Alaska Legislature finalizes $1,000 PFD; vote expected as soon as Tuesday
This year's Permanent Fund dividend will be $1,000, according to a final draft state budget approved Sunday afternoon by six House and Senate negotiators.
The dividend was among the biggest items in a $5.9 billion document that will fund state services from July 1 this year through June 30 next year.
The draft approved Sunday is scheduled for a final vote as soon as Tuesday in the House and Senate and will advance after that to Gov. Mike Dunleavy, who may reduce or eliminate individual line items. He may not increase a line item.
The Legislature's regular session reaches its constitutional limit on Wednesday.
The latest forecast from the Alaska Department of Revenue expects significantly lower oil and gas revenue over the next year, and lawmakers significantly cut services and programs during the budget drafting process.
Unlike in previous years, the amount of the Permanent Fund dividend was not a contentious issue for budget negotiators at the end of the legislative session.
Rep. DeLena Johnson, R-Palmer, said on Sunday that lawmakers had already argued the issue earlier in the session, and even though she unsuccessfully voted for a $1,400 dividend on Sunday, she knew the $1,000 figure would be final.
'From my perspective, I already knew what this number was going to be,' she said.
Compressing the dividend is the state's precarious budget situation.
In December, Dunleavy handed lawmakers a budget draft with a $2.1 billion deficit and a $3,900 dividend; the budget will leave the Capitol with a surplus of about $55 million. Legislators expect that surplus will evaporate in the coming months — oil prices are running below the Department of Revenue forecast, and Republican members of Congress are planning to reduce the amount the federal government pays for major programs, including food stamps and disaster relief.
The Senate approved a budget draft with deeper cuts than the final document, but during the compromise process, lawmakers added individual line items preferred by the House, which proposed higher levels of spending and a draw from the Constitutional Budget Reserve, the state's main savings account, to pay for that spending.
The final version of the budget eliminates that draw from savings, except as needed to cover a deficit remaining in the current fiscal year.
If lawmakers don't approve the CBR draw, money would be taken from the state investment bank — better known as the Alaska Industrial Development and Export Authority, or AIDEA — and the state's education trust fund.
That will put pressure on members of the House's 19-person Republican minority caucus, who previously voted against drawing from the CBR. Thirty votes are needed in the 40-person House to spend from the CBR.
The final version of the budget includes an additional $13.7 million for child care programs, $5.7 million more for infant early learning programs and 15 new full-time positions to help process public assistance applications.
The conference committee, in charge of negotiating the compromise budget, also approved a House proposal to increase funding for behavioral health services used by mentally ill homeless people by $13.75 million.
'The Alaska Behavioral Health Association made a strong case that they need that,' said Rep. Andy Josephson, D-Anchorage and chair of the conference committee.
In future years, the state will try to obtain behavioral health funding through federal Medicaid grants.
A $1 million grant to food banks — proposed by the House — was rejected in the final version of the budget, as was funding for public radio.
There will be no new troopers for the Matanuska-Susitna Borough; the committee voted 4-2 to eliminate a section of the House budget that would have re-established the trooper post in Talkeetna. Sen. James Kaufman, R-Anchorage, and Johnson voted in favor of the addition.
Sen. Lyman Hoffman, D-Bethel and a vote against the addition, said that the reopened trooper post was suggested by Gov. Mike Dunleavy who withdrew that proposal — and all of his other proposed budget increases — before the conference committee met.
Johnson said the failure to include the troopers, who could be used to curtail the Railbelt drug trade, was 'probably one of the bigger disappointments for me in there.'
The final version of the budget also eliminates a paragraph that sought to restrict gender dysphoria treatment, the kind used by transgender Alaskans. That paragraph was inserted by the House in its budget draft, but the Senate didn't include it.
Conversely, a paragraph limiting abortion care, adopted by the Senate but rejected by the House, was included in the final budget draft.
That paragraph has been repeatedly challenged in court, and the effect of including it in the budget is a small cut to Medicaid funding.
Josephson said the result of the two decisions is a return to the status quo — the Legislature has included the anti-abortion language in its budget for years, and the anti-transgender language was new this year.
