Wednesday, June 3, 2026
Home Blog Page 22

Senate Judiciary Reviews Residency Updates for Hunting and Fishing, Consumer Transparency

0

The Alaska Senate Judiciary Committee held a detailed hearing Monday on two consumer-focused bills: HB 93, which seeks to align residency requirements for hunting, trapping, and fishing with established Permanent Fund Dividend standards, and SB 241, aimed at curbing deceptive “junk fees” in consumer transactions.

HB 93 – Residency Requirements for Hunting, Trapping, and Fishing

Rep. Rebecca Himschoot (NA-Sitka), sponsor of HB 93, returned to the committee for its second hearing, joined by staff Thatcher Brouwer. The bill proposes tying resident hunting and fishing privileges to a 180-day physical presence standard in the prior year, modeled after the tested framework for Permanent Fund Dividend eligibility. A committee substitute was adopted early in the session, incorporating a new allowable absence category for pilots serving U.S. airlines certified by the Federal Aviation Administration as air carriers. Conforming changes were made throughout, with a delayed effective date of January 1, 2028, to avoid disrupting 2027 plans.

Chair Sen. Matt Claman (D-Anchorage) led a constitutional inquiry, asking whether the right to hunt and fish carries a higher level of interest than the economic interest in a dividend, which courts have deemed lower-tier. Himschoot explained a sliding scale: voting rights sit at the fundamental level, dividends at a lower governmental payment tier, and hunting/fishing rights—anchored in Article VIII—fall between them. “If you talk to Alaskans about this bill, that right to hunt and fish in the minds of Alaskans is a higher right than the dividend,” she stated. The state interest, she argued, lies in enforcing existing resident preferences for bag limits and fees, long set by statute and Board of Fish/Board of Game policy. “What this bill is about is the enforceability of that standard,” she added, noting that for many year-round residents, “a full freezer can make the difference between staying and leaving.”

The discussion turned to the pilot exemption. Staff Breanna Kakaruk outlined the addition, prompting Sen. Loki Tobin (D-Anchorage) to seek clarification on scope—whether it extends beyond pilots to flight attendants or crew. Himschoot deferred to invited testimony, while Sen. Gary Stevens (R-Kodiak) expressed skepticism: “I have nothing against pilots… but why are we being so generous to them?” He questioned whether crews could accumulate absences exceeding six months while maintaining residency. Himschoot noted pilots’ duty stations and mandatory training often require out-of-state travel, sometimes a month at a time, though some training might qualify under existing education exemptions. Burke Anderson, Government Affairs Chair for the Airline Pilots Association, testified in support, representing 700 Alaska-resident pilots. He emphasized work-related absences are not elective: “You could say that our office moved. It just so happens that our office is moving across the surface of the planet.” Anderson advocated expanding the exemption to “flight crew” for equity, estimating 700–800 Alaska-resident flight attendants face similar schedules.

Claman flagged three unresolved questions for the next hearing: fiscal impacts of adding pilots versus broader flight crew coverage; Department of Revenue confirmation on aggregate day-counting (versus block periods); and a precise definition of “United States airline,” likely tied to FAA air carrier certification. Legislative Legal’s Alpheus Bullard was available for statutory clarification, while Anderson confirmed cargo carriers like UPS and FedEx hold FAA certificates. The bill was set aside pending these details, with amendments due by March 18 at 5:00 p.m. The committee will reconvene March 18 at 1:30 p.m.

SB 241 – Consumer Fee Transparency (“Junk Fees”)

The committee then turned to SB 241, sponsored by Sen. Scott Kawasaki (D-Fairbanks), marking its first hearing. The bill amends AS 45.50.471(b) by adding a prohibition on advertising, displaying, or offering prices that exclude mandatory fees or charges (except government taxes). An effective date of July 1, 2026, was proposed. Kawasaki framed the measure as addressing widespread consumer harms, noting Americans spend billions annually on hidden fees. “Various states across the United States have introduced similar legislation over the years,” he said, highlighting the need for upfront transparency to protect rights and maintain fair markets.

Claman tested practical application, referencing airport restaurant signage offering cash discounts (three percent off) versus card payments. Staff Joe Hayes clarified compliant pricing requires upfront disclosure—consumers must know the total before transacting, eliminating surprise add-ons at checkout. Kawasaki noted many merchant agreements prohibit passing card processing fees directly, reinforcing that advertised prices should reflect the base cost without hidden surcharges.

Stevens sought recognizable examples, prompting Hayes to reference sectors from the American Economic Liberty Project guide: auto sales, cable, carpet cleaning, cell phones, food delivery, hotels, ticketing, rents, rental cars, moving trucks, restaurants, storage, travel sites, and utilities. Tobin inquired about digital platforms like Venmo or Cash App, asking whether instant transfer fees would require disclosure and what penalties would apply. Hayes committed to follow-up on enforcement specifics. Claman pressed on telecom bills, already regulated by the Regulatory Commission of Alaska (RCA)—whether itemized disclosure suffices or a single all-in price is mandated. Kawasaki distinguished RCA-regulated telecom from broader consumer protections, noting some “administrative” or “regulatory” charges in other states have been ruled improper when not truly government-mandated.

