State Government

A state legislator’s former chief of staff faces charges of child sexual exploitation and child sex trafficking. Federal agents arrested Craig Scott Valdez, 36, early Friday in Juneau, according to court documents.

Valdez is an Anchorage resident listed as having served as Republican Wasilla state Sen. George Rauscher’s chief of staff since November. Valdez was terminated Friday hours after the charges were made public, according to a press secretary for the state Senate minority caucus, of which Rauscher is a member.

Valdez was also elected as chair of the Anchorage Young Republicans in January 2025 and became the group’s state committee chair last month, according to social media posts.

A grand jury on Tuesday indicted Valdez on charges of sex trafficking a minor, sexual exploitation of a minor – for both allegedly producing and receiving child sexual abuse material – and coercion and enticement of a minor. The alleged crimes occurred in October 2025, according to the indictment.

Court documents detail a specific instance in which Valdez allegedly lured a 15-year-old girl to his Anchorage home. But prosecutors also wrote that the FBI has identified at least 11 other potential victims, and federal authorities are asking the public for help as their investigation continues.

In a court filing supporting Valdez’s detention in jail, federal prosecutors laid out what they say happened in October:

Valdez had met the 15-year-old girl on Snapchat, picked her up at her home and drove her to his house, “for the purpose of sexually exploiting the child to celebrate his birthday,” the detention memorandum says.

The girl’s sibling alerted her mother, who used a family tracking application to track her daughter to Valdez’s home in south Anchorage. The mother called Anchorage police after arriving at Valdez’s home and waited outside, where she heard her daughter inside the house say something about wanting to leave.

“(The girl’s) mother then entered the residence, struck Valdez once in the face and recovered the child, who exhibited signs of extreme drug or alcohol intoxication and had difficulty walking and maintaining consciousness,” the memo says. “(Police) responded a short time later, at which point Valdez, puzzlingly, chose to flee from his own residence.”

While the girl had left her own phone at Valdez’s residence, the mother was able to copy messages from a separate linked device showing Valdez had used Snapchat to entice the girl to come to his home for sexual purposes.

The girl later told investigators that other children had introduced her to Valdez when she was 13 or 14 years old.

Law enforcement officials do not think the October incident was the first time Valdez exploited the girl, nor do they think she was his only victim.

Federal prosecutors wrote in a news release Friday that investigators are looking for more information, including other victims. They say he went by the usernames “NONAME20233132” or “DOCHANK” and ask that anyone with further information on Valdez call the FBI Anchorage Field Office at 907-276-4441 or deliver tips anonymously to tips.fbi.gov.

A request for comment Friday morning to Rauscher’s office was referred to the state Senate minority caucus’s press secretary, who said she did not have any information to release beyond what was publicly available in the court documents. The press secretary, Cassandra Day, texted later to say that Valdez had been fired.

The next hearing in the case is set for Monday.

Editor’s note: This story has been updated to reflect that Valdez was fired from his position as state Sen. George Rauscher’s chief of staff Friday afternoon.

Correction: An earlier version of this story misstated the group Valdez was elected chair of in 2025. He was elected chair of the Anchorage Young Republicans, not the Alaska Young Republicans.

The Alaska Department of Corrections spent over $24 million more than the budget approved by the Legislature last year, with a large portion for staff overtime, raising alarm from lawmakers.

DOC officials submitted their additional budget request to the Legislature earlier this month, part of a routine budget process to account for state spending over the past year — but this year’s price tag for the state’s prison system is at a historic high.

The department requested an additional $20 million for staffing and overtime for last year at the state’s 13 prison and jail facilities.

According to department data provided to the Senate Finance Committee on Thursday, there were 15 correctional staff that earned over $100,000 each in overtime pay last year, on top of salary and benefits.

Two correctional officers at the Anchorage Correctional Complex worked over 2,000 hours in overtime last year — one officer topped the list working 2,770 hours of overtime, to earn a total of over $225,000 last year.

