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Alaska Senate committee advances draft capital budget, boosting funds for school maintenance

By: Corinne Smith, Alaska Beacon

Sen. Lyman Hoffman, D-Bethel, is seen in the Senate Finance Committee on Tuesday, April 25, 2023. A co-chair of the Senate Finance Committee, Hoffman is in charge of the state’s capital budget. (Photo by James Brooks/Alaska Beacon)

The Alaska Senate Finance committee advanced a draft capital budget on Tuesday that would put nearly $250 million toward state facilities and maintenance projects next year.

The draft budget adds $88 million to Gov. Mike Dunleavy’s proposed capital budget of $159 million, with the largest additions going toward K-12 schools and university facilities maintenance. 

That was a focused effort by the finance committee, said co-chair Sen. Bert Stedman, R-Sitka, who called funding for education facilities maintenance a “heavy concentration” on Wednesday. 

Earlier this year, students and school officials testified to lawmakers that decades of deferred maintenance has reached crisis levels — with many rural school districts in particular grappling with deteriorating facilities, failing water and sewer systems — which they say is degrading student and staff morale. Lawmakers have expressed support and increased funding in recent years, but point to Gov. Mike Dunleavy’s history of vetoes as a roadblock for funding education.  

The Senate draft includes $57.8 million in additional funding toward K-12 school maintenance through the Alaska Department of Education and Early Development and $17 million toward the University of Alaska. It also includes $5.7 million for the Alaska Court System’s facilities and $8 million for community infrastructure and workforce development programs through the Alaska Department of Commerce, Community, and Economic Development. 

The Legislature relies on state ranked lists to prioritize where to direct funding to capital projects for K-12 schools, the university system and the court system. 

For K-12 schools, the state’s current major maintenance list totals over $400 million needed for 103 school projects and repairs. Stedman said he recognized this year’s capital budget will only fund a fraction of those.

“Hopefully we get a quarter of it done, or something like that, but it’d be nice to retire the entire list,” Stedman said. 

The draft budget would fund the top 15 school projects on the list, plus funds for three other schools in need of emergency fuel tank repairs. The top projects range from roof and boiler replacements to septic systems, fire suppression and safety upgrades in schools from Fairbanks to the Aleutian Islands. 

In order to distribute funds more widely, members of the finance committee reduced funding for one project in Galena, in the Western Interior of Alaska, from roughly $35 million to $5 million for renovations to the Sydney C. Huntington Elementary and High Schools. They also allocated $17 million towards rebuilding the school in Stebbins in Western Alaska, after it burned down in 2024.

Mt. Edgecumbe High School student housing in Sitka is seen on Oct. 6, 2025 (Photo by Corinne Smith/Alaska Beacon)
Mt. Edgecumbe High School student housing in Sitka is seen on Oct. 6, 2025. (Photo by Corinne Smith/Alaska Beacon)

The Senate draft also adds nearly $14 million in funding for the state-run Mt. Edgecumbe High School, which has been the focus of public attention and concern after a quarter of students disenrolled this year. The additional facilities dollars include $10 million to remodel the dining hall, $3.1 million to replace dorm windows, $460,000 to replace dorm furniture, $50,000 to replace mattresses and $125,000 to replace aging laundry machines. 

Finance members added $17 million to fund the top nine projects across the University of Alaska system — three projects each within the three major campuses. 

Sen. Jesse Kiehl, D-Juneau, serves on the finance committee and his district includes University of Alaska Southeast. He described the proposed funds as a “nickel” compared to the “colossal” deferred maintenance needs of the university system. 

“That’s been built by Legislatures and Boards of Regents for 40 years,” he said on Wednesday, adding that it is a shared responsibility to put funding towards repairs and upgrades.

“The Constitution makes them a separate body within the executive branch that puts a lot of responsibility on them, too, more than the general state government,” he said “So university major maintenance is its own huge problem.”

The draft budget also includes $5.7 million for upgrades to state court facilities, mostly targeted to Anchorage and Sitka. It contains nearly $10 million for workforce development programs geared at the construction and oil and gas sectors, including for the Fairbanks Pipeline Training Center and Alaska Vocational Technical Center in Seward. 

An amendment to add $25 million to the draft budget for the Port of Anchorage, sponsored by Sen. Kelly Merrick, R-Eagle River, was voted down on Tuesday by a 5 to 2 vote. 

Before voting against the proposal, finance co-chair Sen. Lyman Hoffman, D-Bethel, said during committee deliberations the priority this year is to fund as many school maintenance projects on the list as possible, saying “schools are falling apart” and must be maintained to prevent further deterioration.

“Students that are trying to learn deserve better,” Hoffman said. “And if we are not able to provide this major maintenance, we are going to see these schools continue to crumble, and the financial burden to the state of Alaska will be hundreds of millions of dollars to rebuild schools.”

More funding for school maintenance and other capital projects could be added by the Alaska House of Representatives, who will take up the draft budget bill after it’s approved by the Senate in the coming weeks.

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Fire at Bartlett Regional Hospital causes patients to evacuate, no injuries reported

NOTN- A fire inside Bartlett Regional Hospital forced evacuations and canceled surgeries, but no serious injuries were reported.

According to a press release issued by Bartlett, officials say the fire started just before 2 p.m. in a utility closet in the Surgical Services unit after a worker accidentally cut into electrical heat tape.

