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Permanent Fund leaders again call to restructure fund as spendable cash dwindles

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Permanent Fund leaders again call to restructure fund as spendable cash dwindles


There’s a nearly 50-50 chance that the Alaska Permanent Fund won’t have enough spendable money to pay dividends and the state’s bills at least once over the next decade — unless lawmakers change the structure of the fund to function more like a university endowment.

That’s the message Permanent Fund leaders and the Legislature’s chief budget analyst delivered to lawmakers on Tuesday.

The head of the Legislature’s nonpartisan budget analysis agency, Alexei Painter, presented lawmakers with a financial model showing a 46% chance that the fund’s spendable account would not have enough money to provide a payment to the state’s general fund that makes up the second-largest overall source of state revenue — second only to the federal government.

Permanent Fund Corporation Executive Director and CEO Deven Mitchell and Board of Trustees Chair Jason Brune told the Legislative Budget and Audit Committee that the issue is not with the $80-plus billion Permanent Fund itself, but with the fund’s two-account structure.

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“We want to ensure that there’s an ability to provide a payment to the state of Alaska each and every year,” Mitchell said. “We don’t want to have a 46% probability of failure. We don’t want to have any probability of failure for this revenue stream at this point.”

The Permanent Fund is separated into two accounts. The $60 billion principal can’t be spent without a vote of the people.

The earnings reserve account, which has about $9 billion in spendable money, is more flexible. Legislators could spend every last dollar of the account — and possibly more in unrealized gains — by a simple majority vote.

Lawmakers have drawn 5% of the fund’s value every year to fund dividends and state services since 2018 after oil prices crashed in the mid-2010s. Today, the Permanent Fund provides more than half of the state’s general-purpose revenue.

This year, lawmakers are considering amending the Alaska Constitution to combine the two accounts into one.

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That would solve the problem, Painter said.

“The [earnings reserve account] balance would no longer be something that would stop us from continuing to draw,” he said. “That would reduce the risk to zero. There’d be no risk at all.”

Lawmakers in the largely Democratic majority caucuses in the House and Senate have introduced amendments that would combine the accounts. Minority Sen. James Kaufman, R-Anchorage, has introduced a similar proposal.

The amendments would also place a constitutional cap on the annual draw. The current 5% cap is set in statute, but lawmakers could vote to ignore the law by a simple majority.

A pair of similar proposals sponsored by the Senate Finance Committee and Rep. Calvin Schrage, I-Anchorage, would constitutionalize the current 5% maximum draw rate.

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Kaufman’s proposal would cap it at 5.5% to provide what called “headroom,” though he said at a news conference Tuesday that he was open to changing the maximum figure. It would also require the state to pay a dividend set by a formula set in law, though the proposal is silent on what the formula should be. Kaufman is a cosponsor of a bipartisan bill that would set the dividend at 25% of the state’s annual draw from the Permanent Fund.

Brune, the Permanent Fund board chair, said combining the two accounts and capping the draw would provide “predictability and sustainability” for the fund going forward.

Sen. Bert Stedman, R-Sitka, said limiting the draw with a constitutional amendment would prevent lawmakers from raiding the fund when facing a deficit. Lawmakers are currently looking for ways to fill a more than half-billion dollar hole in the state’s budget.

The little piggies in the trough are getting hungry in this building,” he said.

Stedman, a co-chair of the powerful Senate Finance Committee, has suggested on more than one occasion that the 5% draw rate may be too high to be sustainable.

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Combining the accounts and capping the draw is broadly popular among senators in both the largely Democratic majority and the all-Republican minority. The Permanent Fund’s board has been pushing to combine the accounts for decades. Last year, they published a rare analysis paper illustrating the importance of the concept.

Lawmakers could place a constitutional amendment on the ballot for the next election with a two-thirds majority vote in the House and Senate. The governor would not be able to veto it.



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Alaska

Governor Dunleavy Names Stephen Cox his new Counsel to the Governor – Mike Dunleavy

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Governor Mike Dunleavy today announced the appointment of Stephen Cox as his new Counsel to the Governor. The appointment comes after the legislature’s decision to not confirm him as attorney general, despite his extensive legal and public policy experience and proven record of defending Alaska’s interests both at home and on the national level. Cox’s responsibilities will be to advise Governor Dunleavy on a wide range of legal, regulatory, and constitutional matters affecting the State of Alaska.

Governor Dunleavy also appointed Cori Mills acting attorney general for the Alaska Department of Law. Mills has been with the department for 14 years and most recently served as deputy attorney general.

“Stephen Cox has a strong understanding of Alaska law and the challenges facing our state,” said Governor Dunleavy. “His experience, professionalism, and commitment to public service make him a valuable asset as Counsel to the Governor. I look forward to working with Stephen as we continue advancing policies that strengthen Alaska’s economy, uphold the rule of law, and serve the people of our state.”

As Counsel to the Governor, Cox will continue to work closely with the Department of Law and other executive branch departments to provide counsel on policy initiatives, legislation, and executive actions.

