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Now is the time to pay the full PFD to Alaskans

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By JESSE SUMNER

Earlier this month, Gov. Mike Dunleavy announced this year’s budget reductions, following through with what fiscal conservatives have said must happen if Alaska is to stay afloat during these challenging times. We cannot continue to operate as if we have an unlimited amount of money. We don’t.

In the midst of a public health crisis – especially one where the closing of most businesses is apparently warranted – we cannot spend our precious state dollars on items and programs that a.) will be covered by incoming federal stimulus dollars, or b.) do not assist economic recovery in Alaska.

Without a serious and swift economic recovery, Alaskans will have no choice but to either leave the state, face unimaginable levels of taxation, or suffer in poverty until our leaders figure out what their priorities should be.

For several years now, Alaskans have been deprived of their statutory permanent fund dividend checks. More and more, it appears as if this year, of all years, will be no different.

One of the governor’s vetoes was $1.5 billion that legislative leaders in the House and Senate had tried to tuck back into the Permanent Fund, in an attempt to keep it out of the hands of the dividend program. This was the wrong move by legislative leaders and the right move by the governor.

A member of the House Majority recently accused Alaskans of being “very quick to have their hands out,” as justification for why no additional dividend funds or economic stimulus payments should be made.

Should anyone be surprised that Alaskans, many of whom are only unable to work because of the mandates imposed by the government, might have an itch to access the money that lawfully belongs to them?

As people suffer more – and they will, the longer this virus remains in Alaska – the worse our future will look.

Anchorage Rep. Lance Pruitt wrote a letter to Gov. Dunleavy asking him to direct the Department of Revenue to issue PFD checks as soon as possible, rather than waiting until October. Of course, I support this idea, and I encourage Gov. Dunleavy to follow through on it.

But I also know that the dividend authorized by Senate President Cathy Giessel and Speaker Bryce Edgmon is only $1,000. Yes, it would help families and stimulate the economy for a week or two, but it’s a severe slap to the face, especially when $1.5 billion is sitting there ready to go – ready to help Alaskans weather this storm.

Times like these are why we have the Permanent Fund. Not to pay for government programs, not to enable governments to spend more money without making cuts. The fund exists so that when the unexpected happens – as it has – that we can keep people afloat with their money.

This isn’t borrowed from a bank or from China – it’s Alaskan money, earned on the backs of Alaskans. It’s time to put that money to work, get people through this tough time, and follow the law.

Jesse Sumner is a candidate for State Representative in District 10 (Wasilla), and a member of the Mat-Su Borough Assembly. Learn more about Jesse at SumnerForAlaska.com.

ConocoPhillips cuts North America spend, including Alaska, as oil drops again

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ConocoPhillips is curtailing spending and production, cutting 225,000 barrels a day from its North America wells, as the price of oil drops and as the world is running out of places to store it.

Alaska North Slope crude oil traded under $16.65 a barrel, reaching lows not seen since 2002. North American producers have seen a 30 percent drop in demand and nearly a 70 percent drop in prices since January.

For Alaska, the announcement means the company will cut back another $200 million in planned investment.

Today’s announced actions include these points made by the company in a news release on its website:

  • An additional reduction in 2020 operating plan capital expenditures of $1.6 billion, bringing the current estimate to $4.3 billion. Including our previously announced reduction of $0.7 billion, this represents a total reduction in operating plan capital expenditures of $2.3 billion, or approximately 35 percent, compared to the 2020 announced guidance. These reductions are sourced from across our global portfolio, primarily focused on Lower 48, Alaska and Canada areas where we have the highest levels of flexibility.
  • A reduction in operating costs of approximately $0.6 billion, representing roughly 10 percent of the initial 2020 guidance. This brings the current estimate to $5.3 billion. These reductions were sourced from lease operating expenses, general and administrative costs and foreign exchange impacts.
  • The company’s share repurchase program has been suspended.
  • On a combined basis, the cumulative capital, operating cost and share repurchase actions represent a reduction in 2020 cash uses of over $5 billion versus original operating plan guidance.
  • The company also announced it will elect to curtail production in Canada and the Lower 48 regions until market conditions improve.
    • At Surmont, the company is currently cutting back production due to low Western Canada Select prices. By May, the company expects to reduce production by approximately 100,000 barrels of oil per day (BOD) gross to 35,000 BOD gross.
    • In addition, beginning in May, the company plans to begin curtailing production across its Lower 48 region. Initially, the company expects to curtail about 125,000 BOD gross. Curtailment decisions will be made on a month-to-month basis, and are subject to operating agreements and contractual obligations.
    • These announced curtailments represent approximately 200,000 barrels of oil equivalent per day (BOED) net to the company.
  • Given ongoing uncertainty, continued market volatility and the potential for both voluntary and involuntary curtailments over the coming months, the company’s previous 2020 guidance items should not be relied upon and further guidance will be suspended.