A Code Red alert was issued, and hospital staff, patients, and visitors were evacuated as a precaution.

The fire was quickly contained by maintenance crews and Capital City Fire and Rescue.

An all-clear was given later in the afternoon, but outpatient appointments were canceled for the rest of the day, and all elective surgeries scheduled for tomorrow have been called off.

One worker was treated and released, and no patients or visitors were hurt.

Assessment of damage is still underway.

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Pilot on Ward Air plane rescued near Juneau

Ward Air Wheel Plane, courtesy of Ward Air

NOTN- A plane crash in Southeast Alaska sent one person to the hospital Thursday morning.

The U.S. Coast Guard received a report just after 10 a.m. of a downed aircraft near Shelter Island in Lynn Canal, KINY was sent a note from an internal source close to 12:00 p.m., as of yet the pilot’s condition has not yet been released.

The plane, operated by Ward Air, was carrying only the pilot.

The pilot was pulled from the water by another Ward Air seaplane and taken to a hospital for treatment, there are unconfirmed claims that the pilot may have suffered a head injury, though this is currently hearsay.

It’s been reported the plane was a float plane, but an unnamed source has said it was a Wheel Plane, specifically a CESSNA 206, KINY is unable to substantiate that claim, Ward Air representatives declined to comment when contacted by phone this afternoon.

The cause is currently under investigation.

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Alaska Gov. Dunleavy joins Arctic research commission as focus turns to security

Yereth Rosen, Alaska Beacon

Alaska Gov. Mike Dunleavy talks to reporters during a news conference on Monday, May 19, 2025. (Photo by James Brooks/Alaska Beacon)

Alaska Gov. Mike Dunleavy has been appointed to the U.S. Arctic Research Commission at a time when the federal agency is pivoting from its longtime focus on environmental science to more emphasis on military defense and economic development.

Dunleavy is an ally of President Donald Trump. Dunleavy’s presidential appointment, announced by the commission this week, comes five months after Liz Qaulluq Cravalho’s position on the commission was terminated. Cravalho is vice president of lands at NANA Regional Corporation, the Alaska Native corporation for the state’s northwest region. She was initially appointed by then-President Joe Biden in 2021 and reappointed in 2024.

The commission, created in 1984, advises the president and Congress on research policy. Its seven commissioners are appointed by the president.

Dunleavy is the first sitting governor to be appointed to the commission, which advises the president and Congress on Arctic research. Past Alaska lieutenant governors have served on the commission, but not during their time in state office. Mead Treadwell chaired the commission prior to being elected in 2010 as lieutenant governor in the Parnell administration, and Fran Ulmer chaired it after serving as lieutenant governor in the Knowles administration and after serving as chancellor of the University of Alaska Anchorage.

In 2019, his first year in office, Dunleavy used his veto powers to cut state funding of the University of Alaska system by 41%, an action that at the time was characterized as devastating to the university’s Arctic research, among other activities. Much of the funding was later restored through a compromise Dunleavy made with the university.

In a statement released by the commission, Dunleavy praised the role of Arctic research, saying it helps Alaskans.

“Alaska sits at the forefront of the Arctic, and our communities, resources, and strategic position make us essential to advancing responsible research, economic development, and national security in the region,” he said in a statement released by the commission. “I look forward to working with fellow commissioners to ensure that Arctic research reflects the needs of Alaskans while strengthening America’s leadership in the Arctic.”

The Trump-appointed chair of the commission, speaking Wednesday at the Arctic Encounter Summit in Anchorage, said the organization is “tremendously thrilled” to have Dunleavy as a member.

Thomas Emanual Dans, appointed by President Donald Trump as chair of hte U.S. Arctic Research Commission, speaks at the Arctic Encounter Summit in Anchorage on April 15, 2026. (Photo by Yereth Rosen/Alaska Beacon)
Thomas Emanual Dans, appointed by President Donald Trump as chair of hte U.S. Arctic Research Commission, speaks at the Arctic Encounter Summit in Anchorage on April 15, 2026. (Photo by Yereth Rosen/Alaska Beacon)

“We’re super excited about that,” said Thomas Emanual Dans, appointed in December. “We’ve got the very experienced hand and voice at our commission, and we’re looking to do big things here.”

A pivot to security needs

Dans, who also served on the commission during the first Trump administration, expressed an expansive view of the Arctic that he likened to that of 19th century explorers.

“We want to create the conditions that really unleash human flourishing. We want more. We want human life. We want people to have big dreams,” he said.

Rather than focusing on pure science, the commission is focused on security, as Dans described it.

“Security is probably the overriding, overarching theme of things,” he said.

But security has several facets, he said. It includes military security, international security, energy security and community security, “which can be interpreted broadly in terms of health and well-being” for Arctic residents and others in the nation and the world, he said.

Dans, who lives in Texas and spent most of his career in finance, served on the U.S. Arctic Research Commission during the first Trump administration. But his comments on Wednesday indicated some gaps in his Arctic and Alaska knowledge.

He mentioned Russia’s Wrangel Island, off the northern coast of Siberia, as a security threat. Wrangel island “is close to Alaska here,” he said in his speech. “And for a long time it was incorporated as part of the United States. Today we face missiles pointing at us from Wrangel Island.”

