What some Alaska lawmakers want out of next year's legislative session

Summary

Podcast Summary: "What some Alaska lawmakers want out of next year's legislative session"

Podcast: Alaska News Nightly – Alaska Public Media
Host: Wesley (Alaska Public Media)
Guest: Eric Stone (Legislative Reporter)
Air Date: December 24, 2025

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Episode Overview

This episode explores the Alaska legislature’s priorities and concerns heading into the next legislative session. Host Wesley and legislative reporter Eric Stone discuss the pressing issues lawmakers will face—from a tight fiscal landscape, dividend prospects, and resource development, to funding for education and public safety, especially in rural communities. The episode features analysis and direct commentary from key state lawmakers on what matters most for 2025.

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Key Discussion Points & Insights

1. State Budget Pressures & Oil Revenue

• [00:44–01:18]
  Legislators expect another year of tight budgets due to low oil prices and the increased reliance on Permanent Fund earnings rather than traditional oil revenues.
  • "Oil doesn't make up as much of the budget as it used to, only about a quarter of the unrestricted portion..." – Eric Stone [00:49]
  • "Permanent fund earnings are likely to be about two thirds of the unrestricted budget this year..." – Eric Stone [01:00]
  • Each $1 drop in oil price results in a loss of $25–35 million to the state budget.

2. Permanent Fund Dividend (PFD) Prospects

• [01:22–02:09]
  Low oil prices and budget constraints signal likely reduced dividends for residents compared to governor’s initial proposals.
  • "Not tons of money for new initiatives, capital projects and so on..." – Eric Stone [01:22]
  • "I would definitely not count on a large permanent fund dividend this year." – Eric Stone [01:29]
  • "It's going to be extremely difficult to hold $1,000 dividend the next couple of years." – Senator Burt Steadman [01:49]
  • North Slope oil prices are just above $60/barrel, increasing pressure on state finances.

3. Alaska LNG Pipeline & Resource Policy

• [02:15–04:15]
  The long-awaited 800-mile Alaska LNG pipeline is nearing a final investment decision, with far-reaching implications for fiscal policy and resource revenues.
  • Discussion on oil/gas tax calculations, ensuring companies do not excessively write off construction costs:
    • "We're seeing the impacts of that with the Willow project...writing off hundreds of millions..." – Senator Bill Wielachowski [02:47]
  • Consideration if the state should invest directly in the pipeline, possibly up to 25%:
    • "If there are cost overruns, the state could be on the hook...most people in retrospect would agree that the state probably should have taken an interest in TAPS." – Senator Bill Wielachowski [03:15]
  • Key Challenge: Lawmakers must balance the need to encourage development with ensuring the state receives fair value:
    • "We want to make sure that we encourage development...and...protect Alaskans and that we get our fair share..." – Senate President Gary Stevens [03:50]

4. Education Funding & School Budgets

• [04:17–04:57]
  Although education dominated the last session, expectations are for less debate this year. Still, some lawmakers propose inflation-proofing school funding, but significant increases are unlikely.
  • "I don't think so...I'm not expecting it to be quite as dominant an issue." – Eric Stone [04:30]
  • Lawmakers like Bill Wielachowski and Rep. Rebecca Hymn Shoot have discussed the need for funding that keeps up with inflation.

5. Disaster Recovery & Rural Public Safety

• [04:59–05:47]
  Following natural disasters, there’s a renewed push for more funds for rural public safety and emergency preparedness, especially in the Yukon-Kuskokwim Delta.
  • "Very hard to see...we do need an emergency response for a rural, just like they do in urban areas." – Representative Nellie Jimmy [05:30]
  • Proposals center on more village public safety officers and better-resourced emergency responses.

6. Prospects for a New State Fiscal Plan

• [05:47–06:57]
  Governor Dunleavy promises to unveil a fiscal plan but making progress will be difficult, especially in an election year. Lawmakers are divided on how to balance new taxes, spending caps, and resource development to stabilize finances.
  • "A fiscal plan requires a lot of hard choices and tough votes, and this year is an election." – Eric Stone [05:55]
  • Senator Wielachowski wants to beef up oil and corporate taxes; other lawmakers support spending caps and constitutional guarantees for PFDs.
  • "That plan seems to have always been out there...I would hope that we would take that entire thing, or at least the major elements of it, and take another hard look at it." – Representative Kevin McCabe [06:43]
  • Uncertainty over whether lawmakers can actually reach consensus this session.