DOC officials did not respond to questions about the department’s policies around overtime and mandatory overtime on Thursday, but a spokesperson said the department’s current vacancy rate is 11.5% statewide. In budget documents, DOC officials noted the additional funding was needed for minimal staffing requirements for “24/7 operational readiness.”

Sen. Bert Stedman, R-Sitka and co-chair of the Senate Finance Committee, said while the rising costs in DOC are well-known, going millions over budget is a problem as lawmakers grapple with declining state oil revenues and a growing list of state funding needs this year.

“Their budget has been growing exponentially,” he said Thursday. “It’s not fair, because those funds that are being channeled in that direction could go elsewhere.”

DOC’s budget has seen increases year-over-year throughout Gov. Mike Dunleavy’s term, unlike other agencies who have sustained cutbacks. Since 2019, the state budget for DOC has increased 46% to over $437 million last year, according to state data.

The $24 million in additional funds the agency requested also included $1.1 million for community residential treatment centers, or halfway houses, and $2.95 million in health care costs last year.

Sen. Mike Cronk, R-Tok, also serves on the Senate Finance Committee and expressed surprise and concern at the overtime hours presented to the committee on Thursday.

“That’s literally 100 hours a week. All year long,” he said, and questioned if people were running up overtime for a short time in order to retire or leave the department. “So it’s very concerning. You know, obviously I don’t blame anybody for it, but we have to figure out why this is happening, and we just have to do better. We have to be more efficient and make sure that we’re doing everything we possibly can to keep costs down.”

Stedman questioned the state’s contracts with the union representing correctional officers, the Alaska Correctional Officers Association, in accounting for the extensive overtime.

“My concern is maybe they ought to haggle a little bit better when they do their labor agreements, because this is definitely not appropriate for the public treasury to put up with, and it’s got to get corrected,” he said.

Representatives with the union did not immediately respond to emailed questions about lawmakers’ concerns on Thursday.

Last year, over 9,800 people entered DOC custody in institutions or on supervised release on probation or parole, according to state data.

Lawmakers held a series of hearings with officials from Mt. Edgecumbe High School, the largest state-run boarding school in Alaska, following a tumultuous year of budget and staff cuts, administration changes and a wave of student disenrollments.

Sen. Bert Stedman, R-Sitka, opened his remarks at a Feb. 12 Senate Finance Committee hearing saying lawmakers need to air the school’s “dirty laundry” so they can help fix the school’s finances and make needed repairs.

“The goal here is to improve Mt. Edgecumbe High School, and we can’t do that without accurate information,” he said.

Stedman was among a delegation of legislators that made an impromptu visit to the school on Feb. 6, after the news of a mass student disenrollment after this winter break. Lawmakers reported they found leaking roofs, classrooms and buildings in disrepair, rodents, and outdated dormitories. They also met with students to hear about their concerns.

After the visit, Sen. Lyman Hoffman, D-Bethel, reported at a Senate news conference the conditions of the facilities were “deplorable.”

Hoffman, who also serves as the finance co–chair, did not mince words to school officials at the hearing. “I could say that if I were a parent, I wouldn’t let my child go to school there,” he said. “The condition of that school speaks for itself. ”

Mt. Edgecumbe High School is based in Sitka, which typically enrolls around 400 students, the majority of whom are Alaska Native from rural communities without local high schools. As of February, enrollment dropped to 311 students, officials said.

Superintendent David Langford, newly hired in July, told lawmakers that administrators were concerned that roughly 25% of students had disenrolled, but said they could not identify a common reason to explain why.

“So far, all the data of all the 100 students that have left this year, we can’t find any trends,” he said. “Like we didn’t have any majority of the students saying ‘it was the food’ or ‘it was the dorm,’ or was this or the other thing. But all those were issues that we’re working to rectify.”

Lawmakers put questions to Deena Bishop, commissioner of the Alaska Department of Education and Early Development, which administers the school, along with the governor-appointed Alaska State Board of Education.

