Jan 23, Senator Sullivan announced the International Pacific Halibut Commission’s (IPHC) decision to defer review of a Seattle-based trade association’s proposed regulation that would change Alaska’s unguided recreational halibut limit from two fish to one fish.
The IPHC does not have jurisdiction over this matter and has deferred review to the North Pacific Management Council. Sullivan stated: “This decision reaffirms that the IPHC does not have the authority to make this change, which I agree with.”
The Seattle-based trade association, which was not identified in the press release, failed in its first attempt to force regulations on Alaska’s fishing community. The motivation behind the association’s attempt is not known, but the attempt raises red flags. The association’s regulatory proposal will now go to the North Pacific Management Council for review.
This information was provided by business lawyers at Romano Law PLLC.Republished as originally writtenwith slight formatting changes.
A new study has revealed the best and worst states in America to start a new business.
Business lawyers at Romano Law PLLC analyzed various factors to determine the ranking.
These included the number of business applications and the year-on-year change between November 2022 and 2023 (the most up-to-date data), the annual change of real gross domestic product (GDP) in quarter three of 2023, regional unfriendly customer ratings, and business failure rates within one year.
Based on these factors, the study awarded each state a final score out of 100. The states with the highest overall scores were then deemed the best locations to start a business.
Alaska’s Findings:
According to the study,Alaskais the fourth-worst state to start a business in 2025, with a final index score of 31.40 out of 100. The state had 3% fewer business applications between November 2022 and 2023 compared to the previous year, 128% less than the national average for business applications. Alaska also had a 3.6% change in annual GDP as of quarter three of 2023, 24% less than the average in America.
Domenic Romano, Managing Partner of Romano Law PLLC, has commented on the study:
“In 2025, competition between businesses remains high. This is why you must choose the correct location for your individual business needs. While location may seem like a less important factor when starting up a new business, this can ultimately make or break your business venture.
“Whether it’s due to high levels of competition, high bills, or simply a lack of business opportunities, some states have higher business failure rates than others. It’s important to recognize that business survival rates are not uniform across the US before embarking on a new business venture.
“It’s also essential that you have a thorough understanding of your state’s specific employment laws before starting up a new business. Early business failures are often brought about by inadequate protection when it comes to employment disputes. This is why it’s so crucial that you’re taking the correct measures to protect yourself and your business from any costly disputes.”
The Worst States for Business Owners in America:
The study reveals that Arkansas achieved a score of only 26.12 out of 100. As of the third quarter of 2023, the state’s annual change of GDP was 0.7%, the lowest in the nation, and 85% lower than the national average. The state’s businesses may also experience a higher number of negative customer interactions, with Arkansas being given a regional unfriendly customer rating of 94 out of 100, the highest score in the country.
Businesses in Arkansas are also more likely to fail than elsewhere in America, with the state achieving a business failure rate of 22.50%, which is slightly higher than the national average rate of 22.17%.
Rhode Island, with a final score of 28.58 out of 100, is the second-worst state for business owners. The state’s business failure rates within one year are the highest in America, reaching 27% as of March 2022. Rhode Island’s annual GDP was also 3.9% as of the third quarter of 2023, 18% less than the national average.
According to the data, New Hampshire is the third-worst location in America for new business owners. In the state, 25% of businesses are reported to have failed within one year as of March 2022, 12% higher than the national average. The state also has an unfriendly customer rating of 94 out of 100, tying with Arkansas for the top spot, resulting in a final index score of just 29.58 out of 100.
Vermontbusinesses have a failure rate of 26%, according to the study, 17% higher than the national average. There was also a 1.7% change in business applications, 83% less than the average for business applications in America, leaving the state with a final index score of 32.42 out of 100.
Other states that received low scores include West Virginia and Mississippi.
The Top 10 Worst States to Start a Business:
*Table highlights stand-out factors of the study, not the study in its entirety.
Rank
State
Annual Increase of Business Applications
Annual Increase in Gross Domestic Product
Business Failure Rate Within One Year
Score /100
1
Arkansas
1.30%
0.70%
23%
26.12
2
Rhode Island
8.90%
3.90%
27%
28.58
3
New Hampshire
7.20%
7.20%
25%
29.58
4
Alaska
-3%
3.60%
24%
31.4
5
Vermont
1.70%
3.90%
26%
32.42
6
West Virginia
4.80%
3.70%
20%
32.49
7
Mississippi
-5.70%
0.80%
21%
34.41
8
Maine
9.80%
4.90%
23%
34.59
9
Connecticut
10.30%
4.70%
23%
35.03
10
Virginia
4.70%
4.20%
23%
35.78
Meanwhile, the data also highlights the top locations for business owners in America.
