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Will the Senate president release CARES funds to communities soon?

Suzanne Downing
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40
Will the Senate president release CARES funds to communities soon?

GIESSEL’S POWER PLAY WITH THE GOVERNOR

The State of Alaska has received the $1.25 billion in CARES Act money. Now comes the question about how to get it out to the communities and citizens to help them recover from the economic disaster created by the government shutdown.

The governor has submitted his plan to the Legislative Budget and Audit Committee, and asked for an expeditious review so the money can quickly be disbursed.  Nearly half of the CARES money for Alaska will go straight to local governments, if Gov. Mike Dunleavy can prevail in what is a developing power struggle over a large pot of money.

Senate President Cathy Giessel appears to have alternate plans than the governor’s plans for distributing the funds.

In a message to her constituents this week, Giessel made it clear that she intends to not only control the appropriation of federal disaster relief funds that have come to the State of Alaska through the CARES Act, but she is in charge of disbursing those funds — a power that is in actuality reserved for the Executive Branch.

“As the Senate President, I have been working with my leadership team to prepare to disperse (sic) those funds as quickly, widely and appropriately as possible to citizens, businesses and communities around our state,” Giessel wrote.

Gov. Dunleavy, in the meantime, has already been working the dispersal plan through Legislative Budget & Audit, since all he needs is “receipt authority” and there are no matching state funds to be appropriated.

“Given the urgent timing of this response, I am requesting your approval of these items by April 29, 2020 so that distributions can begin on May 1, 2020,” Dunleavy wrote to LB&A Chairman Chris Tuck.

Included in his request:

  • Direct municipal relief: $562,500,000
  • Small business relief: $300,000,000
  • Education: $48,000,000
  • Agriculture: $5,000,000
  • Economic stimulus for Alaska fisheries: $100,000,000
  • Public safety: $3,585,351
  • Transportation, capital items: $29,000,000
  • Airports and aviation: $49,000,000
  • Whittier Access and Tunnel: $3,034,100\
  • University of Alaska: $5,000,000

Giessel and her leadership team evidently don’t believe that the Legislative Budget & Audit has the authority to appropriate the funds. It’s possible that Giessel and House Speaker Bryce Edgmon will call the Legislature back to Juneau on May 4 for a special session.

The Legislature cannot meet remotely to try to steer the funds elsewhere because Giessel and House Speaker Bryce Edgmon refused to allow a rule change to be voted on that would have allowed the Legislature to meet telephonically.

However, Sen. Bert Stedman has said that the Legislature would convene by teleconference, and then vote to change the rules to make teleconferencing legal. Whether that can stand legal muster has been a subject of debate among legislators.

Earlier this month, Giessel and Senate Finance Co-Chair Natasha von Imhof wrote a letter to the U.S. Secretary of the Treasury Robert Mnuchin, asking him for guidance on “What the Governor of Alaska is Not Allowed to Use the $1.25 Billion CARES Act Funds For.”

Specifically, the duo wanted to know if the governor could used the CARES Act funds to pay for items he vetoed in the Legislature’s budget.

The letter, and its pointed questions, was never answered by the Treasury Secretary, but the leaking of the letter to the media indicates there will be a power struggle over the CARES money. It may take longer to get the funds out of the Legislature’s hands and into the communities, businesses, and individual Alaskans who need help now. Here’s the letter:


Eielson welcomes first two of dozens of F-35 fighter jets

Suzanne Downing
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13
Eielson welcomes first two of dozens of F-35 fighter jets

DELEGATION CREDITS TIGER TEAM, MAYORS, LOCAL LEADERS

Two F-35A Lightning II fighter jets arrived in their new home in Alaska on Tuesday. Over the next two years, another 52 will join them at Eielson Air Force Base outside of Fairbanks.

“This first aircraft is a milestone,” said Col. Benjamin Bishop, commander of the base’s 354th Fighter Wing, on Tuesday. “Making the first aircraft arrival possible has been a long path, but it’s also just first step in a journey that will continue at Eielson Air Force Base for decades to come.”

Along with the two squadrons, another roughly 1,300 personnel will be based at Eielson by the end of 2021, doubling the number of airmen at Eielson.

And in addition to the F-35 squadrons, Alaska is home to two F-22 squadrons, based at Joint Base Elmendorf-Richardson in Anchorage. The four squadrons combined will mean Alaska will have the highest concentration of “fifth-generation” fighters in the country, those jets that were developed in the 21st Century. All of the fifth-generation jets have stealth capabilities, even when armed, resulting in “low probability of intercept radar.”