The announcement came about a week after the company announced it was demobilizing some of its drilling rigs and crews in response to the COVID-19 pandemic.

Take the Poll: Is it time to open up the economy in Alaska again?

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Alaska’s economy is suffering and that means families are suffering. But COVID-19 is still lurking as a health hazard all over the world.

Take our Facebook poll to let our leaders know if Alaska is ready for the economy to open back up, and can deal with the health hazards as they come.

You’ll have to have a Facebook account to participate. If you don’t have one, then leave your comment below.

Sen. Chuck Schumer trashes BIA Chief Tara Sweeney, but picks the wrong target

Sen. Chuck Schumer took to Twitter today to disparage Alaskan Tara Sweeney, who is the Assistant Secretary for the Interior, and is the head of the Bureau of Indian Affairs.

Schumer was mad because Alaska Native Corporations are deemed eligible for tribal assistance through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

His slam against Sweeney didn’t go well for Schumer, the New York politician who has served in office since 1998. Not only did Sweeney shoot right back at him, so did Congressman Don Young, and Senators Lisa Murkowski and Dan Sullivan. Even Gov. Mike Dunleavy got involved in the fray on Twitter.

Alaska’s congressional delegation quickly wrote a letter scolding Schumer for his off-base criticism of Sweeney:

“Tara Sweeney is doing an outstanding job as Assistant Secretary for Indian Affairs. Barely two weeks ago, Congress unanimously agreed that ANCs should be eligible for funding under the CARES Act and we expect Treasury to uphold and follow the law,” said Senator Murkowski. “I’m extremely disappointed by the personal attacks and baseless allegations against Assistant Secretary Sweeney, including those from Senator Chuck Schumer earlier today. Those attacks betray a complete lack of awareness of Interior’s role in supporting Treasury when it comes to implementing this program. They also betray an utter lack of understanding of what Native Corporations are, why Congress created them, and the purpose they serve in Alaska. Trying to hold any person’s tribal affiliation or similar congressionally established status against them for political purposes is simply gross and a new low. Assistant Secretary Sweeney’s ANCSA affiliation is her birthright. It’s part of her identity as an Alaska Native, similar to tribal enrollment, and should not be used against her based on crass partisan motives.”

“As our small businesses suffer and as the Payment Protection Program has run out of money, it’s extremely disappointing that Minority Leader Chuck Schumer and others are spending their time attacking Assistant Secretary Tara Sweeney. Secretary Sweeney is a woman of impeccable integrity who is working day in and day out for America’s First Peoples,” said Senator Sullivan. 

“Senator Schumer—as well as every senator and an overwhelming majority of congressmen who voted for the CARES Act—signed off on the standard, 40 plus-year-old definition of Indian tribes, which includes Alaska Native village and regional corporations. This is not controversial, particularly for anyone who knows anything about these issues. What is controversial, and frankly shameful, is to try to smear a dedicated public servant who is doing her duty by implementing the law and the definition of Indian tribes that Congress mandated.

“What is also shameful is having members of Congress trying to deprive Alaska Native communities much-needed funds to fight the pandemic. I’ll continue to fight these misguided efforts to besmirch Assistant Secretary Sweeney and harm our Alaska Native communities,” Sullivan said.

“The legislative text of the CARES Act was available out in the open throughout the drafting process before it went on to pass 96-0 in the Senate, and by voice vote in the House,” said Congressman Young. “The time to express concerns over the bill was then, not weeks after its passage and enactment. Let me make this very clear: Alaska Native Corporations not only fit the bill’s definition for funding eligibility, but for decades have been empowering Alaska Natives by providing economic opportunity, education, and vital services to Native communities across our State. The CARES Act did not prescribe apportionment of the funding, and I am confident that our federal agencies will determine a fair and equitable distribution of these critical funds that takes into account the fact that Alaska has both tribes and ANCs.” 