Canadian government brochures and fliers, displayed April 15, 2026, at the Arctic Encounter Summit in Anchorage, describe that country's countribution to U.S. national defense. (Photo by Yereth Rosen/Alaska Beacon)
Canadian government brochures and fliers, displayed April 15, 2026, at the Arctic Encounter Summit in Anchorage, describe that country’s countribution to U.S. national defense. U.S. Arctic policy now has a stronger emphasis on national security. (Photo by Yereth Rosen/Alaska Beacon)

Wrangel Island was never part of the United States. There is a place with a similar name – Wrangell Island – that is located in Southeast Alaska. Since 2004, Russia’s Wrangel Island, located 300 miles from the nearest point in Alaska, has been designated as a UNESCO World Heritage Site. It is famous for its Arctic biodiversity, including the world’s largest concentration of Pacific walruses.

A decade ago, Russia built a military base on the island with a focus on radar systems to monitor airspace. The military use of the island is part of Russia’s military buildup in the Arctic, which has worried U.S. officials, and it is also considered to pose a potential threat to the natural resources there.

In his Arctic Encounter Summit comments, Dans hailed the planned expansion of the U.S. Coast Guard’s icebreaker fleet, saying the fleet has “gone from zero to maybe 14.” However, the Coast Guard for decades has operated two polar-class icebreakers: the Healy, which performs annual missions in Alaska and the wider Arctic, and the Polar Star, which usually sails in the Antarctic. The Coast Guard recently acquired another icebreaker for Arctic operations. Originally an oil industrial vessel called the Aiviq, the ship was renamed Storis and commissioned in a Juneau ceremony in August. The fleet is poised to expand: there was funding for more than a dozen new icebreakers in the Trump administration spending bill known as the One Big Beautiful Bill Act.

Concerning Russia, which holds more Arctic coastline and land than any other nation, Dans urged more cooperation and communication. “I’d love to have the younger generation in Alaska learn Russian,” he said.

Within a few miles from the Dena’ina Civic and Convention Center, where Dans spoke at the Arctic Encounter Summit, classes were being conducted in Russian language at elementary, middle and high schools through the Anchorage School District’s Russian immersion program. It was launched as a full-time program in 2024, according to the school district.

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Public urges no cuts to recreation services at Assembly listening session

Family Fun Night at Dimond Park Field House, photo courtesy of Juneau Parks and Recreation

NOTN- The Juneau Assembly held a special budget listening session last night as the city faces a steep drop in revenue following last fall’s municipal election.

Assembly and staff said voter-approved changes, including a property tax mill rate cap and new sales tax exemptions on essential food and residential utilities. have created a larger-than-expected budget gap.

“As I’m sure most of or all of you know, we’re in a difficult position of having to come up with a balanced budget after significant revenue loss.” Finance Chair Christine Woll said, “People are paying less in taxes, which is a good thing. The flip side is we have less resources available to fund city services.”

Finance staff now project roughly a $14 million reduction in sales tax revenue heading into fiscal year 2027.

The Assembly is searching for $2-4 million in service cuts and potential new revenue.

“No question, there’s reduced revenue, but we’re really trying to be measured in how they approach it, which means you will be hearing from us and having this conversation over the course of two years, and you’ll get very tired of it, but expect us to be in this conversation of, ‘how do we live within our means for a couple of years?’ Because he certainly wants to make sure that it’s done thoughtfully and with lots of engagement.” Said City Manager Katie Koester.

Public testimony at the listening session focused largely on protecting Parks and Recreation services, including the Treadwell Arena, Diamond Park Field House, pools, and the Jensen-Olson Arboretum.

Testifiers told heartwarming stories about their experiences, memories and use of these city facilities emphasizing to the assembly their importance to Juneau life year round but especially during long winters like this one.

“I understand that the city has some tough decisions to make regarding funding, and while fields, playgrounds and a field house may not seem vital parts to our community, I’m here to tell you they are.” Said one testifier, Lexi, “Parks and Rec is vital to the Juneau community because it organizes sports for youth to participate in, without the high price tag of club teams. It also provides facilities that youth can play organized or pick up games. Any large cuts to Parks and Rec will substantially hurt the youth of Juneau, the parents that support them and the adults that still feel like they’re youths on the field.”

Residents argued those facilities are critical to Juneau’s physical and mental health, youth opportunities and community retention, especially through long winters.

“I made the possibly questionable decision to start playing hockey at 59 years of age.” Said testifier Kieth, “Since I started I have found a community that is incredible. What’s important to our community is what’s going to keep young people and families here in Juneau, and I’m afraid that recreation opportunities are underestimated in their value there. It’s hard to quantify. People make decisions about whether they’re going to stay here or not based upon what kind of opportunities there are. There’s a wide range of people that I’ve met there, from all across the community that I would never have met before, spans all generations. And during the dark, wet winter months, it’s always light and dry, well lit. And so, I just think it’s a very important place to maintain and I hope we can keep the full funding for the for the rink.”

Some speakers urged the city to raise or revisit certain tax exemptions, while others called for expanded use of user fees, volunteers, and public‑private partnerships rather than deeper cuts to specific city entities.

