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Juneau assembly votes on Eaglecrest and View Drive Buyout program

NOTN- The Juneau Assembly has voted to unwind its controversial gondola deal at Eaglecrest at tonight’s assembly meeting.

Members approved the ordinance to enter negotiations to terminate the revised revenue sharing agreement with Goldbelt and stop the mounting 7% interest charges on the gondola investment.

A follow-up measure, appropriates $12.2 million to repay Goldbelt’s $10 million, plus interest. Both votes passed 8-1, with Assembly Member Nano Brooks in opposition.

Finance Director Christine Woll argued that continuing to delay would only add nearly another $1 million in interest.

“I think we’ve been over where we are with the project and why we can no longer afford to move forward.” She said, “I think we should continue to talk to Goldbelt about the future of Eaglecrest. I think there’s plenty of things that we’ve discussed that could be mutually beneficial in a future partnership, but there is a lot to figure out if that goes forward, and I don’t know why we would do that while there is interest continuing to accumulate. By my math, it would be almost another million dollars if we were to spend a year going down that road, and we would be doing it under duress, because we want to do it quickly.”

The Assembly also took a major step toward buying out the repeatedly flooded homes along View Drive in the Mendenhall Valley.

Members approved $558,000 from the general fund to plan a buyout program with the U.S. Department of Agriculture’s Natural Resources Conservation Service. The money will pay for backdated appraisals and cost estimates to demolish homes and restore the land to a natural state.

“Each individual homeowner would have a decision to make as to whether or not they would participate in the buyout program.” Said Deputy City Manager Robert Barr, “There would be a real estate transaction that would occur, NRCs would pay 75% of that appraised value of the house. They will also pay 75% It’s a little bit more complicated than that, but in general, they would also pay 75% of the project costs to demolish and return those properties to that natural state.”

Residents could also publicly testify, using their time to warn city leaders against deep cuts to recreation and to question the future of Telephone Hill development.

Public testimony in the hour prior to the passage of terminating the gondola deal, focused on Eaglecrest and the city’s budget shortfall. Supporters called Eaglecrest a cornerstone of Juneau’s livability and a key reason families stay.

“I came to Juneau in 1971 when I was 23. I learned to ski and met my husband at Third Cabin before Eaglecrest. When we had children, skiing became something of a family thing we did on Sundays, because it was much cheaper on Sundays. And Eaglecrest has always been more affordable than any area down south. Our kids grew up skiing, and I really attribute those years at Eaglecrest with helping our children grow up with grit, a love for the outdoors, learning time management when they started traveling with the ski team, and having a sport that helped to create healthy adults.” Said longtime skier and testifier Sharon Denton, “I honestly can’t imagine a winter in Juneau without Eaglecrest. I thank you for funding to keep it going next year, but we have to look further.”

Several speakers also challenged the city’s approach to Telephone Hill.

Larry Talley and Mary Alice McKeen cited the city’s own market analysis, arguing the proposed housing project would require tens of millions in subsidies and a per-unit funding gap far above Juneau’s normal affordable housing support.

“From what I know, the proposed development on Telephone Hill of 155 units with 25 affordable is not financially feasible. The first question in the City Manager’s Telephone FAQ was, ‘why is CBJ moving forward with evictions and building demolition without a developer in place?’ And the answer was, quote, ‘Telephone Hill has been carefully analyzed through the market analysis, and the Assembly has chosen to develop the property.’ She did not cite any specific numbers or pages from that market analysis.” Said McKeen, asking of the RFQ, “How many units will be built if the development plan goes forward as proposed? How many units will be affordable? And the most important question, How much public subsidy will be required? The maximum subsidy in the Juneau Affordable Housing Fund is $50,000 If the gap for this project is greater than $50,000 the project should not go forward.”

Separately, the city is actively working to craft next year’s budget, as well as Eaglcrest’s budget.

The city must finalize the budget by June 15, there will be another opportunity for public testimony on June 8.

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Alaska House votes to immediately eliminate sick leave for many workers in the state

By: James Brooks, Alaska Beacon

The Alaska State Capitol in Juneau is seen on Apr. 24, 2026. (Photo by Claire Stremple/Alaska Beacon)

Less than two years after Alaskans approved a ballot measure creating a mandatory sick leave law, the Alaska House of Representatives has voted to partially repeal it.

By a 22-18 vote on Saturday, the House approved an amendment that would cancel the law’s application for seasonal workers and for workers employed by a business with nine or fewer employees. The cancellation would take effect immediately, if the bill is signed into law.

Seasonal workers are defined as those who work at a specific job for less than six months per year.

All of the House’s Republican members voted for the amendment, including Reps. Chuck Kopp, R-Anchorage, and Louise Stutes, R-Kodiak, who are members of the House’s predominantly Democratic majority caucus. Speaker of the House Bryce Edgmon, I-Dillingham, also voted for the amendment.

All of the House’s Democratic members and its remaining independents opposed the amendment.

The amendment was to House Bill 193, which would create a mandatory paid leave program for new parents, starting in 2030. That bill advanced from the House on a 36-4 vote and was scheduled for a hearing in the Senate Finance Committee on Monday afternoon.