 “Assistant Secretary Tara Sweeney has spent her career advocating for all Indigenous peoples, and continues to do so. The very suggestion that she used her influence to secure the inclusion of ANCs in the tribal set aside is outrageous and, very frankly, a fundamental misunderstanding of the legislative process,” Young said.

Congress drafted and passed the bill; as Assistant Secretary, Tara Sweeney and other federal officials implement the law as written, using the eligibility definitions that already exist on the books, he continued.

“Sweeney is a champion for the economic and social well-being of our First Peoples, and has achieved great things as Assistant Secretary for Indian Affairs. As the first Alaska Native to ever hold this position, she is a trailblazer and a role model for future generations of Indigenous leaders. I am proud to serve with her and honored to call her a friend,” Young said.

Earlier this week, the delegation sent a letter to the administration calling on the Treasury Department to take into consideration the unique legal framework and circumstances in Alaska. The delegation urged flexibility for each tribe to choose how it receives and administers the payments. Their letter also provides historical background on Alaska regional corporations, which are made eligible for CARES Act assistance through the definition of “Indian tribe” used in the bill. 

Click here for the letter.

Ferries throttle back service, after running with few passengers in Southeast

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The Tazlina came into the Auke Bay Ferry Terminal from Skagway with just 2 passengers on one scheduled run during the first week of April. Last week, there were only 12 passengers. It takes a crew of 14-15 to run the Tazlina.

The two ferries that are operational are running nearly empty, prompting the Alaska Marine Highway System to reduce some of its sailings because of the low demand, as people are not traveling due to the COVID-19 coronavirus and travel restrictions.

The Tazlina will consolidate its schedule in Northern Lynn Canal, while the Lituya will have limited service between Ketchikan and Metlakatla.

Updated schedule information is available on the AMHS website.

At least three landing crafts have begun moving freight around northern Southeast Alaska to fill in the gap in recent months: Liteweight, Poundstone, and Claim Jumper. These operators are hauling freight out of the Auke Bay harbor area to smaller communities.

COVID-19 update: 7 new cases, first one in Kodiak

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Seven Alaskans have been diagnosed with COVID-19 since the last state report midday Tuesday.

A total of 300 cases have been identified in Alaska, with 110 of those cases known to be recovered, for a total of 190 active cases. 

A total of nine Alaskans have died from the illness, including two who died out of state. No deaths have been reported in the last 48 hours. It has been 20 days since the first COVID-19 death occurred in Alaska.

There has been one more hospitalization in the past 24 hours, bringing that total to 35. However, most of those people are not currently hospitalized; nine have died and others have been released to recover at home.

The death rate in Alaska is currently 3 per 100 cases of the Wuhan coronavirus that is believed to have started in Wuhan, China late last year.

Alaska communities that added cases in the past 24 hours were: Anchorage (4), Juneau 2), and there is the first case diagnosed in the Kodiak area (1).

Total cases that have been diagnosed in Alaska, (including recovered and deaths):

  • Anchorage: 143
  • Kenai Peninsula: 16
  • Fairbanks/North Star Borough: 79
  • Southeast Fairbanks Census Area: 1
  • Yukon-Koyukuk Census Area: 1
  • Kodiak: 1
  • Mat-Su Borough: 15
  • Nome Area 1
  • Juneau: 23
  • Ketchikan: 15
  • Petersburg: 2
  • Craig: 2
  • Bethel: 1

The struggle is real: Pelosi shows off designer ice cream hoard, denies funding for small businesses going under

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SENS MURKOWSKI, SULLIVAN HOST TOWN HALL FOR BUSINESSES

The federal Paycheck Protection Program ran out of money this morning as congressional Democrats, led by House Speaker Nancy Pelosi, blocked the $250 billion replenishment that Republicans were trying to get to struggling businesses across America.

But this weekend, Pelosi appeared from her mansion in San Francisco on the Late Late Show, showing off a $6,000 Wolf refrigerator with a freezer stuffed full of her collection of designer ice cream. Listen as she stops herself short of admitting she had her family over for Easter during the stay-home orders:

A pint of Jeni’s ice cream delivered to a home in Anchorage would set you back $12 plus $50 in shipping, but the total cost to Pelosi is closer to $16 a pint.

“I don’t know what I would’ve done if ice cream were not invented,” she Pelosi said via video conference from her fortress-style home in a posh neighborhood of San Francisco.

Speaker Pelosi’s home in San Francisco.

