Page 1316 – Must Read Alaska

Jewish Cultural Gala brings out tuxes, sequins, and pols

The Social

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November 17, 2019

Jewish Cultural Gala brings out tuxes, sequins, and pols

The 60th annual Jewish Cultural Gala in Anchorage, honoring Alaska Pioneers Gloria and Perry Green, brought out 600 or more for an evening of dining, dancing, and fundraising. Here are some of the political folks who showed up for the gala, photographed by Yolanda Clary:

Others attending included Sen. Elvi Gray-Jackson, Rep. Sarah and Jeff Vance, Gov. Dunleavy’s Chief of Staff Ben and Elizabeth Stevens, Dunleavy Senior Policy Advisor Brett Huber, Curtis and Josie Thayer, Mayor Ethan Berkowitz and Deborah Bonito.

Alaska’s $500 limit for campaigns working way through U.S. Supreme Court

Suzanne Downing

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November 17, 2019

1

Alaska’s $500 limit for campaigns working way through U.S. Supreme Court

WILL COURT PUT ALASKA ON THE SCHEDULE?

Alaska’s extremely low campaign contribution limits of “$500 per candidate per-donor, per-year” are the subject of a lawsuit working its way through the Supreme Court this month.

Will the nation’s highest court hear it? Alaskans may find out soon.

The $500 limit was upheld in the Ninth Circuit Court of Appeals on Nov. 27, 2018, and the petitioners are now asking the Supreme Court to take a look at whether the limit infringes on Alaskans’ right to free speech.

AWKWARD LEGAL JOURNEY

This First Amendment case involving political speech has Alaskans David Thompson, Aaron Downing, and Jim Crawford as plaintiffs, and the Alaska Public Offices Commission, Heather Hebdon, executive director, as the defendant.

In “only in Alaska” style, the Thompson vs. Hebdon case was originally brought by attorney Kevin Clarkson, who is now Alaska’s Attorney General, now in charge of defending APOC against the lawsuit. Clarkson’s former law partner, Robin Brena, has taken up the case, with the D.C.-based Alliance for Defending Freedom, and several other legal entities filing briefs in support of the three Alaskans.

BACKGROUND — THE 2006 VOTER INITIATIVE

In 2006, a voter initiative set the individual contributions to candidates at $500 per year, and capped the amount groups such as union political action committees and political parties could give at $1,000 per candidate per year. The initiative also restricted the total amount candidates could receive from out-of-state contributions, including family members, to $3,000.

The 2006 voter information packet explanation of the initiative stated the reasons voters would want to mark “yes”:

“Corruption is not limited to one party or individual. Ethics should be not only bipartisan but also universal. From the Abramoff and Jefferson scandals in Washington D.C. to side deals in Juneau, special interests are becoming bolder every day. They used to try to buy elections. Now they are trying to buy the legislators themselves.”

The Alaska Campaign Finance Reform Initiative passed with 73 percent of the vote on the 2006 August primary ballot.

The recent shift of campaign activity to independent expenditure groups came later, after the Supreme Court’s 2010 decision on Citizens United vs FEC, which now makes these side groups more powerful than the candidates’ own campaigns.

The original lawsuit in Thompson vs. Hebdon was filed in 2015.

Last year, the Ninth Circuit affirmed the legality of the individual-to-candidate and individual-to-group limits, and it also upheld the political party and union PAC contribution levels.

However, the Ninth Circuit Court reversed the aggregate nonresident limit of $3,000 per candidate, saying it violates the First Amendment.

The $500 limit per candidate is the lowest in the country. Vermont had a $400 contribution limit that was struck down in 2006 in Randall vs. Sorrell, and the limit is now over $1,000 for statewide candidates.

For context, Alaska’s limit is 50 percent lower than the lowest contribution limit ever upheld by the Supreme Court.

DC lawyer Paul Clement is lead counsel representing the three Alaska plaintiffs. Since 2000, Clement has argued more Supreme Court cases than any lawyer — in or out of government.

Laura Fox, an assistant attorney general for Alaska, is in the awkward position of defending the state against the lawsuit originally brought by her boss, Clarkson.

The state’s argument is that Alaska is particularly susceptible to corruption and that $500 is a perfectly defendable amount that does not need to be increased because the cost of campaigns do not track the rate of inflation.