The four opposition votes all came from Republican lawmakers in the House’s minority caucus. 

It was not immediately clear whether the bill had the necessary support to pass the Senate before the end of the legislative session on Wednesday night. 

The amendment, introduced by Rep. Julie Coulombe, R-Anchorage, was largely identical to House Bill 161, a rollback measure that failed to advance in the Capitol this year despite significant lobbying efforts from business groups.

The state’s fishing industry, tourism industry, construction industry, the state chamber of commerce and several local chambers of commerce all have advocated HB 161. 

Speaking ahead of the vote, several Republican lawmakers said they were heeding that call and voting yes on the amendment to HB 193.

“It’s actually been my number one priority since I got back here this year,” said Rep. Will Stapp, R-Fairbanks, speaking about the rollback.

Much of the desire for the rollback, Stapp explained, is because during its first year, seasonal employees saved their sick leave until the end of their term, then used it right before their departure, leaving employers short-staffed.

“That is creating a workforce crisis at the end of the season that is going to progressively get worse and worse and worse for our fishing industry, for our tourist industry, for our construction industry,” he said. 

Speaking on the floor ahead of the vote, Coulombe said she had hoped to cancel sick leave for all workers at businesses with fewer than 50 employees, but she received a legal memo indicating that doing so would be illegal because Alaska’s constitution prohibits the Legislature from repealing a ballot measure within its first two years, and such a large exemption would have covered roughly half of the state’s workers. 

Rep. Sarah Vance, R-Homer, said the sick leave law is “gutting the small businesses in my community.” 

“We need to be listening to our business community right now, that so many of them (came to us) and said, ‘We need help,’” she said.

Rep. Zack Fields, D-Anchorage, was among the lawmakers who urged the House to reject the amendment.

“I think it’s very problematic to substantially gut a ballot initiative less than two years after it was passed by voters,” he said.

Exempting seasonal workers means exempting multinational tourism and fishing businesses that operate in Alaska, he noted.

“Do we really need to exempt all the employees of massive multinational businesses like Holland America Princess?” he asked.

During the COVID-19 pandemic emergency, fish processing plants and cruise ships were hotspots of infection and disease. Outside the COVID-19 pandemic, tourism occasionally brings waves of influenza and norovirus to coastal communities.

“When we have a tourism dependent economy, it is not in our interest to push sick people to come to work when they’re serving food, when they’re doing hospitality,” Fields said.

In 2024, Rep. Genevieve Mina, D-Anchorage, was one of the key organizers behind the sick leave ballot measure. Like her Democratic colleagues, she opposed the sick leave rollback but ultimately voted for the underlying bill even though it contained the rollback.

“The bill is a great bill, and you can just see the strong bipartisan support,” she said. “This whole building is an area of trying to figure out compromises and figuring out the ways where we can do good things that are supportive for families and can really address these issues about migration that our state has been facing. It’s not over for the bill or for paid sick (leave), so we’ll just see what happens on the Senate side.”

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Alaska lawmakers reach budget deal with $1,000 PFD and $200 energy rebate for residents

The Alaska Legislature's operating budget conference committee is seen on Monday, May 11, 2026. (James Brooks photo/Alaska Beacon)

By: James Brooks, Alaska Beacon

The Alaska Legislature’s operating budget conference committee is seen on Monday, May 11, 2026. (James Brooks photo/Alaska Beacon)

Alaska lawmakers are planning to vote on a $13.9 billion compromise state operating budget that includes a $1,000 Permanent Fund dividend and a $200 energy rebate.

In a 4-2 vote Sunday morning, a panel of House and Senate negotiators finalized a deal that combines two different versions of the budget — one passed by the Senate and the other by the House — preparing legislators for a final vote before the last regular day of the legislative session on Wednesday.

Once passed by the Legislature, the budget will go to Gov. Mike Dunleavy, who may sign it or use his line-item veto powers to eliminate or reduce specific items. The governor has never let a budget go into law without some vetoes. 

With legislators focused on a potential tax break for the proposed trans-Alaska natural gas pipeline, the state budget has taken second billing in the state Capitol this month.

Legislators convened in January with the expectation that they would be facing a massive deficit in fiscal year 2027, which starts July 1. 

The Iran war, and the subsequent closure of the Strait of Hormuz, has sent oil prices soaring, resulting in hundreds of millions of dollars in extra revenue for the state.

That eliminated the projected deficit, but lawmakers don’t expect to have much left over for the Permanent Fund dividend.

While a payment formula from the 1980s remains in state law, legislators since 2016 have adopted a “surplus dividend” approach, paying the dividend with what’s left over after services are covered.

While Dunleavy proposed a $3,800 Permanent Fund dividend in December, that would have required deep spending from the state’s savings accounts. 

Members of the House approved a draft budget with a $1,500 Permanent Fund dividend in April, and in a competing draft, the Senate reduced that to $1,000 and a $150 one-time bonus intended to offset higher energy prices.

The final compromise version of the budget closely resembles the Senate plan, but the one-time bonus was slightly increased, to $200, in an amendment proposed over the weekend.

