Connect with us

Alaska

Whether a ‘pickle’ or a ‘crisis,’ the Alaska House is struggling with a deficit budget

Published

on

Whether a ‘pickle’ or a ‘crisis,’ the Alaska House is struggling with a deficit budget


The Alaska Legislature’s quest to pass a viable state budget before the end of the legislative session in mid-May isn’t getting any easier.

“Ladies and gentlemen, we’re all in a pickle,” House Speaker Bryce Edgmon, I-Dillingham, told reporters on Tuesday.

At this point in a normal year, Edgmon said, House lawmakers would be on the verge of passing their version of the state’s operating budget, marking the lower chamber’s preferred level of spending on state agencies, public schools and the Permanent Fund dividend. Last year’s budget passed the House on April 11.

But this is not a normal year. Low oil prices are fueling large deficits, meaning tough budget decisions are ahead. With a razor-thin 21-19 majority for the chamber’s Democrat-heavy bipartisan coalition, House lawmakers are struggling to come to an agreement that meets their constitutional obligation to pass a balanced budget.

Advertisement

Nowhere is that struggle clearer than in the state operating budget, which House Finance Committee members voted out of committee last week. The $13.5 billion appropriations bill contains $2.5 billion for dividends, enough for a roughly $3,800 PFD, in line with Gov. Mike Dunleavy’s budget proposal and a formula in state law that has not been used since the mid-2010s. The budget also includes a so-called “unallocated cut” of nearly $80 million, an unusual step that would give the governor the freedom to make substantial cuts on his own. Legislative attorneys warn the step could be unconstitutional.

Altogether, it adds up to a $1.9 billion deficit. And that’s before accounting for recent volatility in the markets for crude oil, equities and bonds, which further threatens the state’s financial stability.

“It is a crisis. We cannot pay an unsustainable dividend,” said Chuck Kopp, R-Anchorage, the House majority leader.

The state has approximately $2.8 billion in its main rainy-day fund, the Constitutional Budget Reserve.

Large dividend figure is largely a mirage — but a persistent one

Members of both the coalition majority and Republican minority have called the $3,800 figure unrealistic in a year when roughly status quo spending would leave a $677 million deficit between the current fiscal year ending in June and the next year beginning in July. That figure, spotlighted by Senate budgeters, includes a roughly $1,400 dividend and a long-term extension of this year’s $175 million boost to education funding.

Advertisement

But House lawmakers have so far failed to come to an agreement on a more realistic dividend.

Majority lawmakers, including members of House leadership, have called repeatedly for reducing the PFD to $1,000 in an effort to balance the budget while boosting funding for public schools. But so far, they haven’t mustered the votes to pass, or even advance, a budget that reflects that stated preference.

During the marathon budget-writing process, two majority-aligned members of the House Finance Committee — Rep. Neal Foster, D-Nome, and Rep. Nellie Unangiq Jimmie, D-Toksook Bay — voted with all of the House Finance Committee’s minority Republicans to reject a proposal that would have reduced the PFD to $1,000.

Foster and Jimmie were not available for interviews Wednesday afternoon, but Foster has in the past said PFD reductions amount to a tax that falls disproportionately on the poorest Alaskans.

The House’s chief budgeter, House Finance Committee Co-Chair Andy Josephson, D-Anchorage, said he’s sympathetic, but the dire fiscal picture is forcing lawmakers’ hands.

Advertisement

“We don’t yet live in a world where the Alaska people, writ large — although we heard different messages in Anchorage — are ready for themselves to invest in their state government, so here we are,” he said. “I’m not saying that people who want the PFD in its entirety aren’t speaking to a set of values. We just have a significant math problem.”

House leaders turn to minority and governor for help

With members of his own caucus apparently unconvinced, Edgmon on Tuesday pleaded with his Republican counterparts for help.

“We need the help of the minority caucus. We also need the help of the governor to come forward and to put all these pieces together,” Edgmon said.

Reducing the PFD would only go so far when it comes to balancing the budget, though. Even with a $1,000 PFD, the nonpartisan Legislative Finance Division estimates a $169 million deficit for the next fiscal year — if a House-passed $1,000-per-student funding boost, a key campaign issue for the Democrat-dominated majority, is included.