To explain recent events at the school, Bishop painted a picture for lawmakers of a “right-sizing” effort led by DEED after COVID pandemic relief funding ran out in 2024. She said Mt. Edgecumbe had a $1.6 million budget shortfall that forced a series of cost-cutting measures throughout 2025. The state sold off a parcel of land on the campus property for $900,000 to help fill that gap.

But Bishop said last year, the DEED and the administration cut four teachers, one administrator and two support staff positions. They also made cuts to student activities, travel and maintenance funding — plus a change in the superintendent and contractors running the student dorms and food service this year.

Langford testified that when he arrived in August, he wasn’t sure the school would open. But DEED and administrators made a series of emergency repairs and deep cleaned the kitchen facilities and dorms, replacing years-old mattresses, dorm furniture and upgrading the kitchen including all cookware.

Legislators asked how school facilities had been left to deteriorate so badly, who was responsible for advocating for the school repairs, and how officials planned to make improvements.

Hoffman said it was obvious from legislators’ visit that there is more work to do.

“It seems every time we go down the path, there are more and more and more issues that aren’t being addressed,” Hoffman said. “I’m glad we’re addressing the immediate needs, but there’s long term needs that need to be addressed that aren’t being addressed by the Department of Education.”

Bishop acknowledged that the effort is ongoing. “So in right-sizing the ship, it’s moving forward. I absolutely agree with you. Is Mount Edgecumbe where we want it to be? Absolutely not. I believe, with the leadership that is there and support for this school, that we can get there.”

Hoffman pointed out the school lost Americorps support staff after the Trump administration gutted the program last year. Mt. Edgecumbe lost three staff who served in major support roles for students for after-school activities and outings into town.

“The primary role of these people was to do nothing but be with students in the evening,” said Langford. He added that he tried to hire staff back this year, but it was too late. “So in terms of students going home, I would point to that as one of the biggest impacts that could have been prevented.”

In a state Board of Education meeting in December, parents, alumni and current and former staff from Mt. Edgecumbe testified that because of changes in the dorms, loss of staff and teachers and reduced activities, students’ quality of life suffered, and morale plummeted last fall. A local healthcare provider testified to members of the board that in the previous month, eight students were hospitalized for suicidal ideation — an unprecedented number, she said.

Ilana Kalke, a junior, was one of two Mt. Edgecumbe students that testified to lawmakers last week. She said there is a disconnect between the new contractor running the dorms, the NANA Corporation, and staff and students.

“It seems like they have trouble communicating, which impacts us, this leads to inconsistent application of rules,” Kalke said. “There’s been trouble communicating, getting rides, and just like less collaboration, which affects rec activities.”

Kadyn Cross, a sophomore, testified in support of the school and told lawmakers that supporting the school supports students like him, who are coming from small villages like his community of Koyuk, on the coast of Norton Sound.

“MEHS is already producing future educators, leaders and contributors to Alaska’s communities. But we can’t do that without stable funding for staff, updated facilities, student activities, and real maintenance, especially maintenance, which is stretched thin right now,” he said. “I’m not here with data charts. I’m here as one student who moved from a small village to a school that changed my trajectory fast. And I’m one of hundreds. MEHS isn’t just a school, it’s a place that grows people who go back to their communities and strengthen them.”

Lawmakers slam Gov. Dunleavy for years of vetoing funds for repairs

Lawmakers criticized Gov. Mike Dunleavy for vetoing funding for Mt. Edgecumbe year after year — most recently last year vetoing $2.7 million for a new roof and windows on the girls’ dorm.

Since the start of Dunleavy’s term in 2019, the governor has vetoed funding allocated for Mt. Edgecumbe, including maintenance of the aquatic center and student services. He vetoed funds to replace the dorm windows for three years in a row. Over six years his vetoes totaled over $22.4 million, according to state data.