The bill was set aside for further review, with the sponsor’s office tasked to provide penalty mechanisms and illustrative compliant pricing examples across scenarios. The committee will revisit enforcement details, including digital payments and distinctions between upfront itemized totals versus hidden fees.

SB 241 advances consumer protection without heavy-handed regulation, requiring businesses to play straight with Alaskans by disclosing true costs upfront. By mandating transparency, the bill empowers informed choices and levels the playing field—principles long championed in free-market oversight.

Structural Chokepoints in Alaska K-12 Part 5: Legislative History 

By Michael Tavoliero 

Alaska’s K–12 system was not built in a single act of bad faith. Instead, three separate legislative projects—school‑board terms, the PERA carve‑out, and APOC—each made sense to their authors in isolation, yet together they form chokepoints that make grassroots change extraordinarily hard. 

School‑board terms: centralizing structure, sidelining Article X 

By the mid‑1960s, local school boards were already operating on three‑year terms. HB 12, the major Title 14 rewrite, took that practice and locked it into state law, creating AS 14.12.050 with fixed terms, a uniform October election date, and transition rules written in statute rather than left to municipal charters. The Legislative Council sold HB 12 as a technical cleanup and consolidation of education law, criticizing the department’s draft and postponing big fights like teacher tenure and borough–district relations. It said nothing about democratic theory, Article X, or why the legislature, not local charters, should decide how long school board members serve. Term length was treated as a minor administrative detail. 

In 1972, HB 709 (Chapter 41, SLA 1972) revisited AS 14.12.050(b), not to restore local choice, but to fine‑tune staggering for seven‑member boards: three seats with three‑year terms, two with two‑year terms, and two with one‑year terms, with authority for boards to realign to that pattern. The journals show it moving on “do pass” with little debate, presented as a technical bill on “terms of office,” not as a question of Article X local self‑government. The effect was to lock school boards into a permanent three‑year rotation so only a minority of seats is ever on the ballot at once. 

The PERA carve‑out: locking K–12 into a single labor framework 

The second chokepoint is the PERA carve‑out for school employees. In 1990, SB 15 temporarily moved school employees from Title 14 into PERA, giving them class (a)(3) status and a post‑arbitration right to strike, but with a sunset. In 1992, SB 16, sponsored by Sen. Jim Duncan with Sen. Fred Zharoff, made that shift permanent and added Section 11, barring any municipal school district or REAA from rejecting PERA. 

Committee minutes and the 1991 Legislative Audit show the main proponents: Duncan and allies in Senate Labor & Commerce, HESS, and House Finance; NEA‑Alaska and local education associations; the Alaska AFL‑CIO; and ASEA, all arguing for “equity” and “finality” in bargaining and citing the audit’s recommendation that school employees remain under PERA. Opponents—the Department of Education, the Association of Alaska School Boards, and many superintendents—warned about strikes, weakened board authority, and fiscal stress and urged a return to Title 14 or at least a renewed sunset. 

SB 16 passed both chambers, was vetoed by Governor Wally Hickel, and then was enacted over the veto as Chapter 1, SLA 1992, with two‑thirds majorities in both houses. Constitutional concerns in the record were narrow (arbitrator residency, consistency with case law), not about whether denying school districts the PERA opt‑out was compatible with local self‑government. In that silence, the Legislature standardized K–12 labor statewide and closed the escape hatch for communities. It is notable that Senator Duncan later served as business manager and then executive director of the Alaska State Employees Association (ASEA), the state’s largest public‑employee union. 

APOC: anticorruption logic that hits grassroots hardest 

The third chokepoint is APOC’s campaign‑finance regime. Born of Watergate‑era reform and citizen initiatives, the 1970s framework required candidates, lobbying, and public‑official financial disclosure. In 1996, SB 191, sponsored by Senators Kelly and Phillips with House co‑sponsors James, Kohring, Therriault, and B. Davis, sharply lowered contribution limits, banned corporate and union donations to candidates, and capped out‑of‑state money. The Alaska Supreme Court upheld most of SB 191 as anticorruption policy, trimming only the harshest timing bans and some limits. 

Formally, APOC is justified as a citizen‑driven anticorruption system. Operationally, it creates a high‑friction environment: low thresholds and broad definitions for when a “group” must register; complex, deadline‑driven reporting with civil penalties; and a quasi‑judicial commission with subpoena and publication power. Large institutions—unions, vendors, statewide advocacy groups—can hire counsel and treat compliance as overhead; ad hoc citizen slates trying to flip a school board must master a thick manual, absorb personal risk, and often endure weaponized complaints. 

The irony 

Looked at decade by decade, each move appears technocratic: HB 12 and HB 709 “rationalize” school law and standardize terms; SB 16 “modernizes” labor relations and avoids patchwork; APOC and SB 191 promise clean elections. No single bill declares an intent to suppress grassroots control of K–12. But stacked together, they yield a system where boards turn slowly, labor cannot be locally reframed, and serious opposition campaigns face steep procedural and legal barriers. In a constitution that promises “maximum local self‑government,” the path of least resistance now runs toward insider stability, not bottom‑up change. 