TOWNHALL WITH SENATORS MURKOWSKI, SULLIVAN

U.S. Senators Lisa Murkowski and Dan Sullivan will host a live teletown hall with Senior Small Business Administration representatives and Alaskan small business owners to discuss how the COVID-19 pandemic is impacting small business owners, their employees, and their businesses.

SBA representatives will be on the teletown hall to help answer questions about navigating the federal resources available through the SBA. Alaska small business owners who register for the teletown hall will have an opportunity to share their comments or ask questions about federal efforts in response to the crisis.

Participants must preregister at https://www.murkowski.senate.gov/live. (If registered, you will receive a phone call at the time of the event allowing you to join the call.)

‘It’s a war zone’ as homeless take over the urban core

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While some homeless people have sought shelter at the Sullivan and Boeke arenas in Anchorage, others are not interested in the dry cots being provided by the Mayor Berkowitz Administration during the COVID-19 pandemic.

The tent city at 3rd Avenue and Ingra Street has once again become a hotbed of drug-dealing and open defecation. So much so, that city officials are asking the Dunleavy Administration to send in the National Guard to clean up the mess.

Around Anchorage, from downtown to midtown, the images are heartbreaking, as derelicts and drug dealers shuffle like zombies through streets abandoned by law-abiding citizens.

On Monday afternoon, an inebriated man was openly defecating at the corner of Northern Lights and Denali. Wednesday, another incapacitated man was witnessed defecating on the sidewalk on 3rd Avenue. Today, a crazed individual ran nearly naked through the streets as firefighters tried to corral him; he was as high on some substance.

Although Mayor Ethan Berkowitz has ordered homeless people to shelter at designated locations, some are unable or unwilling to follow the rules in staffed shelters, and others simply prefer life in the open.

In fact, dozens of homeless people have been kicked out of the city-run shelters for various infractions. They hang out around the tent city, where people come and go to buy drugs in broad daylight.

Drug deals go down in broad daylight at 3rd and Ingra.

The municipality has cleaned up this location time and again, but the tents and tarps and cardboard structures once again stretch far down Ingra along the ridge where the old Alaska Native Hospital used to sit.

This is normally the time of year when the snow melts and the cleanup begins, and this year the city will have its hands full with COVID-19 stalking those who have underlying medical conditions or who live in tight quarters in these tents.

Rob Cupples and his family have owned property across the street for over 70 years. He has been trying to get the city to clean up the tent city. He formed a group a few years ago called the Third Street Radicals.

With most surrounding buildings now vacant due to the citywide COVID-19 orders, things are as bad or worse than he’s ever seen them. And the vagrants have become more aggressive. It feels like a losing battle.

“For the past 3 weeks we have experienced a steep spike in a variety of social and criminal issues within our small neighborhood.  You would think that with the relocation of a significant majority of the homeless population to the Sullivan our neighborhood should be the quietest and calmest it has been in years, but the truth is quite the opposite.  For the past three weeks the homeless camp along both sides of the fence at 3rd and Ingra has continued to grow,” Cupples wrote to his Third Street Radicals.

“With this growth has come a substantial increase in garbage on our streets, partying, loitering on our private properties, and an increase in mob mentality due to the lack of community presence under the hunker down order. The occupants of the camps have demonstrated aggression on multiple occasions to members of this community including aggressively chasing an ADN photographer from the area who reported to me personally being very fearful just last week.”

“Drugs are being actively sold from these tents on a daily basis, as easily observed from my front row seat at 3rd and Hyder.  I have personally observed an increase in vehicular traffic to the area of buyers coming to score their drugs from this location. One buyer openly admitted to me why they were there. They park directly outside my windows and walk across to the tents,” Cupples wrote.

Groups of people are gathering on street corners and on private properties in an intimidating fashion, he wrote. 

“This is particularly concerning as most of our properties are primarily vacant at the moment due to the hunker down order. We are currently at our most vulnerable. Neighbors have recently reported break ins, having their power cut to their house in the middle of the night, APD refusing to remove drug users from private property because there was no fence, etc.
The trash has overrun our streets,” Cupples wrote.

“It became so bad I personally requested of this administration they relocate a dumpster to the site of the tents at 3rd and ingra with the hopes the occupants of these tent would use it, assisting us in the trash battle.  (which has appeared to be relatively successful, thus far). 