Wyoming is crowned the best state for business owners, with a final score of 76.19 out of 100. The state had 907 business applications between November 2022 and 2023, 39% higher than the previous year. This growth is higher than any other state and 517% higher than the national average. There was also a 6% change in GDP in the third quarter of 2023, which is 26% higher than the national average.
With a final score of 61.48 out of 100, Nevada is the second-best state for business owners. In the state, the annual change of GDP was 7% in quarter three of 2023, 47% higher than the national average. Also, only 19% of the state’s businesses failed within one year, meaning businesses are 16.6% more likely to succeed in Nevada.
Texas takes third place, with an overall score of 61.18 out of 100. The number of business applications in the state rose by 24% between November 2022 and 2023. Texas has also seen an 8% GDP rise in the third quarter of 2023, 68% higher than the national average.
According to the data, Texas has a business failure rate of 20.70%, which is almost 7% lower than the national average failure rate of 22.17%.
The study found that California is the fourth-best state to start a business in 2025. The state received a final score of 58.65 out of 100. California has the lowest rate of business failures in America, with only 13.20% of businesses failing within the first year. This is an impressive 40% lower than the national average rate, highlighting California’s reputation as a business hotspot.
Pennsylvania is in fifth place, with a final score of 58.49 out of 100. Pennsylvania saw a 33% rise in annual business applications between November 2022 and 2023, 213% higher than the national average and the second highest out of the top 10 ranking. The state also has a business failure rate of 19.50%, which is over 12% lower than the national average failure rate.
The Top 10 Best States to Start a Business:
*Table highlights stand-out factors of the study, not the study in its entirety.
Rank
State
Annual Increase of Business Applications
Annual Increase in Gross Domestic Product
Business Failure Rate Within One Year
Score /100
1
Wyoming
39%
6%
24%
76.19
2
Nevada
5%
6%
19%
61.48
3
Texas
24%
8%
21%
61.18
4
California
9%
5%
13%
58.65
5
Pennsylvania
33%
6%
20%
58.49
6
Oregon
28%
5%
23%
56.53
7
Oklahoma
14%
6%
21%
56.51
8
Kansas
20%
10%
25%
53.93
9
Kentucky
21%
5%
22%
53.82
10
South Dakota
8%
5%
22%
53.73
The research reveals that Oregon is the sixth-best state to start a business, with an overall score of 56.53 out of 100. The state had 123 business applications per 100,000 people between March 2022 and 2023, a 28% change from the previous year. The data also reveals that Oregon is home to some of the most positive customer reviews in America, demonstrating the state’s reputation for high-quality service.
Next up is Oklahoma, with a score of 56.51 out of 100. In the state, 21% of businesses failed within one year as of March 2022, which is over 5% less than the national average failure rate. Oklahoma has also seen a 6% rise in annual GDP, 26% higher than the national average.
Kansas takes the eighth spot in the ranking, with an overall score of 53.93. Between 2022 and 2023, the state experienced a 19.8% growth in regional businesses, demonstrating how Kansas is rapidly becoming a hotspot for local business owners. The state also experienced a 9.7% rise in GDP, the highest figure in the study, and a whopping 104% above the national average figure of 4.76%.
Kentucky is revealed to be the ninth-best location for new businesses, with a score of 53.82. The state is home to some of the most positive customer reviews in America, following closely behind states like South Dakota and Missouri. Kentucky also experienced an impressive growth in the number of local businesses in the area, rising by 21% between 2022 and 2023.
With a score of 53.73 out of 100, South Dakota rounds out the top 10 ranking. According to the data, South Dakota is home to some of the most positive customer reviews in America, demonstrating how businesses in the local area consistently provide high-quality service. The state also experienced a 5.2% rise in GDP, which is higher than the national average rate of 4.76%.
The 5 Things New Business Owners Must Do to Prevent Legal Trouble:
Starting a new business is an exciting step, but many business owners are unaware that simple slip-ups mean that potential legal trouble is looming just around the corner.
Whether you’re starting up a small online shop or embarking on a large in-person business venture, taking a proactive approach from day one not only protects your business from costly disputes but also builds a stronger foundation for long-term growth.
In light of this new study, business lawyers at Romano Law PLLC have shared urgent advice on the things new business owners must do to avoid potential legal trouble.
1. Ensure that you’re registering your business correctly
Selecting the correct entity, such as an LLC, corporation, partnership, or sole proprietorship, determines everything from your tax obligations to your personal liability.