The final version of the budget also contains $144 million in one-time bonus payments for public schools across the state, including $29 million intended to offset the high cost of heating fuel. 

The one-time bonus is less than the House proposed but higher than the Senate’s figure. 

The budget also proposes to fund a heating assistance program for Alaskans, increase Medicaid reimbursements for medical providers, send additional money to cities and boroughs, and increase funding for wildfire response.

Altogether, the budget balances if Alaska North Slope oil prices average at least $75 per barrel in FY27. The average price since March is above $100 per barrel.

The operating budget advancing to a final vote is the last of four budget bills that lawmakers approve in an ordinary year. 

The state’s supplemental budget — making changes to fiscal year 2026 — was adopted in March and signed by the governor in April. The $2.5 billion capital budget, which funds construction and renovation projects statewide, is awaiting a final vote in the Senate.

Alaska’s comprehensive mental health budget is moving in parallel to the operating budget and is expected to pass when the operating budget does.

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Alaska legislators approve $2.5 billion for new construction and renovation projects

By: James Brooks, Alaska Beacon

House lawmakers watch the voting board Friday, May 15, 2026, on the floor of the Alaska House of Representatives as they vote for the state’s capital budget. (James Brooks photo/Alaska Beacon)

Days before the end of their regular legislative session, the Alaska Legislature has almost finalized the state’s annual capital budget, one of four regular budget bills that pass through the Capitol annually.

Passed by the state House in a 24-16 vote on Friday, the capital budget contains $2.5 billion in spending, including $323 million for drinking water projects, $148.3 million for K-12 public school repairs and construction and $42.5 million for the University of Alaska. 

Various federal programs are expected to pay for the bulk of the bill — $1.8 billion in total. State accounts would be used to pay for the remainder.

The amount of state money in this year’s capital budget is almost double what it was last year, when spending was near a record low.

Even with the increase, spending remains short of what’s needed to cover deferred maintenance. Two years ago, the statewide deferred maintenance backlog was estimated at $2.4 billion, with $180 million per year needed to keep that figure from increasing. 

The part of this year’s budget devoted to deferred maintenance is near that amount — it does not significantly reduce the backlog.

The capital budget covers spending in fiscal year 2027, which starts July 1. If oil prices are higher than predicted during the first half of that year, the state would earn millions of dollars in extra revenue, and the bill calls for diverting that money to a variety of maintenance and construction projects statewide.

Rep. Calvin Schrage, I-Anchorage and co-chair of the House Finance Committee, speaks Friday, May 15, 2026, on the floor of the Alaska House of Representatives. (James Brooks photo/Alaska Beacon)
Rep. Calvin Schrage, I-Anchorage and co-chair of the House Finance Committee, speaks Friday, May 15, 2026, on the floor of the Alaska House of Representatives. (James Brooks photo/Alaska Beacon)

“This capital budget, to be honest, is in some ways a huge step forward over last year,” said Rep. Calvin Schrage, I-Anchorage and co-chair of the House Finance Committee in charge of the capital budget. 

“We see a much larger investment in being able to address some of our key areas in the state, but it also, I will recognize, does not go far enough, given the levels of deferred maintenance and other needs throughout our state,” he said.

Before the final vote, House lawmakers spent two days considering possible amendments to the bill but adopted only two. The most substantial restored some federal funding for the West Susitna Access Project, a proposal to build a road into the western Matanuska-Susitna Borough in order to support mining projects.

Members of the House Finance Committee had eliminated the Alaska Industrial Development and Export Authority’s ability to accept federal money for the project. On the House floor, lawmakers restored half of the receipt authority.

Rep. Kevin McCabe, R-Big Lake and a booster of the project, thanked his colleagues for restoring that money but said he couldn’t vote for the bill because it didn’t contain full funding for the access project.

Even then, “It’s a decent bill. It’s got things in there for just about everybody,” McCabe said.

The House’s vote sends the capital budget back to the Senate, which approved an earlier version of the bill by a 19-0 vote on April 21. 

Before that vote, House and Senate leaders negotiated an agreement that would allow the House to add no more than $100 million in projects funded by general-purpose state dollars to the capital budget.

The House-passed version abides by that agreement, and Senate aides familiar with both the budget and the agreement said they do not expect senators to object to the House’s additions.

House and Senate lawmakers are negotiating a compromise operating budget and a compromise mental health budget; those are expected to pass from the Capitol on Wednesday, the last day of the regular session. Legislators and Dunleavy previously approved the supplemental budget, the first of the four regular budget bills.

After being transmitted to the governor, all budget bills are subject to his line-item veto powers. Dunleavy may eliminate or reduce specific items in the budget but cannot add any or increase their amounts.

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Alaska Legislature rejects Gov. Mike Dunleavy’s pick for attorney general

By: James Brooks, Alaska Beacon

Alaska Attorney General Stephen Cox, with Goov. Mike Dunleavy, speaks at a Feb. 12, 2026, news conference in Anchorage about drug enforcement. (Photo by Yereth Rosen/Alaska Beacon)

In a historic vote, Alaska lawmakers rejected Stephen Cox as the state’s new attorney general by a 29-31 vote that saw Cox become just the second cabinet appointment in state history to fail confirmation.