“That’s just not possible,” said Rep. DeLena Johnson, R-Palmer and the senior Republican on the Finance Committee, said.

Advertisement

House minority Republicans say they’d like to see some additions to the governor’s budget rolled back, though those would not close the gap. Johnson said she anticipated cuts to both the PFD and the House’s $275 million education bill that’s now in the hands of the Senate.

“We’re looking at really having to cut things back, and [that’s] probably going to include having to discuss both of those two very, very, very difficult things,” Johnson said.

‘Maybe we can get to yes’ on Senate tax bills

Even reducing the education funding boost to a status quo level, $175 million, same as schools got this fiscal year in one-time funding, would not close the remaining gap.

Funding for Alaska’s schools remains a question mark. Here’s where things stand

Another option for balancing the budget is raising state revenue. Members of the bipartisan Senate majority have suggested expansions of corporate income taxes and reductions to oil and gas tax credits.

Advertisement

“I hope they pass,” said Senate President Gary Stevens, R-Kodiak. “I’d like to see us have reasonable education funding and a reasonable dividend, and not have to slash everything, as we would if we don’t have those revenues.”

Stevens also suggested that the Legislature may not have a choice when it comes to determining the appropriate school funding level.

“I suspect that the legislature may pass a $1,000 [school funding increase],” he said. “I have no doubts, from having spoken to the governor, that he will veto that.”

Stevens said he expected efforts to overcome a veto with a two-thirds majority vote would be “dead on arrival.”

Josephson, the Finance Committee co-chair, suggested the House may agree to Senate-proposed reforms that would capture corporate income taxes for large S corporations in the oil and gas industry — namely, BP successor Hilcorp, which is not subject to typical state corporate income taxes — and companies that do business in the state via the internet.

Advertisement

“Maybe we can get to yes,” Josephson said.

But the House majority’s one-vote margin may make that difficult. Kopp, the majority leader, said he opposes the Senate’s revenue measures.

“Not this year,” he said last month.

Stevens, though, reiterated Wednesday that he continues to oppose spending from savings for the coming year’s budget, despite recently acknowledging a withdrawal will likely be necessary to close the budget gap in what remains of the current fiscal year.

If the House fails to pass a budget, the Senate could push forward with its own budget bill, cramming the Legislature’s typically separate operating, capital and supplemental spending bills into a single budget document colloquially referred to as a “turducken.”

Advertisement

Despite the political headwinds and mounting time pressure, Edgmon says he remains optimistic lawmakers will settle on a budget before the constitutional end of the legislative session on May 21. Edgmon estimated that the House would have to pass a budget next week to remain on track.

“We still have time,” he said. “We don’t have a lot of time.”

Correction: An earlier version of this story misspelled Toksook Bay.



Source link

Advertisement

Alaska

University of Alaska names U.S. Army commander as new UAF chancellor

Published

on

University of Alaska names U.S. Army commander as new UAF chancellor


The University of Alaska Fairbanks campus, photographed in October 2019. (Loren Holmes / ADN archive)

Officials with the University of Alaska have tapped the commander of the U.S. Army 11th Airborne Division’s Arctic Aviation Command as the new permanent chancellor of the University of Alaska Fairbanks.

Col. Russell “Russ” Vander Lugt was selected from four finalists after an eight-month search process. He will be the top executive of Alaska’s leading research institution, which describes itself as “America’s Arctic university.” He will replace interim chancellor, and former U.S. Ambassador to the Arctic, Mike Sfraga, who succeeded former chancellor Dan White who announced his retirement in May of last year.

Vander Lugt is a senior U.S. Army officer, an Arctic scholar and UAF alumni, with over two decades of executive leadership experience, according to a university announcement on May 27. He has served as commander of the 11th Airborne Division’s Arctic Aviation Command at Fort Wainwright in Fairbanks since Aug. 2024.

“I’m humbled to be selected to lead the University of Alaska Fairbanks during this pivotal time,” Vander Lugt said in a statement with the announcement.