Many new owners default to the simplest structure, only to realize later that they’re personally exposed to lawsuits or debts further down the line. Ensure you file the necessary formation documents with your state and consistently meet ongoing requirements like annual reports and fees.
2. Insure your business
Incorporating your business does not guarantee legal protection. This is why you must protect your business with the insurance policy that’s right for your individual business.
3. Comply with copyright regulations
When starting up a new business, it may be easier than initially thought to accidentally step on the toes of another business’s property rights. For example, when creating marketing material, you may accidentally use someone else’s image without paying a licensing fee.
These issues, while easily done, can result in hefty disputes, which many new businesses are understandably unprepared to deal with. This is why it’s essential to ensure that you’re not using anyone else’s content without being correctly licensed to do so. If possible, consult a trademark lawyer to avoid any potential slip-ups.
On the other end of the spectrum, it’s also important to register your own trademarks as early as possible. Your business name, logo, and services are all valuable assets, so it’s crucial to ensure that you’re registering these correctly. Failing to do so can result in infringement issues or disputes that may result in a costly rebrand later.
4. Organize your contracts from day one
Every business relationship, whether with clients, suppliers, contractors, or partners, should be governed by a written contract that clearly outlines expectations, payment terms, deliverables, confidentiality protections, and dispute-resolution mechanisms.
In order to draw up your contracts, it’s essential to consult a lawyer. Avoid using standard online templates that may not be suitable for your individual business needs.
Using well-drafted contracts reduces ambiguity and provides legal protection if something goes wrong further down the line.
5. Understand and comply with your state’s individual employment laws
When starting up a new business, one of the most essential pieces of advice is to keep up to date with your state’s employment laws. As laws can range from state to state, it’s essential to ensure that you have a thorough understanding of your state’s regulations.
Some of the most important topics to understand include proper worker classification, minimum wage compliance, overtime rules, anti-discrimination policies, and maintaining required documentation. Having a thorough understanding of these issues is absolutely crucial when it comes to avoiding future legal issues.
For example, one of the most important elements of employment law is proper worker classification. Based on your individual state’s requirements, it’s crucial to ensure that you’re correctly differentiating between employees and independent contractors. Failing to correctly classify your business’s workers can result in potential legal disputes, so you must have a thorough understanding of your state’s employment laws.
Methodology
The study analyzed various factors to determine the best and worst states to start a business in 2025.
These factors included the number of business applications and the year-on-year change between November 2022 and 2023, the annual change of real gross domestic product (GDP) in quarter three of 2023, regional unfriendly customer ratings, and business failure rates within one year.
The results were then compared against 100,000 people in each state to accurately compare data between states of differing sizes.
Based on these factors, each state was awarded a final score out of 100.
The states with the highest scores were then deemed the best locations to start a business.
This morning, Jan 26, the Senate Finance Committee heard the governor’s presentation of the proposed FY 27 budget. Director of the Office of Management and Budget Lacey Sanders gave the presentation.
According to Sanders, the governor’s instructions for the budget were to fulfill the State’s current obligations as required by law with no new projects moving forward.
Fiscal Summary
The FY 27 budget is proposed at $6.0655 billion. The State will incur a deficit of $1.5306 billion which is proposed to be funded via the Constitutional Budget Reserve (CBR). The CBR is currently at $2.959 billion.
Senators’ Initial Concerns
Senator Jesse Kiehl (D-Juneau) expressed concern that there is no supplemental provided in the budget. Sen. Kiehl says he has never seen a year where no supplemental was provided. A supplemental allows the Legislature to fund needs not specifically identified by the government’s budget.
Senator Burt Stedman (R-Sitka) echoed Sen. Kiehl’s concerns and also highlighted the lack of funding for infrastructure maintenance. “There is nothing for K-12 maintenance, nothing for university maintenance, nothing for courts, nothing for general maintenance,” he stated. “I don’t know what number the administration wants to put forward. But 0 is inappropriate. There needs to be some number.”
Senator Lyman Hoffman (D-Bethel) shared Kiehl and Stedman’s concerns, referencing a school that collapsed in Aniak as evidence that the maintenance funding is needed.
Sanders responded to the maintenance funding concerns by reiterating that this budget is to cover base obligations required by law, but the governor is happy to discuss modifications to the budget. “We continue to rely on a volatile revenue source,” she stated, referencing the need for discussion about new revenue sources.
Sen. Stedman briefly suggested modifying the appropriation for the Permanent Fund Dividend.
