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Current Topics
Alaska receives federal warning it's at risk of losing funding over food stamp backlog. Anchorage Daily News
The state has repeatedly failed to comply with deadlines to process applications for the Supplemental Nutrition Assistance Program, or SNAP, leaving thousands of Alaskans waiting months for assistance. The processing backlog has persisted despite the state spending tens of millions of dollars to address it, and despite orders from both state and federal judges for the Alaska Division of Public Assistance to improve its processing times for food and cash aid.
State employee salary study misses another deadline, prompting House resolution demanding to see data. Juneau Empire
A long-delayed study of state employee salaries has missed yet another deadline, to the ire of legislators and union officials who say it’s a blatant effort by Gov. Mike Dunleavy to bury data showing state workers’ pay isn’t competitive.
Dunleavy administration again delays release of state worker salary study. Anchorage Daily News
The administration of Gov. Mike Dunleavy “intends to release the report as soon as it is finalized. The Department expects the final report will be released in the near future,” without giving any specifics on the expected timeline or the reason for the new delay.
As key bills advance, here's an update on the Alaska Legislature's biggest issues. Alaska Beacon
Because of low oil revenue and the desire for more public school funding, taking that approach this year would result in a dividend well below $1,000. That idea is unpopular among legislators, who are instead considering alternatives. One is the CBR, but because it requires a supermajority in the House and the Senate, it’s procedurally difficult. Overspending from the Alaska Permanent Fund is possible with a simple majority vote of the House and Senate, but that would reduce the amount of money available from the fund in the future and create significant uncertainty that likely would harm the state’s debt rating. Some legislators, particularly in the Senate, are proposing tax hikes to address the situation. In late March, the Senate Resources Committee advanced a bill that would change the way the state’s corporate income tax applies to the oil company Hilcorp. That’s expected to generate as much as $150 million per year.
The state of policing, five years after George Floyd. Governing
(My comment: AND…they have a defined benefit pension for public safety employees. This is where our Alaska state trooper and local police are migrating to.)
Alaska Permanent Fund suffers multibillion-dollar decline amid Trump tariff-driven market crash. Alaska Beacon
Alaska House's deadlocked budget sent back for further talks with $1.9B deficit. Anchorage Daily News
Alaska lawmakers are divided over state budget, stuck without agreement over dividend, schools. Alaska Beacon
House members clash over future of budget, PFD. Alaska's News Source
As Alaska faces economic shocks from a tumbling stock market and an unstable oil market, leaders of the state House of Representatives are appealing to minority-caucus members and Gov. Mike Dunleavy to help balance the budget. The House Finance Committee last week advanced its draft budget with a statutory PFD and a $1.9 billion deficit. The spending plan was set to be debated on the House floor this week. But leadership of the Democrat-dominated House majority say they will not send an unbalanced budget to the Senate.
Arctic Issues
Seaspan cuts steel on advanced polar Icebreaker for Canadian Coast Guard. GCaptain
The cutting-edge vessel, measuring 158 meters in length and 28 meters in width, is designed to operate year-round in the high Arctic, supporting Canada’s presence across more than 162,000 kilometers of Arctic coastline. As one of the few Polar Class 2 vessels globally, it will enable operations farther north, in more challenging ice conditions, and for extended periods compared to any current Canadian icebreaker.
PNWER Resolution on US Canada Relationship. PNWER
Pacific NorthWest Economic Region is an organization that fosters cross-border work. I am proud to sign on to this resolution in support of our shared values with our Arctic Canadian friends and neighbors.
Canadian travel to U.S. is plummeting: 'There's a lot of anger'. Anchorage Daily News
McKenzie McMillan, a Vancouver-based adviser with the Travel Group, said his company would typically be busy this time of year arranging last-minute spring break and summer trips for Canadians to such favorite spots as San Diego, Palm Springs, Phoenix, Las Vegas and Florida. Instead, he said, “it’s zero.” The steep drop-off started gradually, with some clients in January saying they were thinking they might avoid the U.S. this year. “Since February, it’s been a complete collapse.”