Previous in Series

Structural Chokepoints in Alaska K-12 Part 1: The Myth of School Choice

Structural Chokepoints in Alaska K-12 Part 2: Constitutional Tension

Structural Chokepoints in Alaska K-12 Part 3: Reform Recycling

Structural Chokepoints in Alaska K-12 Part 4: GO Bonds 

Senate Labor Finance Subcommittee Reviews Department of Labor FY27 Budget: Training Expansions, Safety Innovations, and Workers’ Comp Cost Reduction

0

The Senate Labor and Workforce Development Finance Subcommittee convened Monday afternoon to examine the Department of Labor and Workforce Development’s proposed Fiscal Year 2027 budget. The subcommittee received a clear overview of statewide operations and measurable FY25 accomplishments before turning to modest budget adjustments. Commissioner Cathy Muñoz and Administrative Services Director Dan DeBartolo presented a record of program growth, safety-driven savings, and efficient service delivery.

Commissioner Muñoz opened by outlining the department’s broad footprint: 14 job centers, including a new satellite in Kotzebue, and nine vocational rehabilitation offices serving Alaskans across urban and rural regions. The department administers the federal Workforce Innovation and Opportunity Act through nine regional recipients and the State Training and Employment Program (STEP), which supported 37 grantees last year ranging from union and non-union providers to private and public entities. Seven construction academies and the Alaska Vocational Technical Center (AVTEC) in Seward round out the training infrastructure, delivering targeted skills aligned with Alaska’s economy.

Muñoz highlighted FY25 successes that demonstrate effective stewardship. AVTEC expanded its industrial electricity and plumbing programs while launching a new industrial machine and maintenance track. Most programs now operate at capacity with waiting lists, reflecting strong demand. USA Today recognized AVTEC as one of the nation’s top vocational centers, crediting seasoned industry instructors and state-of-the-art facilities. “We have very strong participation,” Muñoz stated. “Most of our programs are at capacity with waiting lists. So we’re really proud of the work that’s happening at AVTEC.”

Safety initiatives produced tangible taxpayer relief. The Alaska Occupational Safety and Health (AKOSH) Diversionary Program allows first-time or penalty-free employers to correct violations in exchange for full penalty waivers. In its inaugural year, the program saved businesses more than $1 million while improving workplace conditions. The model has drawn national interest, with other states and federal OSHA adopting similar approaches. The new Office of Citizenship Assistance has already assisted over 250 legal immigrants with employment services, credential translation, immigration support, English and computer classes, and employer guidance. The office is also overseeing the state’s direct management of refugee services previously contracted to Catholic Community Services, maintaining partnerships for housing and direct aid while adding workforce training components.

Licensure reforms streamlined the certificate of fitness process for electricians and plumbers through third-party testing, provisional licenses, expanded reciprocity, and military credit. These changes have boosted apprenticeship enrollment, with more than 400 new electrical trainees registered in the past year alone. Ongoing collaboration with the medical community, the Alaska Workers’ Compensation Board, and the Medical Services Review Committee has driven a 38 percent reduction in workers’ compensation benefit costs over the past decade by publishing annual medical rate charts that guide reimbursements and lower premiums.

Director DeBartolo then detailed the FY27 budget structure and implementation status. Workforce development comprises 57% of the mission budget, underscoring its priority. Leadership and administration account for just over 10%, worker safety and compensation functions 15 percent, and income replacement programs 18%. He reviewed last year’s funded items, including AVTEC’s industrial electricity expansion, which doubled capacity from 15 to 30 students using supplemental STEP funds for equipment and instructors. Photos presented during the discussion illustrated temporary staging of new workstations in heavy diesel space and ongoing renovations of the permanent facility.

A $3.1 million federal authority increment for the Alaska Workforce Investment Board supports the refugee services transition, though only $25,000 has been received so far due to federal timing. Several prior-year requests went unfunded, including Alaska Safety Advisory Program positions, a UGF offset for mechanical inspection fee losses from SB 24’s renewal extension, and the $125,000 Stay at Work coordinator position under SB 147. The department continues partial implementation of the Stay at Work program within existing resources.

For FY27, non-technical changes include shifting STEP funding authorization to budget language—mirroring TVEP—for greater mid-year flexibility when revenue projections rise. This would allow additional grants to training providers without waiting for legislative session. The primary new request is a one-time $1.4 million increment to sustain Workers’ Compensation operations. Director Chuck Collins will provide detailed analysis Thursday, March 19. DeBartolo explained that the division’s revenue derives from 2.7% of employer workers’ compensation insurance premiums. As safety improvements have lowered rates and claims, revenue has declined—ironically penalizing success. The division currently operates at a 28–30% vacancy rate and struggles to meet statutory targets despite aggressive cost controls. The one-time bridge funding aims to maintain services while a longer-term revenue solution is developed.