Operating Budget Highlights
Then Sanders presented significant highlights from the operating budget:
Capital Budget Highlights
After addressing Senators’ questions about the operating budget, Sanders moved on to present highlights from the capital budget:
More Concerns from the Senators
Sen. Stedman emphasized the need to get the State’s unfunded liability under control. Without addressing the unfunded liability in the budget, Alaskans will pay for it through property taxes. Sen Kiehl added that the legislature put itself in this position of debt by choosing to amortize its liability to keep up-front cash for the gasline project.
The Committee also discussed the rates of vacant positions among different government agencies. Sen. Kiehl emphasized that agencies are running into real issues getting the work done.
Budgetary discussions will continue throughout the Legislative session.
Friday, Jan 23, the Senate Labor and Commerce Committee discussed HB 78: “An Act relating to the public employees’ retirement system and the teachers’ retirement system; and providing certain employees an opportunity to choose between the defined benefit and defined contribution plans of the public employees’ retirement system and the teachers’ retirement system.”
The bill is sponsored by the House Finance Committee. Representative Chuck Kopp (R-Anchorage) presented the bill on behalf of the committee.
Why Was HB 78 Written?
Rep. Kopp began his presentation with acknowledging the headlines resulting from the State’s current retirement system. According to Kopp, Governor Dunleavy’s budget “highlights critical struggle of recruitment and retention in most public service agencies.” The State Auditor says errors are going up exponentially, causing the State to incur expensive fines. Plus, high turnover in public employment has forced many agencies to be stuck in training mode, costing the State and local governments millions. HB 78 addresses those issues.
HB 78 Is Not the Old Legacy Plan
Rep. Kopp emphasized that HB 78 is “completely divorced” from the State’s failed Legacy defined benefits system. The State of Alaska is currently paying off debt accrued by the system which was discontinued decades ago. Debt from the Legacy system is expected to be fully paid by 2039. Kopp says the actuaries assure that the new defined benefits plan will not lead to increased liability.
What If We Keep the Current System?
Addressing “the cost of doing nothing,” Rep. Kopp stated that the current retirement system is not incentivizing people to stay in public service positions. Due to a high turnover rate, the State is experiencing service disruptions that are expensive and impactful to Alaskans. 50% of the workforce in the public sector stays only 1-4 years. Many people are cashing out their benefits after 5 years and leaving public service. Some leave Alaska altogether. Rep. Kopp also shared some numbers on which agencies have the highest rate of vacant positions. DOT&PF has the highest rate at 24.5% vacant positions.
The question, according to Rep. Kopp, is: “Do we want Alaska to be competitive again?” Rep. Kopp emphasized that people used to move to Alaska for competitive jobs in the public sector, but now Alaska is struggling to fill critical workforce positions. “We have to compete on a national scale,” he stated.
Why Adopt the New Plan?
The new proposed defined benefits plan will use a variable employee contribution rate that responds to the market, meaning employees will contribute between 8-12% of their income depending on the market. Rep. Kopp stated that the variable contribution rate sets the plan apart, creates shared risk that enhances sustainability of the plan, and works well in other states that have implemented it.
He also highlighted the plan’s inflation protection as another reason this plan will work better than the current system or past systems.
Under HB 78, employees enrolled in the Teachers’ Retirement System (TRS) or the Public Employees’ Retirement System (PERS) if not in a public safety position will be able to receive their benefits at 60 years of age with 5 years of service or at any age with 30 years of service.
Employees enrolled in PERS who hold a public safety position will be able to receive their benefits at 50 years of age with 25 years of service or 55 with 20 years of service.
Committee Discussion
Following Rep. Kopp’s presentation of HB 78, the Senate Labor and Commerce Committee launched into a discussion revolving around the bill’s tenability and advantage for the State.
Senator Jesse Bjorkman (R-Nikisiki) asked if there is any state with a similarly structured plan that is experiencing trouble financing the plan. Rep. Kopp answered that he has not found any such state during his work on this bill, which he has been working on since 2016. States with similar defined benefits plans have funded their plans 80-100%. He also emphasized that the State’s actuaries and a third-party actuary say they do not foresee any unfunded liability with this plan.
Senator Rob Yundt (R-Wasilla) asked what happens if a person works a certain amount of time in the public sector but does not work the required years for the full pension payout. According to Rep. Kopp, that person would be able to collect the accrued percentage of their base pay, but they will have to wait longer to collect than someone who served the full pension years.
Additionally, Rep. Kopp highlighted that employees would have 180 days to decide whether to stay in their current defined contribution (DC) plan or switch to the new defined benefits (DB) plan. New employees will be default enrolled in DB, but they can opt out of DB and into the DC plan if they wish. After 5 years, the plan will be locked in and employees can no longer switch.