Thirty-one votes were needed for confirmation as the 40-person state House and 20-person state Senate met jointly Thursday to vote on 75 nominations for state boards, commissions and the governor’s cabinet.

Speaking in the Capitol on Thursday, opponents said they viewed Cox as a Republican ideologue who favored party-supported policies at the expense of Alaskans. In particular, opponents pointed to Cox’s support for a lawsuit that could end birthright citizenship and his failure to support the state’s absentee voting program.

The Legislature’s rejection is likely to have limited long-term effects. Immediately after the vote, Dunleavy announced he had named Cox as “Counsel to the Governor,” a position he will take immediately.

“Stephen Cox has a strong understanding of Alaska law and the challenges facing our state,” Dunleavy said in a written statement. “His experience, professionalism, and commitment to public service make him a valuable asset as Counsel to the Governor. I look forward to working with Stephen as we continue advancing policies that strengthen Alaska’s economy, uphold the rule of law, and serve the people of our state.”

Rep. Andrew Gray, D-Anchorage and chair of the House Judiciary Committee, opposed Cox as attorney general but supports the new role. 

“I think it makes perfect sense,” Gray said. “I think that’s actually a perfect fit. I think Stephen Cox would make an excellent attorney to the governor because they have a lot of alignment and similar priorities.”

The new position was created specifically for Cox within the Office of the Governor.

“The governor has those choices,” said Sen. Matt Claman, D-Anchorage and chair of the Senate Judiciary Committee. “That’s within his power.”

Dunleavy also named Deputy Attorney General Cori Mills as the acting head of the Department of Law.

Dunleavy may designate a permanent replacement who can serve until he is replaced by a new governor in December.

State law prohibits the governor from reappointing Cox as attorney general.

The governor’s other cabinet appointees, including officials in charge of natural resources, the environment and the treasury, received wide support and were confirmed by near-unanimous votes.

Legislators have not rejected a cabinet appointment since 2009, when the Legislature failed to confirm then-Gov. Sarah Palin’s choice of Wayne Anthony Ross to become attorney general.

Speaking Thursday, Rep. Andrew Gray, D-Anchorage, criticized Cox’s decision to hire an out-of-state attorney with no experience in Alaska as the state’s first Solicitor General.

Following that hire, Cox led the Department of Law in joining Alaska in more than 100 friend-of-the-court briefs on national cases. In some of those cases, Gray said, the briefs were contrary to Alaska law and Alaskans’ interests.

“I believe that Stephen Cox would make probably a good attorney general in a state, just not in our state. He is not the right choice for Alaska,” said Rep. Andrew Gray, D-Anchorage and chair of the House Judiciary Committee.

Sen. Loki Tobin, D-Anchorage, speaks Thursday, May 14, 2026, during a joint session of the Alaska Legislature. (James Brooks photo/Alaska Beacon)

Sen. Lӧki Tobin, D-Anchorage, was particularly critical of Cox’s signature on a letter supporting President Donald Trump’s attempt to eliminate birthright citizenship in the United States.

“That stance threatens my rights. It threatens your rights,” she said, speaking to Senate President Gary Stevens, R-Kodiak. “It threatens every Alaskan’s rights.”

Rep. Kevin McCabe, R-Big Lake, appeared to offer a rebuttal to that argument, noting that in general, “attorneys are mercenaries.”

“Somebody’s their boss, whether you’re paying them or whether the governor or the executive hires them. So I suspect that a lot of what we are talking about here is not some rogue attorney general off on his own. I think that he’s had directions that have been provided to him. He’s doing a certain number of things that his boss is telling him to do,” he said.

Rep. Steve St. Clair, R-Wasilla, speaks on the House floor Thursday, May 14, 2026. (James Brooks photo/Alaska Beacon)

Sen. Forrest Dunbar, D-Anchorage, responded to that argument. He said the case against birthright citizenship isn’t just wrong on a moral basis, it’s wrong on a factual basis, and it was unethical for the state to back it.

“We should not have signed on to it, and a qualified attorney should not have signed on to it. I don’t know if the governor pressured the Attorney General to sign on to it, or if he did it voluntarily. It actually doesn’t matter to an ethical attorney,” Dunbar said. “An attorney being asked to make those spurious arguments and sign on to an amicus brief that would repeal birthright citizenship should have resigned rather than go forward with that argument.”

Legislators rejected only two other appointments. 

Hannah Mielke was turned down for a public seat on the Alaska State Medical Board.

Mielke is an 18-year-old who graduated from high school last year and currently works as an office assistant for Dunleavy.

Opponents said she was unqualified to supervise the state’s doctors and medical professionals. Supporters noted she would be the only female member of the board and significantly younger than other members.

“Frankly, I think a fresh perspective would be good,” said Rep. Mike Prax, R-North Pole. “It really doesn’t matter if you’re 20 or 69, soon to be 70.”

Rep. Sarah Vance, R-Homer, said a large number of young women are skeptical of the medical industry, and Mielke’s perspective could be useful.

Mielke’s nomination failed 13-47.

