Alaska
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.
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.
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.
“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.
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.
“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.
“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.”
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.
Alaska
Dunleavy, EPA visit UAF to discuss regulations in the arctic environment
Fairbanks, Alaska (KTUU/KTVF) – On Wednesday, Gov. Mike Dunleavy, Alaska Attorney General Stephen Cox and Lee Zeldin, the administrator for the Environmental Protection Agency (EPA), spoke to press at the University of Alaska Fairbanks power plant.
During their time at the university, the federal and state leaders spoke about developing resources such as coal, oil, gas and critical minerals in the 49th state.
During his 24-hour trip to Fairbanks, Zeldin said he has spoke to business and state leaders about environmental regulations impacting operations in Alaska, saying the EPA needs to consider whether regulations are solving problems or are solutions in search of a problem.
He also discussed the concept of “cooperative federalism,” where the EPA takes its cues from state leaders to determine where regulations and help are needed.
“We’re here at the University of Alaska’s coal plant, and the most modern coal plant in the United States of America,” Dunleavy said.
Zeldin said visiting Fairbanks in winter helps inform decisions the agency is considering.
“There are a lot of decisions right now in front of this agency that the first-hand perspective of being here on the ground helps inform our agency to make the right decision,” he said.
Zeldin also said the agency is hearing concerns from Alaska truckers about diesel exhaust rules in extreme cold.
“We then met with truckers who have been dealing with unique cold weather concerns with the implementation of EPA regulations related to diesel exhaust fluid system,” he said.
When asked about PFAS in drinking water, Zeldin said the EPA is not rolling back the standards.
“So the PFAS standards are not being rolled back at all,” he said.
On Fairbanks air quality and PM2.5 regulations, Zeldin said the agency wants to work with the state.
“We want, at the EPA, to help the Fairbanks community be able to be in attainment on PM 2.5. We want to make it work,” he said.
Dunleavy said energy costs and heating needs remain a major factor in Interior air quality discussions.
“People have to be able to live. They’ve got to be able to afford to live,” he said.
Zeldin said EPA is considering further changes to diesel regulations and urged Alaskans to participate in the rulemaking process.
“We need Alaskans to participate in that public comment period,” he said.
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Alaska
Opinion: Life lessons learned from mushing and old-time Alaska
This is the beginning of the Iditarod spring, signaled by the burst of sun and what used to be the long wait for dog teams to pass under the arch in Nome, the finish line a thousand miles away from Anchorage. For old-timers, it’s the story of the way Alaska used to be. What once was a 30-day wait has become about 10 days for winners to celebrate and the rest of us to shout, “Well done.”
My story is about family that welcomed immigrants from all over the world to be among the last groups of Indigenous people in the country, a life of taking good care of dog teams, and of parents who taught their children how to live in a wild, rugged frontier.
I came to be in a different age, a time of dog teams that ruled the trails to mining camps and where the salmon ran strongest — before the introduction of the snowmachine that revolutionized rural and Native Alaska.
For the Blatchford family, it is a recognition that some things will always stay the same and everything else changes. All four of my grandparents were noncitizens. My mother Lena’s parents of Elim were Alaska Natives, as was my dad Ernie’s mother, Mae, of Shishmaref. The name Blatchford comes from his father, the Englishman who was born in Cornwall and arrived in Nome during the gold rush. His brother, William, was one of the early immigrants, and by 1899 there was a creek just outside Nome named after him. He discovered gold. My grandfather, Percy, found gold, too, but it was a different kind of wealth, a finding that he had found home and never left.
I was born in Nome, delivered by an Iñupiaq Eskimo midwife in a one-room cabin where the frozen Bering Sea met the treeless tundra’s permafrost. Dad had a dog team. I like to think that the dogs were anxious for me to be born because it was hunting time for Dad to hitch them up and mush out to where the sea mammals, snowshoe hares, ptarmigan and other game thrived in the winter. My earliest memories are of dogs; all of them working as a team to bring home the game so we could have a fine meal cooked by Lena. In the Arctic, dogs were essential for family survival. If you didn’t hunt, you didn’t eat.
There are several memories that remain strong. I suppose I can call them lessons of the Arctic.
The first is to take care of the dogs and treat them well. Dog lovers all over the world know very well that a dog, whatever the breed, is loyal and will die to protect the one who feeds and pets it. If you don’t feed a husky, it won’t pull, and it could mean a long time before the family eats. When a dog team is hungry, it will race back home to be fed a healthy meal. Mother Lena must have been a great cook because Dad said the dog team always raced back to the edge of Nome, where Lena was waiting beside the propane stove. For Mike, Tom and me, our job was to take the rifle, shotgun and .22 into the cabin to be cleaned and oiled. Once that was quickly done, we unhitched the dogs and then fed the team.
All three of us boys had special responsibilities to Tim, Buttons and Girlie. Tim, the lead dog, was brother Mike’s pet; Tom had Buttons, and I had Girlie. We made sure they were healthy and well cared for. Dad would often comment that “Papa,” our grandfather Percy, the Englishman, took good care of his dog teams, being kind to the dogs and feeding them. Dad was the oldest of a large family that lived in Teller and later Nome.
