the America 250 Baked Alaska, a reinterpretation of the classic dessert that celebrates both the nation’s history and North America’s native ingredients. The striking red, white, and blue confection has already earned the nickname “America’s Birthday Cake.”

The dessert was created by acclaimed pastry chef Miro Uskokovic of Hani’s Bakery + Cafe in the East Village, who also serves as Delmonico’s consulting pastry chef. While his interpretation is rooted in the original version, he has reimagined it with a distinctly American theme.

Pawpaw, the largest fruit native to North America, becomes a rich ice cream. Wild blueberry lemonade sorbet adds a bright, tart layer, while pecan cake- made with the only major tree nut indigenous to North America- forms the base. Mixed berry jam, toasted meringue, and fresh seasonal berries complete the dessert.

The cone-shaped presentation also pays tribute to history.

The original Baked Alaska dates to 1867, when the legendary French chef Charles Ranhofer, who headed the kitchen at Delmonico’s in the late 19th century, created the dessert to commemorate the United States’ purchase of Alaska from Russia. Epicurean lore goes that Ranhofer originally called the dessert “Alaska, Florida,” highlighting the contrast between frozen ice cream and warm toasted meringue. He later featured elaborate mountain-shaped versions in his 1894 cookbook, “The Epicurean.”

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Today, nearly 160 years later, Delmonico’s is revisiting that theatrical presentation while looking ahead to its next chapter.

“This dessert is a piece of American history,” says Dennis Turcinovic, owner and executive culinary partner of Delmonico’s Hospitality Group. “Delmonico’s has never just served food. For nearly 190 years, it has served hope, opportunity, and the American dream. Today, we’re celebrating that with our red, white, and blue Baked Alaska.”

For Uskokovic, it’s both a history lesson and a celebration.

“America’s 250th anniversary presents an opportunity to celebrate not only our nation’s history, but the evolution of American cuisine,” he said in a release announcing the dessert. “We wanted to revisit one of the most important desserts in Delmonico’s history while showcasing ingredients that are uniquely American.”

According to a release, the dessert will be available as a serving for two for $40, with production limited to just 10 each day because of its labor-intensive preparation. Larger versions serving 10 to 12 guests can also be ordered for private celebrations.

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The best part? For non-New Yorkers clamoring for a chance to try the dessert, the America 250 Baked Alaska is here to stay as a permanent fixture on the menu. And when Delmonico’s Reserve, the brand’s upcoming Midtown Manhattan restaurant, opens next year, New Yorkers and visitors alike can order it there.



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Man with same name as US Sen. Dan Sullivan is eligible for Alaska’s primary ballot, judge rules – WTOP News

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Man with same name as US Sen. Dan Sullivan is eligible for Alaska’s primary ballot, judge rules – WTOP News


JUNEAU, Alaska (AP) — A man with the same name and party affiliation as Alaska Republican U.S. Sen. Dan Sullivan…

JUNEAU, Alaska (AP) — A man with the same name and party affiliation as Alaska Republican U.S. Sen. Dan Sullivan is eligible for the August primary and can appear on the ballot, a judge ruled Friday.

Superior Court Judge Thomas Matthews’ ruling overturns a June 15 decision by Division of Elections Director Carol Beecher to disqualify the challenger and keep him off the primary ballot. Matthews’ ruling can be appealed to the state Supreme Court.

Attorneys for the state have said Tuesday is the deadline for a final ruling so that ballots for the Aug. 18 primary can be printed.

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The controversy over the two Dan Sullivans has underscored the stakes involved in the incumbent’s reelection campaign. The Alaska race is one of about a half dozen U.S. Senate races that are expected to be highly competitive in the fall, and the seat is one Democrats are trying to flip in their efforts to try to regain the majority.

The senator and allies including the National Republican Senatorial Committee have condemned the challenger’s efforts to join the race, arguing his presence could confuse voters. Under Alaska’s election system, the top four candidates from the primary, regardless of party, move on to the ranked choice November general election.

The senator has accused the challenger Sullivan of working with Democrats and the campaign of Democratic former U.S. Rep. Mary Peltola — who is considered the senator’s main opponent — to cause confusion and boost Peltola’s chances. Peltola’s campaign and state Democrats have denied the allegation, as has the challenger.

Sen. Sullivan and Peltola are the highest-profile candidates in the crowded race and the only ones to report raising any money.