“Maintain existing services within your existing revenue stream. I don’t think that you ought to adjust taxes, particularly sales tax.
I do think that reasonable adjustments to fees are acceptable to users, if they enjoy the service that you’re providing, or the community is providing, then they ought to pay for those and they should understand that we’re in tough times.” Said testifier Don.

Assembly members repeatedly warned, that even with strong public support, some services are still likely to be reduced as they work to balance the budget over the next two years.

Budget discussions will continue, with more public input opportunities expected before the city passes next year’s budget.

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Alaska House rejects Senate bid to impose corporate tax on privately owned oil companies

By: Corinne Smith, Alaska Beacon

 Rep. Alyse Galvin, I-Anchorage, speaks on the House floor on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

The Alaska House of Representatives on Monday rejected a bill passed by the Senate that would have applied state corporate income taxes to privately owned oil and gas companies that currently do not pay them. Supporters said the bill would have generated up to $100 million in new revenue for Alaska.

The proposal would have required companies licensed as S corporations or as limited liability companies to pay state corporate income taxes for profits earned in the state, which they currently do not pay. The largest company affected would have been Hilcorp, a privately run Texas-based company that operates the Prudhoe Bay oil fields as well as most of the oil and gas operations in Cook Inlet.

The state does not levy a tax on income earned by S corporations and LLCs because their profits go to owners or shareholders. In many states, those people would pay personal income tax on the money, but Alaska does not have a personal income tax, so such companies avoid taxation on profits. Traditional corporations, or C corporations, are publicly traded and already subject to existing state tax law. 

Four members of the multipartisan House majority caucus objected to the proposal, and split to join the all-Republican minority members to reject the Senate’s version of House Bill 194 by a 23 to 17 vote.

House Majority Leader Rep. Chuck Kopp, R-Anchorage, was among those to oppose the bill.

House Majority Leader Chuck Kopp, R-Anchorage, speaks on Monday, March 24, 2025, in favor of House Joint Resolution 11. (Photo by James Brooks/Alaska Beacon)
House Majority Leader Chuck Kopp, R-Anchorage, speaks on Monday, March 24, 2025, in favor of House Joint Resolution 11. (Photo by James Brooks/Alaska Beacon)

“This policy creates uncertainty at the exact moment Alaska needs more energy development,” Kopp said on Monday on the House floor. “These are the people that are actually keeping our energy crisis at bay right now.”

Kopp argued the change would potentially hamper new oil and gas development. “It’s been a cold winter in Southcentral and along the Railbelt, and this is at the same time we’re asking these folks to drill more, to produce and store more gas, to explore more and to sign long term gas contracts. So it seems shortsighted to hamstring gas producers when we need them to invest a lot more right now, just to keep our schools warm, our homes heated and our businesses going,” he said.

Anchorage Independent Rep. Alyse Galvin, and Democratic Reps. Carolyn Hall of Anchorage and Robyn Frier of Utqiagvik also joined the minority caucus to oppose the bill on Monday.

Anchorage Democrat Sen. Forrest Dunbar sponsored the amendment to levy the corporate tax on privately owned oil and gas companies on a bill that would have been a routine renewal of a state oil royalty lease agreement, which passed the Senate last month. 

Dunbar criticized the House decision in a Wednesday interview, saying it was a missed opportunity to bring in revenues for Alaska.

“They took potentially $100 million or more and rather than put it towards schools or the state of Alaska, they hand it to a billionaire in Texas. I think that was a mistake,” Dunbar said. “This is some of the lowest of low hanging fruit.” 

“So I’m very disappointed in their actions,” he added. “And frankly, I’m surprised that some of the members of my party voted the way they did.”

On Monday, Big Lake Republican Rep. Kevin McCabe argued against the bill saying a tax focused on specific corporations that could result in lawsuits against the state. “I would suspect that this will lead directly to the courts,” he said. “This is just plain wrong. We shouldn’t be doing this.”

Galvin, a member of the multipartisan majority caucus, said she opposed that the measure was added to the underlying bill, but said she sees the need for more revenue. “I do think that it’s confusing when we add one bill to another, and haven’t properly vetted (it),” she said.

Galvin said she has proposed legislation, House Bill 152, which would include the corporate income tax provision, as well as a 4% state income tax on individuals earning more than $150,000 and an annual $150 tax per Alaskan to help pay for state services like education. It’s now being considered by the House Finance Committee.

“In a bill that I’m working on, I’m certainly careful to not call out one company,” she said. “But we do need to look at fairness also in all of our taxation. And I think that there is a place for us to address this.”

Galvin also requested to be excused from the vote citing a conflict of interest, but there was an objection on the House floor and she was required to vote. She told the Anchorage Daily News her husband works for Great Bear Pantheon, an Alaska subsidiary of Pantheon Resources, a Texas-based oil and gas exploration company. 

Several members argued in support of strengthening corporate income taxes to provide much-needed revenues for Alaska.

Rep. Ky Holland, I-Anchorage is seen during debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)
Rep. Ky Holland, I-Anchorage is seen during debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

Rep. Ky Holland, I-Anchorage, supported the provision saying it was a defining moment for the Legislature to take action to address what he called the “Alaska disconnect” — being a resource rich state without capturing the economic value and benefits for residents.  

“I believe this is a defining question for many of us, who I think, recognize that our state has moved past looking for the fiscal cliff and is now out beyond it,” he said. “And it’s now time for us to decide, are we willing to take some difficult votes and take some difficult action?”