Yukon to cancel Musk's Starlink, Tesla in retaliation for American tariffs. Alaska Beacon
In a statement Thursday, Yukon Premier Ranj Pillai said the territory will end its satellite Internet contracts with Starlink, a Musk-owned company. The Yukon has about 90 Starlink contracts, serving isolated road maintenance stations, hospitals, and other facilities.
Thank you, Mike Sfraga, for representing Alaska - and America - in the Arctic. Daily News-Miner
News-Miner opinion: Fairbanks can be proud. Mike Sfraga, a hometown son, made history by serving as the United States’ first Ambassador-at-Large for Arctic Affairs. Though his time in the position was cut short — he resigned, as is customary, with the transition to President Trump’s administration — his service left an important mark both for Alaska and for America’s role in the Arctic.
Economy
A third global recession in 20 years looms. Axios
The U.S. imported $3.3 trillion of goods in 2024. That's more than $25,000 per household. If the new tariffs work out to an average of 29%, per Evercore, then U.S. importers would have to pay about $1 trillion in tariffs per year, or $7,300 per household. Realistically, that would never happen. Many goods will just not get imported any more, creating shortages and large price hikes.
Clothing prices could surge if these tariffs stick. Axios
The U.S. gets 97% percent of its apparel and shoes from other countries, per a 2024 report by the American Apparel & Footwear Association. One major supplier is Vietnam, which Trump claimed charges the U.S. 90% in tariffs. According to data from the World Trade Organization, Vietnam puts an average tariff of 4.5% on nonagricultural goods from around the world.
America is now wealthier than is has ever been. Axios
Trump presented his sweeping tariffs yesterday as a way to "make America wealthy again," a slogan that implies the nation used to be much wealthier than it is today. U.S. households are sitting on astonishing levels of wealth, some $169 trillion in total, per recent data from the Federal Reserve. That works out to an average of $500,000 per person.
Legislators in Juneau struggling to fill big budget gap. Frontiersman
The oil tax bill, if it passes and is allowed by the governor, who opposes all taxes, will bring in about $200 million. To fund a budget gap of $700 million for the two years it means legislators will have to find $500 million or simply take it out of savings.
Coffee, shrimp, other food prices could soar with Trump tariffs. Axios
Implementing the new reciprocal and baseline tariffs, on top of the other taxes on imports already imposed by the White House, would increase fresh produce prices by 4% and food prices overall by 2.8%, per the Yale Budget Lab. But prices for certain products will rise further.
Opinion: Shortsighted, unrealistic and politically popular - why Alaska's fiscal problem is so hard to fix. Anchorage Daily News
The cost of rent in Alaska has stabilized, new state data says. Alaska Public Media
Alaskans used to pay the highest rent in the nation, but new state data show that cost has stabilized. Rent was about 50% higher than the national average in 1980 in Alaska and average household income in the state was also the nation’s highest, according to a report in Alaska Economic Trends magazine.
At Anchorage town hall, a rallying cry emerges: More taxes, please. Anchorage Daily News
Several Anchorage residents who attended the town hall on Saturday had a ready reply: “Tax me.”
Pocketbook pain. Axios
The tariffs hit to earning power amounts to an average 2.3% "pay cut," or decrease in disposable income, for every American household, according to a widely cited estimate from the Yale Budget Lab. That translates to $3,800 a year.
Tariffs 101. Axios
Trump is implementing tariffs at a scale an order of magnitude higher, on every country on earth and nearly all goods, and by invoking an emergency authority never used for this purpose.