Sen. Elvi Gray-Jackson (D-Anchorage) inquired about the refugee funding shift. Muñoz clarified it is largely mechanical: the state becomes the direct recipient but will continue contracting with Catholic Community Services for housing and direct support while adding employment and training services. Gray-Jackson also expressed disappointment over the unfunded Stay at Work position. Muñoz reaffirmed commitment to the program’s goal of rapid workforce re-entry and noted the impact of prior funding sweeps. “Even getting the $1.4 million that we have suggested in this budget, if we could get that money secured, it will help us to a longer-term solution,” she stated.

The subcommittee will reconvene Thursday for deeper discussion of the Workers’ Compensation request.

The presentation reflected prudent management: leveraging federal partnerships without new state spending, expanding proven training programs that fill workforce gaps, and achieving dramatic cost reductions through safety and medical oversight. The modest one-time request for Workers’ Compensation underscores fiscal reality—success in lowering premiums has tightened the division’s own budget—while avoiding permanent general fund reliance.

House Rejects Fast-Track Motion on Supplemental Budget

0

The Alaska House of Representatives spent nearly two hours in vigorous debate Monday over a motion to pull Senate Committee Substitute for HB 289—the critical supplemental budget measure—from the Rules Committee for immediate floor action. The chamber ultimately voted 18-21 to reject the discharge, leaving the bill in limbo and underscoring a conservative emphasis on deliberate fiscal stewardship rather than rushed appropriations in an environment of pronounced oil-price volatility.

The motion, offered by Minority Leader Delena Johnson (R-Palmer), sought to bring the bill back for concurrence after it had been returned to Rules following a failed Constitutional Budget Reserve (CBR) draw vote last week. Johnson framed the request as a straightforward opportunity to advance funding for essential items—including federal highway match dollars, disaster relief, fire suppression, and recapitalization of the Higher Education Investment Fund (HEIF)—without further delay. She argued the spring revenue forecast released Friday confirmed sufficient general fund resources, citing a reported $785 million available balance against less than $400 million in unrestricted general fund needs for the package.

Debate revealed deep divisions over funding mechanics and risk tolerance. Supporters of the motion, primarily from the minority, stressed that the general fund already held ample cash on hand, rendering a supermajority CBR draw unnecessary and potentially counterproductive. They pointed to non-petroleum corporate income tax gains and unaccounted upside from projects like Pikka as further buffers. Several members expressed frustration that the bill’s previous 40-0 passage had been derailed by procedural maneuvers, arguing that contractors and communities deserved immediate certainty to avoid disruptions in the upcoming construction season.

Opponents, largely aligned with the majority, countered that relying solely on forward-looking revenue projections—especially in a period of historic oil-market volatility—amounted to budgetary gambling. They highlighted the forecast’s dependence on elevated price assumptions and warned that any shortfall could leave critical obligations unmet without a secure backstop. Concerns were also raised about reconciling the general fund balance with outstanding obligations and expected expenditures through June 30, with some questioning whether the $785 million figure fully accounted for all near-term demands. The majority emphasized that the CBR exists precisely as a “rainy day” reserve for such uncertainty, and using it conditionally would protect essential services without premature depletion of savings.

Rep. Zack Fields (D-Anchorage) captured the majority’s caution during floor remarks, noting the risks of proceeding without thorough vetting in Finance Committee. He stressed the need for confirmation that all agencies could meet obligations through fiscal year-end and that the Department of Transportation could secure its federal match without delay. Other members echoed calls for additional analysis of the forecast’s assumptions, including sensitivity to price swings and the interplay between designated and dedicated funds.

The vote failed along largely partisan lines, 18 yeas to 21 nays, sending a clear signal that the body intends further review before advancing the measure. The outcome preserves the bill in Rules Committee, where it awaits potential conference or additional procedural steps. With the spring revenue forecast now public and both chambers’ Finance panels actively examining its implications, lawmakers signaled a preference for measured deliberation over expediency.

“We have the money in the bank account right now, Mr. Speaker. Right now. $785 million is the current general fund balance that is available to spend,” Rep. Justin Ruffridge (R-Soldotna) declared during debate, underscoring the minority’s position that general fund resources were sufficient without tapping reserves.

Beyond the budget drama, the session included routine business. Citations honored individuals and community milestones, including recognitions for service members and the University of Alaska Fairbanks Native Arts Center’s 60th anniversary. HJR 44 supporting Alaska Native corporations in the SBA 8A program was introduced and referred. The House adjourned until Wednesday, March 18, at 10:30 a.m.

While all sides expressed support for the supplemental’s core priorities—disaster relief, fire suppression, highway matching funds, and higher education recapitalization—the failure to discharge the bill ensures lawmakers will continue scrutinizing the fiscal picture. With oil prices subject to rapid global shifts and non-petroleum revenues providing some diversification, the House’s decision favors caution, prioritizing long-term fiscal health over short-term procedural momentum.

The supplemental’s fate now hinges on further negotiations, potential conference committee work, and additional Finance Committee analysis. Contractors and communities await clarity on federal match dollars and disaster funding, while the broader budget process moves forward amid heightened awareness of revenue risks. As one member noted, the CBR’s high threshold exists for a reason: to prevent routine reliance on savings when general fund resources can suffice.

