By JIM CRAWFORD

“Defunding power cost equalization would gut a lifeline for rural Alaska” was published by the Anchorage Daily News on Nov. 10.  Meera Kohler (chief executive officer of Alaska Village Electric Cooperative) expertly laid out the history and purpose of the Power Cost Equalization Program.  

The op-ed was beautifully written and very persuasive. But it missed the point of advocates to end the unconstitutional appropriations of dedicated funds.  

No one is attempting to stop the appropriation of funds for Power Cost Equalization. Those of us advocating consolidation of agency funds to the Constitutional Budget Reserve want to solve the current fiscal crisis by using unspent, appropriated funds that are currently restricted by the Legislature. These appropriations exceed the needs of their programs and earn huge profits for their agencies.  

The Power Cost Equalization Fund was established by the Legislature in 1981 as a fund of the Alaska Energy Authority.  The AEA audited financial statement lists the balance of the fund, $1.06 billion, as restricted. But Article 9 of our Alaska Constitution bans restricted or dedicated funds. No appropriation except those specifically authorized by an Amendment to the Alaska Constitution, federal appropriations or funds existing prior to statehood are allowed by the Alaska Constitution. No other appropriations can be restricted to a special interest. 

Dedicated funds are, per the Alaska Constitution, illegal.  

PCE has not been approved by the people at a statewide vote as an Amendment to the Constitution, is not a federal appropriation, nor did it exist prior to statehood.  Last year, PCE earned $74 million dollars.  And it paid recipients throughout Alaska $30 million.  And made a profit of $44 million to grow more agency. 

I have no objection to the appropriation and payment of funds to help equalize costs of power in villages throughout Alaska.  During the Palin Administration, my Fairbanks friend and I convinced the governor to add $1,000 to each Alaska Permanent Fund dividend for power cost equalization.  

The equitable argument of urban areas having access to cheap hydro power through construction of dams throughout Southcentral and Southeast is persuasive.  But should a needed appropriation of $30 million for a worthy purpose like PCE hold hostage over $1 billion dollars owned by all Alaskans?  I think not.

That billion dollars and other excess capital should be transferred to the Constitutional Budget Reserve as required by the Constitution and the statute which created the CBR.  

All dedicated funds not in compliance should be liquidated and saved to the Constitutional Budget Reserve.  The CBR requires a 75% vote of each house to use so the money can be protected from wild spenders.  With those funds, the budget deficit disappears.  And the regional internecine wars in the Legislature can end.

We can bridge the fiscal gap by using the available assets of the State and push for new production in the oil, gas, mining, and investment sectors.  The crude producers, old and new, have identified over 1 million barrels per day of new production which can add to the production of existing legacy fields.  

The producers and the State must realign their interests and advocacy for new production for the health of the state.  With nearly 60% of Alaskan voters defeating the tax increase in Prop 1, the decks are clear to resume the Renaissance of the North Slope.  Let us accelerate our production.  

My mother taught me that if I got in trouble, I had to work my out of it.   “Produce your solution, son.”  Good advice. My family has been here since 1898. We’ve all worked through worst crises than we now face.  We can rebuild our economy and protect our familys’ health.  

Power Cost Equalization is an honest and honorable goal.  We can support annual appropriations for the costs of the program.  We, however, cannot set aside all Alaskan’s money for one region’s benefit. 

Advocacy for preserving PCE is now an organizing call for the next Legislature. It should not be. Republicans and Democrats and independents, conservatives, and liberals understand that the crushing cost of energy must and should be addressed annually.  

Different approaches are all open to discussion. Some believe that new roads or expansion of major projects can solve the regional high cost through industry. Some believe that subsidizing power cost is currently insufficient. 

These matters can be reconciled with good will in an open discussion of the state’s priorities.  But first, we must follow the Constitution and not restrict appropriated money for special needs.   

Alaskans can pull back from the brink of fiscal instability. We just need to use our assets wisely, not squirrel away money we need today as illegal dedicated funds.   

Jim Crawford is a third-generation Alaskan entrepreneur who resides in Anchorage with his bride of 37 years, Terri.  The Alaska Institute for Growth is a local think tank which studies and reports on and may sponsor projects of sustained economic growth for the Alaskan economy.  Crawford known as the Permanent Fund Defender was a member of the Investment Advisory Committee, appointed by Gov. Jay Hammond to plan and execute the Alaska Permanent Fund Corporation.