Holland said failing to change the tax code could create a scenario where other businesses incorporate as S corporations or LLCs to avoid corporate income taxes. “This bill offers a way to address a point of fairness in the taxation that we have,” he said.

The amended bill now returns to the Senate, which can remove or change the provision. Those acts could result in a conference committee made up of representatives from both chambers to reach agreement on the bill.

The original legislation was introduced by the governor and passed the Alaska House last year. It would renew a three-year oil royalty agreement between the state and Marathon Petroleum Corporation, for state owned oil to be processed at its refinery in Nikiski, on the Kenai Peninsula, valued at between $4 million and $18 million in state revenue. 

Several lawmakers in the House, including Kopp, said the company was no longer interested in the state contract, voiding the need for the legislation. A spokesperson for Marathon declined to comment on Wednesday, saying the company does not comment on its crude oil sourcing. 

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Alaska Forest Service facility slated for closure amid federal restructuring

By: Yereth Rosen, Alaska Beacon


 The entrance to the Anchorage Forestry Science Laboratory is seen on April 2, 2026. The lab serves state agencies, Native corporations and private industry as well as federal agencies. The lab, in Anchorage’s Ship Creek neighborhood, is on a list of U.S. Forest Service facilities that the Trump administration plans to close. (Photo by Yereth Rosen/Alaska Beacon)

Two weeks after the Trump administration announced a U.S. Forest Service “restructuring” that would close regional offices and most of the agency’s research facilities, impacts to Alaska – home to the two largest U.S. national forests – remain unclear.

The U.S. Department of Agriculture announced on March 31 that the Forest Service’s national headquarters will move to Utah and that many of its facilities will be shuttered. Among the facilities on the closure list were two that are important to Alaska: the  and the Oregon-based  in Portland.

But other impacts on the 17-million-acre Tongass National Forest and the 5.4-million-acre Chugach National Forest were not disclosed.

A statement from the Forest Service headquarters provided few details about the Tongass, the Chugach or the visitor and recreational facilities located in either forest.

“The transition will occur in phases. Employees will receive clear information about relocation timelines, available options, and resources to support their decisions,” the statement said. “The number of relocations beyond those already identified in the National Capital Region is unknown at this time.”

U.S. Agriculture Department Secretary Brooke Rollins, whose department oversees the Forest Service, outlined the restructuring plan last year. In a July 24, 2025, memo, she said the plan included the replacement of the Alaska regional office with “a reduced state office in Juneau.” The state capital is currently the site of the Alaska regional office managing both the Tongass and the Chugach.

Three people at Begich, Boggs Visitor Center look out at Portage Lake on Aug. 30, 2025. The U.S. Forest Service's visitor center used to provide a close-up view of Portage Glacier's ice. Now the glacier has retreated so much that it is around the right corner, requiring a boat ride or mountain hike to see it in summer. A bit of Burns Glacier, which has also retreated dramatically, is visible from the visitor center. (Photo by Yereth Rosen/Alaska Beacon)
Three people at Begich, Boggs Visitor Center in the Chugach National Forest look out at Portage Lake on Aug. 30, 2025. The U.S. Forest Service’s visitor center, a popular tourist destination, used to provide a close-up view of Portage Glacier’s ice. Now the glacier has retreated so much that it is around the right corner, requiring a boat ride or mountain hike to see it in summer. A bit of Burns Glacier, which has also retreated dramatically, is visible from the visitor center. (Photo by Yereth Rosen/Alaska Beacon)

Alaska has Forest Service facilities throughout the Tongass and Chugach regions, from the southern tip of the Southeast to Anchorage.

Sen. Lisa Murkowski, R-Alaska, is also trying to learn about impacts to Alaska, a spokesperson said.

The senator and her staff are in a “fact-finding” mode and preparing to mount a “defense of the Forest Service in Alaska and make sure the employees are able to continue the good work that they’re currently doing,” said Murkowski spokesperson Joe Plesha.

The issue is expected to be managed through the Congressional appropriations process, Plesha said.

Murkowski is on the Senate Appropriations Committee and chairs the appropriations subcommittee on the Department of the Interior, Environment and Related Agencies.

The Anchorage lab that is scheduled for closure is located in the Ship Creek district of downtown Anchorage. It supports research in the Tongass National Forest, which is the nation’s largest, and the Chugach National Forest, the second largest. It also supports research on forests elsewhere, from the boreal forests of Interior Alaska to those on tiny tropical Pacific islands like Guam and Micronesia.

The lab is used not just by Forest Service scientists but by other federal agencies, state agencies, Native corporations, University of Alaska researchers and private industry, according to its website.

Tourists walk to and from a viewpoint at the Mendenhall Glacier visitor center on May 14, 2025. (Photo by Yereth Rosen/Alaska Beacon)
Tourists walk to and from a viewpoint at the Mendenhall Glacier visitor center on May 14, 2025. The visitor center in the Tongass National Forest is a top tourist destination. (Photo by Yereth Rosen/Alaska Beacon)

Up to now, the lab has had a year-round staff of about 22 scientists and administrative workers, but the numbers increase during summer field seasons.

The planned closure of the century-old Pacific Northwest Research Station in Oregon is part of a consolidation of research functions into a single site in Fort Collins, Colorado.