The jets will train against F-16s posing as enemy aircraft in the massive Joint Pacific Alaska Range Complex.

Eielson has undergone $500 million in infrastructure improvements over the past few years to be able to welcome the two new squadrons.

Congressman Don Young

Congressman Don Young, and Sen. Dan Sullivan and Sen. Lisa Murkowski welcomed the news of the F-35s’ arrival, which all of them had worked to accomplish. In their remarks, however, they gave credit to the community of Fairbanks and the local Tiger Team volunteers, mayors, and other community leaders who worked to turn what was going to be a base closure into a base expansion.

“Today is an incredible day for Alaska! It marks the culmination of years of tireless efforts by the Alaska Delegation, including by the late Senator Ted Stevens,” said Congressman Young.“Years ago, Eielson Air Force base was facing closure. We not only prevented that, but with the delivery of the F-35, Eielson has come back even stronger. These cutting-edge fighters are an important tool for our national defense, and Alaska is a location of great strategic importance. The leaders who helped make this happen – from Fairbanks and North Pole, across Alaska, and in Washington, D.C. – deserve our gratitude for helping to bring the F-35 to Fairbanks.

“I hope that when those in Fairbanks and across our state look up into the sky and see one of these jets, they are filled with great pride knowing that Alaskans are helping to keep our nation safe, and our world secure. The F-35 will bring pilots, maintainers, and their families to Fairbanks, and I want to welcome these new Alaskans to our 49th state; we are happy to have you. I am truly grateful to everyone who helped make today a reality. May God bless Alaska, and may God bless our great nation!” – Congressman Don Young

“Alaska is the most strategic place in the world and now, with these two squadrons of F-35As, our state will soon be home to more than 100 fifth-generation fighters,” said U.S. Sen. Dan Sullivan. “America’s adversaries will certainly think twice before engaging our country when faced with this unparalleled force and firepower.

Sen. Dan Sullivan

“But this historic day did not come easy. We all remember a time when the future looked bleak for Eielson AFB. Nonetheless, Alaskans did what they do best – circled the wagons and put our grit and determination to work, advocating day and night to ensure the new gold-standard in supersonic fighter aircraft found its home in the Interior.

“Community support won the day, and I congratulate the Fairbanks/North Pole Tiger Team, our local mayors, the community councils, and everyday Alaskans for never giving up on Eielson AFB. I join all Alaskans in celebrating the arrival of the F-35As as we look forward to welcoming – with open arms – the rest of the airframes, the airmen and crews, and their families to Alaska. Aim High!” Sullivan said in a statement.

Sen. Lisa Murkowski

 “This has been a long time effort by the Alaska Congressional Delegation, the Tiger Team, and the military, and I congratulate everyone who played a part in making this a reality,” said Sen. Lisa Murkowski. “The importance these squadrons of F-35s will play in our national defense, while also providing our airmen with incredible, real-world training is unparalleled. With these extraordinary aircraft now calling Eielson Air Force Base home, we further strengthen our nation’s defense capabilities and ensure we are utilizing Alaska’s geo-strategic location. These fifth-generation fighters give us critical advantages over our adversaries and will better safeguard our nation. This is an extraordinary milestone for Alaska and the Arctic Region.”

State releases details on relaxed business mandates

Suzanne Downing
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11
State releases details on relaxed business mandates

The State of Alaska issued another health mandate today. This mandate supersedes several other mandates that shut down commerce across the state of Alaska, cracking open commerce for the first time in weeks, although with lots of limitations and face coverings.

Mandate 16 will go into effect April 24 and is the first in a series that are meant to allow businesses to reopen responsibly during the COVID-19 pandemic.

“By issuing this Mandate, the Governor is establishing consistent mandates across the State in order to mitigate both the public health and the economic impacts of COVID-19 across Alaska,” according to the state’s press release.

However, Anchorage Mayor Ethan Berkowitz is marching to his own drum and will not open up Anchorage for commerce until Monday.

The State of Alaska has granted a special dispensation for Berkowitz to open the largest city in Alaska at 8 am Monday. Once open, Anchorage will then fall under the state mandates below.

Attachment D – Non-Essential Public Facing Businesses Generally – modifies Mandate 011

Attachment E – Retail Businesses – modifies Mandate 011

Attachment F – Restaurants Dine-In Services – modifies Mandate 03.1

Attachment G – Personal Care Services – modifies Mandate 09

Attachment H – Non-Essential Non-Public-Facing Businesses – modifies Mandate 011

Pick priorities, not winners and losers, to plug Juneau’s budget gap

SENIOR CONTRIBUTOR
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5
Pick priorities, not winners and losers, to plug Juneau’s budget gap

By WIN GRUENING

Alaskans are beginning to realize the true dimensions of the economic challenges we face in recovering from this pandemic. Initially, federal, state, and community governments correctly focused on the health and life safety implications of the virus.