By DAN FAGAN

Here’s some information you won’t read in the Anchorage Daily News or KTUU about COVID-19 and the virus’ impact on Alaska.

Wyoming residents are twice as likely to die of COVID-19 compared to those living in Alaska. 30 out of every 100,000 Wyoming residents died this year that tested positive for COVID-19. In Alaska, 14 out of every 100,000 died after testing positive for the virus.

We don’t know how many of those patients died as a direct result of COVID-19. Some may have died of other causes even though they tested positive for the virus.

Those living in Minnesota are four times as likely to die of COVID-19 compared to Alaskans. 56 out of 100,000 Minnesotans testing positive for COVID-19 died compared to 14 in Alaska.

105 out of every 100,000 North Dakotans testing positive for COVID-19 died this year. Meaning someone living in North Dakota is 7 and a half times as likely to die from the virus compared to Alaskans.

133 out of every 100,000 Louisianans testing positive for COVID-19 died this year. People living in Louisiana are close to 10 times as likely to die of COVID-19 as Alaskans.

188 out of every 100,000 New Jersey residents testing positive for COVID-19 died this year. New Jersey has the highest per capita COVID-19 death rate in the country. Living in New Jersey means you are 13-times as likely to die of COVID-19 as those living in Alaska.

Alaska’s 14 COVID-19 related deaths per 100,000 are the third-lowest in the country. Only Maine and Vermont have lower per capita fatality rates. Maine has 13 deaths per 100,000 and Vermont comes in with 10.

There are 44 states with at least double the COVID-19 fatality rate per capita compared to Alaska.

The COVID-19 fatality rate is the best metric in determining the virus’ impact on Alaska.

The fearmongering media, Anchorage Assembly members, and Gov. Anne Zink often focus on the number of Alaskans testing positive for COVID-19. But Alaska has conducted more COVID-19 tests than there are people in the state.

Obviously, not every Alaskan has been tested. That number represents multiple tests for some. But Alaska tests more people per capita than 47-other states.

According to Johns Hopkins University, Alaska conducts 120,086 tests per 100,000 residents. That’s five times as many tests per capita than Pennsylvania. Of course, we have a lot of people testing positive. We conduct so many tests. The more you test, the higher the number of positive results.

But even though Alaska tests more of its residents than 47-other states, our positive case rate per capita is lower than 29-other states. It’s three times as low as North Dakota per capita.

But the fearmongering media love to play up the number of positive tests. The headline in Saturday’s Anchorage Daily News read: “Alaska Virus cases continue to swell, with 676 new cases and one new death reported.”

Generally speaking, there are plenty of questions surrounding COVID-19 tests. Elon Musk, founder of Tesla Inc. and SpaceX announced earlier this month he began to have flu-like symptoms and got tested. Musk says he was tested four times. Two tests came back positive and two came back negative.

I received a call recently on my radio show from someone who got in line to be tested at the Anchorage airport after returning to the state from the Lower-48.

The caller says he signed up to be tested but the line was too long, so he left. He says several days later he got notice he had tested positive for COVID-19 even though he never took the test.

When the state conducts more tests than there are people, fuzzy math is sure to surface.

It’s important to note the coronavirus is not something we should take lightly. More than 250,000 Americans have died either directly from or with COVID-19. The disease is especially troublesome for the elderly and those with pre-existing conditions. Eight in 10 COVID-19 fatalities in the U.S. have come from those over the age of 65.

But if you are under 65 and are in relatively good health your chance of dying from the virus is minimal. To shut down our economy over a virus that impacts a small percent of our population seems foolish.

There’s never been a time in our history where we’ve for all practical purposes quarantined everyone, even the healthy, over a virus.

We know we can’t trust the media or most government officials to give us a balanced message on COVID-19. Their default position seems to be to stir up fear and play up the worst-case scenario in hopes we do what we can to defeat the virus.

They do so for one simple reason: they don’t trust us to protect ourselves or the vulnerable from the virus.

Dan Fagan hosts the number one rated morning drive radio show in Alaska on Newsradio 650 KENI.