State’s Brief-in-Opposition-PDFADownload

Filing briefs in support of Thompson, Downing, and Crawford is the Institute for Justice, the Cato Institute, Institute for Free Speech, and the Brennan Center for Justice at NYU School of Law. Pro bono legal work is being handled by Reed Smith LLP .

According to Cato, the Supreme Court has never granted the federal or state governments such an extreme authority to restrict valid First Amendment activity.

Cato Amicus Brief on Thompson-v-Hebdon-19-122Download

National Republican Senatorial Committee & National Republican Congressional Committee BriefDownload

“The Ninth Circuit’s decision flouted Supreme Court precedent and it deserves a firm rebuke,” Cato wrote. “In doing so, the Court should emphasize, once again, that core political speech and association activities, including political contributions, are entitled to robust protection by the First Amendment.”

On Monday morning, Supreme Court justices are expected to release orders from their Nov. 15 conference. It’s possible that the Thompson vs. Hebdon case will be among them.

GOP gala committee blowing past ticket sales goals

The Social

Suzanne Downing

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November 17, 2019

0

GOP gala committee blowing past ticket sales goals

With three weeks left before the Alaska Republican Party’s Unity Gala, organizers say they’re confident they’ll blow past their goal of selling 500 tickets to the event, which includes Gov. Michael Dunleavy and the entire Alaska Congressional delegation as honorary co-chairs.

Over 40 tables of 10 are already committed. Those interested in partying with the party can buy tables for $2,000, $5,000, or $10,000, or get individual tickets for open seating.

The funds raised will pay for the get-out-the-vote and absentee ballot program that the party traditionally does each election cycle. Funds will be put in the party’s federal account for use in general operations for the coming year. These funds are not used to help individual candidates.

The Unity Gala takes place at 6:30 pm on Dec. 6 at the Dena’ina Center in Anchorage. Tickets and other information here. The attire is formal.

The organizing committee, led by Jody Taylor, Cynthia Henry, and Seth Church, has not yet announced the keynote speaker.

Juneau ponders its priorities

Columns

Suzanne Downing

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November 16, 2019

6

MORE CHILD CARE SUPPORT OR STREET CLEANING?

By WIN GRUENING

In what has historically been a rather lackluster and tedious process, this year’s City and Borough of Juneau’s budget cycle has raised a keen level of interest in its outcome. With further cuts at the state level expected next year and an unsustainable imbalance of expenses and revenues at the local level, our elected officials face tough choices.

It’s not clear where they are headed.

Recognizing the fiscal challenges and the newness of recently elected assembly members, city staff began tackling budget issues by developing a Fiscal Sustainability Process. The goal of the process is for the Finance Committee to provide direction to the city manager in advance of the FY21/22 budget.

Some major issues at hand include school repairs and debt reimbursement, adding childcare as a significant ongoing expense, and Centennial Hall funding.

So far, the Finance Committee has reviewed the city’s revenue sources and debt capacity, and operating/capital expenditures, program by program – labelling each as mandatory, essential, or discretionary.

At the Nov. 2 meeting, the Finance Committee examined each of the members’ rankings of 80 different programs and projects. (Mandatory, Full Cost Recovery, and Internal Support/Service Programs were not ranked).

Results were mostly what you might expect. Discussion centered around so-called low-priority discretionary expenditures aggregated at the bottom of the list.

Public safety (JPD Patrol) was the highest-rated essential service at #1. School CIP/Maintenance was the highest-rated CIP project at #10. Transit services were the most valued “discretionary” program at #30. Ranked in the bottom half were discretionary programs such as those under Parks and Recreation, Eaglecrest Ski Area, and all three public libraries.

A couple surprises were the current $630,000 support for childcare programs at #34 and proposed $1 million in childcare support at #36 – both discretionary – a ranking placing them ahead of essential services like Street Cleaning at #46 and Downtown Parking at #73.

At least one member commented that after a $400,000 hike in childcare support this year that a $1 million escalation next year was too much and should be scaled back.

Another interesting discussion focused on 23 different “revenue concepts” provided by committee members. If at least five members favored continuing discussion on an item, it was added to a “Revenue List” for further review. This winnowed the list down to eight ideas (with estimated potential tax revenue).

Additional 1% seasonal sales tax ($6.1 million)
Taxing sales by/to nonprofit organizations ($2.6 million)
Taxing on-board cruise ship sales ($636,000)
Raising property tax by .1 mil ($500,000)
Sales tax holiday – last Sunday in February
Eliminating sales tax on food – offset by 1% seasonal sales tax
Raising sales tax purchase cap/single service cap
Collecting online sales tax ($1.5 – $5.0 million)

The collection of sales taxes for online purchases may be controversial, but I believe this should be pursued. Aside from the potential revenue, it helps level the playing field for local businesses that must compete with Internet retail giants.

