Education
Education was a central focus of the session, with bipartisan lawmakers passing a compromise package that included a permanent $175 million increase in district aid through a school funding formula. However, Governor Dunleavy vetoed the measure, seeking charter school provisions and a teacher bonus experiment that proved divisive. Override attempts for the veto failed, and lawmakers ultimately settled for smaller measures, including a one-time $175 million boost to the foundation formula in the budget and additional funding for K-3 reading support.
Senator Löki Tobin, chair of the Senate Education Committee, emphasized the ongoing challenges facing public schools despite the approved funding, which he deemed inadequate. School officials and education advocates had requested a larger $360 million permanent funding increase. Tom Klaameyer, president of the teachers’ union NEA-Alaska, expressed disappointment over the Legislature’s failure to reinstate a pension for public employees.
Underground Carbon Storage
Governor Dunleavy’s second carbon emission reduction proposal passed, allowing the state to establish a system for underground storage of carbon dioxide. The bill targets aging gas or oil fields as potential storage sites. Legislators aim to leverage the state’s vast pore space for carbon storage, potentially generating billions of dollars in revenue.
Rebecca Noblin of the group Native Movement criticized the measure, arguing that it empowers oil and gas companies to inject carbon from their operations back into the ground, increasing pollution and distracting from genuine climate change solutions.
Energy
The carbon bill also included provisions aimed at encouraging increased gas production in Cook Inlet through reserve-based lending. This mechanism allows for loans secured by oil and gas field assets, potentially unlocking gas fields and boosting production. Concerns over gas availability in Alaska’s most populous region were raised during the session.
Governor Dunleavy’s office praised the passage of a separate measure that streamlines tax and tariff policies for electrical generation projects. The move is seen as an incentive for independent power producers to invest in renewable energy projects like solar and wind farms.
Dividend
Unlike previous years, there was minimal disagreement over the annual dividend paid to residents this year. Lawmakers agreed on a dividend of approximately $1,360 and an energy relief payment of $295.
