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Win Gruening: Borough budget challenges just got bigger — and messier

By WIN GRUENING

A recent news story warned residents that Juneau’s landfill will be at capacity in the next decade. Yet a solution could take much longer.

This comes at a critical juncture in Juneau’s budget discussions as the city assembly wrestles with significant unknown flood remediation costs, reduced school funding, and a stagnant population.

Solid waste and landfill issues shouldn’t be a surprise to anyone. The city has funded numerous studies over the years, but little action has taken place. Assembly goals and legislative priorities rarely mention these problems but do include millions of dollars for projects rejected by voters like new city offices and a cultural arts facility.

Unfortunately, while Juneau doesn’t own its landfill, it does own the problem.

In April 2024, the Juneau Assembly approved a high-level feasibility study to examine the community’s solid waste scenarios that might be adopted after the current privately-owned Capitol Disposal Landfill closes. The Anchorage office of Jacobs Engineering Group published their 29-page report March 20th and its recommendations and conclusions are eye-opening.

The report examined three options:

  • Construct a transfer processing facility (TPF) and a new landfill for solid waste with recyclables shipped south by barge;
  • Construct a transfer processing facility with all solid waste and recyclables shipped south by barge;
  • Construct a transfer processing facility with an incineration facility for solid waste with noncombustibles, recyclables, and ash shipped south for disposal.

Incineration wasn’t recommended due to its high capital and operating costs. Even with waste-to-energy (WTE) conversion, Juneau’s 100 ton/day solid waste volume is too low to make this option economically feasible. WTE facilities are rarely developed nationwide, and none have been developed in Alaska.

The other two options remain viable, but each has huge capital costs. 

  • Option #1, building a TPF and a landfill has a price range of $68 million – $202 million, with the cost likely to be on the higher end.
  • Option #2, only building the TPF has a price range of $14 million – $40 million.

Not included above are preconstruction costs (studies, engineering, permits), facility operating costs, and the cost of shipping waste, recyclables, or ash. Nor does it include associated revenues.

Preconstruction activities could add an additional 25% to capital costs. Shipping costs have been reported as high as $250/ton. 

While Option #2 seems attractive for its lower capital cost, shipping fees and lower revenues could overcome that cost advantage over time.

Another recent study shows that diversion through recycling, composting, and re-use could theoretically remove up to 59% of trash from Juneau’s waste stream. Currently, however, under Juneau’s Zero Waste initiative, less than 10% of the city’s waste stream is being diverted from the landfill. Increasing that to 59% would be difficult and would require a significant expansion of current programs, community education efforts, and associated expenses.

The regulatory and permitting requirements of any of the options are formidable. Developing a new transfer station typically takes at least five years while a new landfill development usually takes 7 to 10 years, longer if the site hasn’t been selected. Some projects have taken more than 30 years because of delays in siting and permitting.

There’s no clear-cut answer. The report recommends the city commit to building the transfer processing facility while it researches operating and shipping costs of the alternatives. 

While necessary, it means more delays, higher costs, and more uncertainty in the short term.

Juneau’s Assembly is already considering issuing debt and increasing the property tax millage rate from 10.04 to 10.19 due to current budget challenges. Utility rates and other fees are also increasing. How much more will taxes go up to pay for a solid waste solution?

If hiking taxes, piling on more debt, and increasing rates for city services are the only strategies the CBJ Assembly is willing to consider, community affordability will continue to suffer.

When will Juneau city leaders get serious about decreasing the burden on taxpayers?

Are the new municipal offices and a cultural arts facility a higher priority than the landfill or community affordability?

If Juneau Assembly members are unwilling to change their status quo priority-setting process, taxpayers won’t be asked, but they will be taxed.

After retiring as the senior vice president in charge of business banking for Key Bank in Alaska, Win Gruening became a regular opinion page columnist for the Juneau Empire. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is involved in various local and statewide organizations.

Alaska House and Senate agree that 18-year-olds can serve booze in restaurants

In February, Alaska Senators unanimously passed Senate Bill 15, lowering the age wait staff can serve alcohol in restaurants from 21 to 18. 