Sen. Yundt then asked if there has been any discussion regarding not offering an option between DC and DB and just offering DB. Rep. Kopp replied that there has been discussion about that. The option was retained because engineers and other technical professions would likely prefer a DC plan and excluding that option may negatively impact the State’s ability to attract those professionals. Sen. Yundt agreed that allowing the choice is a good idea and will help attract talent. However, Sen. Bjorkman expressed concern, stating that the DC plan allows 100s of million dollars to flow out of the state because people can cash out and leave after a few years. Whereas DB stays in the State of Alaska until the pensioner reaches a certain age or years of service.
Rep. Kopp wrapped up the conversation by highlighting that the defined benefits plan proposed by HB 78 will improve Alaska’s economy by lowering training costs, lowering turnover rates, and increasing the quality of services. According to economist Dr. Teresa Ghilarducci, the plan will save the State a minimum of $76 million. Kopp also emphasized that the plan has been carefully reviewed by three actuaries that act as independent checks without invested interest.
The bill was set aside for future consideration. The Senate Labor and Commerce Committee will hear public testimony regarding HB 78 today at 1:30pm. The meeting will be livestreamed at AKL.tv.
Editor’s Note: This story was updated on 1/26/26 to clarify that ConocoPhillips’ original statement said the rig was traveling on an ice road, but this was later corrected to gravel road.
A dramatic incident unfolded on Alaska’s remote North Slope late Friday afternoon when Doyon Drilling Rig 26, one of the largest mobile land rigs in North America, toppled over during transport. The event occurred around 4:45 p.m. on January 23, 2026, while the rig was traveling on a gravel road on the North Slope of Alaska. ConocoPhillips’ original statement said the rig was traveling on an ice road, but this was later corrected to gravel road. Emergency responders responded to a fire which is now contained and officials confirmed all personnel were accounted for with no serious injuries reported. No damage was sustained to nearby community infrastructure, pipelines, or fuel transport systems, though crews remained on site to monitor the situation.
The rig, affectionately nicknamed “The Beast,” weighs nearly 10 million pounds and is engineered for extreme extended-reach drilling in harsh Arctic conditions. Built through a collaboration between Doyon Drilling and ConocoPhillips starting in 2011, it arrived on the North Slope in 2020 and has been pivotal in projects like the Fiord West Kuparuk development, where it drilled a record-setting horizontal well exceeding 35,000 feet in measured depth. The Doyon 26 features a 165-foot cantilever mast with a 1.3 million-pound hook load capacity, powered by eight Caterpillar 3512C dual-fuel engines totaling 8,400 kW, allowing operation on diesel, natural gas, or HiLine power. Its modular design includes five support modules, a two-piece subbase for easier transport over ice bridges or roads, and advanced systems like a NOV TDS-1000H top drive delivering up to 88,075 foot-pounds of torque. Capable of accessing 154 square miles from a single 14-acre pad—nearly three times the reach of conventional rigs—it minimizes environmental impact by reducing the need for new infrastructure.
Alaska Gov. Mike Dunleavy addressed the incident in a statement on X, saying, “I was informed the Doyon rig 26 toppled over as it was being moved and I have been in contact with ConocoPhillips leadership. A video circulating online shows the rig toppling over and the lights going out right before it hit the ground.
ConocoPhillips emphasized safety in its official update, noting the fire’s quick containment and ongoing response efforts. The North Slope, a critical hub for U.S. oil production, relies on such advanced equipment for efficient resource extraction amid challenging permafrost and weather. This mishap highlights the risks of operating heavy machinery in Alaska’s unforgiving environment, where even routine moves can turn hazardous.
In Governor Dunleavy’s final State of the State before the state legislature, he maintained a position of optimism and hope for the opportunities in Alaska. Everything from disaster relief to a stable economic regime to attract investors from around the world.
“It’s the people of Alaska that had the confidence to put me in this role to serve all Alaskans as governor,” said Dunleavy.
Dunleavy began the evening address with gratitude to the first responders that have been the force behind the recovery of the 85 state and federal disaster declarations while he has been in office.
“Time and time again, they’ve rallied to the cause,” exclaimed Dunleavy, “they’ve answered the call of duty and saved lives.”
Moving from the natural disasters to those that were manmade, Dunleavy wasted no time in letting the room full of legislators know the impact the Biden Administration’s policies had on Alaska. 74 executive actions were taken against Alaska, putting resource development in jeopardy. He reiterated that no other state suffered more under the Biden Administration than Alaska.
