Sitting in the Legislative Information Office in Bethel, full of hardbound volumes and photos of the state’s political history, Sen. Lyman Hoffman said he’s ready to close the book on his own four-decade career in politics.
"I think it's, it's time … the next closest person behind me is 14 years behind me," Hoffman said.
Hoffman has spent most of his time in the Senate, representing Southwest Alaska. He said he thinks he’s made a difference in the lives of rural Alaskans.
"I funded weatherization, set up a weatherization program where close to 60% of the funds, about $700 million, went into weatherizing people's homes. People have come up to me and said, as a result of the weatherization program, their heating bill went down by hundreds of dollars a month," Hoffman said.
Hoffman also cited his creation of a billion-dollar endowment to protect rural electricity subsidies under the state’s Power Cost Equalization program. He does admit that the cost of living in rural Alaska remains staggeringly high.
Hoffman said that his priority in his final session is finding ways to fund the budget. He said that Gov. Mike Dunleavy’s idea of a sales tax is not one of them.
"I haven't heard anybody that really likes that idea in the legislature," Hoffman said.
Hoffman said that the proposal to add a 4% sales tax during the tourist season and a 2% sales tax during the other half of the year would run up against local taxing schemes adapted to rural needs.
"He wants no exceptions, no loopholes, no food, heating, fuel. Everything is going to be taxed. And I would say that that would put rural areas at a larger disadvantage because we already pay the highest cost for heat," Hoffman said.
In Bethel, there have already been long-standing challenges collecting the 6% local sales taxes the city levies. Hoffman said that the governor’s proposal would mean the state would collect taxes on behalf of cities like Bethel, removing that burden. But he said this potential upside is far outweighed by the downsides.
Dunleay’s fiscal plan also proposes a constitutional amendment that would require half of the state’s yearly draw from the Permanent Fund to go toward paying higher dividends. Critics say that would make balancing the budget nearly impossible.
Hoffman said the state might be in a better position today if lawmakers hadn’t stripped down a 2018 bill that used Permanent Fund earnings to cover state operating costs for the first time. Hoffman said he supported a provision to set the dividend at a lower, more sustainable rate. But that idea was rejected.
"If we had passed that bill with that provision in it, the dividend would be $1,500 and continue to grow out in the future. Now, we're fighting tooth and nail to try to get at least $1,000 in the dividend and fund government," Hoffman said.
Hoffman said that he has encouraged Dillingham Independent Rep. Bryce Edgmon to run for his Senate seat in November. Edgmon is also the current Speaker of the House. Hoffman said it makes sense because of Edgmon’s record of rural and urban support, and the fact that he’s already represented Kuskokwim River communities within his district.
Hoffman said that he’s concerned that there will be less rural representation on the powerful Senate Finance Committee he co-chairs when he leaves. But he’s optimistic that the bipartisan Bush Caucus he has played a key role in can continue to wield power across the aisle, and that rural issues will continue to get attention statewide.
"The influence of people off the rail belt over the last three decades has been tremendous," Hoffman said.
Hoffman said that it is critical that legislators form a better working relationship with the governor in 2026. When it comes to ways the state can support ongoing relief efforts following damage from Typhoon Halong, he said Dunleavy has given him an open ear. But Hoffman said specific ideas should come from affected communities.
"The decisions on what needs to be done has to be decided by the local people, and we have to see how we can implement them," Hoffman said.
Soon, Hoffman will be stepping away from politics. On top of having more time to spend with his wife, Lillian, who he says has been his greatest source of support, Hoffman plans to take time for hunting and fishing around Bethel.
"I'm going to jump on my snowmachine and ride away into the sunset," Hoffman said.
The 2026 regular legislative session is scheduled to wrap up by May 20.
