DEED says tentative $2 million sale for Sitka's Stratton Library; explains Anchorage leased space for REEDS team

Don Hannish, administrative services director for the Alaska Department of Education and Early Development, told the Senate Finance Subcommittee the department and the Alaska court system had reached a tentative agreement on a $2,000,000 sale price for the Stratton Library in Sitka. Hannish said the department planned to direct sale proceeds toward renovations and facilities projects at the Sheldon Jackson Museum, and noted the governor's FY27 capital budget did not include a $2,000,000 appropriation for the sale.

"As far as we have planned, it would all go towards the Sheldon Jackson Museum," Hannish said when asked whether proceeds would be used for museum work rather than court needs.

On leased space, Commissioner Dina Bishop described the department's relocation after the Benson Boulevard facility closed: DEED acquired an adjacent 1,350-square-foot suite in the Atwood Building to house REEDS-team on-site work, keeping construction costs low and furnishing the room through the state surplus program. Bishop said the Anchorage office supports roughly 12–15 staff who come in part time, while the REEDS team includes six members who travel and support districts across Alaska.

Heather Heineken, director of finance and support services, briefed the committee on the fund-balance report requested by intent language in House Bill 53, emphasizing the report is based on district-submitted estimated fund balances as of Oct. 31 and is not audited financial data (the document provided dated Dec. 19, 2025, reflected the Oct. 31, 2025 snapshot).

Why it matters: The Stratton Library sale would reallocate a state-owned property and direct capital funds to local cultural infrastructure; the REEDS office and staffing choices affect how DEED supports in-person services and district outreach, especially in rural communities.

Next steps: DEED will provide additional intent-language follow-ups to the subcommittee, including staffing specifics tied to prior fiscal notes and the exact disposition plan for the Stratton Library sale proceeds.