Advertisement

“I look forward to leading through trust, transparency, and teamwork as we see Alaska and the Arctic transformed through education, research, and public service. I’m committed to building on the strong foundation Chancellors Sfraga and White have established, and working closely with university leadership and governance to support and advance UAF’s mission,” he said.

Russell “Russ” Vander Lugt is seen in an undated photo. (Photo provided by the University of Alaska)

Vander Lugt will step into the permanent chancellor role on Sept. 8. Sfraga’s last day was Friday, and university officials have selected Larry Hinzman, director of the UA Arctic Leadership Initiative, to serve as interim chancellor through the summer.

Vander Lugt has had a long career with the U.S. Army in various roles in Alaska, where he is stationed in Fairbanks, and across the U.S. His resume lists deployments to Europe and the Middle East.

He served in executive leadership roles that include the Alaskan Command, a division of the U.S. Northern Command, the 601st Aviation Support Battalion, and the 1st Stryker Brigade Combat team. He also taught history and military leadership as an assistant professor at the U.S. Military Academy at West Point and was a professor of military science and department chair at Embry-Riddle Aeronautical University in Prescott, Arizona.

He holds a master’s degree and doctoral degree in Arctic and Northern Studies, which he completed in 2022 at the University of Alaska Fairbanks.

Vander Lugt’s hire is the latest in major leadership changes in the University of Alaska system — former UA President Pat Pitney retired last month and former university attorney Matt Cooper was named as her successor. Cooper will begin as university president in early August, and Michelle Rizk, vice president of university relations and chief strategy, planning and budget officer, is serving as interim president. Cheryl Siemers was appointed permanent chancellor of the University of Alaska Anchorage in March, after serving as interim chancellor since the retirement of former chancellor Sean Parnell last year.

Advertisement

Vander Lugt’s base salary will be $309,000, according to the university’s announcement.

The University of Alaska Fairbanks serves roughly 7,500 students. It employs more than 800 faculty and nearly 2,000 staff across urban and rural campuses in Fairbanks, Kotzebue, Nome, Bethel and Dillingham.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.





Source link

Advertisement
Continue Reading

Alaska

Dutch Harbor Remembrance Day 2026 – Mike Dunleavy

Published

on


WHEREAS, on June 3, 1942, six months after the attack on Pearl Harbor, World War II arrived in Alaska when Dutch Harbor on Amaknak Island was bombed by Japanese – the first aerial attack by an enemy on the continental United States; and

WHEREAS, the Japanese pilots expected little resistance; but because of an intercepted message three weeks earlier, the installation was on high alert, and Navy and Marine personnel were prepared with anti-aircraft defenses; and

WHEREAS, encountering unexpected resistance at Dutch Harbor, installation, Japanese forces shifted their focus to the Margaret Bay Naval Barracks, where the attack claimed the lives of 25 servicemen; and

WHEREAS, following the initial attack on Dutch Harbor, Japanese forces launched additional assaults on Dutch Harbor, Adak, Kiska, and Attu, resulting in the Aleut people being evacuated and held in internment camps in Southeast Alaska for three years, through which many did not survive; and

Advertisement

WHEREAS, the brave soldiers of the United States Armed Forces and allied Canadian Forces fought valiantly for more than a year to reclaim the remaining Aleutian Islands. The battle of Attu stands as one of the most costly American assaults in the Pacific, with hundreds of servicemen making the ultimate sacrifice to liberate Alaska; and

WHEREAS, on the 84th anniversary of the bombing of Dutch Harbor, we remember and honor all who were affected by the attack, paying tribute both to the military personnel who served and died to defend our Nation and to the Aleut people who died while imprisoned.

NOW THEREFORE, I, Mike Dunleavy, GOVERNOR OF THE STATE OF ALASKA, do hereby proclaim June 3, 2026, as:

Dutch Harbor Remembrance Day

in Alaska and encourage all Alaskans to join with the people of Dutch Harbor, Unalaska, and the Aleutian Islands to honor all who were lost in Alaska during World War II, and I order the Alaska State Flag to be flown at half-staff in remembrance of those who perished.