This episode highlights the tension between urgency and responsibility in state budgeting. The coming days will test whether bipartisanship can produce a path that meets immediate needs while safeguarding Alaska’s fiscal future.

Senate Finance Committee: Higher Spring Revenue Forecast Amid Historic Oil Volatility

1

The Alaska Senate Finance Committee convened Monday for a high-stakes session centered on the Department of Revenue’s long-awaited spring revenue forecast and detailed life-cycle modeling of a hypothetical new oil field. The committee received updated projections showing meaningful revenue gains driven by higher Alaska North Slope oil prices. Yet presenters repeatedly stressed unprecedented market uncertainty, with volatility indices at near-record levels and wide probability bands that could swing unrestricted general fund revenue by billions.

Acting Revenue Commissioner Janelle Earls introduced Chief Economist Dan Stickel, who described the spring forecast as “one of the more interesting” in recent memory. Slide Three captured the headline revisions: Alaska North Slope oil prices up $9.77 per barrel for FY26 and $13 per barrel for FY27, with FY27 now averaging $75 per barrel. Production forecasts rose modestly—2,100 barrels per day in FY26 and 700 in FY27—partly from the anticipated startup of new fields. Those inputs translated into an additional $545 million in unrestricted revenue for the current fiscal year and $510 million for FY27.

Stickel broke down the FY26 gain: $105 million from stronger non-petroleum corporate taxes (largely already booked by December), roughly $370 million from higher production tax and royalty revenue as prices lift more companies above the minimum tax floor, $20 million in additional oil-and-gas corporate taxes, $30 million from property tax increases (including the first detailed Trans-Alaska Pipeline System reassessment in years), and $18 million from mining and investment earnings. Through February, unrestricted revenue already ran $115 million ahead of the fall forecast, driven mainly by corporate income taxes outside petroleum.

Unrestricted revenue composition for FY25–FY27, shown on Slide Five, highlighted the POMV transfer as the dominant and most stable pillar: $3.8 billion in FY25, $3.9 billion in FY26, and $4.1 billion in FY27. Petroleum revenue contributed $1.9 billion in FY25, dipped slightly to $1.8 billion in FY26 before returning to $1.9 billion, while non-petroleum sources grew steadily from $639 million to $760 million. Total unrestricted revenue is now projected at $6.5 billion for FY26 (up from $6.3 billion) and $6.7 billion for FY27.

Oil price methodology and timing dominated subsequent slides amid March’s geopolitical turbulence. The department delayed finalization until March 11 to incorporate the latest futures data, using the median of the five trading days ending that Wednesday. Stickel noted the forecast assumes stable annual prices rather than monthly volatility—an important distinction when comparing regimes such as the former ACES tax, which captured temporary spikes. Sen. James Kaufman (R-Anchorage) asked for historical accuracy analysis; Stickel confirmed such reviews exist and that futures markets have proven the most reliable benchmark despite inherent forecasting challenges.

Volatility metrics underscored the risk environment. Illustrated by ANS prices averaging $74 per barrel since 2020 but with dramatic swings: negative pricing during peak COVID, spikes above $125 after Russia’s 2022 invasion of Ukraine, and a recent surge above $100 tied to Middle East developments. The Oil Volatility Index (OVIX) sits at its second-highest level since 2007, exceeded only by the initial COVID shock. Options-implied probabilities showed a 10% chance of prices exceeding $200 per barrel or falling to $30 later in FY26, and a 10th-to-90th percentile band for FY27 spanning roughly $45 to $130 per barrel around the $75 midpoint.

Late-year price variances translated into revenue sensitivity for the final four months of FY26. At the forecast $91.09 per barrel average for March–June, each $1 change moves unrestricted revenue by about $15 million. The 10th-to-90th percentile range implies a potential $1.5 billion swing—from below $6 billion to above $7.5 billion—highlighting the practical difficulty of budgeting amid such uncertainty.

Co-Chair Sen. Bert Stedman (R-Sitka) pressed for operational clarity on current supplemental requests. “What do we need for a break-even price when we look at the entire year of FY26?” he asked, noting modest pending supplementals would not strain finances but hundreds of millions could necessitate CBR draws. Stickel referenced the accompanying sensitivity matrix and committed to calculating an exact “from today forward” break-even inclusive of supplementals. Sen. Lyman Hoffman (D-Bethel) later framed the Senate’s proposed $373 million CBR authorization not as spending but as prudent contingency: “If they are materially lower… that is why the Senate proposed a draw on the CBR… just in case.” He emphasized the funds would remain untouched unless required, avoiding a special session in August.

Stedman requested expanded distribution data beyond the 10th–90th percentiles, including one- and two-standard-deviation ranges. Stickel agreed to provide those metrics alongside the break-even figure. The discussion reinforced caution: plan for materially lower outcomes while recognizing the POMV transfer’s stabilizing role—known with certainty for FY26 and FY27 and comprising more than two-thirds of unrestricted revenue.