Lawmakers also turned down Crystal Herring for a seat on the State Board of Professional Counselors. Tobin, speaking in opposition, said her appointment may not follow state law, which requires the appointment go to someone involved in mental health treatment. Herring just provides transportation, she said.

Other objections were raised over the conduct of a COVID-19 pandemic emergency clinic she ran under a contract with the city of Anchorage while donating financially to then-Mayor Dave Bronson.

Her nomination was rejected 28-32.

Members of the Alaska Senate watch the voting board as Stephen Cox fails to be confirmed as Alaska’s attorney general on Thursday, May 14, 2026. (James Brooks photo/Alaska Beacon)
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Alaska Legislature passes resolution urging Trump administration waive visa fee for teachers

By: Corinne Smith, Alaska Beacon

Students arrive for the first day of school at Harborview Elementary School in Juneau on Aug. 15, 2025 (Photo by Corinne Smith/Alaska Beacon)

The Alaska Legislature passed a resolution urging the Trump administration to waive a steep visa fee to allow the continued recruitment and hiring of international teachers.

Alaska school districts have increasingly relied on international hiring to fill an ongoing teacher shortage across the state, particularly in rural and remote districts. Last fall, the Trump administration issued an executive order increasing the H-1B visa fee from $5,000 per applicant to $100,000 per applicant — putting such visas out of reach for Alaska districts. 

The Alaska Senate unanimously passed House Joint Resolution 39 on Tuesday, previously passed by the House, sending it on to Gov. Mike Dunleavy for consideration.

The H-1B visa program provides non-immigrant visas for highly skilled workers, including in education, health care and technology. In Alaska, districts have relied on international educators, particularly for teaching math, science and special education, according to the resolution. The visa is valid for up to six years. 

Currently, roughly 570 international teachers are working in Alaska via the visa program. And there are over 1,000 teacher and staff openings in Alaska posted on a job board run by the Alaska Educator Retention and Recruitment Center, a division of the Alaska Council of School Administrators.

Alaska school officials say the new fee is an insurmountable financial burden for districts, as they are in the process of recruiting and hiring teachers for next year.

Sen. Löki Tobin, D-Anchorage, speaks in support of a new state pension plan on Apr. 28, 2026. (Photo by Corinne Smith/Alaska Beacon)
Sen. Löki Tobin, D-Anchorage, speaks in support of a new state pension plan on Apr. 28, 2026. (Photo by Corinne Smith/Alaska Beacon)

Sen. Löki Tobin, D-Anchorage, carried the resolution in the Senate and said the roughly 2,000% increase in the fee has restricted the flow of critical education professionals coming into the state. “Unfortunately this means that many of these education professions will go unfilled, we just don’t have the resources to cover that $100,000,” Tobin said on Wednesday.

“HJR 39 simply asks our federal government to waive this fee,” Tobin said. 

The Legislature’s support and the joint resolution reinforces proposed federal legislation backed by U.S. Republican Sens. Lisa Murkowski and Dan Sullivan. It was introduced in the U.S. Senate by Murkowski in March but has not advanced since then.

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A huge data center could rise on Alaska’s North Slope

By: Nathaniel Herz, Northern Journal

Stak Energy’s data center would sit roughly one mile west of the Dalton Highway, which connects urban Alaska to the state’s North Slope oil fields. (Arthur T. LaBar, CC BY 2.0)

One of the largest data centers in the nation has been proposed on Alaska’s Arctic North Slope, where boosters say it could take advantage of abundant land, cold temperatures for cooling and a huge supply of natural gas for power.

The $500 million development would occupy an entire square mile with multiple buildings in a remote area off the Dalton Highway, some 25 miles south of the North Slope’s major infrastructure. That’s according to documents released this week by the state, which on Tuesday issued a preliminary decision to lease the property to the project’s operator.

A newly built pipeline would carry natural gas to fuel the data center’s power plant — which, according to the documents, could use more than twice as much of the fuel as urban Alaska consumes for electrical generation and home and commercial heating. The project could ultimately produce up to three gigawatts of power for its own use, making it competitive with some of the largest data centers under development in the Lower 48.

The company behind the project is Stak Energy, which last year proposed a far smaller project more narrowly focused on digital mining of cryptocurrency. It now says it plans to support “large-scale AI and cloud computing operations,” including training of large-scale machine learning models and high-performance scientific and analytical computing.

The company in November proposed its lease to the Alaska Department of Natural Resources, which subsequently published a notice to solicit competing bids. None came in, so the department is now proceeding with the leasing process, with a public comment period on the preliminary decision open through June 15.

Stak has not disclosed who would finance its new project, though it previously said it was raising money from Anchorage firm McKinley Alaska Private Investment.

Stak has expanded significantly in recent months, making a number of politically connected hires including Gov. Mike Dunleavy’s former natural resources commissioner, John Boyle, and a former special assistant at the natural resources department, Jim Shine.

The company’s founder and chief executive, Sparrow Mahoney, grew up in Alaska and attended Wasilla High School.