The Pacific Northwest facility, with about 250 employees, has an affiliated lab in Juneau. The fate of the Juneau lab remains unknown.

Among the Alaska projects undertaken by the Pacific Northwest Research station, sometimes with partner organizations, is study of the decline of yellow cedar in the Tongass and adjacent regions in the southeastern part of the state; the status of birds and rare plants in the Tongass; the study of rural Alaskans’ access to wild foods in the Chugach National Forest and the surrounding region; and the monitoring of human recreation’s impacts on brown bears.

The Forest Service closure plans follow deep cuts already made by the Trump administration’s Department of Government Efficiency, or DOGE. In the first half of 2025, the Forest Service lost 5,860 of its 35,550 employees, according to a Dec. 17, 2025,  report by the Agriculture Department’s inspector general.  

That includes losses in Alaska. As of January, Alaska’s Forest Service workforce was down to 467 from the total of about 700 before the DOGE-imposed cuts began, KTOO reported in January.

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Assembly moves to terminate Revenue Sharing Agreement with Goldbelt on Gondola Project

NOTN- The City and Borough of Juneau is moving to terminate its revenue sharing agreement with Goldbelt, as discussed at a Committee of the Whole work session Monday night, over the proposed gondola project at Eaglecrest.

Mayor Beth Weldon said the Assembly’s Committee of the Whole voted to end the existing Revenue Sharing Agreement (RSA) with Goldbelt, citing mounting interest costs and concerns over the city’s fund balance.

At Monday night’s meeting City Manager Katie Koester introduced the Gondola issue, saying, “We have a 99% designed gondola, and all the parts and pieces for this mountain, and marketing that to an outside investor is certainly something that this body has expressed interest in. As a reminder repayment on May 1 is a little over $12 million. We have about $3.3 million left in the project account. However, there’s lots of moving pieces and encumbrances, and I’d like to leave at least, you know, half a million dollars in that account to cover some of those.”

“Goldbelt still wants to negotiate, but in the meantime, the revenue sharing agreement that we have keeps collecting interest, so we moved an ordinance to terminate the RSA with Goldbelt forward to the full assembly, accompanied by an appropriate ordinance for 9.5 million from fund balance and 2.7 million in the remaining gondola project. So we’re going to terminate the RSA agreement, but that doesn’t mean that we still won’t negotiate with Goldbelt or another entity to move forward.” Weldon said.

The city is advancing an ordinance to appropriate $9.5 million from its fund balance and $2.7 million from remaining gondola project funds. Those dollars would be used to satisfy the city’s obligations under the RSA.

“There was quite a bit of conversation that this will take our fund balance down considerably, but we have yet to do all of our work, and so we’re working on trying to put stuff back in the fund balance, and we have a ways to go.” She said.

The refund to Goldbelt could go out soon after the Assembly’s next regular meeting, Weldon said. “it will come in our next assembly meeting, if that passes, it will go through.” She added.

Weldon said she has already submitted budget-cutting ideas to help replenish reserves, though it will be up to the Assembly to decide what to adopt.

The gondola was one of three major financial and development topics discussed at the Assembly Committee of the Whole work session, alongside Telephone Hill development and child care funding.

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Phase 1 HESCO Reconstruction and Fortification Work Moves Forward

Photo provided by CBJ following the installation of the HESCO barrier project

CBJ- As the snow melts, City and Borough of Juneau (CBJ) crews and contractors are now moving quickly to repair, raise and reconstruct the Phase 1 HESCO barrier project ahead of a 2026 glacial lake outburst flood (GLOF) event.

CBJ’s Engineering and Public Works department has spent months documenting damage, analyzing impacts and vulnerabilities, and utilizing the latest available hydrologic and hydraulic modeling to develop plans for the reconstruction of existing Phase 1 HESCO barriers. The CBJ Assembly has identified GLOF response, mitigation & preparedness as a top priority. The goal of this ongoing work, done in coordination with the U.S. Army Corps of Engineers (USACE), is to ensure that these flood fighting projects provide as much protection as practicable until a longer-term solution is in place.

The project includes additional bank armoring and raising HESCO barriers to protect Mendenhall Valley residents from future floods up to 90,000 cubic feet per second or approximately a 20-foot lake stage flood. A map showing planned reinforcements and raising of Phase 1 is available at juneau.org.

“The HESCO barriers proved their value in 2025, but we had some close calls, we’ve learned a lot, and we aren’t taking any chances in 2026,” explains CBJ City Manager, Katie Koester. “By doing this major reconstruction work in 2026, we can have confidence in the protection of the HESCO barriers against larger flood events, with less future disruption to residents and lower annual maintenance costs to the community.”  

The 90,000 CFS flow rate represents a 50-year GLOF event and is the number the USACE is using in their evaluation of mid-term flood fighting solutions for Juneau. Constructing to the 50-year event now, instead of annual incremental increases, will reduce future annual costs and minimize annual disruption to property owners. The “50-year event” is a probability-based number that represents the comparatively higher likelihood that a flood of 90,000 CFS may occur. Based on projections, it is possible that the Mendenhall River could experience a 90,000 CFS (20 ft) event within the operational life of the HESCO barriers.
The 2026 Phase 1 reconstruction and fortification will not impact the Local Improvement District (LID) assessments for the original Phase 1 construction. This year’s project is a separate scope that is fully funded by CBJ funding and Alaska Department of Conservation State Revolving Loan funds. CBJ and agency partners are also actively seeking grant funding to support this project.

