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Friday, August 17, 2018
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Parnell: Alaska needs to bring jobs back

In remarks to a banquet hall filled with Alaska Republican delegates and guests, former Gov. Sean Parnell delivered a strong message on Friday night: Alaska needs to bring jobs back. Here’s an excerpt from some of his keynote address:

Before I address Alaska’s economic challenges, let me answer another question. Why am I speaking now, when I’ve been mostly silent for the past three years on state policy issues?

[Parnell then told the story of how he and Sandy were at a meeting with President George W. Bush and heard him describe why he refrained from criticizing his successor for a time, out of respect for the will of the people and respect for the office.]

Hawkins

We both thought George Bush was a class act in the years following his departure from office, and Sandy and I both told each other after hearing him, that when our turn came to leave office, that we were going to follow his example, for the same reasons—out of respect for the voter’s choice and out of a desire to give the new administration a chance to succeed.

Now that they’ve had a chance to succeed, and need a help out … the time has come for me to re-enter the public discussion, as an Alaskan, and as an American, because staying silent is not an option where Alaska is so far off-track.

I say, let’s fix Alaska.

Number one on that fix it list — Let’s bring back our jobs.

In the last three years, about 11,000 jobs have gone away. Driven by our economic losses, job losses, GDP losses, and our shrinking population, Alaska came in dead last in a new ranking of state economic stability by U.S. News & World Report and McKinsey & Company. Both U.S. News and 24/7 Wall Street listed Alaska at 50th–out of 50 states for crime and public safety.

Thousands of jobs were lost first in the oil industry, and it took some time for the job losses to spread, but spread they did. Alaskans and companies began leaving the state.

We’ve said good bye to many stores—both large and small. In the oil patch, Apache’s, gone. Pioneer, gone, Shell, gone. StatOil, gone. In the Mat-Su Valley, we have seen the mom and pop businesses under strain, pulling up stakes and leaving.

In 2014, after leaving office, I had 20 years of commercial law experience in my past, and I still work in that area–representing buyers and sellers of businesses. I see the erosion of Alaska’s economy every day in the stories of my clients. It’s a tough time to be in business in Alaska.

But it does not have to be this way.

Alaska’s economic wounds have been self-inflicted and can be undone.

Let’s start with the oil industry and the governor’s decision not to pay tax credits that were earned.

Let’s say you and your spouse saved some money and you want to earn some interest on it.  You decide that one particular bank offers the best rate of interest on your savings, so you go into the bank, sign a contract, open an account, and deposit your money. A year later, you go back to the bank to collect your money plus interest, but here’s the thing. The bank says you can’t have it. Neither your original deposit nor any interest.

That’s what happened to the small oil explorers.  They sank, in some cases, $150 million or more into their first exploration wells, thinking that they would get the tax credit payments back—because that’s what Alaska law said.  When they didn’t, some went into bankruptcy and some postponed further exploration, killing off thousands of Alaska jobs across the last three years of missed exploration seasons, because they didn’t have the money to go forward.

So, you say, what’s the big deal?

Well, let me ask it this way…in my story, the next time you have some money you want to earn interest on, are you going to park it in the same bank—the one that didn’t pay back your money or the interest you had earned on your initial deposit.

Alaska has, in the last three years, earned a deservedly bad reputation among job creators.  People and companies with money are unwilling to make significant investments in Alaska due to the risk and uncertainty.

Other states work hard to get new business. Our state punishes business—we’ve become more like California in this sense.

The administration’s motto seems to be, “We love jobs, but we hate business.” The truth is, Alaska needs more businesses, large and small, because we need the opportunities and jobs they create.

These herky-jerky policies have eroded the ecosystem creating Alaskan jobs—and Alaskans are worse off today because of it.

Policy matters to jobs.

Stability matters to jobs.

And, credibility matters to jobs.

The good news is that we’ve faced similar challenges in the past, and we have overcome them. We have the resources and the people—many in this room—to bring back the jobs we’ve lost and rebuild our economy. We understand that a healthy economy matters to Alaskans’ future.

So, what are our guiding principles to foster a healthy economy?  How do we bring back Alaskan jobs?

