Email from Alaska Senate Majority Senator Kawasaki's Juneau Note   24 December 2025 View as Webpage Hey Neighbors, As we head into Hanukkah, Christmas and Kwanzaa, I am reminded of the generosity of our friends and neighbors in the Golden Heart City. From helping someone who might have broken down on the side of the road to plowing the driveway of a neighbor to donating food or gifts to families who are struggling this holiday season, Fairbanksans open their hearts and give their time and resources to their community. Thank you to everyone who came to our Interior Delegation Open House on Monday and our Town Hall meeting the prior Wednesday! I enjoyed having many great conversations, some tasty treats and holiday cheer with my constituents! If you were unable to attend but would still like to connect, please reach out immediately. There will also be several opportunities in the new year to meet up over a cup of coffee - see below. As the new year starts, the office transitions to Juneau to begin the next legislative session on 21st of January. The staff will begin the trek to Juneau in early January, the computers will be shipped and the Fairbanks office phones will be forwarded to Juneau. Our office will have delayed responses to e-mail but will get back to folks as soon as possible. Governor Introduces Budget Balanced by Remaining Savings Governor Dunleavy released his proposed budget for Fiscal Year 2027, which begins on July 1, 2026. The Governor's budget consists of the operating budget, which funds ongoing state services, and the capital budget, which funds infrastructure requests for road and transportation improvements. His budget marks the starting point in the budget process: the House and Senate Finance committees will spend most of session working on the budget and making amendments before the legislature passes it back to the Governor. The Governor also submitted a substantial supplemental budget for approval. The supplemental budget addresses lower-than-expected revenue for the current fiscal year, which will end onJune 30th. The decrease in revenue is due to lower oil prices, lower volumes of oil and items the governor vetoed which the legislature approved of last year. Such as SB 113 which would have updated Alaska's corporate tax structure to include online sales made by large corporations such as Amazon. This legislation was estimated to raise $25 to $65 million annually, income Alaska is now losing due to Governor Dunleavy's veto. The single largest item in the Governor’s budget is the Permanent Fund Dividend which accounts for $2.3 billion and is paid for through using approximately $1.8 billion from the Constitutional Budget Reserve savings account. Using the PFD to offset the budget is the worst way to fund state operating expenses because cuts to the PFD will directly impact the poor, seniors, rural Alaskans and children. Instead, Alaska should change our corporate oil tax system so Alaskans get a fair share for our limited natural resources. After 10 years of promises by the oil and gas industry, Alaska has seen is fewer locals receiving jobs, less oil in the pipeline, a lower PFD and less revenue to help run state services.  Some notable items funded in the proposed FY27 budget: $1. 4 billion in full statutory funding for K-12 schools $10 million for the creation of a Department of Agriculture $40 million for disaster relief $5 million for the University of Alaska Fairbanks toward achieving R1 Status $34 million for fire suppression $6 million to implement expanded eligibility of the Child Care Assistance Program $26 million for the Alaska Seafood Marketing Institute (ASMI) $98 million for behavioral health treatment Wrongful Convictions, Compensation and 'the Four' Earlier this month, I was honored to speak at an Alaska Innocence Project event marking the 10-year anniversary of the exoneration of the Fairbanks Four. The evening was both a moment to reflect on the injustice endured by Eugene Vent, Marvin Roberts, George Frese, and Kevin Pease, and a reminder that Alaska still has unfinished work to do. When I first came to the Legislature, I served on justice-related subcommittees focused on public safety, courts, and corrections. From the start, it was clear to me that our justice system has inequities built into it. Today, more than 40% of Alaska’s incarcerated population is Alaska Native, despite Alaska Natives making up only about 20% of our state’s population. Among those incarcerated pre-trial, that figure is even higher. These numbers do not reflect a system that is working fairly. In 2015, when the Fairbanks Four were finally released, momentum for reform grew. While no amount of compensation can restore the decades they lost, the Legislature advanced a modest but meaningful step: guaranteeing wrongfully convicted Alaskans access to the Permanent Fund Dividends they lost while incarcerated. That bill passed the House in 2017 by a 38–1 vote, but it was never taken up in the Senate. Today, that legislation is back. SB 167 would restore lost PFDs to Alaskans whose convictions have been vacated, reversed, or dismissed. The bill does not increase the state budget, as these funds are already set aside. SB 167 has passed two Senate committees and now needs continued momentum to reach final passage this session.  I need your help now. Letters of support, phone calls, emails, and public engagement all make a real difference. Ten years after the Fairbanks Four were exonerated, Alaska has an opportunity to take a meaningful step toward justice and accountability. I encourage you to speak up and help ensure SB 167 becomes law. Gas Pipeline Dream versus Reality The Alaska LNG project aims to export North Slope natural gas, offering huge economic benefits like jobs, state revenue, lower in-state energy costs, and cleaner air for some areas, while reducing global emissions by displacing dirtier fuels. However, it faces major hurdles that are undeniable and must be understood: a massive cost (tens of billions), reliance on huge subsidies, economic viability concerns (it's uncompetitive without them), significant environmental opposition (climate impact, species risk), complex engineering, and lingering questions about buyers and partners, making it a long-term, high-risk endeavor despite strong state interest. The next legislative session will have a key focus on the economics of the pipeline once again, especially when it applies to property taxes. Right now, the Alyeska Pipeline and the other joint venture pipeline owners pay the state a fixed property tax rate like every other borough property owner. These property taxes are paid to the state treasury and sometimes local governments like the Fairbanks North Star Borough, Valdez and the North Slope based on the value of the pipeline and facilities. One prospective discussion will center around whether the State of Alaska provides the Alaska LNG with a waiver from property taxes