Mining provided a diversification bright spot. Record gold prices above $5,000 per ounce and silver above $100 per ounce, plus gains in zinc and lead, are expected to generate over $200 million in FY27 revenue, including $189 million unrestricted. Mining license tax alone exceeds $100 million, with corporate income tax nearing $80 million and royalties contributing more than $30 million.

The afternoon transitioned to life-cycle economic modeling of a hypothetical 500-million-barrel field under current law (SB 21), current law without the Gross Value Reduction, and the former ACES regime. Stickel described the model’s purpose: evaluating full-field economics from pre-FID investment through decline, calculating net present values and internal rates of return for producers and governments. Assumptions included $25-per-barrel total costs, 12.5% royalty, and a 20% GVR for new fields. Pre-FID exploration costs were rolled into the first-year capital outlay for modeling consistency.

Under current law for a new entrant, the producer internal rate of return reached 13.1%—positive but marginal compared with the 15%-plus benchmark many firms target. State revenue totaled $6.7 billion over field life ($1.9 billion NPV at 10% discount), with production tax deferred several years due to GVR and credits. Municipalities (primarily North Slope Borough property tax) captured about 5% of profits. Stickel noted ACES would yield more state revenue from a new project but lower overall under the forecast price deck due to the softer minimum tax floor and different timing of credits. For incumbents, ACES paradoxically delivered both higher incremental state revenue and higher producer returns in some scenarios because of low-take during high-spend development phases.

Stedman raised sovereign exposure concerns: stacked multi-year developments without a cost-recovery limit could delay state revenue for extended periods. “You can’t just move one item and expect everything else to stay the same,” he cautioned, advocating holistic package design when considering policy levers. Kaufman emphasized cause-and-effect: policy changes drive investment reactions, and a 13.1% IRR is “not stellar.” Stickel confirmed the numbers align with current economics—projects remain marginally attractive, with limited excess profit available for capture.

The committee accepted the spring forecast framework and endorsed the CBR contingency authorization as risk management, not spending. Action items include delivery of the exact FY26 break-even price from today forward, expanded distribution analysis with standard deviations, updated sensitivities using the spring deck and historical prices, and further modeling outputs for multiple scenarios.

“There is a ten percent chance that oil prices will go well over $200 per barrel later this fiscal year. There is a ten percent chance that oil prices will fall to $30 per barrel later this fiscal year,” Chief Economist Dan Stickel stated, quantifying the extreme uncertainty framing near-term fiscal decisions.

Lawmakers prioritized protecting the CBR for genuine downside protection, leveraging the POMV’s predictability, and pursuing diversification through mining while scrutinizing tax structures that could deter marginal investment. With supplementals pending and a $373 million CBR backstop proposed, the committee signaled intent to plan conservatively—funding known needs without premature reliance on reserves. Updated break-even and sensitivity materials will inform final appropriations posture before session deadlines.

House Finance Committee Adopts Revised Election Integrity Measures

1

The Alaska House Finance Committee moved swiftly Monday morning to adopt a committee substitute for SB64, the elections reform package aimed at strengthening ballot curing, voter roll maintenance, and citizenship verification. Co-Chair Rep. Neal Foster (D-Nome) presided over the session, emphasizing the need for a clear working document ahead of an amendment deadline set for Thursday, March 19, at noon. The substitute, incorporates targeted refinements from prior discussions, reflecting a careful effort to enhance election security while respecting operational realities and taxpayer resources.

Staff from both the sponsor’s office and the committee walked members through the redlined changes. Key updates include clarifying voter roll maintenance triggers by ensuring any single criterion—rather than all—prompts a notice. The previous out-of-state physical address rule spanning 28 months was removed to align with federal constraints under the National Voter Registration Act. On citizenship verification, specific reference to the DHS Systematic Alien Verification for Entitlements (SAVE) program removed.

“I am not aware of any other system that verifies citizenship,” questioned Rep. Will Stapp (R-Fairbanks), “so what exactly are we referencing?” Dunsmore indicated that the bill intended to broaden to “one or more systems,” that may be developed granting the Division of Elections flexibility amid ongoing litigation.

New data security “sideboards” require encryption and prohibit retention by outside entities, addressing privacy concerns for Alaska’s 600,000 registered voters.

Additional technical adjustments refined breach notification timelines to 30 days (with election-specific safeguards), updated rural liaison duties, and eliminated an unworkable PFD data transmission requirement. Uncodified transition language now authorizes immediate regulation drafting and procurement, with an immediate effective date for those sections. The bulk of the bill, including ballot curing and tracking, takes effect August 31, 2026—after the primary but before the general election—while the “true source” clarification for ballot measures is delayed until January 1, 2027.

Fiscal notes remain unchanged, Director Carol Beecher confirmed, “we do not anticipate that it would reduce the cost,” she stated, underscoring the measured approach. Committee members probed implementation feasibility. Rep. Alyse Galvin (NA-Anchorage) asked whether staggered effective dates could accelerate certain provisions before the primary. Sponsor staff David Dunsmore described the package as “carefully negotiated,” advising collaboration before amendments. Rep. Jeremy Bynum (R-Ketchikan) pressed for an updated sectional analysis and a section-by-section timeline from the Division, both promised by day’s end.