On Wednesday, the Alaska House voted in favor of the legislation by a margin of 32 to 8. 

Alaska is one of only three states, including Nevada and Utah, with a legal limit of age 21 for serving alcohol in restaurants.  

Thirty-nine states set the minimum age for serving at 18. Five states, Idaho, Indiana, Nebraska, Ohio, and Arkansas set the minimum age at 19. Two states, Michigan and Maine allow 17 year olds to serve alcohol and in Iowa, 16 year olds can serve alcohol in restaurants. 

Under the bill sponsored by Republican Sen. Kelly Merrick of Eagle River, 18-year-olds could serve alcohol in breweries, distilleries, wineries, hotels, lodges, resorts and restaurants. The minimum age to serve in a licensed bar or any venue offering adult entertainment, though, would remain 21 in Alaska.

“Senate Bill 15 strikes a responsible balance between economic opportunity and public safety,” said Merrick. “It supports Alaskan businesses and workforce while ensuring that alcohol regulations remain clear and enforceable.” 

The legislation was pushed by lobbyists for the restaurant  industry. Many eateries are struggling to find and keep workers, they say. 

“Employers struggle to promote or retain quality employees who are 18-20 years of age because they are prohibited from serving alcohol or supervising other employees who serve or sell alcohol,” Sarah Harlow, the president and CEO of the Alaska Cabaret, Hotel, Restaurant and Retailers Association said in a letter to lawmakers. “Alaska is not competitive in this space, and our industry is experiencing an outmigration of young workers.”

Eight Republican House members voted against the bill. Jamie Allard, Delana Johnson, Kevin McCabe, Elexie Moore, George Rauscher, Cathy Tilton, Jubilee Underwood, and Sarah Vance. 

Rep. Vance, R-Homer, says she supports the current minimum serving age. She doesn’t think it makes sense to tell Alaskans that they can serve alcohol but not drink it. 

“It felt like we’re putting a moral juxtaposition for those in that age range, and it’s just not fair,” Vance said.  

The bill also requires bars and other businesses selling alcohol, like liquor stores, to post signs warning that alcohol is linked to an elevated risk of cancer.

Alaska has some of the highest percentage of problem drinkers in the nation ranking 39th worst. According to The United Health Foundation, 18% of Alaskans binge drink. The national average is 16%.

The bill goes next to the governor’s desk, where he can sign it, veto it, or allow it to slip into law by ignoring it.

Dan Fagan reports and writes columns for Must Read Alaska. He’s covered Alaska politics for close to 30-years. He currently hosts a morning drive radio talk show on 1020 am 92.5 and 104.5 fm on KVNT. For news tips, email Dan at [email protected].

Bill would limit consumer lending

Alaska legislators are considering a bill that would cap interest rates on loans under $25,000. 

Supporters of SB 39 say it would protect consumers from predatory lending by capping payday loans that meet the threshold at annual percentage rates of 36 percent. However, critics warn that it could undermine smaller, short-term lending.

In 2019, Congress considered imposing a national interest rate cap of 36 percent. One analysis found that limits on borrowing run the risk of locking out millions of payday consumers. That would leave them with fewer legitimate options, thus creating conditions for loan sharking.

Thomas Miller, a professor of finance, warned in 2019 that a 36 percent interest rate cap would push “borrowers with poor, or nonexistent, credit histories toward other options,” including the use of “bank overdraft protection, deferring the payment of bills (and facing the resulting unpleasant consequences), and turning to unlicensed lenders known as loan sharks.”

As of 2024, 21 states and the District of Columbia prohibit payday lending completely, while others limit or restrict the practice. Montana, for example, restricts the maximum loan amounts to $300.

Nevertheless, limits on interest rates are popular. In a December 2024 LendingTree survey on credit card rates, six in ten respondents said they would support caps even if it meant less access to lending for those with less-than-perfect credit. That marked the highest response on record.

An alternative to rate caps might lie in limits on repeat borrowing. In a report published in 2021, Stanford University professor 

Hunt Allcott advocated for a 30-day “cooling off” period for borrowers. That way, consumers would have access to credit but would be forced to repay outstanding loans instead of taking out additional lines of credit, placing themselves deeper in debt.