CBJ project managers have and will continue to coordinate directly with property owners and impacted residents along the Phase 1 and Phase 2 project areas. More information about flood fighting, flood emergency preparedness and the pursuit of an enduring solution is available at bit.ly/CBJGLOF.
In addition to barrier reinforcement and fortification, CBJ is making improvements to drainage and stormwater management in the area. CBJ is coordinating with USACE to acquire over 40 industrial-grade pumps to deploy to strategic staging locations based on  anticipated  water intrusion risks. These pumps will be deployed to serve the community as a whole rather than individual properties. Importantly, they can operate for up to 24 hours do not require refueling during an event, allowing both staff and residents to safely evacuate inundation areas.

Phase 2 HESCO Barriers
USACE – Alaska District, in partnership with CBJ, began the first phases of the Phase 2 HESCO barrier project installation along the Mendenhall River last month. USACE contractor Sealaska Constructors is leading the work. The Advance Measures scope includes riverbank armoring and installation of temporary (HESCO) flood barriers to construct a fortified, complete temporary flood barrier along the unprotected, populated riverbank areas of the Mendenhall River – referred to as Phase 2 – prior to July 15, 2026. For questions about the Phase 2 HESCO Barrier Project, please contact public.affairs3@usace.army.mil.

Safety
CBJ and USACE are on a tight timeline to complete construction before the next GLOF. We ask that the public avoid the construction area for your safety and the safety of workers, residents and property owners, and to allow for efficient and expedient operations.

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Alaska House passes draft operating budget with a $1,500 PFD

By: Corinne Smith, Alaska Beacon

Reps. Calvin Schrage, I-Anchorage, Zack Fields, D-Anchorage huddle with members of the House majority caucus during a break in debates on the operating budget on Apr. 9, 2026. (Photo by Corinne Smith/Alaska Beacon)

The Alaska House of Representatives advanced a draft budget for the state’s operations next year, with a $1,500 Permanent Fund dividend for eligible Alaskans. It includes a nearly $158 million one-time funding boost for public schools and tens of millions for disaster relief, transportation and public assistance programs.

Members passed House Bill 263, the operating budget bill, along caucus lines by a 21 to 19 vote on Tuesday. 

Lawmakers spent four days debating amendments — additions, cuts and reallocations to the draft budget — on the House floor, amid deep political divides around state priorities, war-driven oil revenues and how to balance paying for government services versus distributing cash to Alaskans through the dividend. 

The draft budget now moves to the Senate for consideration, where it’s likely to be further revised. 

“I feel relieved,” said Rep. Andy Josephson, D-Anchorage and co-chair of the House Finance Committee that drafted the budget, after the vote on Monday.

Rep. Andy Josephson, D-Anchorage and co-chair of the House Finance Committee which drafted the operating budget, speaks to what's included in the budget on the House floor on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)
Rep. Andy Josephson, D-Anchorage and co-chair of the House Finance Committee which drafted the operating budget, speaks to what’s included in the budget on the House floor on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

“But the difficulty we’re in is that overall, the war in Iran, which is most unfortunate, is very helpful to budgeting,” he said. “But the Alaska people are hurting more, right, particularly when it comes to fuel prices. So that’s a problem as well.”

As Alaska has no personal income tax or state sales tax, more than 60% of funds for the general purpose budget comes from an annual draw from the Alaska Permanent Fund and roughly 30% comes from state oil revenues. 

Lawmakers have been closely watching Alaska oil prices, as they surged in recent weeks due to the Trump administration’s war on Iran. State forecasters project a potential $500 million boost in state revenues next year, but lawmakers are divided on what that should mean for state spending.

The all-Republican House minority caucus advocated for putting money towards a statutory Permanent Fund dividend, but the multipartisan majority coalition pushed the balance towards spending on state services.

Members of the all-Republican minority caucus Reps. DeLena Johnson, R-Palmer, Justin Ruffridge, R-Soldotna, Dan Saddler, R-Eagle River, Frank Tomaszewski, R-Fairbanks are seen in the House during a break in the debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)
Members of the all-Republican minority caucus Reps. DeLena Johnson, R-Palmer, Justin Ruffridge, R-Soldotna, Dan Saddler, R-Eagle River, Frank Tomaszewski, R-Fairbanks are seen in the House during a break in the debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

The House draft operating budget made revisions to Gov. Mike Dunleavy’s proposed $7.75 billion budget unveiled in December, which included a $3,800 Permanent Fund dividend and a $1.8 billion draw from state savings. 

The House draft opted not to tap into the state savings account. The House draft does include a deficit of roughly $180 million, but that total may change depending on revisions in the Senate. 

Fairbanks Republican Will Stapp criticized the deficit as an “unfunded” budget. “It’s underwater,” he said Monday. 

The draft budget contains increased funding across divisions: nearly $158 million in a one-time funding increase for public education, including nearly $11 million earmarked for student transportation; $33.3 million for Medicaid rate increases; nearly $55 million for fire suppression and $38 million for disaster relief; $17.5 million in heating assistance; $23 million for Alaska Department of Corrections staffing and tens of millions in transportation, public assistance programs like child care, infant learning programs, senior services, public health and public safety grants, among others. 