  1. First, we bring Alaskan jobs back by restoring stability. Put the state’s budget on a firmer foundation, get spending under control; and, when you use the earnings reserve, make sure there are side boards and dividends. Measure every state fiscal policy change by whether it replaces uncertainty with stability.  Stability’s byproduct is opportunity for Alaskans.
  2. Second, bring Alaskan jobs back by restoring the state’s credibility. Don’t pay the tax credits in part; pay off the state’s debt in full. Don’t let the state be the debtor that didn’t make good on what it owes. Choose to restore the state’s credibility.
  3. Third, bring our jobs back by telling the world that Alaska is once again open for business—and implement policy to prove it; Because we want a future here for our children and grandchildren, we know who we are fighting for…and we know why. Policies that bring Alaskan jobs back, keep our children meaningfully employed here, and, they keep our families close. More Alaska jobs get created when we have a competitive investment climate, rather than a punitive one. More Alaska jobs get created when we reduce the cost of doing business. [State and local government property taxes have gone up on certain properties by 133% in one case I know of, 160% in another—the notices just came out.] Bring our jobs back by competing well.
  1. Fourth, we bring Alaskan jobs back by fostering entrepreneurialism and welcoming start-ups. We support a friendly environment for job creation among start ups by repairing infrastructure, by incentivizing the build-out of tech solutions, by streamlining government tax and fee collections and by addressing the high cost of health care and health insurance.

The next governor and this legislature need to be laser-focused on growing Alaskan opportunity by bringing back Alaskan jobs. Every policy must be measured by whether it will create Alaskan job opportunity or destroy it. If a proposed policy before legislators even leans in the direction of job destruction, even one scintilla—stop it!

That’s my message: Restore stability; restore our credibility; and, fix Alaska by bringing our jobs back!

So how can you help? What’s your part in all this!

  1. Our greatest need…we need good candidates in the state house and senate races. If you have ever thought that one day you might serve, then I’d ask you to consider that this could be the hour. [I’m willing to talk with you, to counsel you, to tell you what to expect.]
  2. Attend public forums and ask every candidate what they will do to create jobs and keep us safe. Do not cede those two issues. We have the high ground and the right policy answers to get our economy on track and to keep us safe.
  3. Volunteer on campaigns – in our first campaign for the State House, when I was 29 years old, it was my House District 17 Republicans and the Republican women who were vital to our victory – a victory that ultimately led to four years in the State House, four in the State Senate and ultimately to Lt. Governor and Governor.

You, here, have the ability to fix Alaska, and to bring our jobs back.  Together, we will do that!

(Excerpt from a speech delivered by former Alaska Gov. Sean Parnell on March 9, 2018, to delegates and guests at the Alaska Republican Party Convention in Anchorage, Alaska.)

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Suzanne Downing had careers in business and journalism before serving as the Director of Faith and Community-based Initiatives for Florida Gov. Jeb Bush and returning to Alaska to serve as speechwriter for Gov. Sean Parnell. Born on the Oregon coast, she moved to Alaska in 1969.

Latest comments

  • It would be good to see Governor Parnell’s face on a billboard with the caption: “Miss Me Yet?”

    Apparently there were some with President Bush’s image and that caption in the lower 48 during the Obama regime.

  • And USA Today listed Anchorage at #12 for most dangerous cities in the nation.

    Indeed, bring back jobs and bring back safety. Well said, Governor. Can’t we bring back you as governor? 🙂

  • Very good speech but he needs to get Republicans on board. Every meeting I go to makes me think they are more fractured than ever. We have made the same mistakes over and over since I got here in 1974. We have wasted more money than most states have to spend.
    In the paper today there was a stat that 26% of a house’s cost is due to regulation. We are short on housing because of regulations, aka Government. Businesses are over-regulated the same way. It takes over a year for a business needing a conditional use permit to start operating. This is insane and is the fault of both local and state government.

  • Parnell is looking pretty good about now. Wonder how many people that voted for Walker would like to take their votes back. But not to worry much longer. Walker will soon be shown the door.

  • Parnell signed SB 21 which gave away billions without guarantees of increased production. Gov. Walker has complied with the provisions of SB 21. If Parnell is so great why is he not running for Gov.? IMO increased production on the North Slope has more to do with new fracking technology and improved prices than SB 21.

  • Sean is a class act: When he stepped when Sarah stepped down, he kept her policies and personnel in place till he was elected.

  • Wow, on second look he’s seemed to cut and paste someone else’s work… great job right out in the open …we can read you like a book EX GOV! Please go back into hiding dude!

  • And you cut all of my comment about Attorneys great job Suzanne but you can’t hide the truth! Its right in everyone face

  • Suzanne I will try once again to bring you and the Alaskan audience that former Alaska Gov. Sean Parnell is culpable of nesience and a individual that’s willfully hiding the true avenue, to the creation of individual creation of new wealth but for others then Us Alaskans .

    Parnell is catering to the” big government” and” big corporate owners”. His plan is to continue the control of our owner state resources by them not us! Isn’t obvious the absent of any conversation of the PFD taking and fair equity with us Alaskans.

    Anyone of knowledge of common law and human natural law wouldn’t be aiding and abetting this lack of this action unless he is party to it… shame on you, him, our judges & legislature! All fail to carry out the “Policy ” in art. 8 of Alaska Constitution! In doing so robs any realization of freedom & ownership of wealth (property)…a right guaranteed in that same Constitution!

    PLEASE DO NOT REMOVE THIS TRUTH