Marketing Mary: Democrats trying to figure where to plug in Peltola in 2026. Will it be Senate?

It’s becoming clear that former Rep. Mary Peltola has no desire to take on Congressman Nick Begich in 2026. She has a handsome six-figure job now with Holland & Hart, a law firm in Anchorage, where she can come and go as she pleases.

But the Democrats still see her as their highest vote getter and are trying to find the best race to run her in.

Last month, a liberal-bent Data for Progress poll queried Alaskans to see if Peltola or Lt. Gov. Nancy Dahlstrom would be their choice for governor. Data for Progress does polls and surveys for Democrats. Peltola, the Democrat, bested Dahlstrom, the Republican, in that poll.

This week, Public Policy Polling, another liberal polling company, has tested Peltola for Senate.

In a text poll that went out, Alaskans were asked several questions about Sen. Dan Sullivan. Recipients of the text poll were asked if they think he is a strong or weak leader, if he aligns well with President Trump, or too much with Trump. Finally if, given a choice between Peltola and Sullivan, who they would elect for US Senate? They were then asked who they would vote for if the choice was Sullivan, Peltola, and a third independent candidate.

There were no questions about the congressional race or governor’s race, no mention of Congressman Begich, but there was one question asking whether the participant approves of the job being done by Sen. Lisa Murkowski. And there were a few questions about President Donald Trump’s performance.

Peltola is still the Alaska Democrats’ best hope, but they haven’t yet figured out what is her highest and best use.

Trump announces 10% baseline import tariff, plus reciprocal add-ons for ‘nations that treat us badly’

President Donald Trump imposed a tariff of 10% on all imports as a baseline, and additional, reciprocal levies on nations like China. His effort is intended to restructure the imbalance of trade that now exists in the world that have put American companies and workers at a disadvantage.

Declaring foreign trade and economic practices a national emergency, Trump ordered that on April 5, the 10% tariff will be imposed. Then on April 9, a higher tariff will be applied to imports from countries with which the United States has the largest trade deficits. The tariffs will remain in place until Trump determines that nonreciprocal trade arrangements and other unfair practices have been addressed.

The trade deficit was $1.2 trillion in 2024. The tariffs are in response to the economic and trade policies of other nations, which include devaluing their currencies and imposing high taxes on American goods.

Trump held up a chart during the outdoor announcement at the White House that shows how the United States has one of the lowest average tariff rates globally, while major trading partners impose massive tariffs on American goods. India imposes 52%, China imposes 67%, and the European Union imposes 39% on American goods. In addition, counterfeit goods, pirated software and stolen trade secrets by communist regimes like China cost the US economy between $225 billion and $699 billion a year.

Trump’s tariffs on China will amount to 54%, as part the additional “reciprocal” levies on “nations that treat us badly.”

Additional tariffs, such as a 25% tariff on all foreign-made and imported auto that takes place at midnight, be rolled out over the coming days.

“Jobs and factories will come roaring back into our country,” Trump said. “This will indeed be the golden age of America.”

Spared from the tariffs are some metals. Steel, copper, gold, and aluminum imports already have a 25% duty on them and won’t be subject to higher reciprocal tariffs. Also exempt from the additional reciprocal tariffs are pharmaceuticals, semiconductors, and lumber articles.

The White House fact sheet can be read here.

Strange bedfellows: Murkowski sides with Democrats in resolution opposing Trump

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“The Senate Bill is just a ploy of the Dems to show and expose the weakness of certain Republicans, namely these four, in that it is not going anywhere because the House will never approve it and I, as your President, will never sign it.” – President Donald Trump

President Donald Trump has slapped back at Alaska Sen. Lisa Murkowski and three other Republicans for their support for a resolution that opposes the Trump Administration’s attempt to balance trade by imposing tariffs on countries that impose tariffs on America. The ultimate goal is free trade, whereas right now the trade is massively unbalance.