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Associated Press
24 minutes ago
- Associated Press
DOGE sprouts in red states, as governors embrace the cost-cutter brand and make it their own
HARRISBURG, Pa. (AP) — The brash and chaotic first days of President Donald Trump 's Department of Government Efficiency, once led by the world's richest man Elon Musk, spawned state-level DOGE mimicry as Republican governors and lawmakers aim to show they are in step with their party's leader. Governors have always made political hay out of slashing waste or taming bureaucracy, but DOGE has, in some ways, raised the stakes for them to show that they are zealously committed to cutting costs. Many drive home the point that they have always been focused on cutting government, even if they're not conducting mass layoffs. 'I like to say we were doing DOGE before DOGE was a thing,' Iowa Gov. Kim Reynolds said in announcing her own task force in January. Critics agree that some of these initiatives are nothing new and suggest they are wasteful, essentially duplicating built-in processes that are normally the domain of legislative committees or independent state auditors. At the same time, some governors are using their DOGE vehicles to take aim at GOP targets of the moment, such as welfare programs or diversity, equity and inclusion programs. And some governors who might be eyeing a White House run in 2028 are rebranding their cost-cutting initiatives as DOGE, perhaps eager to claim the mantle of the most DOGE of them all. No chainsaws in the states At least 26 states have initiated DOGE-style efforts of varying kinds, according to the Economic Policy Institute based in Washington, D.C. Most DOGE efforts were carried out through a governor's order — including by governors in Florida, Iowa, Louisiana, Montana, New Hampshire and Oklahoma — or by lawmakers introducing legislation or creating a legislative committee. The state initiatives have a markedly different character than Trump's slash-and-burn approach, symbolized by Musk's chainsaw-brandishing appearance at a Conservative Political Action Committee appearance in February. Governors are tending to entrust their DOGE bureaus to loyalists, rather than independent auditors, and are often employing what could be yearslong processes to consolidate procurement, modernize information technology systems, introduce AI tools, repeal regulations or reduce car fleets, office leases or worker headcounts through attrition. Steve Slivinski, a senior fellow at the libertarian Cato Institute who researches state government regulatory structures, said that a lot of what he has seen from state-level DOGE initiatives are the 'same stuff you do on a pretty regular basis anyway' in state governments. States typically have routine auditing procedures and the ways states have of saving money are 'relatively unsexy,' Slivinski said. And while the state-level DOGE vehicles might be useful over time in finding marginal improvements, 'branding it DOGE is more of a press op rather than anything new or substantially different than what they usually do,' Slivinski said. Analysts at the pro-labor Economic Policy Institute say that governors and lawmakers, primarily in the South and Midwest, are using DOGE to breathe new life into long-term agendas to consolidate power away from state agencies and civil servants, dismantle public services and benefit insiders and privatization advocates. 'It's not actually about cutting costs because of some fiscal responsibility,' EPI analyst Nina Mast said. Governors promoting spending cuts Louisiana Gov. Jeff Landry rebranded his 'Fiscal Responsibility Program' as Louisiana DOGE, and promoted it as the first to team up with the federal government to scrub illegitimate enrollees from welfare programs. It has already netted $70 million in savings in the Medicaid program in an 'unprecedented' coordination, Landry said in June. In Oklahoma, Gov. Kevin Stitt — who says in a blurb on the Oklahoma DOGE website that 'I've been DOGE-ing in Oklahoma since before it was cool' — made a DOGE splash with the first report by his Division of Government Efficiency by declaring that the state would refuse some $157 million in federal public health grants. The biggest chunk of that was $132 million intended to support epidemiology and laboratory capacity to control infectious disease outbreaks. The Stitt administration said that funding — about one-third of the total over an eight-year period — exceeded the amount needed. The left-leaning Oklahoma Policy Institute questioned the wisdom of that, pointing to rising numbers of measles and whooping cough cases and the rocky transition under Stitt of the state's public health lab from Oklahoma City to Stillwater. Oklahoma Democrats issued rebukes, citing Oklahoma's lousy public health rankings. 'This isn't leadership,' state Sen. Carri Hicks said. 