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Notable Quotes & Memorable Moments

• On tight budgets:
  "Not tons of money for new initiatives, capital projects and so on." – Eric Stone [01:22]
• On the PFD outlook:
  "It's going to be extremely difficult to hold $1,000 dividend the next couple of years." – Senator Burt Steadman [01:49]
• On resource policy balancing act:
  "We want to make sure that we encourage development...and...protect Alaskans and that we get our fair share..." – Senate President Gary Stevens [03:50]
• On rural emergency preparedness:
  "We do need an emergency response for rural, just like they do in urban areas." – Representative Nellie Jimmy [05:30]
• On the elusive fiscal solution:
  "A fiscal plan requires a lot of hard choices and tough votes, and this year is an election." – Eric Stone [05:55]
  "That plan seems to have always been out there...take another hard look at it." – Rep. Kevin McCabe [06:43]

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Timestamps for Important Segments

• Budget and Oil Revenue: 00:44–01:18
• Permanent Fund Dividend Discussion: 01:22–02:09
• Alaska LNG Pipeline and Oil/Gas Tax Policy: 02:15–04:15
• Education Funding: 04:17–04:57
• Disaster Recovery & Public Safety: 04:59–05:47
• Fiscal Plan Prospects: 05:47–06:57

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Summary Style & Tone

This episode maintains a practical, informative, yet candid tone, offering a clear-eyed view of Alaska’s legislative hurdles. The speakers balance policy analysis with direct quotes and real-world impacts, providing a concise preview of what Alaskans and legislators can expect in the coming session.

Transcript

[Announcer]

Support for Alaska Public Media On Demand comes from Siri, an Alaska Native corporation with operations and investments spanning five continents, 45 states and two US territories.

[Host Wesley]

Next year's legislative session is less than a month away, and lawmakers have big plans for the year ahead. It's a chance for legislators to pick up on initiatives left unfinished last year and also take on new challenges. And there's a lot to discuss, from a possible gas pipeline to Governor Mike Dunleavy's promise to deliver a plan to stabilize the state's finances. Alaska Public Media legislative reporter Eric Stone is here to talk us through what legislators are looking for in the year ahead. Eric, thanks for joining us.

[Eric Stone]

Thanks for having me.

[Host Wesley]

So what is on lawmakers minds?

[Eric Stone]

Well, Wesley, lawmakers are looking at a.

Tight budget this year, just like they were last year.

Oil doesn't make up as much of the budget as it used to, only about a quarter of the unrestricted portion of the state budget, which is, you.

Know, what lawmakers fight over every year.

Funny enough, permanent fund earnings are likely.

To be about two thirds of the unrestricted budget this year, which, if you.

Step back and think about it, that's really something. But oil is still really important. A quarter of the budget or so and each dollar in the price of oil is 25 to 35 million dollars in the state budget.

And oil prices are low right now. So a tight budget.

[Host Wesley]

So it's not looking like there's going to be a lot of presents under the Christmas tree this year.

[Eric Stone]

That is correct, Wesley. Not tons of money for new initiatives, capital projects and so on.

I mean, there will be a capital budget, but it won't be gigantic.

I would definitely not count on a large permanent fund dividend this year. Governor Dunleavy, as he proposed dividends around $3,600, but I would expect the final.

Figure to be quite a bit smaller.

When I spoke with Senator Burt Steadman earlier this month, he said he was expecting it to look similar to this year's $1,000 dividend, maybe even less.

[Senator Burt Steadman]

It's going to be extremely difficult to hold $1,000 dividend the next couple of years. If oil prices dip in, if they stay where they're at and go lower, particularly if they get in the high 50s. We've got to make payroll.

[Eric Stone]

And right now North Slope oil prices.

Are just a little over $60.

[Host Wesley]

Okay, so probably another year of low dividends. What else are lawmakers hoping to address this session?

[Eric Stone]

Well, a big thing I've been hearing a lot from lawmakers is preparations for a Gas line, the Alaska LNG project, that's the 800 mile pipeline and export terminal that would take North Slope gas south. That's nearing a final decision on whether it'll go forward, and that will probably.

Be a big focus on the legislative session this year.

Senator Bill Wielachowski, he's an Anchorage. He says state lawmakers may need to take a look at how the state calculates oil and gas taxes. He says he wants to avoid a situation where companies are able to reduce their oil and gas taxes by deducting the money it costs to build the gas line.