To this list, I would only add consideration of tribal entities such as Tlingit-Haida Central Council. Currently exempt from collecting sales taxes, their recent new business activity (coffee shops and tourism venues) in Juneau compete directly with local businesses.

Another decision confronting Juneau is what to do about Centennial Hall. In last month’s election, voters authorized a $7 million bond issue and a 2% hike in bed tax to benefit Centennial Hall. Another $4.5 million in sales taxes had previously been approved. Together, these funds will pay for the major portion of a recommended $18 million in repairs and upgrades. This should provide Centennial Hall revenue opportunities and reduce their existing subsidy. The Assembly would be wise to fully utilize these funds as intended.

While actual budget decisions won’t be made until later in the process, this is when ideas and concepts are being formulated.

Assembly members must balance reliance on revenue measures with serious efforts at controlling expenditures. That means not just limiting discussions to cutting low priority items but also delivering services more efficiently and monitoring whether results are being achieved. This is particularly true with spending on schools and social services like childcare.

These issues raise tough questions – and even tougher choices to make.

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.

A governor under seige

Columns

GUEST CONTRIBUTOR

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November 16, 2019

19

By JIM DEMINT

In 2018, Alaska elected conservative state Sen. Michael Dunleavy as the state’s 12th governor. Dunleavy’s story is pretty straightforward: He legislated as a conservative, campaigned as a conservative, and for the last year has governed as a conservative.

In Alaska in 2019, “governing” has meant fiscal seriousness. Everyone knows the story. As the price of oil has fallen, so have tax revenues derived from oil leases.

The state’s larger-than-expected budget shortfall is not anyone’s fault, but it is elected officials’ responsibility to deal with it. Like most legislatures — very much including the U.S. Congress — the Alaska Legislature was reluctant to restore fiscal discipline if it meant spending cuts, even though the state’s damaged credit rating demanded it.

And so, Gov. Dunleavy did exactly what he promised to do and exactly what Alaska’s governor — empowered with a line-item veto for this very purpose — is supposed to do: He led. He first worked with the Legislature to find savings. But in politics, no one wants to be proverbial skunk at the garden party. And so, when legislators refused to deal with the budget crisis, Gov. Dunleavy used his line-item veto power to cut spending himself.

Alaska partisans, who launched a campaign to recall Gov. Dunleavy within months of his being sworn into office, used the budget reductions to inflame and co-opt public opinion in support of their politically motivated attempt to nullify the results of the 2018 election.

On Nov. 4, the Division of Elections rejected the recall petition because it failed to meet even the most basic standards required under the law. The recall process is designed to protect the state from corrupt or unfit officials; there is no such case against Gov. Dunleavy. The recall petition does not accuse Dunleavy of malfeasance, just fiscal discipline. Improving the state’s economic climate and plummeting credit rating are not crimes.

As John F. Kennedy famously said, “To govern is to choose.” Too many politicians — in Washington, in Juneau and every elected government around the world — prefer not to choose. They prefer to avoid difficult decisions. They prefer to talk rather than act. They prefer to be like pundits on TV, criticizing other people’s decisions rather than making their own. I served in Congress for 15 years, and I know. With responsibility comes accountability — angry phone calls, rowdy town halls, difficult re-election campaigns.

The Founders understood this was a fatal temptation of democracy. That’s why the Constitution they wrote requires the men and women who win elections to take an oath — a solemn promise — to fulfill the duties of their new job.

Gov. Dunleavy used his line-item veto not simply to cut the state’s budget, but to finally draw state legislators toward bipartisan compromise on overdue reforms. His efforts resulted in a significant cut in the state’s budget deficit in one year.

Fiscal discipline, like physical therapy after a necessary surgery, can hurt. But it pays manifold dividends in the long run. In response to Gov. Dunleavy’s budget leadership, the Alaska economy has added jobs, family income is rising quickly and the state’s unemployment rate is falling to historic lows.

The budget crisis presents Alaska with a challenge. Gov. Dunleavy met that challenge with transparency and honesty. While his critics sought to exploit the situation, he worked to solve it. That kind of leadership deserves respect, not recall.