'It's negligence.' Stitt's Oklahoma DOGE has otherwise recommended changes in federal law to save money, opened up the suggestion box to state employees and members of the general public and posted a spreadsheet online with cost savings initiatives in his administration. Those include things as mundane as agencies going paperless, refinancing bonds, buying automated lawn mowers for the Capitol grounds or eliminating a fax machine line in the State Board of Licensure for Professional Engineers and Surveyors. Florida Gov. Ron DeSantis signed an executive order in February creating a task force of DOGE teams in each state agency. In the order, DeSantis recited 10 points on what he described as his and Florida's 'history of prudent fiscal management' even before DOGE. Among other things, DeSantis vowed to scrutinize spending by state universities and municipal and county governments — including on DEI initiatives — at a time when DeSantis is pushing to abolish the property taxes that predominantly fund local governments. His administration has since issued letters to universities and governments requesting reams of information and received a blessing from lawmakers, who passed legislation authorizing the inquiry and imposing fines for entities that don't respond. After the June 30 signing ceremony, DeSantis declared on social media: 'We now have full authority to DOGE local governments.' In Arkansas, Gov. Sarah Huckabee Sanders launched her cost-cutting Arkansas Forward last year, before DOGE, and later said the state had done the 'same thing' as DOGE. Her administration spent much of 2024 compiling a 97-page report that listed hundreds of ways to possibly save $300 million inside a $6.5 billion budget. Achieving that savings — largely by standardizing information technology and purchasing — would sometimes require up-front spending and take years to realize savings. ___ Follow Marc Levy on X at:
TechCrunch
43 minutes ago
- TechCrunch
Sequoia bets on silence
There is a time-honored crisis management strategy, wherein one says nothing and waits for the outrage to pass. For Sequoia Capital, the strategy worked pretty well this week. While partner Shaun Maguire initially weathered criticism over an inflammatory social media post, that initial indignation cooled quickly. Now, some seem to think that Maguire's defiant stance may even be strengthening his position. Business Insider actually called it 'good for deal flow' — controversy as competitive advantage. Sequoia's calculated gamble carries real risk, though. Another provocative post from Maguire that hits the wrong nerve, a shift in political winds, or escalating consequences could quickly transform their unflappable partner from an asset into a liability the firm can no longer afford to ignore. A crisis communications professional who has managed reputation disasters for dozens of major brands tells this editor, 'Firms like Sequoia are bulletproof until they aren't.' What happened Sequoia's hands-off approach was put to the test earlier this week when the storied venture firm found itself in the eye of a storm over Maguire's inflammatory comments about New York City mayoral candidate Zohran Mamdani. Maguire called him an 'Islamist' who 'comes from a culture that lies about everything' in a July 4th tweet on X that has since been viewed more than five million times. More than one thousand signatures have poured in since on a petition demanding that Sequoia condemn the remarks, investigate Maguire's conduct, and apologize. There's been a lot of talk about why Sequoia hasn't done this, with many outlets noting that Maguire isn't just any partner. This status owes partly to his friendship with Stripe's co-founder. According to reports, at a 2015 Founders Fund event, Maguire—then a Founders Fund-backed entrepreneur—defended Collison during an argument with Anduril's Palmer Luckey about quantum computing, earning Collison's friendship. The connection proved valuable when Maguire joined Google Ventures in 2016; he helped secure a $20 million Stripe investment during his first week. When Maguire left Google Ventures in 2019, Collison personally recommended him to Sequoia's partners. (Stripe has been in Sequoia's portfolio since 2010, with the firm investing more than $500 million over 15 years.) Maguire also led Sequoia's investment in Bridge, a stablecoin platform that Stripe acquired for $1.1 billion, and is reportedly Sequoia's link to Elon Musk, though this is probably somewhat overstated. Musk and Sequoia's global managing director, Roelof Botha, are both native South Africans and have known each other for more than 25 years, dating back to their time together at the then-nascent PayPal, where Botha was recruited personally by Musk. Despite that long relationship, the two haven't always seen eye to eye. Botha was highly critical of Musk's management style when Musk was CEO of the merged company, where Botha was CFO. Botha once told veteran journalist Ebbe Dommisse, 'I think it would have killed the company if Elon had stayed on as CEO for six more months. The mistakes Elon was making at the time were amplifying the risk of the business.' But Musk was at odds with pretty much that entire crew at the time, and those tensions have long since been resolved. Techcrunch event Save up to $475 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW The bigger