Beecher has said she determined the challenger Sullivan is not eligible to run because his candidacy was not filed in good faith and instead was done with an intent to confuse voters. She said he had registered to vote as Daniel J. Sullivan Jr. and in conjunction with his candidacy changed his party affiliation to Republican. She also cited similarities between his campaign website and the senator’s, and his work with a consultant whose clients have included some Democrats. She did not mention finding any evidence of alleged coordination.

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In arguing to keep the challenger disqualified, attorneys for the state pushed back on suggestions the ballot could be designed in a way to reduce voter confusion over two candidates with the same name and party running for the same office.

“The Constitution does not require States to place a sham candidate on the ballot and then attempt to mitigate the damage through design choices,” attorney Rachel Witty, with the Alaska Department of Law, and outside attorneys Christopher Murray and Michael Francisco wrote in court filings.

Attorneys for the challenger Sullivan argued that the Constitution lays out three exclusive qualifications for the Senate, addressing only age, citizenship and residency. They said Beecher lacked the legal authority to boot their client off the ballot.

The challenger Sullivan has said that sharing a name and party affiliation with the incumbent gave him “an instant megaphone.” But the retired teacher and former U.S. Forest Service employee, who is 69, said he had considered a run for some time and had grown frustrated with the senator.

He initially was certified on the state’s candidate list as Dan J. Sullivan, with the senator listed as Dan S. Sullivan and identified as the incumbent.

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© 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.



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Lavrov Challenges Rubio: Kremlin Says Trump-Putin Reached Deal as Moscow Questions Washington’s Neutrality

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Lavrov Challenges Rubio: Kremlin Says Trump-Putin Reached Deal as Moscow Questions Washington’s Neutrality


The Kremlin has pushed back against US claims that no agreement was reached between US President Donald Trump and Russian leader Vladimir Putin during the August 2025 Anchorage summit in Alaska.

Russian Foreign Minister Sergey Lavrov said Washington presented proposals to settle the war in Ukraine during the talks and that Moscow accepted them.

Lavrov was responding to US Secretary of State Marco Rubio, who has publicly rejected Russian claims that Washington and Moscow reached an agreement on Ukraine during the Alaska summit, saying no deal was ever finalized.

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As reported by DRM News, Rubio said the summit produced only a proposal, not a binding agreement.

He added that the US remains ready to play a constructive role in bringing the parties together and helping end the war, but stressed that while proposals were discussed in Alaska, “there was no agreement.”

Lavrov struck back by calling the response “not very elegant.”

“When my colleague says that in Alaska there were only proposals and no agreement, I wonder what we mean by agreement,” Lavrov said.

“If one side, in this case the US, put proposals on the table, and the other side expressed agreement, then saying there was no agreement is somehow not very elegant,” he added.

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According to Lavrov, White House Special Envoy Steve Witkoff visited Moscow days before the summit and delivered the same US settlement plan.

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“Already in Anchorage, when the two presidents sat down for talks, Putin began listing the American proposals point by point. After each point, in the presence of Trump and Rubio, he asked Witkoff whether he had correctly described the ideas brought to Moscow. Witkoff answered affirmatively to each question,” Lavrov said.

He called for clarification from Washington, adding that recent US statements about playing a constructive role in ending the war sounded like an attempt to position itself as a mediator.

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Previous claims

In early June, Lavrov claimed Russia had accepted what he described as US proposals presented at the Alaska summit.

Lavrov alleged that Washington initially acted as a mediator but later stepped back from the process after failing to pressure Ukraine to accept the proposed terms.

This week, he also suggested that the Alaska summit may have been used to “buy time” for Ukraine to rearm itself, further arguing that Russia no longer views the West as a credible broker amid sanctions pressure.

Russian presidential aide Yuri Ushakov also said Moscow remained committed to implementing the understandings reached in Alaska, while accusing Washington of “apparently [failing] to complete its part of the process.”

Kremlin spokesman Dmitry Peskov argued that Washington cannot be considered fully neutral in the war because of its military support for Ukraine.

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“If we’re talking about absolute neutrality, then, of course, the term is probably inapplicable, because the United States supplies the majority of weapons to Ukraine and provides other forms of assistance,” Peskov said.

At the same time, he said Moscow highly values Washington’s willingness to help resolve the war, as well as its influence over European allies and Kyiv.

Peskov also dismissed remarks by French President Emmanuel Macron, who recently said at the G7 Summit that Washington had abandoned neutrality and was now openly backing Ukraine’s territorial integrity, continued aid, and sanctions against Russia.

“Regarding President Macron’s statements, it is difficult to judge. I don’t think President Macron can in any way claim to be Washington’s lawyer or press secretary,” Peskov added.



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