State Senate Finance Committee Co-Chair Bert Stedman (R-Sitka), Senate Majority Leader Cathy Giessel (R-Anchorage) and Senate President Gary Stevens (R-Kodiak) discuss budget, education and other issues during a press availability Tuesday at the Alaska State Capitol. (Mark Sabbatini / Juneau Empire)

State Senate Finance Committee Co-Chair Bert Stedman (R-Sitka), Senate Majority Leader Cathy Giessel (R-Anchorage) and Senate President Gary Stevens (R-Kodiak) discuss budget, education and other issues during a press availability Tuesday at the Alaska State Capitol. (Mark Sabbatini / Juneau Empire)

Two top Alaska GOP leaders on Trump: ‘It’s like Christmas every day’…‘if all you expect is coal in your stocking’

Gov. Dunleavy cheery about state’s prospects; some Republican legislators grim about lost jobs, funds.

Gov. Mike Dunleavy says “it’s like Christmas every day now” since Donald Trump’s return to the White House. Some other state Republican leaders spent Tuesday talking of a winter blunderland.

“It’s Christmas every day if all you expect is coal in your stocking, ” Senate President Gary Stevens, a Kodiak Republican, said in response to Dunleavy’s assessment. “It’s a tough, tough time for all of us.”

Dunleavy’s holiday-season cheer is based largely on the prospect of uninhibited oil drilling and similar industrial activity that might or might not happen years from now.

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Meanwhile, the past five weeks of the Trump administration have resulted in mass firings affecting a traumatized federal workforce, nonprofits in turmoil about frozen funds, the state university bullied into removing material referencing Alaska Natives, low-income residents facing the loss of health insurance, refugees fearing deportation, and legislators saying Permanent Fund dividends may vanish if an already strapped state government steps in to cover some of the losses.

The price of eggs has also risen nationally from an average of $6.55 a dozen on Jan. 21 to $8.11 as of Tuesday, according to the statistics hub Trading Economics. Furthermore, the U.S. Department of Agriculture announced Tuesday egg prices are expected to increase 41% this year, up from the 20% increase predicted in January.

Dunleavy, shortly after Stevens’ “coal” remark, released a 38-second video on social media acknowledging some Alaskans are experiencing difficulties, but better times are ahead.

“It’s a difficult time, there’s no doubt about it,” Dunleavy said. “I think once this thing works itself out here over the next couple weeks I think you’ll see a number of those (federal) folks back at work. I think there will probably be other opportunities for some folks that may not get back into the federal system. There’s certainly opportunities at the state system. We’ve got openings that I think a lot of those folks could fill. And so I would just say don’t lose heart.”

The hitch in that concept, according to some state lawmakers and federal employees, is the state’s sizable workforce shortage is due to factors such as wages that aren’t competitive and a lack of living needs such as affordable housing.

Gov. Mike Dunleavy, in a video posted online Tuesday, tells Alaskans “it’s a difficult time” for fired federal employees, but things will improve as the situation “works itself out here over the next couple weeks.” (Screenshot from official video from the Office of the Governor)

Gov. Mike Dunleavy, in a video posted online Tuesday, tells Alaskans “it’s a difficult time” for fired federal employees, but things will improve as the situation “works itself out here over the next couple weeks.” (Screenshot from official video from the Office of the Governor)

Dunleavy’s video was markedly different in tone than his remarks at the Conservative Political Action Conference last Friday in Maryland, when he said the federal government was “at war with the state” under President Joe Biden, but these are now the times of good cheer.

“The sun rose again on Nov. 5, that’s all I can tell you,” Trump said, referring to Trump’s election victory. “It’s like Christmas every day now.”

That dual messaging is being echoed by some other Alaskan politicians who are Trump supporters, including Republican U.S. Rep. Nick Begich III who during a visit to Juneau last week sought to reassure legislators and business leaders he would try to help them if they felt harmed by some of Trump’s actions. But Begich on Tuesday expressed full support for a budget passed by the House that partially pays for $4.5 trillion in tax cuts mostly benefiting the wealthy with $2 trillion in spending cuts that could result in 100,000 Alaskans losing Medicaid and 70,000 losing Supplemental Nutrition Assistance Program benefits.

“Tonight, House Republicans advanced a critical component of our America First agenda,” he wrote in a social media post. “We passed a Budget Resolution that lays the groundwork for the Budget Reconciliation process, one that will prioritize unlocking Alaska’s potential for our nation and will support America’s working families.”

There was no such mixed messaging during a grim press availability Tuesday at the Alaska State Capitol as five leaders of the state senate majority — three Republicans and two Democrats — discussed the state’s already sizable projected deficit next year potentially getting far larger under actions being taken by Trump.

A $536 million shortfall is projected by Senate leaders next year under a budget similar to this year’s, which includes a $680 increase in per-pupil state funding and a so-called “75-25” PFD that would equate to about $1,420 per resident. Stevens, when asked the budget passed by the U.S. House, said “I have heard rumors of up to a billion dollars that might be reduced to the state of Alaska” as a result to cuts in Medicaid and other programs.

“We just don’t know,” he said. “We’re waiting for the other shoe to drop. So often it seems like things come out of D.C. recently are to shock us and just to get our attention, and some backing off of that then occurs. So we’re anxious to see what truly happens from federal support for these issues.”

More than 30% of Alaskans are covered by Medicaid, a state/federal low-income program, and the state can step in to provide funds to prevent residents from losing coverage if federal funds are cut. Senate Majority Leader Cathy Giessel, an Anchorage Republican, said during Tuesday’s press conference “we need to pull up our fiscal bootstraps and figure out how we’re going to fill that gap if in fact the federal government pulls back.”

“This is a question of how much do we, how much do all Alaskans, sacrifice to provide effective government services to support our social and economic network in this state,” she said.

Dismay was also expressed about other matters such as the University of Alaska announcing last Friday it will remove all material referencing diversity, equity and inclusion due to a Trump mandate that threatens about 20% of the university’s funding. The university has also made other changes since Jan. 20 including omitting a reference to Alaska Natives being the intended beneficiary of the Alaska Native Science and Engineering Program, with the program’s webpage now stating it seeks to provide “educational opportunities and a life of unlimited possibilities for every student in Alaska.”

”It causes me great consternation.” Stevens said. “I love the university, I love the freedom the university represents, I love its inclusiveness, all the students who go there. I just question: what does that do to some of the situations that our students face?…I think students are in a very tough spot right now, but of course the (board of) regents are as well.”

The state is facing other financial perils such as withheld transportation funds and the prospect of materials such as steel getting far more costly due to tariffs imposed by Trump. Senate leaders said part of their fiscal plan for this session includes new revenue measures that, among other things, would alter tax credits for oil companies and impose taxes on out-of-state companies doing online commerce in Alaska.

But Giessel said residents may also need to accept more drastic measures are on the horizon such as a state income tax and no longer being guaranteed a PFD.

”We’ve lived since 1982 with a cash handout from the state of Alaska and I think it’s pretty obvious that the time for that is ending,” she said. “President Trump wants to lower the cost of fuel, lower the cost of oil. That (revenue is) what we’ve been depending on. But now nearly 50% of our income is coming from the federal government. Somehow we’re going to have to make some corrections here. So what I’m basically hoping to prepare people for is the fact that the gravy train is over.”

• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.

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