Stak officials declined to respond to specific questions about its proposal. But the company shared a prepared statement that describes itself as having “deep Alaska roots, built on decades of combined experience across the state’s energy and infrastructure landscape — and proud to help build Alaska’s next era of prosperity.”

The lease application, the company said, “reflects an important milestone for anchoring Alaska as America’s at-scale energy solution — a meaningful step toward bringing opportunity, jobs, and revenue home to stay.”

“Stak Energy is committed to responsible development, expanding opportunity, and contributing to a more diverse and resilient Alaskan economy,” the company said.

Energy experts said that Stak’s lease application, released by the state, is thorough. But it also raises a number of questions.

One is how quickly the company can secure the natural gas-powered turbines that it would use to generate electricity. Rising demand for those turbines, prompted by the rush to build new data centers and the overall expansion of natural gas-fired power, is leading to manufacturing backlogs as long as seven years; Stak says it wants its initial operations to begin in 2028.

Then, there’s the question of where, exactly, Stak will get its natural gas supply.

Alaska’s North Slope oil fields contain huge deposits of natural gas. But historically, petroleum companies have almost exclusively extracted oil from those fields, as it’s more energy-dense and can be shipped down the 800-mile trans-Alaska pipeline; minimal infrastructure exists to move North Slope natural gas to market.

Companies presumably would be willing to sell gas to a project like Stak’s, according to Antony Scott, a former commercial petroleum analyst for the Alaska Department of Natural Resources.

But details of Stak’s land lease application makes clear that at the time it was submitted, the company hadn’t yet struck a firm deal for gas supply, he added. Stak says its gas pipeline could run anywhere between 25 and 90 miles, which implies that it could connect to any number of different petroleum fields on the North Slope.

“That means they don’t have a gas supply,” Scott said.

Scott added, though, that the project’s remote location — and the fact that it wouldn’t connect to Alaska’s urban power grid and risk driving up demand and prices for electricity, like data centers have in the Lower 48 — help smooth the project’s path.

“The issue of data centers and the effect on normal humanity’s electricity bills is causing real angst,” Scott said. On Alaska’s North Slope, he added, “we avoid all of that. You can just step into this friendly environment.”

Stak’s application and supporting material say its project has another leg up on Lower 48 developments.

Outside projects have faced increasingly strident opposition in response to their enormous consumption of water for cooling. The company says in its lease application materials that its North Slope location is a “crucial design advantage” because of an average annual temperature of 12F — allowing it to use air for cooling instead of depending on water.

Air cooling, the company says, is expected to reduce water consumption by 90% or more, “compared to industry norms.” Stak isn’t proposing any formal use for the project’s waste heat for now, but it says that “potential applications” include keeping greenhouses warm or supporting aquaculture.

One comparative disadvantage for Stak: It would be powering its computer infrastructure with fossil fuels. Some technology companies with carbon emissions targets are making efforts to run their data centers on non-fossil energy like nuclear power, wind and solar, though other projects have also tapped into natural gas.

Stak, in its application, says it’s monitoring developments in technology that could allow it to capture and store its carbon emissions. But at least initially, a dearth of infrastructure and a lack of understanding of the region’s geology for storing carbon are among the obstacles it faces, the company said.

Dunleavy’s administration, which has pushed to develop a data center industry in Alaska, has issued a preliminary, formal decision that the project is in the state’s “best interest” — a necessary step before it can issue the 50-year land lease that it’s currently considering.

The preliminary decision cites a peak construction workforce of 1,500 people, with some 60 permanent jobs that would be created by the project.

Stak will have to complete additional permitting before the project can move forward — namely, a federal Clean Water Act authorization needed to create the company’s gravel pad that will elevate its power plants and computer systems at least five feet off the tundra.

The project would require an enormous amount of gravel — some 7 million cubic yards worth, according to the state leasing documents.

That’s nearly twice as much as petroleum company ConocoPhillips is authorized to use for its big Willow oil project, Stak says.

Nathaniel Herz welcomes tips at natherz@gmail.com or (907) 793-0312. This article was originally published in Northern Journal, a newsletter from Herz. Subscribe at this link.

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CBJ looks to savings, tax shifts and bonds to avoid recreation service cuts

NOTN- Juneau’s city officials are still weighing cuts to city services, new debt for infrastructure and a major change to sales tax rules as they work to close a nearly $12 million dollar budget deficit.

After a nearly five-hour finance committee meeting last night, officials began prioritizing a list of possible reductions. The work will shape the budget the Assembly expects to pass by the deadline on June 15.

Still under consideration are cuts to destination marketing through Travel Juneau, economic development funding for the Juneau Economic Development Council, potential closure of Mount Jumbo Gym, reduced hours or closure of the City Museum, and cuts to arts and culture funding through the Juneau Arts and Humanities Council.

Some of the most controversial ideas have been taken off the table for this year, including closing one of the city’s pools, the field house and the Treadwell arena. Those facilities will instead be supported with city savings which will be a short-term solution.

“Those were the ones that we had heard lots of public feedback on.” Said Finance Director Christine Woll, “Closure of the ice rink is no longer in consideration. I will say, everyone on the assembly acknowledged we can get away with not making those cuts this year, but that’s because we have a lot of money in savings, and so using our savings to fund those facilities will not work much for longer than a year.”