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“I am honored to serve Governor Dunleavy and the people of Alaska in this new role,” said Stephen Cox. “I look forward to continue supporting the administration’s efforts to promote responsible resource development, governance and opportunities for Alaskans across the state.”

Cox assumes his new role effective today.



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Why Juneau should be on every Alaska traveler’s bucket list

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Why Juneau should be on every Alaska traveler’s bucket list



Juneau blends towering glaciers, the Tongass National Forest and rich Indigenous culture.

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Juneau, Alaska, is the only U.S. state capital not accessible by road — a remoteness that adds to its magic and appeal.

Nestled between mountains, rainforest, and the waters of the Inside Passage, Juneau combines Alaska Native heritage, Gold Rush history, and some of the state’s most spectacular scenery.

Visitors can watch humpback whales surface offshore, ride a tram above downtown, stand face-to-face with or even on Mendenhall Glacier, a river of ice flowing from the vast Juneau Icefield. Surrounded by the Tongass National Forest — the world’s largest temperate rainforest — Juneau offers a quintessential Alaska experience where nature feels immense, and adventure begins just minutes from the cruise dock.

Why Juneau matters

Long before prospectors arrived in search of gold, the area now known as Juneau was home to the Áak’w Kwáan, whose name for this place — Áakʼw, often translated as “little lake” — reflects a deep connection to the surrounding land and water.

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Russia later expanded into Alaska through the fur trade, bringing Orthodox missionaries, new trade networks, and profound cultural change to Indigenous communities across the region. Though Juneau rose to prominence during the Gold Rush and became the territorial capital after the United States purchased Alaska in 1867, the city still bears traces of both worlds.

As the nation approaches its 250th anniversary, Juneau offers visitors a richer understanding of America’s layered history — one that’s shaped by Native stewardship, Russian influence, and the enduring resilience of southeast Alaska’s Indigenous peoples.

What to see today

The star attraction is Mendenhall Glacier, a 13.6-mile-long glacier that descends from the Juneau Icefield into a turquoise lake.

Easy trails lead to roaring Nugget Falls, while boardwalks along Steep Creek offer chances to spot spawning salmon and black bears. Back downtown, colorful floatplanes skim the harbor and the Mount Roberts Tramway lifts visitors above the city for sweeping views of Gastineau Channel and the surrounding mountains.  

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One of Juneau’s most whimsical attractions is Glacier Gardens Rainforest Adventure, tucked into the Tongass rainforest just outside downtown.

Locals and visitors alike love the upside-down trees known as “Flower Towers” — massive spruce trunks planted root-side up, bursting with colorful blooms. The display is a unique (and accidental) creation of master gardener Steve Bowhay.

It’s an eccentric sight that feels uniquely Alaskan, blending lush rainforest scenery with a touch of horticultural imagination.  

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Haines Quick Shop reopens after burning down in 2024

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Haines Quick Shop reopens after burning down in 2024


Last Friday evening in Haines, there was only one place to be: The brand new Quick Shop, a shiny new building stocked with everything from ice cream and gun safes to an entire row of Xtratuf boots.

It seemed that much of town was packed into the building on the Haines’ waterfront — the store had just reopened after burning down more than a year ago.

The October 2024 fire destroyed a string of apartments and businesses including the convenience, liquor and sporting goods shop known collectively as the Quick Shop.

“It’s a big day for our town,” Haines Mayor Tom Morphet shouted from the checkout line that stretched through the store.

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Minutes after opening, some 50 people were already in line, with dozens more milling about. Many kids’ arms were piled high with goodies.

Further back in the store, owner Mike Ward was busy scanning toilet paper amid the chaos. In between greeting customers, and accepting their congratulations, he said it’s been a long road to get here.

“It’s a relief to finally be open,” Ward said. “But we got a lot of work ahead of us, so it’s not that much of a relief.”

Ward said he aims to have the store fully stocked and in order by the fire’s two-year anniversary on Oct. 5. He added that he rebuilt as quickly as possible because he had heard a larger convenience chain was thinking about moving into Haines.

“So that’s one of the major reasons why I got aggressive, right?” he said. “I didn’t even think about taking the money.”

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But the money part hasn’t been easy. Ward had insurance, but his policy didn’t come close to covering rebuilding costs – or the $1.8 million in inventory that also went up in flames.

“I got hosed,” he said. “I took a $2.5 million loss.”

The loss was felt in the community, too. Haines’ grocery stores close by 8 p.m. most days, and even earlier on Sundays. The Quick Shop is open until midnight.

“I feel like not having anywhere to get food late at night is pretty hard for people. So I feel like everyone’s pretty excited to have it back,” said local Ryan Irvin, who worked on the crew that built the facility.

He added that it’s cool – and somewhat novel – for the community to have a space that was actually built for its purpose.

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“We’re always retrofitting old buildings, making them work. But this is actually designed for what we’re doing, what Mike’s doing, rather,” Irvin said.

Morphet, the mayor, echoed that point. He said the new store is a testament to Ward’s faith in Haines’ capacity to keep it open.

“We’re only 2,000, 2,500 people here, so it’s kind of a shot in the arm to town morale,” Morphet said. “People like the town to have nice stuff, and this is beautiful.”



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