“Papa” Percy was a prospector, fox farmer and a contestant in the All-Alaska Sweepstakes, the dog team race from Nome to the mining camp of Candle, a 400-mile race. He didn’t win, but he finished well, very well. The stories of the Sweepstakes have remained with the family for over a century. At a memorial service in Palmer for “Doc” Blatchford, Aunt Marge, without a question or a prompt, said that Papa took good care of his dogs.
Percy Blatchford was a legend in the Alaska Territory. As a teacher of Alaska newspapers, I would find headlines similar to one in the Fairbanks Daily News-Miner that blazed on the front page: “Blatchford Wins Solomon Derby.” There was even a story in The New York Times.
There’s probably no other sport in Alaska that brought Alaskans together like dog mushing. When old-timers would visit over strong coffee, dogs and dog team racing would come up. In the territory, there were few high schools and fewer gymnasiums, so the only team sport was dog mushing. It was something to talk about that was unique to Alaskans.
I used to travel in rural Alaska quite a bit. In the smaller communities, I would see the teams and would wonder how long they would power the engines that brought the mail and the foodstuffs down and up the trails. When I think of dog teaming, I think of the Iditarod and wonder, and then come to know, what the strength of the story would mean for bringing generations together from Papa Blatchford to his eldest son Ernie and to the fourth generation of Blatchfords in Alaska.
There are times when I think that old-time Alaska is gone. But then my faith and confidence in the old-time spirit are ignited when I see what others in the Lower 48 see. When I was walking in downtown Philadelphia, I looked up and saw on an ancient federal building a stamped concrete sculpture of a dog musher leaning into a blizzard. Such is the way I think of the Iditarod and the lessons I learned growing up with the dog team, preserved in my memories.
Edgar Blatchford is former mayor of Seward, Mile 0 of the Iditarod Trail.
• • •
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Alaska
These lines are adding Alaska cruises. Is your favorite on the list?
New Alaska voyages debut in 2026 as lines like MSC Cruises and Virgin Voyages expand into the booming market.
How to find the best price, perks when booking a cruise
Find the cruise that works for your budget with these tips.
Problem Solved
Travelers will have new ways to see Alaska this year.
A number of cruise lines are launching sailings to the Last Frontier in 2026, from luxury to large family-friendly and adults-only ships. About 65% of people visiting the state during the summer do so by cruise ship, according to Cruise Lines International Association Alaska, and demand is high.
“I think Alaska is always very popular, but we’re seeing that ships are selling out way quicker than they used to,” Joanna Kuther, a travel agent and owner of Port Side Travel Consultants, told USA TODAY.
With new inventory opening up this season, here’s what travelers should know about Alaska cruises.
Which cruise lines are adding Alaska sailings?
- MSC Cruises will launch its first-ever Alaska sailings aboard MSC Poesia on May 11. The ship will be fresh from dry dock to add enhancements, including the line’s luxe ship-within-a-ship concept, the MSC Yacht Club.
- Virgin Voyages’ newest ship, Brilliant Lady, will operate the company’s inaugural Alaska cruises. The adults-only cruise line will set sail there starting on May 21.
- The Ritz-Carlton Yacht Collection will debut its first Alaska cruises this year on its Luminara vessel. The first of those sailings will depart on May 28.
Those join other operators like Holland America Line, Princess Cruises, American Cruise Lines, Norwegian Cruise Line, Royal Caribbean International, Disney Cruise Line, Celebrity Cruises and more.
What are the draws of Alaska cruises?
Glaciers are a major attraction for visitors. “One of the major (draws) is Glacier Bay,” said Kuther. “…And then the other one is definitely the wildlife.”
That includes bears, whales, moose and salmon. In addition to its many natural wonders, the state is also a cultural destination where visitors can learn about its Native peoples.
When is the best time to take an Alaska cruise?
That depends what you’re looking for. The Alaska cruise season generally runs from April through October, and Kuther said visitors will tend to see more wildlife between the end of June through August.
“That’s super peak season,” she said. “That’s also where you’re going to have more families, more crowds.” Some locals have also said those crowds are putting a strain on the very environment tourists are there to see.
Travelers may find less packed ships and ports by visiting earlier or later in the season – and there are other perks. If passengers go in May “it’s still a little bit snowy, so your scenery is going to be really cool,” Kuther said. Travelers visiting in September or October, meanwhile, could have a better shot at seeing the northern lights.
Where do ships usually sail?
The most popular itinerary is the Inside Passage, according to Kuther. That often sails round-trip from Seattle or Vancouver with stops such as Juneau, Skagway and Ketchikan. “People will go back to Alaska and do different routes,” she said. “This is a very good way to start.”
Other options include one-way cruises between Vancouver or Seattle and Anchorage. Travelers can also take cruisetours that combine sailings with land-based exploration, including train rides and tours of Denali National Park and Preserve.
Tips for Alaska cruises
- Book early: Alaska itineraries sell out quickly, and so do shore excursions. Unique offerings like helicopter tours and dog sledding are popular, and there are only so many spots.
- Consider a balcony cabin: This is “almost a must” in Kuther’s opinion. Crew members may make announcements about whales or other sightings near the ship, and guests with their own private viewing spot won’t have to race out on deck.
- Pack carefully: “Packing is an art when it comes to Alaska,” Kuther said. “It really is, because you need so many things.” Her top three picks are bug spray, layers of clothing for the fluctuating temperatures and a waterproof jacket in case of rain.
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
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