The Alaska Legislature has been been in session for two weeks, and things are definitely off to a much wilder start than last session. Governor Mike Dunleavy (R – Alaska) introduced legislation that contained element of his proposed fiscal plan, which has not had a great reception from legislators. A legislative staffer had possibly the fastest and loosest flameout in Juneau history. Several committee meetings in the House have gotten spicy or heated. A big snowstorm in Anchorage created havoc for roads and schools. The filing deadline for the six Anchorage Assembly seats and two school board seats closed on Friday (1/30/2026). And lots of politicos were spotted in Juneau this week. 

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Fiscal plan finally introduced 

Governor Dunleavy finally introduced legislation with his proposed fiscal plan this week. I published a Landmine article with the elements of his fiscal plan on January 20. Some haters did not believe what I wrote, but everything in my article is exactly what he introduced. These are the main elements: 

• Raising the minimum oil production tax floor from 4% to 6%. The minimum tax typically kicks in under a combination of high investment and/or low oil prices. They estimate the increase to bring in an additional $130 million. This would start in 2027 and would return to 4% in 2032.
• A 15 cent per barrel fee for Alyeska Pipeline to support maintenance on the haul road and along the pipeline. This would be passed on to the oil companies. This would start in 2027 and would not end. Estimated revenue is $25 million. 
• A reduction in the corporate income tax from 9.4% to 2% over seven years. The estimated revenue decrease between 2031-2035 is $135 million, and then $514 million between 2036-2042. 
• A statewide sales tax that would move between 2% and 4%. The tax would be set at 2% between October through March and 4% between April through September. This would go down to 0% in 2032. They estimate the revenue at $765 million per year. 
• A constitutional amendment to combine the Permanent Fund corpus and Earnings Reserve Account into one account, a maximum 5% yearly draw, and a 50/50 PFD based on the annual draw. The 50/50 PFD would start in 2028 and would be estimated at $3,600 per person per year. 
• Limit growth on spending to 1% through a statutory spending cap. 
• Establish a sunset and reauthorization process. 

It has not had a warm welcome in the Legislature. Many Republicans are not excited about the idea of new taxes. And many legislators won’t support new taxes in order to pay a big Permanent Fund Dividend (PFD). Senator Bill Wielechowski (D – Anchorage) did give Dunleavy credit for introducing a plan, but did criticize elements of it.  

Under Dunleavy’s proposed plan, the PFD would be put into the Alaska Constitution and set at half of the yearly draw from the Permanent Fund. At the current draw, that would cost around $2 billion. For content, last year’s $1,000 PFD cost just under $700 million. 

The plan still exhausts the state’s savings by FY2033 at current projected revenue and spending levels. Some, including Dunleavy, think revenues from a gasline would add significant new revenues in the future, but that is not something most decision makers are banking on. 

There is also an issue with many of the state’s key fiscal advisor positions. Dunleavy has failed to appoint a Revenue commissioner for six months, the deputy commissioner position has been vacant for ten months, and the Tax director has been acting for almost as long. These positions are all crucial for getting the kind of ambitious plan Dunleavy introduced passed the Legislature. 

The tax element of the plan is scheduled for a hearing in House finance on Thursday (2/5/2026). Nils Andreassen, the executive director of the Alaska Municipal League, is scheduled to present to the committee. That hearing should be lively. 

Other Happenings

If you were hiding under a rock this week and missed this Landmine story, “Young Republican legislative staffer flees Juneau after unhinged alcohol fueled meltdown,” it’s definitely worth checking out. There is loose, and then there is this kind of meltdown of epic proportions. 

Several House committee hearings got a bit spicy this week:

• Transportation Commissioner Ryan Anderson got absolutely grilled in House finance hearing. He was being asked about the $70 million of state funds needed for a $700 million federal match for highway projects this summer. They were getting frustrated with his non-specific answers. Several members got to the point where they were saying “TELL US IF YOU NEED MORE MONEY TO GET THESE TRANSPORTATION PROJECTES APPROVED!” 
• The NIMBYs really showed up to a meeting of the House State Affairs Committee. The committee was hearing House Bill 124, a ridiculous bill concerning the Alaska Industrial Development and Export Authority (AIDEA), from Representative Ashley Carrick (D – Fairbanks). Regardless of how you feel about AIDEA, the public testimony demonstrated the destructive NIMBY attitude in Alaska. All these people testifying against resource development and/or building more infrastructure are either dumb or rich.
• Representative Andy Josephson (D – Anchorage) and Representative Will Stapp (R – Fairbanks) got into it in House finance. Stapp referred to some of the House majority’s funding sources as kabuki theater. Josephson then reminded Stapp of the civility training they recently attended together. It’s only week two of the session!

Senator Bert Stedman (R – Sitka) had some harsh words for Crooked Adam Crum concerning his bill to ban the State of Alaska from doing business with DigitalBridge. 

Republican gubernational candidate Click Bishop, a former senator, was in the Capitol this week. Greta Schuerch, who is rumored to be his running mate, was also spotted in the Capitol. She was in town as part of a business fly-in.  

Furie owner John Hendrix and his daughter Lauren Hendrix, who works for Furie, were spotted having dinner at Salt with Senator Stedman. Hendrix was likely seeking another Hendrix Handout. Luckily Stedman doesn’t mess around. But how he got the meeting with Stedman is the real question.

Hendrix never stops trying to get handouts and tax breaks from the state. After being denied a massive property tax reduction for years by the State Assessment Review Board and Superior Court, he is still at it. 

Records I finally obtained by the Human Rights Commission show the weeklong trip to Geneva, Switzerland for Dorene Lorenz and Rob Corbisier actually cost the state $20,000! It’s hard for the public to believe our fiscal situation is as dire as it is when this kind of stuff is allowed to happen. 

Here is the list of candidates for the six Anchorage Assembly seats and two school board seats up in April. Assembly members Chris Constant (District 1) and Felix Rivera (District 4) are termed out. Assembly member Scott Myers (District 2) is not seeking re-election. Assembly members Anna Brawley, George Martinez, and Zac Johnson are all seeking re-election. 

U.S. House candidate Bill Hill is saying he raised $300,000 a week after he filed. Hill will be in Juneau this week. It’s been entertaining watching the Democrats and progressives fight online about Hill and Democrat Matt Schultz both being in the race. 

This Week’s Loose Unit 

This week’s designee is very well deserved. This week’s Loose Unit is Anchorage Mayor Suzanne LaFrance.

After lucking out last winter with low snowfall, LaFrance is now having to deal with the same kind of big storms that the she went after former Mayor Dave Bronson for not dealing with. I also went after Bronson for inadequate plowing. But LaFrance ran on fixing snow plowing! Very loose.

It was particularly funny watching LaFrance supporters online talk about how the roads are so much better compared to when Bronson was in office. Maximum loose!

But what really earned LaFrance Loose Unit status this week was her decision to unilaterally order new property tax assessments for four neighborhoods. After a horrible public reaction to new property tax assessments that came out this week, LaFrance went full Loose Unit and made it even worse. She announced that she ordered the assessor to send out new and lower assessments. You really can’t make this up. Classic Loose Unit behavior. 

If you have a nomination for this week’s Loose Unit, or if you have any political news, stories or gossip (or any old pics of politicians or public officials) please email me at jeff@alaskalandmine.com.