“Mitch McConnell of Kentucky, Susan Collins of Maine, Lisa Murkowski of Alaska, and Rand Paul, also of Kentucky, will hopefully get on the Republican bandwagon, for a change, and fight the Democrats wild and flagrant push to not penalize Canada for the sale, into our Country, of large amounts of Fentanyl, by Tariffing the value of this horrible and deadly drug in order to make it more costly to distribute and buy,” Trump wrote on TruthSocial. “They are playing with the lives of the American people, and right into the hands of the Radical Left Democrats and Drug Cartels.”

It’s a rare day when a libertarian-leaning conservative like Sen. Rand Paul and a left-leaning senator like Murkowski will see eye to eye. But it’s a case of “politics makes strange bedfellows.”

Democrats have proposed a resolution to bar Trump’s emergency declaration to impose tariffs on Canada and Sen. Rand Paul, of Kentucky said the nation’s free trade policies is what made America a superpower. 

“International trade since World War II has made us phenomenally rich. President Trump paints it another way,” Paul said in a Sunday radio interview. “He says, ‘We’ve been taken advantage of.’ But I really strongly disagree because trade has made us so rich and really has made the world a better place. The more we trade … the less we fight.”

Also opposing the tariffs is Senate Democratic Leader Chuck Schumer, D-N.Y., who says it is a tax on families. It appears that between the few Republicans opposing Trump and all the Democrats in the Senate, the resolution to stop Trump’s emergency declaration could pass the Senate.

That wouldn’t stop him from just declaring another one, however. After all, the national debt is approaching $37 trillion.

President Donald Trump said April 2 would be “Liberation Day” in America, as he announced that America will have reciprocal tariffs on countries that apply tariffs to American goods.

Trump spoke directly to Alaskans in his TruthSocial comments.

The Senate Bill is just a ploy of the Dems to show and expose the weakness of certain Republicans, namely these four, in that it is not going anywhere because the House will never approve it and I, as your President, will never sign it,” Trump wrote. “Why are they allowing Fentanyl to pour into our Country unchecked, and without penalty. What is wrong with them, other than suffering from Trump Derangement Syndrome, commonly known as TDS? Who can want this to happen to our beautiful families, and why? To the people of the Great States of Kentucky, Alaska, and Maine, please contact these Senators and get them to FINALLY adhere to Republican Values and Ideals,” Trump wrote.

The Democrats are trying to drive a wedge of division through the Republican Party. The only way they can splinter is if the Republicans allow it. Sen. Murkowski is their target because of her predictability in going against nearly anything Trump does.

Alex Gimarc: The 907 Initiative is back, using dark Outside money to attack Rep. Mia Costello

The Outside money political hit squad calling itself the 907 Initiative is back in the negative advertising game. In this round, the 907 Initiative has produced attack ads and a mailer aimed at pressuring Anchorage House Rep. Mia Costello to support an unaffordable increase in education spending.

The claims on the mailer are shocking, simply shocking (/sarc), accusing her of voting against legislation to reverse Anchorage school cuts. According to the mailer, her vote supports:

  • Eliminating middle school sports
  • Eliminative high school hockey, swimming and gymnastics
  • Eliminating IGNITE
  • Even bigger class size (over 30 middle schoolers in a class)

What an awful turn of events (/sarc).

This smelled a lot like standard political gamesmanship from Democrats and their dark money backers, where a budget increase that is smaller than what they are demanding is treated as a DOGE-level budget cut.

After a short conversation with Rep. Costello, it turns out my suspicion was correct, as Democrats in the House are demanding a $1,000 increase in the Base Student Allocation — an amount not earned, deserved or affordable. 

Last year, the House voted to make a one-time $680 increase in the BSA. We can’t afford that either, but that is another discussion for another time.

The criticism appears to be based on the House vote March 12 to approve HB 69, Education Funding – Increase BSA and send it on to the Senate for action.  The legislation contained the $1,000 increase in BSA.  It passed with a 24 – 16 vote with Costello and David Nelson being the only two Anchorage House members voting against it, opting instead to support the current $680 increase from last year.  This is why they are being targeted by Democrats and their dark money mouthpiece.    

The 907 Initiative is telling us that if the extra BSA isn’t approved, Nuclear Winter will set in statewide.  Yeah, right.  