The Assembly is also considering up to two bond proposals for the ballot, Woll said, one for improvements to aging school facilities and another for water and wastewater infrastructure. She said general obligation bonds are appropriate only for capital projects and must be approved by voters.

“With approval from the taxpayers, the city does have a good amount of debt capacity and one piece I’ll add to that is, we would only use debt for Capital Projects, right? So the idea is you would borrow money so you can improve something or build something, and then pay it back over time, as opposed to taking on debt to operate something into the future.” Woll said, “So the Assembly is looking at putting up to two bond proposals on the ballot. We haven’t decided yet, but basically we’re looking at taking on debt for some improvements to our aging school facilities, as well as our water and wastewater infrastructure. So those in my opinion, good projects for debt.”

The Assembly plans a public hearing June 8, the same day many budget decisions are expected, and is accepting email comments at boroughassembly@juneau.gov. Woll urged residents to weigh in on the tax cap and potential service cuts as soon as possible.

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Alaska House passes bill aimed at stabilizing budgets for school districts

By: Corinne Smith, Alaska Beacon

Members of the Alaska House of Representatives convene on the first day of the second session of the 34th Alaska State Legislature on Jan. 20, 2026 (Photo by Corinne Smith/Alaska Beacon)


Lawmakers in the Alaska House passed a bill that aims to stabilize budgets for Alaska school districts by redefining how they calculate their student counts. The student count makes up the base of the state’s education funding formula. 

Lawmakers passed House Bill 261 by a 31 to 9 vote, with bipartisan support, on Tuesday. Under the new calculation of the student count, the bill would provide an additional $143 million in state funding to school districts next year. 

But with competing education funding and policy proposals in the Legislature — and just seven days left in the legislative session — the bill heads to the Alaska Senate for consideration and its future is uncertain.

Rep. Andi Story, D-Juneau, speaks on the House floor on May 11, 2026. (Photo by Corinne Smith/Alaska Beacon)
Rep. Andi Story, D-Juneau, speaks on the House floor on May 11, 2026. (Photo by Corinne Smith/Alaska Beacon)

The legislation, sponsored by Rep. Andi Story, D-Juneau, would allow school districts to make their student counts and budget estimates earlier in the year. Currently, schools make an estimated student count in October, and revise it in the spring. Under the proposed legislation, districts would use the previous three-year average of their student count — or the previous year’s count, if it is more than 5% higher. 

Story described the change as a way for school districts to get off a budgeting “rollercoaster” and allow districts to have firmer budget estimates, including more certainty in offering contracts to teachers and staff in the spring.  

“This is such a policy change that would so help Alaska stabilize education and get more relief and more certainty, and less stress for our families,” she said Tuesday, after the vote. 

Alaska school districts are grappling with major budget deficits and rising costs, which have them planning cuts and teacher and staff layoffs across the state — at least 11 schools are slated for closure — amid years of ongoing debates among legislators and Gov. Mike Dunleavy on how much the state should fund education. 

School districts currently estimate their student counts in October and draft budget estimates in the spring, and sometimes up to the first day of school in the fall. But with declining enrollment and other changes among student populations, those budget estimates can change, leaving districts uncertain about what staff or programs will be offered in the fall — as well as how much state funding they will receive. Under the new legislation, districts would instead have a solid student count number to budget off of in the year ahead. 

Additionally, the bill would change how districts count students who receive intensive special education services. Districts could use the previous year’s count, or the current year’s count in October or in February. 

“And what’s great about smoothing is it can help them plan for their educational programs when they are in a climate of declining enrollment,” Story said. “Other states are doing this, and they don’t have the volatility that we do. Because our process, our funding process timeline, is messed up, it really is.”

Alaska has seen a steady decline in enrollment in public schools in recent years, with more students and families opting to enroll in homeschool programs and private schools, or leaving the state altogether. When student numbers decline sharply, the state has a “hold harmless” provision which protects districts from funding dropping dramatically, and phases funding down over three years. Proponents of the legislation say the more predictable student counts and budgeting will help districts with long term stability, their ability to retain teachers and attract new students.

The adjusted student count would have varying effects on school districts statewide — a state fiscal analysis projects the Anchorage School District would receive $31 million more next year. Sitka would see $2 million more, and Yukon-Koyukuk would see $3.8 million in additional funding. But several districts would see less funding under the new calculation, like the state-run boarding school Mt. Edgecumbe High School. 

Members of the Alaska House debated and passed an amendment to the bill which would also change the calculation for local municipalities’ contribution to school districts in the state’s complex funding formula, known as the local contribution. 

Rep. Justin Ruffridge, R-Soldotna, sponsored the amendment that would cap municipalities’ contribution at a fixed increase of 2% annually, which would relieve boroughs seeing rapidly rising property assessments — those assessments inform how much they contribute to their local schools. Ruffridge said large boroughs like the Kenai Peninsula, Matanuska-Susitna and Anchorage, which are seeing rising property values, are shouldering education funding that should be placed on the state. The adjustment is estimated to cost the state $30 million next year.

