Alaska
Survey of Alaska’s small businesses shows ‘dramatic’ confidence drop as political uncertainty grew
Alaska small-business owners’ financial and economic outlook swung sharply negative this year amid political uncertainty as President Donald Trump sets high tariffs on major trading partners, according to a survey of close to 300 Alaska businesses by a small-business development group.
“Business optimism plunged” and the survey recorded the “highest level of economic pessimism ever recorded” in its eight-year history, according to a statement from the Alaska Small Business Development Center on Thursday.
There’s been a big shift in the economic conditions that Alaska businesses face, said Jon Bittner, the group’s state director, in an interview Friday.
“The largest issue is not specifically the tariffs, but the public uncertainty,” he said. “Businesses don’t know what the pricing will be, how they should market their products, or what to invest in.”
The survey represents businesses across Alaska, in urban and rural areas, and close to every industry sector, Bittner said.
Late last year, about 60% of businesses expected to have good or very good financial conditions this year, the survey found.
By April, only 46% of businesses held that view, the survey found.
“The numbers we are seeing are close to the numbers we saw during COVID,” Bittner said. “But the big difference is there was a lot of federal funding provided to businesses to weather that economic storm. That’s not the case this time.”
Political uncertainty emerged as a top-three challenge facing Alaska businesses, the survey found. Inflation and rising operating costs were also leading concerns. It’s the first time political uncertainty has landed in the top three challenges, according to the center.
The reversal in small-business confidence in Alaska mirrors apprehension among business interests nationwide as the Trump administration sets high tariffs on U.S. trading partners and allies around the world.
The tariffs, some in place and others delayed or adjusted, have caused higher prices and uncertainty for small businesses in Alaska. Many businesses have raised the cost of their goods after their suppliers increased their costs.
[Uncertainty and impacts from Trump’s shifting tariffs hit small businesses in Anchorage]
The survey compares results from a survey late last year of nearly 960 small businesses statewide to an April survey of 273 of those same businesses.
The survey found that 61% of businesses report supplier price increases from the tariffs.
In response to higher supply costs, 48% of the small businesses said they have raised their prices.
Thirty-five percent are attempting to absorb higher costs without raising prices, the survey found.
The businesses expecting a declining financial situation increased from 25% to 63%, the survey found.
Those expecting improvement dropped from 46% to 26%.
That’s an “unprecedented swing” from a positive to a negative outlook, the center said.
Jenna Wright, president of the Anchorage Economic Development Corp., said in an interview Friday that she is not surprised by the survey results.
Her group recently held a business roundtable to hear from several Alaska businesses. She said the business representatives anticipated growth at the year’s start, but now say they’ll be happy with just a flat year.
Wright said the rapid pace of actions from the Trump administration — the on-again, off-again tariffs, the flurry of executive orders, the frozen funding tied to major Biden-era bills — are having ripple effects through the economy.
“All the uncertainty causes businesses to pull back and reassess until they can find what the new point of stability is,” she said.
“I think the concerns are widespread across businesses,” she said.
“But I do want to say that on the other hand, some businesses are excited about the potential for unleashing Alaska’s energy, as it’s been called by Trump administration,“ Wright added. ”So it not all bad, and there are some areas for optimism.”
Bittner said “Alaska is particularly ill-suited” as the tariffs impact global trade, he said.
The state imports nearly all its goods from the Lower 48, while the Ted Stevens Anchorage International Airport, one of the top employers in Anchorage, relies on global trade, he said.
Alaska is also the only state with trucked goods that must come through Canada, which has threatened to impose tolls on Alaska-bound commerce and could do so if the U.S. and Canada got embroiled in an all-out trade war, Bittner said.
Alaska
State of Alaska Secures Win in Fight for Transparency Around Oil Development
(Bethel, AK) –Wednesday, the Ninth Circuit Court of Appeals issued a favorable opinion for the State of Alaska in ConocoPhillips Alaska v. Alaska Oil and Gas Conservation Commission (AOGCC), agreeing that State laws requiring disclosure of oil well data are not preempted by federal law.
“Alaska relies heavily on our resources and resource development,” said Acting Alaska Attorney General Cori Mills. “We are also stewards of those resources for the citizens of Alaska. Alaska’s law both allows resource development now, and encourages further development and exploration in the future. We’re pleased that the Ninth Circuit recognized that federal law has not overridden Alaska’s balanced approach.”
The Alaska Oil and Gas Conservation Commission regulates oil and gas operations throughout Alaska, including within the National Petroleum Reserve–Alaska (NPR–A). Under Alaska law, companies need permits from the AOGCC to drill and must submit well data. The AOGCC is required to keep well data confidential for 24 months.
ConocoPhillips drilled several wells on lease holdings within the NPR–A and submitted data to the AOGCC. When the 24-month period expired, the AOGCC notified ConocoPhillips of the upcoming well data disclosure. ConocoPhillips sued in federal court to stop the disclosure process claiming that the Naval Petroleum Reserves Production Act, the federal law allowing private exploration in the NPR–A, preempted Alaska’s 24-month disclosure law. The federal district court found Alaska law preempted, and the AOGCC sought appellate review by the Ninth Circuit Court of Appeals.
On appeal, the Ninth Circuit agreed with the AOGCC. The federal Production Act does not preempt state law. The Ninth Circuit therefore reversed the district court’s holding to the contrary.