which is valued in the billions of dollars to Alaska. Glenfarne, the company that has privately developed the project in the last two years and has been broadcasting their involvement with the project, will make a final investment decision announcement on the LNG pipeline in early January according to press releases. Citizen Town Hall Recap I was pleased to join my fellow policymakers, Representative Maxine Dibert, Representative Ashley Carrick, Representative Mike Prax, Mayor Mindy O’Neall, and Mayor Grier Hopkins at the Fairbanks Town Hall at the Noel Wien Library earlier this month. Over 75 citizens from across Fairbanks showed up to ask us questions ranging from our local warming shelters to Alaska’s mining tax structure. Many of the questions centered on the fiscal challenges facing Alaska as we approach the 2026 legislative session, including how the state can responsibly fund essential services amid volatile oil prices. I have long said that we need to look at how we tax oil companies operating in Alaska. The Alaska Legislature is constitutionally obligated to manage our resources for the maximum benefit of its people. We discussed the need to examine long-standing revenue structures, ensure that resource development benefits Alaskans, and balance state-level decisions with their impacts on local governments. Education and workforce development were also top of mind. I appreciated the opportunity to talk about the progress made last session to increase school funding, while acknowledging the ongoing needs facing our schools, the University of Alaska system, and the educators who support our students. These conversations are a vital part of preparing for the session ahead. Hearing directly from constituents helps guide our work in Juneau and ensures that the priorities of Interior communities remain front and center as legislative decisions are made. I’ll be having more events like these during the session. So continue reading my newsletter to get those updates. If you would like to watch the Town Hall yourself, please follow this link. Making Schools Better for All One positive area of education/workforce growth in Fairbanks is from the University of Alaska Fairbanks. Continued, consistent state funding has allowed UA to continue supporting businesses and industries with an advanced workforce as well as bolster our economy and combat outmigration. For instance, the full-time equivalent student population grew by 11% this Fall of 2025, reaching a five-year high. Alaska Performance Scholarship recipients attending UA grew by 33% which is an all-time high since the Legislature created the scholarship in 2012. UAF brings an incredible amount of research dollars to the Interior, most recently thanks to its commitment to becoming an R1 institution, which will attract millions more in federal and private investment to Alaska. These research dollars also attract intellect and adventurers to our great state and stymie the outmigration that has been seen from time to time. My parents moved here in the 70s as graduate students to study at a first-rate institution of higher learning with an incredible academic focus and a great family-centered community. It is the reason why I am here today and so committed to my university!  While the University has increased its enrollment, we have seen a sharp decline in the number of students attending our neighborhood public schools. From a high of 14,041 in 2013-14, we currently have 11,800 students. Even though the number of students has decreased by only 199 during this time, the amount of money FNSBSD receives from the state has decreased. This is because most home and correspondence students are using programs from other districts, such as Raven, Cyberlynx, and IDEA. The Foundation Funding Formula used to calculate each district state funding allocation is heavily influenced by the number of students enrolled. So, fewer students enrolled in the Fairbanks means less money for the FNSBSD. An important point to consider is that students are allowed to participate in and use the resources FNSBSD provides for sports and other extracurricular activities, without being counted as part of that district in the Foundation Funding Formula. The teacher focus is on providing a positive experience for the student, not on whether that contributed to that Base Student Allocation. So the district will give that student an educational experience at a loss, costing our district valuable resources. This indirectly leads to the closure of neighborhood schools, which directly impacts our families and neighborhoods. The value of neighborhood schools is being underappreciated. This phenomenon of people exiting is devaluing our neighborhood schools. I am for all students being successful and having options to find success and the state should ensure that funding remains for all outlets of education whether a public, private, homeschool, neighborhood schools, correspondence or online learning academy. Future Events for You! In order to reach as many voters before heading to Juneau, I have scheduled a series of casual events to hear concerns and community priorities. The dates, locations and times will be announced next week-so stay tuned! My Staff and I are Here for You  As always, I will continue to keep you updated on what I’m working on in Juneau throughout the session. If you have any questions about anything going on in the Capitol or at home, feel free to give me a call or shoot me an email – as always, my staff and I are working for you. We will assist you with the issues important to you and your family. Working Hard for Fairbanks Families, Senator Scott Kawasaki Alaska State Senator Serving the City of Fairbanks, Ft. Wainwright & Badger Road Share This Email Share This Email Share This Email   As your Senator, I am here to listen and help. Contact me anytime. Senator Lisa Murkowski Fairbanks Office: 101 12th Avenue, # 172 Fairbanks, AK 99701 (907) 456-0233 or Email Senator Dan Sullivan Fairbanks Office: 101 12th Avenue, # 328 Fairbanks, AK 99701 (907) 456-0261 or Email Congressman Nick Begich Fairbanks Office: 542 4th Avenue #210 Fairbanks, AK 99701 (907) 251-4560 or Email     IN JUNEAU: Phone: (907) 465-3466 FAX: (907) 465-2937 State Capitol Building Juneau, AK 99801 IN FAIRBANKS: Phone: (907) 456-7423 1292 Sadler Way Suite 308 (AlaskaUSA Credit Building) Fairbanks, AK 99701 Toll Free: (866) 465-3466 EMAIL Sen.Scott.Kawasaki@ akleg.gov WEB aksenatedems.com/ sen-kawasaki Here are some ways to let your voice be heard regarding issues important to you. Write a Letter to the Editor: submit up to a 350 word letter to the Fairbanks News Miner via their website: [link removed] Contact the Governor: Governor Dunleavy's Fairbanks office may be reached at (907) 451-2920. You can also visit the state website at gov.alaska.gov   Senator Scott Kawasaki | Alaska State Capitol | Juneau, AK 99801 US Unsubscribe | Constant Contact Data Notice