point here: when you're managing tens of billions of dollars in assets and your firm's reputation rests on backing winners like Google, Stripe, and Nvidia, you don't easily cast aside a rainmaker. Meanwhile, Maguire's behavior suggests he's not backing down. After issuing a 30-minute video on X last weekend in which he apologized for offending so many — saying he was making a point about a political ideology and not one about a religion — he has doubled down with increasingly aggressive posts this week. He has claimed he has 'reverse engineered' his critics' 'command structure' and threatened to 'embarrass' anyone who escalates against him. He added that this is him at '1% throttle' and warned people not to 'fuck w children of the internet.' The silent treatment Sequoia has precedent for its approach to this situation. The firm has historically given its partners space to express themselves publicly, with figures like Doug Leone and Michael Moritz (who left the firm in 2023) representing different political perspectives. But there's a crucial difference between political diversity and inflammatory rhetoric and clearly to some, Maguire's comments extend beyond partisan politics into territory that alienates both political opponents and potential business partners. It's also worth remembering that even for Sequoia, there is a bright line. Michael Goguen, another, earlier rainmaker with the firm, was promptly shown the door when Sequoia learned of a sexual abuse lawsuit filed against him. The situations are hardly comparable; Goguen's issues were legal and personal, not ideological. At the same time, Sequoia has shown it isn't willing to circle the wagons at any cost, not if its reputation is at stake. Presumably, several factors inform Sequoia's do-nothing PR strategy, including how quickly people, faced with a constant flurry of news, move on from a scandal. The firm is also operating in a different political landscape right now in the U.S. Along with Donald Trump's victory and the rollback of DEI initiatives has come new tolerance for controversial speech. What might have been career-ending at an earlier point in time is now weathered more easily. The firm is also likely banking on the fact that while founders want partners who fit the traditional, more genteel VC mold, they want successful ones even more. Startups being courted by multiple top-tier firms might not like or agree with Maguire, but when Sequoia comes calling with its track record and almost bottomless pockets, most founders are going to welcome the firm with open arms. There's also the very real possibility that Sequoia is working on a contingency plan. (Sequoia declined to comment on Maguire's posts when reached by TechCrunch earlier this week.) Still, Sequoia's silence carries risks. Not all the signers have been confirmed, but the petition against Maguire includes the names of some prominent Middle Eastern executives and founders who have attested to signing it, and they represent the kind of diverse, global talent pool that drives innovation. By not addressing the controversy, Sequoia risks being seen as tacitly endorsing Maguire's views. Put another way, though the venture capital world has historically been remarkably forgiving of controversial figures with exceptional deal flow, the firm is gambling with its reputation in an increasingly connected global market where alienating entire regions and communities carries real business consequences. Whether that bet pays off will depend on how long the controversy lingers, how much business it actually costs Sequoia, and whether Maguire can resist the urge to push things past Sequoia's own tolerance threshold. (He has said he doesn't post anything that hasn't been 'excrutiatingly thought out.') History suggests that established financial firms with strong track records tend to outlive their scandals, even serious ones. When Apollo Global Management's Leon Black resigned in 2021 over his $158 million payments to Jeffrey Epstein, the firm's stock barely moved and shareholders seemed largely unfazed. Apollo just continued its aggressive deal-making under new leadership. Similarly, Kleiner Perkins survived Ellen Pao's high-profile gender discrimination lawsuit in 2015. But it took years and essentially an entirely new team for the storied venture firm to regain its footing in Silicon Valley's hierarchy. The lesson here may be that while controversial partners can be endured, the recovery timelines can vary significantly depending on how firms handle the crisis. For now, the crisis communications professional, who asked not to be named, has some advice for Maguire and, by extension, Sequoia. Regarding the video Maguire published in the aftermath of his initial comments, the expert said, 'I did think that apology addressed the ambiguities in [Maguire's] post. But it's a 30-minute video — you have to be really interested to watch this.' If there's a next time, the professional said, Maguire should 'do two videos — one for three minutes' and another, longer video, for anyone who wants to keep watching. Sometimes, the expert added, 'less is more.'