Sen. Löki Tobin, D-Anchorage and chair of the Senate Finance Committee, expressed her frustration at a Senate news conference last week, reading out a list of the vetoes. “We continue to advocate for school repairs and to address school infrastructure across the state,” she added. “And it seems that we do not have a governor who wishes to lead. It is incredibly frustrating.”

A spokesperson for the governor’s office responded to questions about lawmakers’ criticisms by email on Tuesday, noting the governor had approved $15.3 million for repairs and maintenance for Mt. Edgecumbe since 2019, including for bathroom and kitchen upgrades, asbestos and lead abatement and some funding toward replacing dorm roofs.

“The challenges Mt. Edgecumbe is currently addressing stem from years of low prioritization of needs. With the new leadership of Superintendent David Langford, under Commissioner Deena Bishop, emphasis has been placed on realigning the budget to remedy maintenance issues,” said Jeff Turner, Dunleavy’s director of communications.

Turner said that even with the governor’s vetoes, Mt. Edgecumbe maintenance and repairs are underway.

“Without the vetoed funding, Mt. Edgecumbe has reprioritized and has updated culinary equipment, furniture, and scheduled three buildings to be re-rooved this summer — with more to come. Budget management has now been placed at the forefront, allowing existing funding to begin remedying what was thought to be unattainable without further allocation,” he said. “This is a textbook example of results obtainable when accountability is highlighted.”

Legislative action for Mt. Edgecumbe repairs

On Wednesday, the Senate passed a new bill, Senate Bill 146, that would add Mt. Edgecumbe to the state’s school major maintenance list to be eligible for state grants for construction and maintenance projects. Currently Mt. Edgecumbe is maintained using funds through the Alaska Department of Transportation and Public Services, as a state-run facility.

The bill would also do away with the $70 million cap on the Regional Education Attendance Area school fund — for schools that rely solely on state funding as they’re located in rural areas without municipal funding — and allow those funds to be used for Mt. Edgecumbe projects, including teacher housing.

A similar bill was passed last year, but Dunleavy vetoed it. Senators said they are hopeful there will be more support this year, and the bill now advances to the House.

“I’m hoping that there’ll be broad support in the legislature like there was last year, and we’ll put it back on the governor’s desk, and hopefully the governor will reconsider,” Stedman said.

Moving forward, Stedman said the Finance Committee is gathering information on critical repairs and maintenance needed, projects in progress and items to be added into next year’s budget, including funds immediately available to replace items like washing machines and mattresses.

“We’ll be monitoring it,” Stedman said Tuesday. “There’s a good percentage of the (Capitol) building here that got its attention, because it’s embarrassing for everybody.”

Lawmakers questioned Langford, the superintendent, last week on his role currently running two school districts this year — both the Mt. Edgecumbe high school and the Chatham School District, which serves approximately 175 students across rural schools in Angoon, Gustavus, Tenakee Springs and Klukwan.

Langford and Bishop testified that a former Wasilla Republican Senator, Mike Shower, approached Langford to run both districts. Langford said he considered only with the permission of the Chatham School board, and then accepted both roles.

Bishop said at first she was skeptical of the arrangement, but changed her mind. “I initially said, ‘Yeah, no, thanks. This is, we’ve got big, big issues to solve.’ Then they started talking to me, and I said I would not go and poach someone else’s superintendent.”

She said she was convinced by Langford’s experience in education consulting, and his history with Mt. Edgecumbe, starting as a teacher in 1985. She said he has valuable leadership experience as a superintendent and running district finances.

Langford said the board of the Chatham School District is conducting quarterly reviews of his performance, and the State Board of Education conducts annual reviews on his tenure at Mt. Edgecumbe. He said while there are disadvantages of not being on the ground in the Chatham School District, he has access to DEED officials to the benefit of both districts.

He said so far, the arrangement is going well. “I think it’s very exciting to work with you and all the staff at Mount Edgecumbe,” he told lawmakers. “To try to remake Mt. Edgecumbe and bring it back to the greatness that I think it once was.”

The first round of fundraising reports in the 2026 governor’s race were released Tuesday, shedding some light on a crowded field.