“My wife and I have been trying to keep up on the litter around our business with nearly daily trash pickups, but it is a losing battle.  On Monday she reported that she was unable to pick up trash directly outside our fence because she no longer felt safe.  The crowds of drunk males within the immediate vicinity posed too significant a risk for her to leave the confines of our fences with her trash grabber.  For the past 3 years I have not feared my wife going to our business by herself, however after Monday she will not be returning to our business without me being present until the situation improves.”

Cupples is asking for people to join the Third Street Radicals at 11:30 am on Friday on the corner of 4th and Ingra to publicize what he and others are calling a war zone. He’s asking they bring homemade signs and personal protective equipment, and observe the six-foot rule. Cupples said he’s not trying to pick on homeless people, but the neighborhood wants to reverse the criminal activity that has taken it over:

A devastating decision

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By RALPH SAMUELS

I was born and raised in Alaska and have had a job since I was 15-years-old. I don’t recall ever crying at work. Until yesterday.

I work for Holland America Line and Princess Cruises and the Alaska tour company we operate, HAP.

HAP operates the Princess Lodges, Westmark Hotels, a large bus company and a train company. It is a large and complex operation that generally spends the entire year planning on a five-month season and serves as a transportation and hotel company for hundreds of thousands of visitors to Alaska.

Yesterday, we notified civic leaders, business leaders, local government officials, federal officials and elected State leaders that HAP would not operate on the rail belt this summer. The 3,500 seasonal workers we normally hire will not be hired. The 34 restaurants and coffee shops we operate will not open, and the bed taxes and sales taxes our guests generate for local governments have simply disappeared.

The Denali Borough has a population of only about 1,400 residents, but 80% of their budget, mostly for their schools, comes directly from bed taxes. Those bed taxes are overwhelmingly generated by visitors who came off of cruise ships.

While cruise ships are the transportation of choice by which more than half of the visitors to Alaska make their way north, the backbone of the tourism industry are the dozens of tour operators that show off our State to people who have had it on their “bucket list” and have finally made their way here. The visitors may be adventurous, sedentary, old, young, single, with a large family, American or international. But they all want to see and feel Alaska. Mountains, rivers, wildlife, glaciers and our unique culture are all shown off by the small Alaska owned tour companies.

These small companies depend on our volumes of guests, and we depend on their tours to best experience Alaska. In the long term neither of us can succeed without the other.

Not operating HAP this year was a very difficult decision, knowing the impacts on communities and the small businesses that depend on our many guests. But as the potential opening of the business got pushed further and further back, the decision simply had to be made. We are not capable of hiring and training the necessary thousands of employees for a five-week season.

When advised of this decision, most people were not surprised, but that doesn’t mean they were not troubled. As difficult as it was to make those phone calls, it was much worse to receive them. Our hundreds of year-round employees were notified in the morning, and like the employees in many industries, they are also very concerned. A month ago, our staff was busy hiring seasonal mechanics, waitstaff, cooks, drivers, tour guides, luggage handlers, housekeepers, bartenders, and myriad others.

Critics of the cruise industry often don’t like our large size, but they usually fail to recognize the many individuals who make up our diverse, unique and dedicated work force – the true fabric of our company. They don’t know the guy from Salcha who started his career washing busses, and 25 years later has earned his position of managing almost 3,000 guest rooms spread all over remote Alaska.

The critics rarely meet the woman who trains and manages specialized tour guides year-round, and on weekends runs 100 mile footraces in Alaska in February. And they certainly don’t know the born-and-raised Alaskan and UAF graduate who serves as the Board President of the Anchorage Civic Orchestra. At our company, we have hundreds of individuals with their own unique stories who are vibrant members of our community, and collectively make tourism work for Alaska.

Our employees and our tour partners are essential to tourism in Alaska.

As I said a number of times on the phone yesterday, there isn’t much of a silver lining to the news of HAP not operating on the rail belt this summer. ATIA President Sarah Leonard summed it up best in a media report when she simply said, “It’s devastating.”

Here is where Alaskans can offer to help. Go flight-seeing, hike in Denali, go river rafting or on a kayak trip. Help out the small tour companies until we can resume the higher number of visitors that are required to sustain our visitor industry for the long term.

These small companies do a great job of showing off our state’s rare beauty and providing one-of-a-kind adventures, and they are all right here, in our own back yard.

Ralph Samuels is a lifelong Alaskan that has worked in aviation, public service, tourism, and even had a stint as a bartender. He is the Vice President of Holland America Group.