Audit Raises Questions on Alaska's Fund Shift

0:00It's April 25th. From your city to your ears, this is Anchorage News, today, powered by AI. A new audit is raising red flags about former Alaska Revenue Commissioner Wayne Crumb's decision to shift $20.6 million from the... State's $3 billion Constitutional Budget Reserve Fund into a digital infrastructure firm called Digital Bridge. That move locked the cash away for at least five years, even though lawmakers warned the money might be needed soon to balance the budget. The report questions if Crumb followed his legal duties and investment rules as Commissioner last summer. Crumb, who resigned in August and is now running for governor, says he had full authority to make the call for better long-term returns since the... Reserve was underperforming. A prior review by a national law firm found no conflicts, self-dealing or crimes, and he points to that as backup. Mom makers are fired up. Senate Finance co-chair Burd Stedman, a Republican, wants hearings next week and believes Crumb should pay personally for scourting procedures like...

1:02Notifying committees or getting expert advice. Crumb's camp welcomes clearer rules ahead, calling it good oversight. The audit highlights skip steps, like using outside lawyers without proper approval and no formal checks on the Commissioner's power. The state pulled back most of the money, but ate $860,000 in fees and costs. Governor Mike Dunlevy already ordered more transparency by July 1st. Legislators like House Finance co-chair Andy Josephson hope for reforms next session to tighten the Commissioner's investment reins and dodge repeats. This saga shows how rainy day funds need ironclad guards and tough budget times.