Rep. Nellie Jimmy (D-Toksook Bay) highlighted the stakes of inaction: without the bill, rejected ballots stay rejected with no cure option. Co-Chair Foster noted plans for an additional hearing this week before amendments and set the bill aside. The substitute was adopted without sustained objection after a brief at-ease.

The changes prioritize accurate voter rolls, verifiable citizenship, and secure data handling—without rushing untested technology. The Division committed to delivering detailed implementation timelines by afternoon, allowing informed decisions on any further tweaks.

Anchorage Volunteers Needed to Process Nearly 2,000 Tax Assessment Appeals

1

This year’s property tax assessments caused quite an uproar in the Municipality of Anchorage. Many residents saw their property valuations rise significantly with little to no apparent reason. Some residents noted suspiciously targeted assessments that seem to favor politicians. Residents’ frustration resulted in 1,953 appeals submitted to the Anchorage Assembly.

According to Board of Equalization Chair Ian Moore, the nearly 2,000 appeals is “a record number which is beyond the capacity of the existing Board to address in a timely manner.” To address the issue, Assembly Chair Christopher Constant and Vice Chair Anna Brawley called on Anchorage residents to apply to serve on the Board of Equalization, an adjudicatory board that determines resolution of tax assessment appeals.

As of March 11, only 9 of 21 Board seats are filled. Without more volunteers to help process appeals, Board Chair Moore expects appeal resolutions to take until November 12, 2026 to complete.

Interested residents with backgrounds in real estate, taxes, banking, engineering, title companies, mortgage companies, or law can apply to serve on the Board by sending a resume and cover letter to the Municipal Clerk at [email protected].

Opinion: Alaska GOP Convention Costs Silence the Voice of the Everyday Republican

6

By Zack Gottshall

Editor’s note: This op-ed was updated on 3/14/26 to reflect Zack Gottshall’s decision to attend the 2026 Alaska GOP Convention. Zack Gottshall, who is running for Chair, hopes to resolve the persistent issues which exist within the Party.

As the Alaska Republican Party prepares for its next State Convention, many grassroots Republicans are talking about something other than platform debates or the direction of the party. Instead, the conversation has increasingly turned to the cost of attending.

A State Convention should be about participation and representation within the party—not about pricing out the very grassroots activists who keep the party alive. Yet the looming cost of attending the next convention suggests that the priority remains fundraising over accessibility.

This concern is not new. In September 2024, I prepared and submitted the 2024 ARP Biennial Convention After Action Report to the Party Chair. The report summarized attendee feedback following the convention, and one issue came up repeatedly: the cost of registration. Several respondents specifically referenced the $275–$375 ticket price as being too high and noted that it discouraged participation. Others went further, stating that convention registration should not be used as a fundraising tool because it limits access for everyday Republicans.

Given that these concerns were formally documented and presented to party leadership in 2024, it would be reasonable to expect that pricing for the next convention would reflect those lessons. Unfortunately, that does not appear to be the case.

The venue comparison makes the situation even harder to explain. The 2024 State Convention was held at the Captain Cook Hotel in Anchorage—a beautiful and historic hotel widely considered one of the premier venues in the state. The 2026 convention, however, is scheduled to be held at the Soldotna Field House, a 54,000-square-foot athletic and community facility. Despite the obvious difference between a premier hotel venue and a public athletic facility, ticket prices for the 2026 convention show no meaningful reduction from the 2024 pricing structure. If the venue costs are lower, many grassroots Republicans are asking why the ticket prices remain nearly the same.

The contrast becomes even clearer when Alaska is compared to other Republican state conventions. Larger state parties charge far less for attendance. Texas convention registration is roughly $79. Michigan’s is about $50. Georgia’s convention typically falls between $150 and $200. These states represent far larger Republican organizations than Alaska, yet their conventions remain far more affordable for grassroots participants.

Once travel and lodging are added, the financial burden for Alaskans grows significantly. A valley-based Republican Women’s club leader recently noted that “when participation costs nearly $1,000 by the time travel and lodging are factored in…” many people simply cannot afford to attend. Another Republican Women’s leader remarked during a recent District Committee meeting, “You can’t be poor and a Republican in Alaska.”

Party leadership has acknowledged the reasoning behind the pricing. In response to concerns about ticket costs, the Party Vice Chair explained that the price reflects expenses such as “conference rooms, meeting spaces, IT, and make it worthwhile for people to attend.”

Concerns about participation extend beyond the State Convention itself. Within Region 4, districts were directed by the Region Representative to adopt a predetermined District Convention price rather than allowing District Committees to vote on their own venue and registration cost. That approach undermines the autonomy of District Committees as outlined in the party’s own rules, which are intended to preserve local decision-making authority. When districts are prevented from setting their own convention logistics and pricing, it restricts grassroots participation and raises legitimate concerns about adherence to the party’s governing framework.

At the same time, the party’s broader financial priorities deserve scrutiny. Party expenses indicate that municipal campaign expenditures total less than half of the annual credit card processing fees accrued by the party. In other words, the Alaska Republican Party spends more money processing donations than it spends supporting Republican candidates in major municipal elections.