Rep. Justin Ruffridge, R-Soldotna, speaks on the House floor on May 11, 2026. (Photo by Corinne Smith/Alaska Beacon)
Rep. Justin Ruffridge, R-Soldotna, speaks on the House floor on May 11, 2026. (Photo by Corinne Smith/Alaska Beacon)

“What you’re seeing in a lot of districts with high increases to property assessment values is their required local contribution is going up and up,” Ruffridge said in an interview on Wednesday. “As a result, they’re being required to pay a significantly higher portion, so to the state it looks like the state funding to schools is going down. That’s what it looks like. And on the municipal side they’re being asked to pay more and more and more.”

The amendment passed by a 24 to 16 vote, with Story among those opposing. After the vote she called it a “significant change” and said she had concerns about capping funding for education. 

The prospects of the bill are uncertain. Sen. Löki Tobin, D-Anchorage, who chairs the Senate Education committee said Tuesday the policy changes will need to be vetted by the Senate with just days left in the session.

Sen. Löki Tobin, D-Anchorage, speaks in support of a new state pension plan on Apr. 28, 2026. (Photo by Corinne Smith/Alaska Beacon)
Sen. Löki Tobin, D-Anchorage, speaks in support of a new state pension plan on Apr. 28, 2026. (Photo by Corinne Smith/Alaska Beacon)

“Bringing everybody along while we are also trying to deal with property tax bills and sales tax proposals and a Rural Health Transformation Fund and all these different healthcare compacts, along with the omnibus crime bill, and of course, the budgets, it might just be too much for us to take that large of a bite,” Tobin said. “But I do believe that components of House Bill 261 will end up in the final package.”

“I’m not trying to be a future teller by saying what is and is not going to continue to be considered by this body,” she added, and said that it’s likely the policy changes will be taken up by the Task Force on Education Funding. “This could be a part of that overall package you see introduced in the 35th Legislature.”

The draft bill redefining districts’ student counts would cost an estimated $113 million, plus additional provisions, for a total of roughly $143 million. 

Meanwhile, the Senate is in the process of considering another “mini-bus” education bill, also originally authored by Story, which would fund an additional $82 million for schools, including targeted funding for transportation, energy relief, reading instruction and career and technical education programs. 

A draft budget passed by the Senate includes up to $100 million in one-time funding for schools, if oil prices remain high. The House drafted a budget with nearly $158 million in one-time education funding — the two proposals are currently being negotiated and compiled by a conference committee of three senators and three representatives over the next few days.

The bill is subject to a reconsideration vote on Wednesday at the request of House Minority Leader Rep. DeLena Johnson, R-Palmer, which delays the bill’s transmittal to the Senate.

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What’s on the docket in the final week of the legislative session, will it end on time?

The Alaska State Capitol in Juneau is seen on Apr. 24, 2026. (Photo by Claire Stremple/Alaska Beacon)

NOTN- With just over a week left before Alaska lawmakers adjourn on May 20, the Legislature is entering its busiest stretch of the year as lawmakers scramble to pass budgets, major policy bills and a contentious natural gas tax proposal that lawmaker’s say has become the Governor’s biggest priority this session.

Alaska Public Media conjectured the final days of the session will likely center on three major areas: the state budget, the proposed Alaska LNG pipeline project and a flood of remaining legislation that must pass before the end of the two-year legislative cycle. Bills that don’t pass by adjournment will die and have to be reintroduced in a future session.

Negotiations are now underway between the House and Senate on the state operating budget. The House version includes a $1,500 Permanent Fund dividend, one-time school funding and expanded spending on child care and social programs. The Senate’s proposal is more conservative, with a $1,150 payment that includes an energy relief component and less education funding overall. Final negotiations may depend heavily on oil prices, which have recently remained above forecast levels.

Lawmakers are also debating how much tax relief should be offered to support the proposed Alaska LNG gasline project. Governor Mike Dunleavy has proposed replacing the state’s existing property tax on oil and gas infrastructure with a lower tax tied to pipeline throughput.

At the same time dozens of other bills are moving quickly through committees and floor votes, including a broad crime package, which includes bills targeting AI generated Child Sexual Abuse content, Sexual Assault kit tracking and raising the State’s age of consent.

There is a pension bill for state employees, a long time win for the legislature, that many expect Governor Dunleavy to veto before lawmakers leave Juneau.

But, the big question remains- will legislators pass these bills by the scheduled end of the session?

Juneau Senator Jesse Kiehl says it’s unclear pointing to that massive gas line bill that could push work into overtime.

“The Governor’s number one priority this year is the Gas line bill. He waited until two thirds of the way through the session to give us that.” He said, “The Resources Committees have been working like crazy, meeting multiple times a day. This is billions and billions of dollars worth of decisions, the kinds of things that will have impacts for 30 years to come. We’re working as hard and as fast as we can. Boy, it’s tough to see that passing before the end of the regular session. This time of year, it always looks like it’ll be overtime. Sometimes it is. Sometimes we can avoid it. But when I look at the issues that are pretty big, and may result in extra innings, we got that gas line bill on day 80 out of 121.”

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