Welcome to radical uncertainty. Axios
Between 9:43am and 10:17am yesterday — a period of 34 minutes — the S&P 500 rose by an astonishing 8.3%, after a murky series of events involving a social media post, erroneous headlines on CNBC and the Reuters wire, and frantic confusion in the market. (Reuters withdrew its story and apologized for the error. CNBC corrected itself on air.) In other words, the S&P rose more in 34 minutes in one morning than it did in the first 13 years of this century. That kind of volatility is a defining symptom of radical uncertainty, a state of affairs where no one has any conviction about what anything might be worth, or even about what they don't know. In such a world, the markets start to behave less like a weighing machine and more like a random number generator.
Don't panic about your 401(k). Axios
This feels bad, but it really doesn't change things for most people, says Stephen Kates, a financial analyst for Bankrate. "It's not fun," he says. "A lot of money was lost." But your perspective on the latest bout of market shock depends a lot on how close you are to retirement. If you're five years or more away from retirement, the past few days are part of the risk of investing in the stock market, and there's no need to do much. What you shouldn't do is panic sell, Kates says.
Energy
Questions looms as LNG project sees renewed interest at home and abroad. Alaska's News Source
Lawmakers have also been speaking on the LNG proposal in recent days. On Tuesday, Sen. Cathy Giessel, R-Anchorage, called the LNG proposal “a mega project” and explained that AGDC was given “tremendous authority” when, at the time, the project was being led by ExxonMobil. “They stepped away from this because of the cost,” said Giessel, who is also serving as Senate President this session. “We’re still operating under an estimate of $44 billion to build this project. That’s a very old estimate. “I mean, when we’re talking about financial commitments, what has been committed through Glenfarne?” she said. “We have a very old analysis of what this mega project will cost, at $44 billion. We don’t know what the risk factors are. You know, 92% of these kinds of projects are either over time or over budget or both. So there’s a whole lot of questions that we need to ask.”
AGDC, Glenfarne deal set. Petroleum News
Glenfarne's other LNG projects are in the Lower 48. Neither is in production. Texas LNG, which recently announced its capacity is fully sold out with a final investment decision expected later this year. Magnolia LNG, a late-stage LNG export project in Lake Charles, Louisiana, is owned by a Glenfarne affiliate which is the largest importer of LNG into Colombia.
Furie signs with Hilcorp for use of Spartan 151 jack-up this year. Petroleum News
In February, Furie provided 7.54% of inlet natural gas, while Hilcorp -- excluding Chugach Electric Association's majority share in the Beluga River field -- accounted for 73.98% of inlet natural gas. Because Hilcorp is the Beluga operator, it is responsible for producing 89.96% of inlet natural gas.
Education
Letter: Alaska education funding has not kept up with inflation. We're failing out future workforce. Anchorage Daily News
Article VII of the Alaska Constitution requires the Legislature to “maintain a system of public schools open to all children of the State.” Alaska statute states, “A quality education for students of all ages is a concrete investment that vastly improves the future prosperity, welfare, productivity, and vitality of society.” The indisputable, mathematical fact is that at least for the last 10 years (years in which I served in the Alaska State House), the Legislature and the executive branch have failed in this constitutional obligation.
Head Start is turning 60. Will it make it to 61? Governing
To date, Head Start has served nearly 40 million children. In fiscal year 2023, the Head Start program was funded to serve 778,420 children. The program has always been underfunded: In 2020 Head Start served barely 1 in 10 eligible infants and toddlers and only half of eligible preschoolers. It’s limited to families making under the federal poverty level, which is just $31,200 for a family of four.
This Ohio school district might be the best in the country. Governing
But Hanford found a few things that Steubenville did differently that other schools can learn from. Steubenville, for example, offers subsidized preschool beginning at age 3. And in those early years, teachers regularly remind students to speak in complete sentences as language practice for later, when those kids will start learning to read and write.
