Alaska

Report: Alaska LNG project could cost Municipality of Anchorage millions

Published

3 weeks ago

June 1, 2026

Report: Alaska LNG project could cost Municipality of Anchorage millions

Afternoon sun hits a portion of downtown Anchorage and the Chugach Mountains on November 19, 2025. (Marc Lester / ADN)

Anchorage Mayor Suzanne LaFrance told the state House Finance Committee on Monday that the Alaska LNG megaproject could cost the municipality up to $173 million over nine years because of the city’s current tax structure, citing a new report.

The project’s 800-mile pipeline, which would move gas from the North Slope to Southcentral Alaska, would not pass through Anchorage. As a result, the city would not receive direct property tax or gas-volume tax from the project, she said.

But thousands of workers associated with construction and related activity would be based in Anchorage, she said.

“Our community will serve as a logistical, operational, transportation, and administrative hub throughout the life of the project,” she said. “That will bring important economic benefits, but it will also create real demands on local government services.”

“Since we rely on property taxes, we don’t get new tax revenues from an influx of people until new homes and commercial properties are built and added to our tax rolls,” she said. “That takes years, but there will be immediate pressure on public safety, emergency response, roads, schools, and other municipal services.”

Gov. Mike Dunleavy called the Legislature into special session to weigh his proposal to cut property taxes to support the LNG line and replace them with a much smaller tax based on gas volume moving through the project.

Proponents say it would deliver long-term natural gas to Alaska, lowering energy costs, and after exports begin, it could provide billions of dollars in revenue for three decades even with the tax cut.

Skeptics fear that too large a rate cut could saddle municipalities and the state with high, uncovered costs to deal with the influx of workers and their demand on roads, police, housing and hospitals.

LaFrance said the municipality supports a community impact fund that would provide some revenue to Anchorage and other communities to help offset costs, she told the House Finance Committee. That idea, and a revenue sharing measure, are currently included in an amended version of the governor’s bill before the committee.

The concerns come as the LaFrance administration takes aggressive steps to build thousands of new homes in the coming years to address a tight housing market in Anchorage.

The report, prepared for the Anchorage Community Development Authority by economist Jonathan King with Halcyon Consulting, found that the project will “create a significant structural fiscal gap for the municipality.”

Lacking a sales tax that would provide immediate revenue as workers arrive, the city would instead lose large amounts of money during construction even if new housing is built, the report says.

But even in the most optimistic scenario, with new housing built in Anchorage for 100% of the workers, the city “will face a structural deficit” several years into the project, the report says.

With no new housing built for the workers, the city will face a cumulative deficit of $173 million over nine years, the report says. If new housing is built for all the workers, the city faces a nine-year deficit of $23 million.

“Avoiding a deficit likely means seeking new tax revenue outside the tax limit calculation, modifying the tax limit calculation, or receiving project impact payments from the state or project owners,” the report says.

Rep. Jeremy Bynum, a Ketchikan Republican, said that there would also be positive long-term effects, including from low energy costs that can support the economy and new industries, and population growth that can shore up dwindling school enrollment.

Nolan Klouda, policy director for LaFrance, said that once exports to foreign countries begin, the project’s gas price can be very affordable for Anchorage and other communities.

“We’re always very concerned about anything that could cause the cost of living to go up,” Klouda said. “So I think that having low-cost heating and power from that natural gas is really critical for our economy.”

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Alaska

Cruise ship arrives in Seward with dead endangered fin whale on its bow

Published

3 hours ago

June 21, 2026

Press Room

Cruise ship arrives in Seward with dead endangered fin whale on its bow

A fin whale. (Photo by NOAA Fisheries)

A cruise ship arrived in Seward on Friday with a dead endangered fin whale on its bow, NOAA Fisheries said Sunday.

The carcass of the 61-foot, adult female fin whale — which was pregnant, based on initial findings — was towed to an area beach for a necropsy, the agency said in a statement posted to social media.

NOAA Fisheries said it is working with the Alaska SeaLife Center in Seward to perform a necropsy to determine the whale’s cause of death. The agency asked people to stay away from the beach where the necropsy is being performed, “for your safety and to allow space for the team to perform the examination and collect samples.”

Photos posted to social media appeared to show the cruise ship involved was the Royal Caribbean vessel Ovation of the Seas, which can hold a maximum of nearly 5,000 passengers.

Fin whales are the second-largest whale species on the plant. They have an expansive range that includes the waters up and down Alaska‘s coast all the way to the Arctic, but they‘re not often seen, spending most of their time in deep, open ocean far from shore, according to a species overview from NOAA. In November 2024, a dead juvenile fin whale washed ashore on the mudflats in Anchorage, attracting throngs of visitors in the following months.

The species is “probably” the most vulnerable to vessel strikes after North Atlantic right whales, the agency said in its species overview.

The dead fin whale in Seward was located “on top of the ship’s bulbous bow,” NOAA Fisheries said in its statement.

Fin whales, which are classified as endangered, are protected under the Endangered Species Act.

“We remind the public that it is illegal for anyone to collect tissue, baleen or any part of the whale, unless you are an Alaska Native collecting tissue or parts for subsistence or use in handicrafts,” NOAA Fisheries said in its statement.

The agency said its Office of Law Enforcement is investigating, and anyone with information can call a 24-hour hotline at 800-853-1964.

Whale strikes, while uncommon, aren’t unheard of in Alaska, or in Seward. In 2016, the Holland America vessel Zaandam arrived in Seward with a dead fin whale on its bow, and in 2006 a Celebrity cruise ship arrived with a deceased humpback whale on its bow.

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I Took My First Alaskan Cruise—Here Are 7 Packing Mistakes You Should Avoid, and What to Bring Instead From $6

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14 hours ago

June 21, 2026

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I Took My First Alaskan Cruise—Here Are 7 Packing Mistakes You Should Avoid, and What to Bring Instead From

A travel writer shares the 7 biggest mistakes they made when packing for an Alaskan cruise—and the smart solutions they recommend instead. Here, shop their go-to travel essentials, including a puffer jacket, binoculars, Samsonite luggage, and more, starting at just $6 from Amazon.

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DFFP Responds to Joaquin Fire 31.5 Miles Southwest of McGrath

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24 hours ago

June 21, 2026

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DFFP Responds to Joaquin Fire 31.5 Miles Southwest of McGrath

By Alaska Division of Forestry & Fire Protection on June 20, 2026

DFFP received reports of smoke near Mt. Joaquin at 8:00 PM Saturday. A DFFP helicopter responded and located the Joaquin Fire (#238) burning in black spruce and tundra roughly 31.5 miles southwest of McGrath.

Due to a nearby native allotment, additional aerial resources were ordered. The fire is currently 30 acres and has six smokejumpers, one air attack, and two single-engine water scoopers. No structures are threatened.

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Two new wildfires reported Saturday evening north of Anderson ›

Categories: Active Wildland Fire, Alaska DNR – Division of Forestry & Fire Protection (DFFP)

Tags: 2026 Alaska Fire Season, Alaska Division of Forestry & Fire Protection, DFFP Coastal Region, Joaquin Fire, Southwest Alaska

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Report: Alaska LNG project could cost Municipality of Anchorage millions

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Report: Alaska LNG project could cost Municipality of Anchorage millions

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Cruise ship arrives in Seward with dead endangered fin whale on its bow

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I Took My First Alaskan Cruise—Here Are 7 Packing Mistakes You Should Avoid, and What to Bring Instead From $6

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