Advertisement

Dated: June 3, 2026



Source link

Continue Reading

Alaska

Photos show Alaska National Guard plane damaged in Iran war theater

Published

on

Photos show Alaska National Guard plane damaged in Iran war theater


The 168th Wing of the Alaska Air National Guard hosts a naming ceremony at Eielson Air Force Base on July 31, 2025 showcasing the KC-135 aircraft “Tetlin.” Photos of this Stratotanker with apparent shrapnel damage connected to Operation Epic Fury circulated online at the end of May 2026. (Senior Master Sgt. Julie Avey / U.S. Air National Guard)

A plane belonging to the Alaska National Guard appears to have been damaged during operations connected to Operation Epic Fury as part of American military efforts against Iran, according to online reports. Defense officials have so far declined to confirm whether Alaska National Guard personnel or equipment are taking part in the campaign.

Last week, defense industry news outlet The War Zone published photos of a KC-135 Stratotanker transiting through a British airbase. In the pictures, made by photographer Andrew McKelvey, the rear bottom of the fuselage and wing stabilizers are “peppered with temporary shrapnel damage repairs‚“ according to The War Zone’s article. The plane also appears to be missing its refueling boom, the proboscis extending from under the tail to pump off fuel to other aircraft.

In the photographs, the Stratotanker’s tail number is visible, identifying the refueling plane as belonging to the Alaska Air National Guard’s 168th Wing, based at Eielson Air Force Base outside of Fairbanks. The wing’s mission includes aerial refueling. That’s the tactic of large planes unloading vast quantities of fuel to aircraft, ranging from fighter jets to rescue helicopters, in midair.

Pictures from a different photographer published last week by another blog, The Aviationist, show the same plane. The tail includes the letters “AK” painted above a white polar bear.

Advertisement

In addition to the photographs, the reporting from The War Zone is based on publicly available flight data and social media posts scraped from a variety of sources.

According to information from Flight Radar 24, the Stratotanker left Eielson on March 5, just days after the U.S. and Israeli militaries began bombing Iranian targets on Feb. 28. Through March, according to public flight records, the plane was based at Ben Gurion Airport southeast of Tel Aviv, where, according to The War Zone, dozens of American refueling aircraft were staged as part of Operation Epic Fury.

There are no public flight records connected to the Stratotanker through April and most of May, until it appeared to fly through England on the way to the United States at the end of last month.

It is not clear how many Alaska Air National Guard planes, personnel or units are currently deployed in connection to the war effort against Iran.

A spokesperson for the Alaska National Guard referred all questions about Operation Epic Fury to the U.S. Central Command.

Advertisement

A spokesperson for CENTCOM, headquartered at MacDill Air Force Base in Florida, declined to answer questions on the record or provide any specific information about Alaska National Guard units deployed as part of ongoing military operations, citing the need to protect service members and operational security.

The Alaska National Guard has posted no informational releases or pictures connected to an overseas deployment during the last few months.

Much of Operation Epic Fury has been waged by military aircraft, and aerial refueling is critical to keeping planes supplied during long flights. A May 12 report from the Congressional Research Service composed of public damage reports to U.S. military aircraft noted that among the 42 records of damage or losses were seven KC-135 Stratotankers, though the findings were published before photos emerged of the Alaska-based plane. The report noted that the Defense Department “has not published a comprehensive assessment of combat losses” from Operation Epic Fury.

The tail number is associated with a Stratotanker manufactured in 1964, the year before Boeing ceased making them. All of the nearly 400 KC-135s currently in operation within the American military date back to that era of the Cold War.

The aircraft has the word “Tetlin” painted on the top of its tail. The name is an homage to the Interior Alaska village, one of several selected to honor longstanding bonds between military aviators and Alaska Native communities, according to photographs of a dedication ceremony posted by the Alaska National Guard last summer.

Advertisement

The 168th Wing currently has 12 Stratotankers attached to the unit. That number bumped up in April after a long campaign by Alaska Republican U.S. Sen. Dan Sullivan to allocate more tankers to the state’s portfolio given its vast geography and high number of advanced fighter jets.





Source link

Continue Reading
Advertisement

Trending