While I don’t doubt that the Anchorage School District will attempt to inflict as much pain on students and their parents as humanly possible if they don’t get every penny they are demanding, I do know all of the claims made by the 907 Initiative represent little more than threats.  

Like most of us, I have a difficult time responding positively to threats, especially threats against children, the only ones educrats and their enablers seem capable of making.  It is essentially hostage taking, which is a less than positive business model or a lifestyle choice. Somewhere along the line, Alaskan voters need to put a stop to this little game.  

Nowhere in the discussion is anything about our overfunded, failing schools.  Nowhere in the discussion is anything about how Alaska has managed to lavishly fund public schools for half a century and ended up with failing students and a public education system that ranks dead last nationwide. Nowhere in the discussion is any acknowledgement or consideration of the simple fact that the single most important thing the legislature can do to improve education is get control of the money as close to students as humanly possible.  

Democrats and their hired guns continue to play this little game without political pushback.  We are at the point in the education funding game that 1983’s War Games arrived at the end of the movie:  ”The only winning move is not to play.”  

Another way to say this is that if increasing education spending only makes public education worse, perhaps it’s not the level of spending that’s the problem.  

Alex Gimarc lives in Anchorage since retiring from the military in 1997. His interests include science and technology, environment, energy, economics, military affairs, fishing and disabilities policies. His weekly column “Interesting Items” is a summary of news stories with substantive Alaska-themed topics. He was a small business owner and Information Technology professional.

DOGE: CDC officials can get reassigned to Alaska, or they can lose their jobs

Some high-level officials at the Centers for Disease Control and Prevention have been offered the opportunity to transfer to remote field offices within the Indian Health Service, including locations in Alaska, according to internal emails obtained by several reporters. If they don’t accept reassignment, they may need to be looking for work elsewhere.

The move comes as the Department of Government Efficiency, run by Elon Musk, is reducing personnel across many federal agencies.

In addition to Alaska, there are vacancies in the health services that need to be filled across Indian Country in Western and Great Plain states, including New Mexico, Minnesota, Montana, the Navajo Reservation, and Oklahoma.

“The department is proposing to reassign you as part of a broader effort to strengthen the department,” read an email sent to affected CDC personnel. “One critical area of need is in American Indian and Alaska Native communities. This underserved community deserves the highest quality of service, and HHS needs individuals like you to deliver that service.”

Among those receiving the offers are the chief tobacco regulator at the Food and Drug Administration; a manager at the National Institute of Allergy and Infectious Diseases; a microbiology and infectious disease researcher at NIAID;  a director at the National Institute of Child Health and Human Development; and a director at the CDC’s Center for Forecasting and Outbreak Analytics. 

Employees were given until Wednesday at 5 pm to indicate if they will accept a transfer.

Anchorage election results show a low-effort electorate, and liberal incumbents prevail

The polls have closed in Anchorage. We have results below. These numbers will be updated in coming hours and days. All results on April 1 are preliminary, as mailed-in ballots will continue to arrive in coming days.

Turnout citywide is 16.43% with many ballots still en route. 39,142 ballots have been counted.

Preliminary results are:

