Anchorage leaders will run a new legislative coalition

Anchorage residents will see two new leaders at the helm of the Alaska Legislature when the 35th session begins in January. Moderate Republican Sen. Cathy Giessel will replace retiring Sen. Gary Stevens as Senate president. In the House, independent Rep. Calvin Schrage will become speaker, succeeding Bryce Edgmon, who is seeking a Senate seat.

The state will maintain its unique status as the only state with bipartisan coalitions leading both chambers. Alaska Beacon reporter James Brooks noted that this alignment between the governor and the legislature is rare. He described the current political configuration as something the state has not seen since the late 1980s and early 1990s under Gov. Steve Cowper.

Brooks identified education funding as a primary policy focus. Both the legislative coalitions and the governor-elect, Jonathan Kreiss-Tomkins, have expressed interest in forward-funding schools. This approach would involve creating a separate education budget early in the session. The groups also aim to adjust school funding for inflation annually through policy changes or separate bills.

The Senate majority currently stands at 11 members, which is the minimum required to control the chamber. A group of moderate-to-conservative Republicans has indicated they want to negotiate together. If these groups align, the coalition could reach 16 or 17 members. That size would be sufficient to advance constitutional amendments. In the House, the majority is estimated at 22 or 23 members, potentially growing to 24 or 25 if more moderate Republicans join.

Legislators are working behind the scenes to secure these coalitions. Brooks said they are offering promises to consider specific legislation and providing management positions that allow members to influence which bills advance. These negotiations are ongoing in the weeks following the midterm elections.

High oil prices are expected to generate a significant budget surplus for the coming year. Giessel stated that the Senate Majority Coalition will prioritize fiscal restraint. She said the group intends to save a portion of the extra revenue rather than spending it all. However, competing requests for funds are already emerging, including demands for deferred maintenance projects, increased school funding, and a larger Permanent Fund Dividend.

The Alaska LNG project remains a major point of discussion. Giessel has been a vocal skeptic of the pipeline and the tax breaks developers are requesting. Brooks said the new leadership will likely be more skeptical of the project than Gov. Mike Dunleavy was. Giessel wants the state to conduct a feasibility analysis similar to one currently being performed by the government of South Korea.

Before the election, President Donald Trump suggested South Korea might invest up to $50 billion in the gas line project. That statement included caveats regarding the project's fiscal viability that were not initially emphasized. South Korea clarified the following day that the investment was not yet a confirmed deal. Giessel wants the state to perform its own rigorous financial analysis before moving forward.

A state pension bill for public employees and teachers is another issue to watch. That bill passed the Legislature in 2025 but was vetoed by Gov. Dunleavy. Brooks noted that the House, Senate, and governor appear aligned on the issue. While the bill may not pass this year, he expects it to return with a strong path to passage in the next session.

An Anchorage-led task force on education funding will present its recommendations in early January. The group is chaired by Sen. Loki Tobin, a Democrat. Brooks said these findings will provide insight into how the first three months of the legislative session will proceed. The task force's work will help shape the specific mechanisms for forward-funding schools.