Altogether, candidates raised more than $4.3 million by the beginning of February, according to the first batch of campaign finance reports in the race.

Anchorage podiatrist and Republican Matt Heilala accounts for more than a quarter of the total. Heilala contributed nearly $1.3 million to his own campaign, accounting for more than 94% of his fundraising. In an interview, Heilala said self-funding his campaign means he can turn down contributions from donors or groups that don’t jive with his values.

“I’m not in desperate need of big money from big, influential donors. There’s a quid pro quo, and that’s a major problem,” Heilala said. “Not to say I’m not going to take money from some big donors as we keep going, but I’m going to be able to be very, very selective.”

Heilala has also accumulated hundreds of smaller donors, raising more than $60,000 from just shy of 350 donors.

Former Attorney General Treg Taylor is another Republican candidate relying on self-funding to an extent. He’s the No. 2 fundraiser in the race so far, with roughly $880,000 in total contributions. About a third of that comes from Taylor himself.

Taylor leads in external fundraising by a significant margin. He’s raised more than $592,000 in outside funding from nearly 250 donors, including $100,000 from Anchorage anesthesiologist John Morris and several five-figure checks from business and medical professionals in Anchorage and the Matanuska-Susitna Borough.

Former state Revenue Commissioner Adam Crum is in third with roughly $350,000 in contributions, much of it from himself and family members. An uncle of Crum’s wife, Charles McGarrity of Florida, was the largest single contributor at $40,000, and Crum kicked in an additional $60,000. Another notable Crum contributor is state Education Commissioner Deena Bishop, who donated $5,000.

Crum said he’s expecting more money to come off the sidelines and head to candidates as the August primary draws closer.

“Knowing that there’s a handful of us that are kind of out in front on the money side, I think that fundraising is going to ramp up,” Crum said.

Tom Begich was the top Democratic fundraiser in this round of reports. The former Anchorage state senator has also taken in roughly $350,000 from a wide range of donors. He said fundraising ramped up in earnest when Mary Peltola announced she’d be running for U.S. Senate rather than for governor.

Begich is “not a wealthy person,” he said in an interview, and he said he’s proud of the fact that 92% of the funding for his campaign has come from Alaskans.

“Buying your way to the governorship is just not — I just don’t think that’s good for Alaska,” he said. “What I want to see is people reaching out to regular donors, getting people who are regular Alaskans engaged and involved in their campaign. And that’s certainly what I’m doing.”

Among Begich’s largest donors are Anchorage wealth manager Justin Weaver, donating $75,000, Anchorage attorney Robin Brena, who kicked in $50,000 and attorney Mark Choate of Juneau, who contributed $15,000. Chicago-based Jennifer Pritzker, a cousin of billionaire Democratic Illinois Gov. J.B. Pritzker, donated $10,000. Begich said he’d never met her but appreciated the support.

Another Democrat in the race, former state Rep. Jonathan Kreiss-Tomkins, didn’t join the race until after the reporting period had ended. But according to his campaign, he’s raised $750,000 in his first two weeks in the race. That’s more than twice as much as Begich, who has been in the race since August.

Including Kreiss-Tomkins, 10 candidates reported raising six-figure totals. Those include Republicans Shelley Hughes, Bernadette Wilson, Click Bishop and Dave Bronson, in addition to Democrat Matt Claman. Republican Lt. Gov. Nancy Dahlstrom, who won Trump’s endorsement in the 2024 House race, raised just over $17,000.

“It’s a little bit like being a venture capitalist,” said Scott Kendall, an attorney and occasional campaign operative. “When you’re a candidate, you’re selling a product — and if no one’s investing, that’s a bad sign.”

But with strong early fundraising, quite a few candidates have a real shot at winning, Kendall said.

“For probably the most important race in the state, we have a level of competition maybe we’ve never seen,” Kendall said. “Yeah, there were 48 candidates in the special election for Don Young’s seat. But really, there were only, like, four or five, six serious candidates. Here, there’s really 10 legit candidates, and it’s pretty exciting.”