House lawmakers rejected a roughly $3,800 Permanent Fund dividend proposed by the House Finance committee, which would have cost nearly $2.5 billion and was contingent on a draw from state savings, which requires approval of three-quarters of lawmakers.

House lawmakers instead approved a $1,500 Permanent Fund dividend that will cost the state $992 million. 

Members of the multi-partisan House majority caucus expressed support for the draft budget that focused on public programs and services to enhance future benefits. 

“Education, child care, parents-as-teachers, Head Start — moving upstream to try and give our youngest, our most precious resource in the state of Alaska, the best start that we can give them,” said Rep. Calvin Schrage, I-Anchorage, acknowledging that it is a balancing act for lawmakers. 

Republican minority legislators also proposed spending increases, which included $2 million for the Alaska Department of Public Safety to establish a new Trooper post in Talkeetna, and $2 million for a sport fish hatchery in Fairbanks. Both failed along caucus lines by a 21 to 19 vote. 

Minority Leader Rep. DeLena Johnson, R-Palmer, criticized the House draft budget in a statement following its initial approval on Monday.

Rep. DeLena Johnson, R-Palmer, speaks on the House floor on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)
House Minority Leader Rep. DeLena Johnson, R-Palmer, speaks on the House floor on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

“The budget passed by the Majority is a betrayal of the Alaskans we were sent here to represent,” said Johnson. “While Alaskans face one of the most unaffordable years of their lifetimes, this Majority has chosen to fund government agencies at record levels, while leaving families and communities behind.”

Minority lawmakers introduced nearly 50 amendments on the House floor over three days, which varied from cutting additional funding for education, funds for teacher recruitment and for community and regional jails, to cutting travel budgets and reallocating public employee salaries for vacant positions to add funding for school maintenance. Most of them failed along caucus lines.

The minority’s most strident call was for a maximum Permanent fund dividend. 

“The removal of the statutory dividend that equates to removing $42.5 million dollars from the economy of my district,” said Rep. Sara Vance, R-Homer. 

While lawmakers refer to the statutory dividend of roughly $3,800 per Alaskan, in 2017 the Alaska Supreme Court ruled lawmakers may ignore the formula since it’s not in the state Constitution. Since then, legislators have typically reduced the dividend to balance state expenses and avoid drawing from savings. 

Boost to education funding

The House draft adds $158 million in one-time funding for Alaska schools, equivalent to an additional $630 per student. 

That’s in the case that various education bills that provide a sustained increase to per student funding, through state’s formula boosting the base student allocation, fail to pass this year. Those bills are currently under consideration in education committees. 

Lawmakers said they decided on the additional $630 per student after assessing the current deficits of the five largest school districts by student population. Many districts are grappling with decisions on school closures, staff cuts and increasing class sizes to address large budget shortfalls this month — including the potential closure of three schools in Anchorage, three schools in the Matanuska Susitna Borough, four schools on the Kenai Peninsula and two of the four elementary schools in Ketchikan. 

Josephson said one-time funding this year for schools seems to be more viable than an attempt to permanently raise the per student funding formula, given the governor’s history of vetoing education funding increases — including three vetoes last year alone, one which the Legislature overrode in a special session last August.

Members of the House huddle with staff members in deliberations on the operating budget on Apr. 9, 2026. (Photo by Corinne Smith/Alaska Beacon)
Members of the House majority huddle with staff members in deliberations on the operating budget on Apr. 9, 2026. (Photo by Corinne Smith/Alaska Beacon)

“It’s far from a panacea, right? It’s far from anything that is the real solution. But I think if superintendents had it, they’d be delighted to have it,” he said. 

Members of the House approved an amendment to earmark $10.9 million of that $158 million for school districts’ transportation for students, to help offset rising costs due to a war-driven rise in fuel prices.

Representatives from Northwest and Western Alaska objected to the transportation earmark, saying they were unsure if the funding would be allowed for student flights in their rural districts, which are off the road system. Rep. Jeremy Bynum, R-Ketchikan, sponsored the amendment, and said all districts would be eligible for their transportation of students, whether by road, air or ferry. It was approved by a 33 to 7 vote. 

Lawmakers also debated earmarking an additional $10 million from the remaining one-time education funding for career and technical education grants for school districts, but the proposal narrowly failed by a 20 to 20 vote. 

With a little over a month left in the legislative session, the House draft budget now goes to the Senate for consideration and likely further revisions.

On Monday, the Senate Finance Committee introduced a draft capital budget, a proposed $247 million for state facilities maintenance and construction projects, including for deferred maintenance of schools. The draft will go to the House for consideration in the coming weeks.

The legislative session is set to conclude on May 20. 

House Minority Leader Rep. DeLena Johnson, R-Palmer discusses procedure with House Speaker Rep. Bryce Edgmon, I-Dillingham and House clerks during debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)
House Minority Leader Rep. DeLena Johnson, R-Palmer discusses procedure with House Speaker Rep. Bryce Edgmon, I-Dillingham and House clerks during debate on the operating budget on Apr. 13, 2026. (Photo by Corinne Smith/Alaska Beacon)

Correction: A previous version of this story incorrectly stated the governor’s budget proposal, it was $7.75 billion not million.