Yet, it’s becoming increasingly clear that the economic impacts will extend years beyond the life of this virus and will far out-weigh its short-term effects.

The collapse of the visitor industry means the city of Juneau likely faces a $34.5 million budget shortfall over the next 30 months.

Some federal and state aid will be available, but only for a short time and it cannot compensate businesses for the massive losses they will incur.

Business owners, homeowners, landlords and tenants will still owe property taxes or rent – even with no income or job. Some obligations can be deferred, eventually most must be paid.

The elected assembly must grapple with very difficult choices when crafting our next several municipal budgets. No magic rescue package awaits from state government, now wrestling with its own unprecedented budget deficits.

The sooner the economy gets back on track, the better.

There’s growing recognition that a prolonged economic “lockdown” damages our community health as healthcare providers state-wide are unable to provide ongoing essential care to non-COVID-19 patients. Recently announced easing of rules on elective surgeries are welcome as some hospitals, clinics, and physicians are already perilously close to financial insolvency.

It’s within this context that continuing COVID-19 mandates must be weighed against a prudent relaxing of restrictions on commercial businesses to allow the economy to begin to recover.

Mayor Beth Weldon’s formation of an Economic Stabilization Task Force can help bridge the gap for cash- strapped business owners and displaced workers.

Juneau’s city government, however, can only do so much. Its financial resources are limited and must be balanced with essential needs of its citizens.

City staff recently presented the Assembly with a list of possible actions to balance the budget. Some ideas being considered are:

  • Operating budget reductions. While not specifically mentioned, this should include consideration of personnel furloughs, hiring and pay freezes and delaying $1.5 million in scheduled pay raises, new hires, and longevity pay for city employees. For perspective, tourism-dependent San Diego just furloughed 800 city employees due to shrinking tax revenue. Across-the-board pay cuts and wage freezes are being proposed in Hawaii and New York.
  • Postpone or cancel all non-essential expenditures. Why is the Assembly considering over $6 million in new childcare programs over the next five years?
  • Divert some Capital Improvement Project (CIP) funds into operations. For example, Augustus Brown Pool is currently slated for $3.3 million in repairs/upgrades.
  • Use municipal reserves/fund balances to ease transition. The city currently has $16 million in reserves and an $18 million fund balance. $3 million has already been committed to a city loan program.
  • Bump property tax millage rate by 1 mill. Coupled with higher property assessments, this would increase property tax bills over 10% and raise approximately $5.5 million annually.

Some of these actions may be unpalatable to many in the community. Yet, they must be considered if we are to meet this challenge head-on. None, by themselves, will be sufficient to balance the budget.

In terms of priority, raising taxes should be the last item considered. If getting our economy back on its feet is our #1 financial priority, then raising taxes significantly is counter-productive – slapping an additional burden on business-owners and homeowners hardest hit by the pandemic.

Juneau City Manager, Rorie Watt, is currently recommending offsetting the budget deficit over the next 30 months primarily through the following sources:

  • $14 million from reserves/savings
  • $11 million in increased property taxes
  • $9 million in reduced CIP’s

Inexplicably, general government operational expenditures are actually projected to increase over FY20 because no significant programmatic or personnel cutbacks are being proposed.

Without good-faith reductions in existing general government personnel and program expenditures, we’d be asking the beleaguered private sector to pay increased taxes to support a government workforce that isn’t sharing the economic pain of this virus.

This is a mistake that must be rectified by the Assembly. It’s fiscally irresponsible to continue city operations as usual (in fact, adding new programs) while raising taxes and slashing CIP funding – two actions that arguably will prolong Juneau’s recession.

Win Gruening retired as the senior vice president in charge of business banking for Key Bank in 2012. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is active in community affairs as a 30-plus year member of Juneau Downtown Rotary Club and has been involved in various local and statewide organizations.

COVID-19 update: 6 cases in three communities

Suzanne Downing
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1
COVID-19 update: 6 cases in three communities

The Alaska Department of Health and Social Services today announced six new cases of COVID-19 in three Alaska communities – Anchorage (4), Wasilla (1) and Juneau (1). This brings the total case count in Alaska to 335.

No new hospitalizations for deaths occurred from the illness in the 24-hour reporting period. There have been a total of 36 hospitalizations and nine deaths.