Anchorage School District 'displacements' could shutter or shrink 5 high school choir programs. Anchorage Daily News
Crude oil dropped 7% on Friday to its lowest level since 2021 as the world reckoned with the fallout of President Donald Trump’s decision to impose double-digit tariffs on countries around the world. The stock market, which plays an increasingly important role in Alaska’s state’s budget, is also in freefall, with the S&P 500 down 17.4% from a February record high. Nearly 11% of that loss has come in the two days since Trump’s tariff announcement. The Alaska Permanent Fund, which provides more than half of the state’s general-purpose revenue with an annual transfer of 5% its market value, lost about 1% of its value.
Funding for Alaska's schools remains a question mark. Here's where things stand. Alaska Public Media
It’s been a constant chorus for years: Alaska’s schools are underfunded and struggling to do the very basics of educating the state’s kids. Just this year, Sen. Cathy Giessel, R-Anchorage, read a letter from a second-grader about classrooms where there isn’t enough room for kids to sit on the rug together. In Ketchikan, Superintendent Michael Robbins told lawmakers interventions for kids identified as falling behind — an initiative he spearheaded after taking the helm of a district facing a leadership crisis just a few years ago — aren’t happening. There’s just no money.
Federal cuts bring confusion, uncertainty to Alaska's Head Start programs. Anchorage Daily News
Alaska Head Start programs in limbo after regional office closed by U.S. Health Secretary Kennedy. Alaska Beacon
Alaska Head Start programs are reeling after the regional federal office was suddenly closed last week, leaving programs uncertain about grant administration and future funding. The office was a critical resource for Alaska Head Start programs, for grant administration and compliance, said Katrina Ahlfield, executive director for Kids’ Corps Inc., an Anchorage Head Start program. She also serves on the board of the Alaska Head Start Association.
Politics
Understanding the Chaos. Axios
Think fundamental re-ordering of the economy. Americans are staring down a disruption to their standard of living. Companies are about to find out how bad bad can get. The ripple effects may be felt for years to come.
White House keeps world guessing as clock ticks down to Trump's new tariffs. Anchorage Daily News
The markets skidded to a close. At a time when foreign leaders and business executives are desperate for clarity, the White House is sending mixed messages as it pursues conflicting goals.
'It is chaos': Trump dissolves agency that funds services for seniors, people with disabilities across Alaska. Alaska Public Media
At issue is the Administration for Community Living, a federal office that funds programs for older people and people with disabilities – including Catholic Community Service – from within the Department of Health and Human Services. The Trump administration said late last month it’s dismantling the office and integrating its “critical programs” into other agencies. The announcement also said thousands of department employees would be cut, including many Administration for Community Living staff members.
Health Care
FTC halts case against CVS Caremark, Optum Rx. Axios
The FTC issued the stay in the case against CVS Caremark, OptumRx and Express Scripts in response to a motion "citing the fact that there are currently no sitting Commissioners able to participate in this matter." Both Republican commissioners Andrew Ferguson, the FTC chairman, and Commissioner Melissa Holyoak, were recused. They did not say why. Its two Democratic commissioners, Alvaro Bedoya and Rebecca Slaughter, were fired earlier this month in a move they called illegal.
Shingles is awful, but there may be another reason to get the vaccine: It could prevent dementia. Anchorage Daily News
A vaccine to fight dementia? It turns out there may already be one – shots that prevent painful shingles also appear to protect aging brains.
A new study found shingles vaccination cut older adults’ risk of developing dementia over the next seven years by 20%.
The fallout from public health cuts. Axios
"The firings will likely make it harder to get care and coverage," said Anthony Wright, executive director of Families USA. "These public servants are the people that enroll providers into Medicare, who deal with details and appeals, who approve the state changes in order to make Medicaid work on the ground. Cutting staff means these processes will be delayed, if not destroyed. The cuts seem to be focused on our public health capacities to prevent disease in the first place," he added. "From reducing smoking and tobacco use to efforts to understand long COVID, cutting prevention is penny-wise and pound foolish."
States lose billions in childhood vax funding. Axios
South Dakota (about $35,000 cut per 1,000 people), Wyoming ($35,000), and Alaska ($22,000) are losing the most funding on a per-person basis.
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