With confidence Dunleavy affirmed, “We have a president and administration in office that finally gets it.”
The executive actions issued by the Trump administration on day one of his second term highlight the importance of Alaska to the United States and that Alaska is open for business.
The governor highlighted several areas that illustrated the commitment of the Trump administration, such as:
$183M in federal highway funds for transportation infrastructure
Reopening millions of acres of land for oil and gas development in NPR-A and ANWR
Promoting the AK LNG project internationally with FAST-41 project permitting
Permitting expansions at Greens Creek and Red Mine
Advancing prospects at Graphite One and Donlin
Advancing the King Cove Road
$272M to revamp health care across the state
With the list of federal actions alone, the reality of the once in a lifetime opportunity is within grasp to bring to life many transformative projects to the state.
“This is why elections matter,” added Dunleavy. “Individuals can make a difference.”
Governor Dunleavy went on to discuss the economy starting with the job numbers declaring that the 4.7% unemployment Alaska boasts today is nearly equal to the national unemployment rate of 4.6%. Jobs are continued to forecast high in 2026 due to a diversified economy and growing wages.
One notable point in the speech came when discussing the myAlaska app. Governor Dunleavy made a point to showcase that the state of Alaska has migrated over 100 state applications to the cloud. Microsoft even highlighted that through these efforts Alaska is on track to be the first state to handle most of its business in the cloud. These enhancements include PFD applications, hunting and fishing license, and TSA approved mobile driver’s licenses.
“Once again, we’ve improved the services the people expect,” said Dunleavy.
With many major projects on the horizon and the economy diversifying in ways that require greater mobility, Dunleavy announced that five new air cargo carriers have been announced including Southwest to the Ted Stevens International Airport.
Cargo volumes have increased 32% and passenger traffic is up 23%, showcasing why the Ted Stevens International airport is now the fastest growing airport in the country. Dunleavy also mentioned that the Alaska Marine Highway has a 98.5% uptime through enhanced preventative maintenance in addition to advancing critical infrastructure projects at ports around the state.
In terms of housing, the governor shared that Alaska Housing Finance Corporation (AHFC) has acquired 600 acres from the University of Alaska for future development in Anchorage, Mat-Su, and Fairbanks. Later on, in the speech Dunleavy shared one of the priorities is to partner between the state and AHFC and willing municipalities to increase the housing supply. AHFC will provide buildable land, competitive mortgage rates for first time buyers, and long-term tax breaks.
“It’s a win-win-win for the state, our communities, and most importantly our young people,” said Dunleavy.
This would build upon his plan for expanded internships, apprenticeships and other earn-as-you-learn programs to prepare the workforce of tomorrow. The family centric plans also included improvements in public safety and education. Dunleavy made a point to state that Alaska’s crime rate is down 41.8% since he took office.
“If you take Anchorage out of the mix, our state’s overall crime rate is well below the national average,” Dunleavy noted, “the violent crime rate in Anchorage is nearly three times the national average. It’s higher than Washington DC, it’s higher than Los Angeles, California. It’s higher than New York. And it’s higher than Chicago.”
The State of Alaska and the Municipality of Anchorage will be joining forces to reduce this crime rate. The phased approach encompasses retail theft, drug interdiction, and violent crime.
“Together we can make sure Anchorage isn’t just a safer place, but one of the safest in the country for everyone who lives there and those who visit from around the world,” shared Dunleavy.
The educational highlights were notable with stats on students achieving step change improvements in outcomes during the 2024-2025 school year. By the end of the school year 3rd graders marked a 60% improvement and kindergartners marked a 62% improvement in reading at the benchmark level. A phenomenal improvement as a result of the Alaska Reads Act.
“Dead last is unacceptable. We can’t wait. Out children can’t wait. It’s past time that the voices of parents and students are given the same weight,” said Dunleavy when talking about his education plans. Those plans include increased access to charter schools, open enrollment, and increased teacher retention.
The AK LNG project continues to be the flagship of the administration with new headwinds from the Trump administration advocating for its completion. Dunleavy recognized Glenfarne and the work they have done to bring the AK LNG project closer to reality. He highlighted the partnerships between Glenfarne, Worley, and Baker Hughes. Furthermore, the agreements from Taiwan, Korea, Thailand, and Japan, negotiating definitive LNG purchases.
A highlight of the gas pipeline was the announcement of gas sales agreements with Hilcorp and ExxonMobil. On the other end of the pipe are connection agreements for gas offtake with Enstar and Donlin Gold. Then comes the shipping of LNG. Another highlight was the agreement with Danaos, a Cyprus shipping company that will construct at least six tankers to transport LNG. Essentially, all the wet ink necessary for the pieces of the project to come together.