The top four vote-getters in the nonpartisan blanket primary in August will advance to the general election in November.

Correction: An earlier version of this story misstated where Mark Choate lives. He lives in Juneau, not Anchorage.

Nearly everyone who testified at a public hearing Tuesday afternoon at the state capitol was in favor of a Juneau representative’s bill that seeks to ban law enforcement officers from wearing face masks on duty in Alaska.

But one person who spoke against the bill happened to be the chief of police for Alaska’s largest city.

Juneau Democrat  Sara Hannan’s House Bill 250 would ban anyone acting as a law enforcement officer in Alaska from wearing a mask while on duty — including federal, state and local agents — with some exemptions like medical masks, transparent safety shields, cold-weather masks or masks worn by undercover officers. 

Hannan promotes it as being “pro-law enforcement.” She prefiled the bill in January, following public outrage after a masked Immigration and Customs Enforcement officer shot and killed a Minnesota woman on camera. A U.S. Customs and Border Patrol officer killed another man in Minneapolis just weeks later. 

At the bill’s second hearing in the House State Affairs Committee on Tuesday afternoon, the bill received support from eight of the nine public testifiers. That’s after a chilly initial reception from a couple of legislators the week before. 

Bridget Smith of Juneau said while she respects law enforcement, she doesn’t respect anyone who hides their identity.  

“A peace officer wearing a mask to conceal his face would immediately lead me to question that person’s motives and distrust whether that officer was really there to protect and serve me, or whether they wish to be unaccountable for their behavior,” she said. 

As the bill is currently written, an officer who violates the ban would be charged with a Class B misdemeanor per violation, which is punishable by up to 90 days in jail and a $2,000 fine. Some testifiers ask for the charges to be harsher.

Laura Lucas, also from Juneau, said she supported the bill because she believes it could prevent what’s currently happening in Minnesota, where federal immigration officers have ramped up deportations amid widespread public protests, from happening in Alaska in the future. Other states across the U.S. have sought to impose similar bans in recent months. 

“Within the past year, we’ve seen changes in this country that we’ve never imagined would happen before,” she said. “I see this legislation as potentially proactive for an issue that might arise in Alaska.”

The main dissent against the bill came from Anchorage Police Chief Sean Case. He said while he opposes police officers wearing masks to conceal their identity, he argued the bill is trying to address a problem that doesn’t exist in Alaska.

“Masking is not a practice in Alaska, and enforcing this bill would be impractical, giving it numerous exemptions,” he said. “It attempts to solve a nonexistent issue, while inserting local law enforcement into a debate about federal immigration enforcement, something outside our role and responsibility.”

He said the Anchorage Police Department already has other accountability measures in place, like requiring uniformed officers to wear their badges and identify themselves upon request.

“Despite real risks of harassment and violence, officers have continued to serve openly 

with visible name tags and badges,” he said. “That visibility is part of our responsibility to protect and serve our communities.”

While Case was the only one who verbally testified against the bill, the committee received written testimony as well — that included a couple of comments against, while most were in favor. 

Hannan’s bill is slated to be heard again by the House State Affairs Committee and has been referred to the House Judiciary Committee. It’s unclear if it will have enough support to advance in the Legislature.

U.S. Sen. Dan Sullivan is scheduled to deliver his annual address to the Alaska Legislature at 11 a.m. Wednesday.

The Alaska Legislature invites the congressional delegation to deliver an address while they’re in session each year. Sen. Lisa Murkowski is scheduled to address the Legislature in March.

Sullivan was first elected to the U.S. Senate in 2014. Prior to that, he served as Alaska’s Attorney General and Commissioner of the Alaska Department of Natural Resources. He’s up for re-election in November, and is being challenged by former U.S. Representative for Alaska Mary Peltola.

Watch a live stream here, on KTOO 360TV or tune into KTOO 104.3 or 91.7 FM.