[Senator Bill Wielachowski]

We're seeing the impacts of that with the Willow project and how ConocoPhillips is spending a billion, a billion and a half dollars and then writing off hundreds of millions of dollars off of their production taxes. The same situation exists with the natural gas pipeline.

[Eric Stone]

Another thing for lawmakers to consider, whether it's this session or what in the future is the question of whether the state should actually put up some of.

Its own money to invest in the pipeline.

State could invest as much as a quarter of it, and Wielikowski says that's worth looking at.

[Senator Bill Wielachowski]

Obviously, there's risk involved. If there are cost overruns, the state could be on the hook on potential costs. At the same time, I think most people in retrospect would agree that the state probably should have taken an interest in taps, for example.

[Eric Stone]

TAPS is, of course, the Trans Alaska pipeline system. And there's kind of a tightrope for.

Lawmakers to walk here.

Most would like to see a gas line built, and for it to be.

Built, it would have to be profitable.

But at the same time, lawmakers have.

To make sure they don't wind up, you know, making a bad deal for the state. Here's Senate President Gary Stevens, a Kodiak Republican.

[Senate President Gary Stevens]

You know, really, there's just two elements. First is we want to make sure that we encourage development of Alaska's natural resources by the industry. And on the other hand, we want to make sure that we protect Alaskans and that we get our fair share out of, out of our natural resources. So that's, that's the dichotomy we're facing, is how to accomplish those two things.

[Eric Stone]

So, yeah, that balancing act will probably.

Be a big focus this year.

[Host Wesley]

What about education? You know, that's been a big topic the past few years. Schools around the state are still looking for more cuts even after lawmakers approved more funding last year. So what are you expecting, Eric? Should we expect it to dominate the session again this year?

[Eric Stone]

I don't think so. There will certainly be some talk about it, maybe some changes around the edges, but I'm not expecting it to be quite as dominant an issue this year.

As it was last year.

I am hearing some lawmakers would like to take this session to consider inflation proofing school funding. That's one thing Wilkowski and independent Sitka Representative Rebecca Hymn Shoot both mentioned to me, but I wouldn't expect it to be a big focus. And, you know, if I were running a school district, I don't think I.

Would count on lots of extra money this year.

[Host Wesley]

Just a couple months ago, western Alaska was devastated by the remnants of Typhoon Ha Long. Recovery work has been scaled back a lot for the winter and lots of folks are still displaced. Is there anything the Legislature can do on that front?

[Eric Stone]

That's a question I put to Representative Nellie Jimmy. She's a Democrat from Tuxuk Bay, and she says she'd like the Legislature to beef up public safety funding for western Alaska so that people in the region can better prepare and respond to emergencies. She says it's just been heartbreaking to see the toll the storm took all.

Over the Yukon Kuskokwim, Del.

[Representative Nellie Jimmy]

That was very hard to see, but it just opened my eyes that we do need an emergency response for a rural, just like they do in urban areas.

[Eric Stone]

So she'd like to see more money.

For village public safety officers and other public safety investments in rural Alaska.

[Host Wesley]

Finally, Eric, Governor Mike Dunleavy says he's going to unveil a fiscal plan next month. Do you think lawmakers will make any progress this year?

[Eric Stone]

Well, a fiscal plan requires a lot of hard choices and tough votes, and.

This year is an election.

And yeah, this is an issue that.

Lawmakers have been trying to crack for a long time.

Senator Wielachowski, who I talked with earlier, he has a few things he'd like to see to stabilize the state's finances.

Beefing up oil taxes, a corporate tax.

Bill, actually that Dunleavy vetoed this year, a few other things, but you know, it's been a tough nut to crack. Big Lake Republican Representative Kevin McCabe says he would support a cap on state spending, a constitutional amendment saying that there would be a dividend every year. And he says he wants the state.

To raise revenue through resource development.

But he points to a previous task force.

He you know, There was a 2021.

Fiscal policy working group, and Kevin McCabe says there are some good ideas in.

Their conclusions that are worth revisiting.

[Representative Kevin McCabe]

That plan seems to have always been out there. So Yes. I would hope that we would take that entire thing, or at least the major elements of it, and take another hard look at it.

[Eric Stone]

But whether lawmakers can actually get it done this year, that much is unclear.

[Host Wesley]

Well, Eric Stone is Alaska Public Media's legislative reporter down in Juneau. Eric, thanks so much for joining us.

[Eric Stone]

Thank you for having me.