“The Alaska Oil and Gas Conservation Commission is pleased with the court’s decision upholding Alaska law,” said AOGCC Commissioner Jessie Chmielowski in a declaration filed in the litigation court. “Alaska’s balanced approach to well data confidentiality leads to increased exploration activity, not less. Alaska law allows for a two-year confidentiality period on exploration well data to leverage a company’s investment in drilling. Thereafter, making the data public has incentivized exploration on the North Slope. Placing well data in the public record allows competing companies to evaluate different exploration concepts or interpretations based on seismic data that, without well data, are just educated guesses.”
# # #
Alaska
Opinion: A governor’s race for Alaska’s next generation
Alaska needs change. That’s why I’m running for governor: to bring new energy and a new generation of leadership to the governor’s office.
For 13 years in a row, more Alaskans have left our great state than have moved here. Prices are rising, schools are closing and Alaskans are getting left behind.
This year, those planning to leave Alaska include Ben and Catherine Walker, both recipients of Alaska’s Teacher of the Year Award. They can’t justify staying in the place they grew up in and love because of our failure to invest in the fundamentals, such as our schools.
The problem is personal. I’m 37. Many of those leaving Alaska are my age — debating whether there’s a future for us here or not. It’s a challenge we must solve.
I love challenges.
Back in 2012, I dropped out of college to challenge an entrenched Republican incumbent legislator who was running unopposed to represent my home region of Southeast Alaska. I launched a scrappy, grassroots campaign and focused on the kitchen table issues that matter to every Alaskan: good schools, getting our fair share of oil revenues, lowering costs, protecting our fisheries. I won — by 32 votes.
When I was sworn in, I was baby-faced and bushy-tailed, just 23 years old. It was the beginning of a decade-long tenure in the Legislature. A lot happened in those 10 years.
Among the most important: We formed the House Bipartisan Coalition in 2016. While I have a “D” next to my name, I believe strongly in working across party lines. That’s what the Bipartisan Coalition was, and is, all about: Democrats, moderate Republicans and independents, all working together to do what’s best for Alaska.
I want to bring that same bipartisan, vigorous problem-solving spirit to the governor’s office, where it has been nonexistent the last eight years.
As governor, I want to work hand in hand with the Legislature to deliver some desperately needed wins for Alaska that will make our lives better and get our state back on track:
• Reinvest in our public schools. Our school districts are in battlefield triage mode, but instead of amputating limbs, our school boards are forced to choose which sports to cut, which electives to discontinue and which neighborhood school to close. Enough already. Get school funding back up to par.
• Forward fund our schools. Our school districts shouldn’t have to guess how much education funding will end up being appropriated in end-of-session legislative haggling.
This circus forces school districts to prospectively fire teachers, then rehire them a month or two later, when they find out the final education funding number. It’s awful for all involved. We should fix it by forward funding.
• Close the Hilcorp corporate income tax loophole. Hilcorp should pay their fair share in taxes just as ConocoPhillips, and nearly every other major corporation in Alaska, already does.
• Lower the cost of energy. Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association and Matanuska Electric Association operate about 1,700 megawatts in power generation capacity. Peak Railbelt winter demand is half that: about 850 megawatts. Guess who pays for the nearly gigawatt in underused and unused power plants? You, on your power bill. The governor should force the co-ops to work together, reduce redundancies and diversify energy sources, including renewables, in order to reduce the sky-high cost of energy for Alaskans.
• Lower the cost of childcare. Alaska has inadvertently created a system of childcare permitting and licensing that effectively amounts to death by a thousand pieces of paperwork. It’s creating scarcity and cost. We need to fix it.
• Lower the cost of housing. Cut red tape to make it easier and cheaper to build more homes of all kinds — from tiny homes and ADUs to manufactured and modular housing, to apartments and condos, to traditional single-family homes. More housing of all kinds, faster.
• Rein in bottom-trawl bycatch. I will nominate Alaskans to the North Pacific Fishery Management Council who will make sure that Alaska and Alaskans — not Seattle and Lower 48 industry interests — foremost benefit from our fisheries.
• Responsibly develop our resources. Support projects that have regional buy-in and support, such as Pikka on the North Slope, which just produced first oil this month, while saying “no” when the risks are too great and those in the region are opposed, as is the case with Pebble.
• Grow our tourism economy. And let’s crack the code on winter tourism while we’re at it. If Iceland can do it, we darn well can, too. Fairbanks is having burgeoning winter tourism success. Let’s follow their great lead.
• Make Alaska an awesome place to live. Let’s build dozens more public-use cabins. Let’s build an alpine hut-to-hut system like they have in New Zealand and the Alps. Let’s build the Alaska Long Trail. Let’s make Anchorage a world-class winter city.
Does this sound like the kind of Alaska you want to live in? Then I have great news: We are the governor campaign for you. And if what you just read gives you indigestion, you’ll be relieved to know you have 17 other options.
I have more great news: I can win.
After beating an entrenched Republican incumbent, I spent a decade representing a swingy district that voted for Donald Trump.
In those 10 years, I recorded some of the highest margins of crossover support from Trump voters of any Democrat in Alaska. I ran 12% ahead of Hillary Clinton in 2016 and 15% ahead of Joe Biden in 2020.
Here’s the simple truth: Whoever becomes our next governor will need to win with the support of significant numbers of independents and moderate Republicans, in addition to Democrats. I’ve done that. And I’ll do it again. Will you join me?
Former state Rep. Jonathan Kreiss-Tomkins of Sitka is a candidate for governor of Alaska.
• • •
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Alaska
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