CNN
an hour ago
- CNN
Deputy FBI Director Bongino has told people he is considering resigning amid Epstein files fallout, sources say
CNN — Deputy FBI Director Dan Bongino has told people he is considering resigning amid a major clash between the FBI and Justice Department over the continued fallout from the release of the Jeffrey Epstein memo, sources familiar with the matter told CNN. This comes after a heated confrontation with Attorney General Pam Bondi over the handling of the case earlier this week. The infighting over the case came to a head during a Wednesday meeting, which included Bongino, Bondi, FBI Director Kash Patel and White House chief of staff Susie Wiles, the sources said. Bongino and Patel were confronted about whether they were behind a story that said the FBI wanted more information released but was ultimately stymied by the Department of Justice, they said. Bongino denied leaking that notion to NewsNation, which published the story, a source familiar with the matter told CNN, though he did not sign on to a statement defending the review included in that article. CNN has reached out to Bongino and the FBI for comment. The sources cautioned that Bongino had not made up his mind, and it was possible he would stay in his position. Axios first reported some of the details of Bongino's confrontation at the White House. The episode comes as many of President Donald Trump's close advisers, both inside and outside of the White House, have grown increasingly frustrated with Bondi's handling of the so-called Epstein files, following days of intense criticism from some of the president's most devoted supporters. Multiple sources said Bongino did not come to work Friday, fueling speculation he had quit over the issue. One of those sources said that as of Friday afternoon he had not left his position. 'The whole thing has been a complete mess and no one is happy,' a source briefed on the matter told CNN. Epstein is a disgraced financier and convicted sex offender whose criminal case has long captured significant public attention, in part because of his ties to wealthy and high-profile people. In August 2019, while he was awaiting trial in a federal criminal case, Epstein was found unresponsive in his cell at New York's Metropolitan Correctional Center. He was taken to a hospital, where he was pronounced dead. His death was ruled a suicide. The death, though, was heavily scrutinized, and during his 2024 campaign, Trump said that he would consider releasing additional government files on the case. Many of the president's supporters hoped that release would implicate other high-profile figures, or undercut the notion that Epstein killed himself. But the Justice Department announced in a memo Monday that there was no evidence he kept a 'client list' or was murdered, fueling rage and suspicion among many in MAGA world. FBI and Justice officials had been at odds for months about the handling of the Epstein files review. But the tension spilled out publicly on Friday, when far-right provocateur Laura Loomer, who is close with people in the administration, wrote on social media that Bongino and Patel were 'LIVID' with Bondi over the Epstein case. She wrote Bongino was 'taking the day off today from his job as Deputy Director of the FBI, and there's now speculation on whether or not he will return to his job.' Deputy Attorney General Todd Blanche denied a rift between Justice Department and FBI leadership in a post on X Friday, saying that 'the suggestion by anyone that there was any daylight between the FBI and DOJ leadership on this memo's composition and release is patently false.' White House deputy press secretary Harrison Fields said Trump has 'assembled a highly qualified and experienced law and order team dedicated to protecting Americans, holding criminals accountable, and delivering justice to victims.' 'This work is being carried out seamlessly and with unity,' Fields said. 'Any attempt to sow division within this team is baseless and distracts from the real progress being made in restoring public safety and pursuing justice for all.' Bondi orchestrated an event at the White House in February with pro-Trump social media influencers to present binders of Epstein-related documents, though she later faced criticism when the MAGA influencers realized most of the documents had been public for years. Patel had minimal involvement in that event. More recently, Bongino repeated promises that the files would be released, even as he tried to downplay their contents. At least one of Bongino's frustrations relates to a 10-hour surveillance video taken outside of Epstein's Manhattan jail cell the day he died, a person familiar with the situation told CNN. As the investigators spent weeks combing through records related to the Epstein investigation, Bongino discovered the video, the person said. The deputy director was elated by the discovery, and he said it was definitive evidence that Epstein had not been murdered, they said. But after the video was released, members of the public and press observed that the video jumped forward, cutting out 60 seconds. Bondi has publicly said the outdated recording system that produced the video resets every day at midnight and the same minute is skipped every evening. Still, theories about what happened in that minute exploded online, and Bongino was blamed internally for the oversight. Patel and Bongino have privately expressed frustration for months over the DOJ's handling of the case, stemming in part from an early interview where Bondi implied the FBI was still reviewing the case, while it had already been turned over to the Department of Justice, sources familiar with the matter said.
