Alaska Edition • Based on the 2025 Legislative Audit
Reference
Alaska Government For Dummies
Featuring real lessons from the Crum Commission
A step-by-step guide on how not to run a state
A step-by-step guide on how not to run a state
🕴️
"I had the authority to invest
$75,000,000
of your money.
I just didn't follow any of the rules."
I just didn't follow any of the rules."
Now with 85 audit findings!
Source: AK Division of
Legislative Audit, 2025
Legislative Audit, 2025
📖 Table of Contents 📖
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Ch. 1
Follow Your Own Department's Rules
💡 Beginner Tip
Every department has procedures. They exist for a reason. Follow them — especially when moving large sums of public money.
What Actually Happened
The Department of Revenue had established non-routine investment procedures. When Commissioner Crum decided to invest $75 million of Alaska's rainy-day fund, he didn't follow them.
"It is unclear why the commissioner did not follow DOR non-routine investment procedures." — 2025 Alaska Legislative Audit
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"Unclear why" in auditor-speak means: he didn't leave a good explanation, and the one he gave didn't hold up.
Ch. 2
Don't Gamble the Rainy Day Fund
💡 Beginner Tip
A "rainy day fund" is called that because you need it when things go wrong. It should be liquid, accessible, and conservatively managed.
What Actually Happened
Crum invested up to $75 million from Alaska's Constitutional Budget Reserve — the state's primary emergency fund — into a private equity digital infrastructure firm called DigitalBridge, with the money locked up for at least five years.
Five years. The rainy day fund. In private equity. Without following procedure.
🔖
Alaska cannot touch that money until the lockup period ends — no matter what emergency arises.
Ch. 3
When You Need Lawyers, Call the AG
💡 Beginner Tip
The Attorney General exists to provide legal services to state agencies. Statutory procurement rules require you to go through them. This is not optional.
What Actually Happened
Crum hired an outside law firm to represent the Department of Revenue in the DigitalBridge transaction — bypassing the Attorney General and established procurement procedures entirely.
A separate procedural violation on top of the investment itself.
🔖
This isn't a gray area or a judgment call. It's a written legal requirement that was ignored.
Ch. 4
Write Down Why You Made Big Decisions
💡 Beginner Tip
Accountability requires documentation. When you make a significant, non-routine decision with public funds, write down your reasoning. Future auditors will ask.
What Actually Happened
Auditors reviewed the $75 million investment decision and found a lack of formal documentation. The audit noted a "lack of formal oversight" and could not determine if fiduciary duties were met — because the paper trail wasn't there.
"A lack of formal oversight of the DOR commissioner's investment functions contributed to the noted deficiencies." — 2025 Alaska Legislative Audit
🔖
Even the independent review commissioned by Crum's ally Gov. Dunleavy found "overall lack of diligence during the investment process."
Ch. 5
Cooperate With the Legislature
💡 Beginner Tip
The legislature provides oversight of the executive branch. When lawmakers ask for data, provide it in a usable format. That's how democracy works.
What Actually Happened
The Department of Revenue under Crum resisted legislators' requests for oil and gas tax data in a usable format. The dispute was so severe that the legislature passed a bill specifically to strengthen the legislative auditor's authority — and had to override a Dunleavy veto to do it.
On his last day in office, Crum directed staff to finally cooperate with the requests he'd stonewalled.
🔖
It took a new law and a veto override to get basic financial data from the department Crum ran.
Ch. 6
Fix Problems Before You Leave
💡 Beginner Tip
A good public servant resolves issues before moving on. Leaving 85 audit findings — 32 unresolved from the prior year — is not a strong exit record.
What Actually Happened
The 2025 Alaska Single Audit — covering the state government Crum helped run — contains 85 findings. 32 of those are unresolved issues carried over from the prior year's audit. The state also received qualified opinions on Governmental Activities and the General Fund due to failures in Medicaid oversight.
"This report contains 85 findings, of which 32 are unresolved issues from the prior year." — 2025 Alaska Legislative Audit
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Crum is now running on the slogan of building a better Alaska. These are the results he left behind.
📊 The Voter's Report Card
Based solely on documented findings from the Alaska Division of Legislative Audit and the independent WilmerHale review commissioned by Governor Dunleavy.
```Grade
F
Following Procedures
Grade
F
Fiscal Diligence
Grade
D
Transparency
Grade
F
Legislative Cooperation
Note: No criminal wrongdoing was found. These grades reflect procedural and fiduciary failures documented in official audits.
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He wants to run Alaska. He couldn't run the rulebook.
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