Recovered cases now total 196, including 28 new recovered cases recorded yesterday. That means there are 139 known cases of COVID-19 in Alaska.

The total case count, including both those recovered and those who died:

  • Anchorage: 164
  • Kenai Peninsula: 19
  • Fairbanks/North Star Borough: 79
  • Southeast Fairbanks Census Area: 1
  • Yukon-Koyukuk Census Area: 1
  • Kodiak: 1
  • Mat-Su Borough: 20
  • Nome Area 1
  • Juneau: 27
  • Ketchikan: 16
  • Petersburg: 3
  • Craig: 2
  • Bethel: 1

Rolling protest through Anchorage draws hundreds

Suzanne Downing
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40
Rolling protest through Anchorage draws hundreds

There may have been hundreds or there may have been over 1,000 people who took part in an Anchorage act of civil disobedience, as citizens in their private and business vehicles rolled from the Loussac Library in midtown, through downtown Anchorage to protest the extended business closures mandated by the government.

It was hard to count because some vehicles had one person, while others had a whole family, plus the dog. But this writer counted more than 300 vehicles leaving the Loussac Library for a roll by City Hall and it’s our guesstimate that the crowd was close to 900.

Organizers of “Open Alaska” said the social media group grew from just a handful of concerned Alaskans to more than 3,300 on Facebook in less than a week.

Today’s protest started out with a welcome by Bernadette Wilson, owner of Denali Disposal, who used a bullhorn to thank attendees and remind them to obey all traffic laws. A prayer and the Pledge of Allegiance were observed, and then Wilson announced, “Start your engines!” Her garbage truck, polished to perfection, was the lead vehicle.

By the time the procession reached 7th street downtown, there were still dozens of cars streaming into the parking lot at Loussac, making it about a 2.6-mile long parade.

As the cars drove by City Hall, drivers leaned on their horns and waved flags. They rolled through downtown for about two hours, only encountering one reckless counter-protester who started weaving his car dangerously through traffic. That man was pulled over by police. The Open Alaska drivers remained lawful and many wore face coverings as a precaution.

Police were assigned to the area and about a half dozen were observed, but took no action against what was technically, an illegal outing. Anchorage Police were simply there to keep the peace.

Meanwhile, Mayor Ethan Berkowitz was hosting a Facebook Live event to discuss when he will allow people to go back to work.

“I want to reiterate what we are doing is driven by data,” Berkowitz said, clarifying that he feels the city is in a solid enough place to allow easing of some restrictions by Monday. “None of the metrics that we are looking at are in a red zone,” he said. “They are in a green and yellow zones.”

In a previous press conference this week, the mayor had indicated that Anchorage could stay locked down for as long as 42 days.

Today, Berkowitz went to great length to clarify that he intends to move more quickly, although he said because Anchorage has to medically welcome patients from all over the state, he wanted to “move more deliberately than the state is in terms of opening things up.”

Juneau says the joke’s on you

Suzanne Downing
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7
Juneau says the joke’s on you

Folks at the Juneau Parks and Recreation Department wants you to lighten up, so they’ve installed a Joke-a-Day phone line.

People who need to be cheered up about their businesses having been destroyed, their jobs lost, not being able to pay their mortgages and rent, their children missing important school work, their health being compromised, or their loved ones dying from COVID-19, are invited to call Juneau’s Joke Hotline.

There’s a punchline around here somewhere. Readers, feel free to help.

Fifth Anniversary week for ‘mighty’ Must Read Alaska

Suzanne Downing
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38
Fifth Anniversary week for ‘mighty’ Must Read Alaska

WHEREBY WE REVEAL OUR STATS

Today marks the fifth anniversary of Must Read Alaska, which started as a Monday political newsletter to about 200 Alaska conservatives, and now is a three-times-weekly newsletter with over 11,800 subscribers, and a daily news website that receives more than 10,000 visits a day.

This project was built originally to keep the mainstream media in Alaska on its toes. That is still one of its purposes, but it also is here to inform people about politics and current events in Alaska.

Readers will recall that five years ago, the Anchorage Daily News was owned by wealthy East Coaster Alice Rogoff, who had helped install Gov. Bill Walker. She had renamed it the Alaska Dispatch. Her connection to the governor was tight, and she was operating the newspaper like a branch of the Alaska Democratic Party. The ADN has always been a liberal newspaper, but now it was over the top.

The public walked with their dollars and their feet. Many conservative Alaskans were clambering for another newspaper, like the old Anchorage Times. Discussions were underway among business leaders for how to finance such an enterprise.