The big discussion of the night centered around a forthcoming fiscal package. In the last year of his final term, Dunleavy made a case to the legislature to end the fight over the PFD and various budget issues. His aim is to create an environment that is attractive to investors by injecting surety into the fiscals. The plan in anticipated to protect the Permanent Fund and dividend, grow savings, and incentivize investment focusing the objective on the next five years to solve this problem.
“We need a stable, rules-based budget process that is clear, simple, and well understood,” stated Dunleavy. “This can’t be a short-term view.”
Through the night, the theme of optimism and forward thinking was clearly stated by the governor. As was the all-of-the-above approach Dunleavy has taken as a matter of policy through his terms in office.
Today, Jan 23, the Task Force on Education Funding met at 3:30pm to hear invited testimony. Among those invited to give testimony was Michael Hanley, former Commissioner of Education and current Superintendent of the Aleutian Region School District.
Hanley has spent 35 years in the Alaska public education system with his experience including being a teacher at the Anchorage School District, Principal at an ASD school, Commissioner of Education, and now Superintendent of one of the most remote school districts in the nation.
Opening remarks from Hanley emphasized his appreciation for the task force’s willingness to look beyond numbers and understand the underlying issues causing low test scores and chronic absenteeism in Alaska’s schools.
“It is really easy to make a decision from a distance. But it is really challenging to make a good one,” he stated. “If there’s a silver bullet in education, it is not in the Commissioner’s seat, it is not – respectfully – in your [the legislature’s] seat. It is a high-quality teacher in the classroom. That’s the silver bullet.”
Hanley emphasized the need to not only look at test scores and data, but to get out to schools in person and get to know the administrators, teachers, and students. Because Alaska has a wide range of districts and educational situations, Hanley points to the need to look at underlying causes rather than numbers.
Some of the underlying factors affecting Alaska’s public education, according to Hanley, are domestic violence, poverty, and tribal priorities.
Alaska ranks in the top 3 states with the highest rates of domestic violence and abuse in the nation. Children who face instability and/or trauma in their home lives consistently test lower and have higher absenteeism than children in stable, healthy homes. Poverty and the stress poverty places on a child’s home life also contribute to lower performance scores in schools with a high population of impoverished families.
Another factor that many people do not realize, according to Hanley, is a factor more specific to rural districts: tribal priorities. He stated that 25% of his students in Atka are chronically absent. However, that reported 25% is three high school students who are highly engaged in their tribal culture. Hanley indicated these kids will skip school to participate in tribal events. Hanley does not offer a solution to this observation but presents it “as an example for why you have to look beyond the numbers.”
Hanley wrapped up his remarks with this warning: “My caution to you is that there may not be a simple solution, a simple statute that adequately addresses the challenges we face… But the fact that you are looking into it is taking us a step forward.”
Then Senator Loki Tobin (D-Anchorage) asked Hanley to share his insight on consolidating districts for the purpose of saving State money.
Hanley responded that the State would not substantially benefit from consolidation and districts would be substantially harmed by reducing community representation. “General consolidation won’t lead to savings for the State,” he said. “Do the math… you will find it to be a negligible benefit [for the State] and at great cost to the districts, the loss of voice.”
Following several prior hearings of HB 147, the House Health and Social Services Committee moved HB 147 out of committee and on to the next step in the legislative process yesterday, Jan 22.
HB 147 is “an Act relating to the practice of naturopathy,” establishing a licensing procedure for qualified naturopaths practicing in Alaska. Naturopathy is a form of alternative medicine, focused on natural remedies. It is often criticized as breaking from evidence-based medicine standards.
The bill is sponsored by Representative Mike Prax (R-North Pole) and co-sponsored by Representatives Rebecca Schwanke (R-Glenallen) and Andrew Gray (D-Anchorage). All three spoke at the meeting before the bill was passed out of committee.
Rep. Mike Prax summarized the bill, stating that the bill’s intent is to “establish a licensing procedure that allows naturopaths to work up to their education and training.” He emphasized that this would help Alaska’s primary care shortage. “[Naturopathy] is basically the same level of care, family practice level of care,” he claimed.
Then Rep. Andrew Gray explained his reasons for cosponsoring the bill. He argued that the bill will help attract well-trained naturopaths that can provide the standard of care to Alaskans who choose not to be seen by traditional medical providers. Many Alaskans either choose not to see traditional providers or seek additional opinions from naturopathic providers. Gray stated that the bill “meets people where they are.”