Anchorage Assembly Candidates

District 1 – Seat ​L – North Anchorage

Daniel Volland 56.41%

Nick Danger 8.49%

Daniel George 29.43%

​District 2 – Seat A – Chugiak, Eagle River, JBER

Kyle Walker 36.98%

David Littleton 6.51%

Jared Goecker 49.92%

District 3 – Seat D – West Anchorage

Kameron Perez-Verdia 60.58%

Jonathan Duckworth 11.43%

Amie Steen 20.29%

District 4 – Seat F – Midtown Anchorage

Erin Baldwin Day 59.79%

Don Smith 33.91%

District 5 – S​eat H – East Anchorage​​

Angela Frank 21.30%

John Stiegele 20.85%

Yarrow Silvers 47.82%

District 6 – Seat J – South Anchorage, Girdwood, Turnagain Arm​​

Darin Colbry 7.59%

Keith McCormick 82.50%

Anchorage School Board Candidates

School Board – Seat A​

Margo Bellamy 53.60%

Alexander Rosales 38.71%

School Board – Seat B

Mark Anthony Cox 38.09%

Kelly Lessens 54.30%

PROPOSITION NO. 1: CAPITAL IMPROVEMENTS FOR THE ANCHORAGE SCHOOL DISTRICT BONDS​ PASSED 50.65% to 48.19%

PROPOSITION NO. 2: ANCHORAGE ROADS AND DRAINAGE SERVICE AREA ROADS AND STORM DRAINAGE BONDS PASSED 60.91% to 38.17%

PROPOSITION NO. 3: ANCHORAGE PARKS AND RECREATION SERVICE AREA CAPITAL IMPROVEMENT BONDS PASSED 54.52% to 44.58%

PROPOSITION NO. 4​: AN​​CHORAGE METROPOLITAN POLICE SERVICE AREA BONDS PASSED 51.17% to 46.86%

PROPOSITION NO. 5: AREAWIDE PUBLIC SAFETY CAPITAL IMPROVEMENT BONDS PASSED 56.78% to 42.23%

PROPOSITION NO. 6: SENIOR CENTER AND LIBRARIES CAPITAL IMPROVEMENT PROJECT BONDS PASSED 57.38% to 40.43%

PROPOSITION NO. 7: ANCHORAGE FIRE SERVICE AREA FIRE PROTECTION BONDS PASSED 63.37% to 34.11%

PROPOSITION NO. 8: GIRDWOOD VALLEY SERVICE AREA BONDS – FAILED 45.61% to 49.25%

PROPOSITION NO. 9: CHUGACH STATE PARK ACCESS SERVICE AREA BONDS PASSED 53.59% to 43.89%

PROPOSITION NO. 10: ANCHORAGE ROADS AND DRAINAGE SERVICE AREA SNOW-RESPONSE AND FLEET VEHICLE SPECIAL TAX LEVY PASSED 59.37% TO 38.50

​PROPOSITION NO. 11: ANCHORAGE METROPOLITAN POLICE SERVICE AREA POLICE VEHICLE SPECIAL TAX LEVY ​FAILED 44.19% TO 53.55%

PROPOSITION NO. 12: CHUGIAK, BIRCHWOOD, EAGLE RIVER RURAL ROAD SERVICE AREA (CBERRRSA) MILL RATE ADJUSTMENT FAILED 42.89% TO 54.80%

PROPOSITION NO. 13: APPROVING DE-ANNEXATION OF LOT 2 HUISINGH SUBDIVISION, ACCORDING TO PLAT 77-258, THEREOF, FROM THE TOTEM LIMITED ROAD SERVICE AREA (LRSA) AND AMENDING THE TOTEM LRSA BOUNDARIES IN ANCHORAGE MUNICIPAL CODE SECTION 27.30.700, EFFECTIVE RETROACTIVE TO JANUARY 1, 2025.​ PASSED 81.08% TO 16.22%

PROPOSITION NO. 14: APPROVING DE-ANNEXATION OF LOTS 1 & 16 BLOCK 2 ELMORE SUBDIVISION, ACCORDING TO PLAT P-635, THEREOF, FROM THE BIRCH TREE/ELMORE LIMITED ROAD SERVICE AREA (LRSA)  AND AMENDING THE BIRCH TREE/ELMORE LRSA BOUNDARIES IN ANCHORAGE MUNICIPAL CODE SECTION 27.30.700, EFFECTIVE RETROACTIVE TO​ JANUARY 1, 2025. PASSED 54.92% TO 40.44%

PROPOSITION NO. 15: APPROVING ANNEXATION OF LOTS 6-18 BLOCK 2, AND LOTS 9-13 BLOCK 3, EQUESTRIAN HEIGHTS SUBDIVISION, ACCORDING TO PLAT 87-14, THEREOF, INTO THE BIRCH TREE/ELMORE LIMITED ROAD SERVICE AREA (LRSA)  AND AMEND THE BIRCH TREE/ELMORE LRSA BOUNDARIES IN ANCHORAGE MUNICIPAL CODE SECTION 27.30.700, EFFECTIVE RETROACTIVE TO JANUARY 1, 2025. PASSED 51.09% TO 43.99%