This editor, who comes from a newspaper background, said “no.” The path forward is different in today’s world. Print is not viable as a business model and newspapers, as a rule, are a poor investment. Must Read Alaska would start a news website to punch back at the liberal-dominated media.

By 2017, Must Read Alaska was three years and counting, with the website up and running, and the newsletter expanded to three days a week.

Shop the Freedom Collection https://must-read-alaska.myshopify.com/collections/freedom

Meanwhile, the ADN was in bankruptcy court in 2017. Rogoff wasn’t paying her bills and stiffed many small Alaska businesses. The Binkley family bought new newspaper for pennies on the dollar and have tried to keep it afloat for the past two and a half years.

Must Read Alaska documented the decline of the Rogoff and Walker empires during those years.

(Interestingly, the ADN has recently moved to a donation model. In a recent series of notes from the editor, readers are directed to donate money to a nonprofit 501(c)(3), and the money they donate there will be funneled back to the ADN.)

Other news organizations in Alaska have shrunk as well — the NewsMiner is a shadow of its former self and is owned by a charitable foundation, and the Juneau Empire has a shaky future, with its parent company downsizing.

Must Read Alaska is still one person, with help from columnists like Art Chance, Win Gruening, and occasional others, and some content creators who help from time to time build ads for advertisers and graphics for stories. MRAK runs very lean, and counts on the help of hundreds of readers who chip in financially every week, and who send in tips and comments. Recently, MRAK owes a debt of gratitude to Alaskan John Quick, who has been working on developing the business end of the MRAK project, to keep it afloat.

DATA POINTS – THE BIG REVEAL

Must Read Alaska website reached over 9 million views this month, and is on track for 10 million views next month. The editor has approved and posted more than 35,000 reader comments (those that take too much editing just get round-filed at this point).

Here are some of the stats for the site as compared to mainstream media outlets in Alaska:

TOP STORIES OF ALL TIME

The winner for all-time views is the column that editor Suzanne Downing wrote in January, 2020, titled: “New decade: The Next Roaring Twenties?” Little did we know that the Roaring Twenties would come to an abrupt end before it even started, and that the world would start circling the drain by February.

HOW YOU CAN HELP

This news project has always been about Alaskans and Alaska, our future as a state, and keeping the media honest. We can’t backslide or be deluded into thinking the media will ever be fair to conservatives in Alaska. And the damage done to our state during the Rogoff-Walker years will be with us for a long time.

You can help MRAK with your donations, with your news tips, and by letting advertisers know that Must Read Alaska is a great value. The truth is, MRAK depends upon people who decide this project needs to continue.

Your donations help pay for outside contracted help that keeps the website functional, and fixes it when it breaks. They help pay for the web tools needed to publish the newsletter, and the research and travel to cover the state from Fairbanks to Ketchikan.

Today, to celebrate the fifth anniversary, MRAK launched a new feature on the front page that we’re calling “Featured Videos.” Scroll on over there after you’re finished here, and see the video clips. Keep an eye on that spot as MRAK rolls out some new features in the next few weeks.

Finally, thank you to all who have contributed their time and treasure to making MRAK a valuable resource for our future. Here’s to the next five years of keeping the mainstream media on its toes!

No free dump days in Anchorage, due to COVID-19

Suzanne Downing
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3
No free dump days in Anchorage, due to COVID-19

ANCHORAGE CHAMBER CITY-WIDE CLEANUP MOVED TO MAY 4-31

The Anchorage Department of Solid Waste Services will not host free dump days in 2020. Instead,  the department will distribute free summer disposal passes to all Municipality of Anchorage residents, good for disposing of one load of garbage.

  • Residents can register at www.muni.org/sws for a pass that allows them disposal of one free load of garbage. Registration opens at 8 a.m. Monday, May 4 and closes at midnight Monday, May 18. Passes will be valid through Sept. 5, 2020.
  • All free drop-offs must go to the Anchorage Regional Landfill in Eagle River. Passes will not be accepted at the Central Transfer Station in Midtown Anchorage. Girdwood residents may use passes at the Girdwood Transfer Station.
  • Only current residents of the Municipality of Anchorage may register for a free pass. Passes are limited to one per resident.
  • Loads are limited to less than 1,000 pounds and may not exceed the size of a standard pick-up truck bed. No U-Hauls or Double Axel trailers will be eligible for free disposal.
  • Additional fees will still apply for any item containing Freon (refrigerators, freezers) or to disposal of more than 40 pounds of household hazardous waste.

The Anchorage Chamber of Commerce Citywide Cleanup will move to May 4-31.

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