That imbalance is difficult to ignore. Grassroots Republicans are being asked to spend hundreds of dollars to attend the party’s most important internal gathering, yet the party’s fundraising activity does not appear to translate into proportional support for Republican candidates on the ground.

The Republican Party itself was founded on principles that remind us why accessibility matters. Abraham Lincoln, the party’s first president, was born into poverty and rose from a humble upbringing to the White House with the support of ordinary Americans. The party he helped build was never intended to be reserved for the wealthy or the well-connected. It was meant to represent citizens who believed in opportunity, responsibility, and self-government.

The State Convention should be a place where grassroots Republicans gather to debate ideas, shape the future of the party, and build momentum for upcoming elections. It should not become an event that only those with significant financial means can attend.

If the Alaska Republican Party wants to maintain the trust and participation of its grassroots supporters, it must take seriously the concerns that have already been raised by its own members. Fiscal responsibility and accessibility should not be competing priorities. They should be fundamental expectations of party leadership.

Zack Gottshall is a retired U.S. Army Intelligence Officer, former Vice Chair of the Alaska Republican Party, and a public policy and grassroots advocate in Alaska.

Josh Church: It’s Time to Open Alaska Again

4

By Josh Church, Candidate for Lieutenant Governor

My family came to Alaska in 1935.

As I write this, I am looking at a family history book. On one page is a line that reads, “The New Home of John Church and Paul Nelson,” with the Matanuska Valley circled.

In May of 1935, my ancestors boarded a train headed west. They traveled to Seattle and then set sail for Alaska. Like hundreds of other families during the Great Depression, they came north because the territory was opening land and opportunity to people willing to work and build a life.

The Matanuska Colony was part of a bold idea. America was struggling through the Depression, and leaders believed Alaska could offer a new start. Families were offered land and the chance to build farms and communities from the ground up.

And they did.

Those families built homes, raised children, and helped create the Alaska we know today.

But somewhere along the way, Alaska stopped thinking about growth.

Today, our population has stalled and in some places is declining. Young families leave for opportunities elsewhere. Businesses face high costs and heavy regulation. Instead of planning for growth, we spend most of our time managing decline.

A big part of the problem is land.

Roughly 99 percent of the land in Alaska is controlled by federal, state agencies or large corporations, leaving very little available for individuals and small businesses. For many Alaskans, the dream of owning an affordable piece of land to build a cabin, start a farm, or launch a business has become increasingly difficult.

That needs to change.

Alaska should once again be a place where people come north to build a future. We should be expanding land sales and land leases so families can build homes, farmers can start operations, and entrepreneurs can start businesses. Land should also be available for mining, timber, energy development, and industries that can grow Alaska’s economy.

Imagine what could happen if we sold just one percent of Alaska’s land over the next twenty years.

If that land sold for even $1,000 per acre, far below the value of many parcels, it could generate roughly $200 million per year in direct revenue to the state. When you consider the construction, equipment purchases, and new businesses that follow land development, the economic activity created could easily add another $400 million each year.

That would mean about $600 million in total economic impact annually, or roughly $12 billion in economic activity over two decades.

But the impact goes beyond numbers.

New landowners build homes. They start businesses. Families move in. Communities grow.

Growth also helps address problems we constantly debate in Alaska.

Take education. Our school funding system is based largely on the number of students enrolled. When enrollment declines, districts lose money and force conversations about school closures, program cuts, or layoffs. Buildings sit half empty, and budgets get tighter every year.

A growing population changes that conversation.

Growth also strengthens the broader economy. Alaska needs more workers, more entrepreneurs, and more families putting down roots. A shrinking state cannot sustain the future we want.

Opening land is only one part of the solution.

We also need to reduce unnecessary regulations that make it harder to start businesses or build projects in Alaska. We need to develop cheaper so families and businesses are not paying some of the highest power costs in the country. We should be encouraging industries like mining, timber, energy development, and even new technologies like data centers.

We should also continue improving how we manage the Alaska Permanent Fund. Even modest improvements in investment returns or reductions in fees could produce hundreds of millions of dollars in additional value for the state over time.

But the biggest change we need is a change in mindset.

For much of Alaska’s history, our leaders believed in growth. They believed the future of this state depended on people coming here to build lives and communities.

Somewhere along the way, we stopped thinking that way.

Alaska should not be a place where people are leaving. It should be a place people are moving to.

My family came here in 1935 because Alaska was open to them. They were given the chance to build a life and a future.

That opportunity should still exist today.

It is time to open Alaska again.

Bronsonchurch.com

Josh Church is a Fairbanks resident, a financial adviser rep, and a candidate for Lieutenant Governor, running alongside Candidate for Governor Dave Bronson.

This op-ed was voluntarily submitted by the Bronson-Church campaign and not solicited by Must Read Alaska. All candidates running for elected office are welcome and encouraged to submit articles for publication. Must Read Alaska unequivocally supports the election of a conservative candidate to the Office of Governor but does not endorse a particular candidate.