Lastly, Rep Rebecca Schwanke, also a cosponsor, spoke on her support of the bill. “This comes down to increasing opportunities for care for Alaskans,” she stated. According to Schwanke, Alaska is one of a growing number of states (26 states) that license and regulate naturopaths. She also spoke about her personal experience with a naturopath who helped her father after he received a terminal diagnosis from traditional providers. Her father is alive and well today.
In Alaska, the Constitution does not ask governors to chase revenue. It commands them to faithfully execute the law and protect the people’s resources.
Alaska’s fiscal debate has once again circled back to oil taxes— this time through Senate Bill 92 and renewed calls to impose an income tax on oil and gas entities organized as S-corporations. The framing suggests that Alaska’s problem is insufficient taxation. That premise is false.
Alaska’s problem is not a lack of taxing authority. It is a failure to govern within constitutional mandates already in place.
The Governor’s Duty Is Clear and Non-Negotiable
Under Article III, Section 16 of the Alaska Constitution, the Governor “shall faithfully execute the laws.” That language is not symbolic. It is mandatory. It does not authorize governors to compensate for fiscal mismanagement by selectively redesigning the tax code. It requires enforcement of existing law, respect for constitutional limits, and equal application of policy.
A governor does not fulfill this duty by proposing new revenue schemes when budgets tighten, but by insisting on discipline, legality, and restraint— especially when political pressure demands shortcuts.
This leads to two questions every gubernatorial candidate should be willing to answer plainly:
If elected, will you commit — as required by Article III, Section 16 — to enforcing existing spending laws and constitutional limits before seeking new or targeted taxes? Will you veto legislation that selectively burdens one industry or corporate structure to compensate for government overspending?
Article VIII Is About Stewardship, Not Exploitation
Just as important is Article VIII, which governs Alaska’s natural resources. It declares that those resources are to be developed, used, and conserved for the maximum benefit of the people. That mandate assumes long-term thinking, stability, and fairness— not short-term revenue extraction driven by annual budget gaps.
Article VIII does not convert resource development into a captive funding source for an undisciplined government. It presumes that encouraging investment, production, and responsible development is itself the path to maximum public benefit.
Repeatedly changing tax structures, singling out specific entities, or targeting one producer through indirect means does not maximize benefit. It shrinks the base, discourages investment, and undermines confidence in Alaska as a place to do business.
That is not conservation. It is erosion.
Which raises another question candidates should answer directly:
How does selectively increasing taxes on one oil and gas producer or corporate form satisfy Article VIII’s requirement that resources be managed for the maximum long-term benefit of all Alaskans— rather than as a short-term fix for a spending problem the Constitution already requires government to control?
Equal Application of the Law: The Line That Must Not Be Crossed
A tax system that targets one industry, one ownership structure, or effectively one taxpayer abandons neutrality. Conservatives should be especially alert to this danger. Once government normalizes picking winners and losers, no sector is safe.
Today it is oil and gas S-corps. Tomorrow it may be family businesses, contractors, or individual Alaskans whose income becomes “convenient” to reach.
The Constitution does not permit that kind of governance.
Alaska’s Crisis Is Discipline, Not Authority
Before any governor endorses new taxes, one fundamental question must be answered honestly: Has the State of Alaska demonstrated constitutional restraint on spending?
Until the answer is yes, proposals for “new revenue” are not solutions; they are evasions of constitutional duty. The Constitution already provides the framework for sustainable governance: limited government, uniform laws, protection of property, and disciplined budgeting.
A governor faithful to Article III, Section 16 would insist those tools be used first.
A Word on Surveys
Surveys can be useful, but they are no substitute for constitutional scrutiny. When candidates are asked only what they support — rather than what they are duty-bound to enforce, then the public is left with preferences instead of accountability.
A serious state deserves serious questions. Alaska’s Constitution does not ask future governors how they feel about revenue. It tells them what they must do: faithfully execute the law, apply it equally, restrain government, and steward the people’s resources for long-term benefit.
The Conservative Standard for Alaska’s Next Governor
A constitutionally grounded governor should:
Enforce spending limits before demanding new revenue
Reject targeted or punitive taxation schemes
Defend equal application of the law
Preserve fiscal and legal stability for long-term investment
Uphold Article VIII’s mandate for responsible resource stewardship
Alaska’s future does not depend on how cleverly we can tax one industry.
It depends on whether our leaders are willing to govern as the Constitution requires, even when that discipline is politically inconvenient. That is not a partisan demand. It is a constitutional one.