Jim DeMint is a national conservative leader who is the Chairman of the Conservative Partnership Institute. DeMint represented South Carolina in the U.S. House (1999-2005) and U.S. Senate (2005-2013).

Louisiana lesson for Alaska: Jungle primaries lead to this

Politics

Suzanne Downing

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November 16, 2019

10

Louisiana lesson for Alaska: Jungle primaries lead to this

A liberal Outside group wants Alaska to model its primary system in part after Louisiana’s jungle primary, an election design that has all candidates on the same ballot regardless of party, and all voters, regardless of party affiliation, having access to the entire ballot. Political parties can’t close their primaries to those registered with the party, something that Republicans do in Alaska to prevent Democrats from crossing over and voting for false-flag Republicans.

The jungle primary is why the current gubernatorial election in Louisiana is dragging on — today is a runoff election because neither incumbent Democratic Gov. John Bel Edwards or leading Republican Eddie Rispone won 51 percent of the vote on Oct. 12. The two were the top finishers, with Edwards winning 47 percent of the vote, and Rispone having to fight for a runoff spot with other Republicans in the race.

The challenge for candidates is to get their supporters to go to the polls twice within a few weeks is just one of the unfortunate consequences of jungle primaries. Runoffs are expensive.

The group trying to force jungle primaries into Alaska would solve that problem by having an “instant runoff,” where people rank their choices on the ballot, and a computer calculates and recalculates the winner by reassigning votes depending on the rankings. If the first choice of the most voters doesn’t reach a majority, the computer retabulates the second, third, and fourth choices until one candidate reaches more than 50 percent.

One of the biggest complaints with ranked voting is that it’s confusing for voters. It also depends on the computer program that does the counting and recalculating. Critics say it’s trying to fix something that isn’t broken.

Paid professionals are now gathering the signatures across the state to force onto Alaska’s ballot the transition to jungle primaries combined with instant-run-off ranked voting — a combination of voting changes never tried in any other state.

The initiative is heavily funded by liberals trying to turn the state blue, because Alaska is a cheap and easy state to take advantage of with the initiative process that gives Outside groups an oversized influence. To date, no Alaska group has formed to explain to voters the motives and methods of the Outside group that calls itself “Better Elections,” although it’s clear the Alaska Republican Party has the most to lose.

Here’s how the reasoning is explained in the Daily Kos, a far-left political news site:

“A top two primary system is supposed to theoretically elect more moderate candidates, as winning could require appealing to voters of both parties. It also supposedly makes the general election more competitive. As an example, suppose you are a Democrat living in a very Republican district where the Democrat has no chance of winning a general election. In the primary, you now can still vote for the Democrat like you normally would in the primary, but in the general election when the top two Republicans are the choice, you can vote for the more moderate Republican and have an influence on the election.”

This would work very well for Democrats in Alaska, who could vote for the more moderate Republicans, ones who would create bipartisan coalitions such as the one operating the Alaska House of Representatives today.

The gubernatorial runoff in Louisiana today is considered a razor-thin race, with Edwards having the advantage of incumbency. Alaskans interested in the upcoming possible changes to Alaska’s election system may want to pay close attention.

Resigning, but optimistic

Columns

GUEST CONTRIBUTOR

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November 15, 2019

12

By BRUCE TANGEMAN

I know this message may be getting old for some, but many Alaskans have lost perspective on the positive position we find ourselves in. Yes, we’ve suffered through some serious “political paralysis” over the past year, but the message is worth repeating.

Alaska truly is blessed with amazing resources and a healthy balance sheet. Our permanent fund is approaching $70 billion and spins off annual revenue supporting 50% of government spending as well as a cash dividend to every Alaskan who qualifies.

We are expecting final investment decisions in the near future on two projects that will add 250,000 to 300,000 barrels per day to the pipeline. We are the envy of most states and many small countries for that matter. The frantic, sometimes unhinged debate that has taken place over the past year would lead outsiders to think our economy is on par with many of the bankrupt states in the Lower 48. Nothing could be further from the truth.

While painful, this healthy debate over the past year is necessary and was a long time coming. Like it or not, Governor Dunleavy did exactly what he campaigned on: reduce the massive size of government, fight for a full PFD, and not take hard-earned cash from your pocket through new tax schemes. Governor Dunleavy still believes in these principles. Over the past several decades we have been blessed with the ability — and cash — to be all things to all people.

Many have come to realize that we had one helluva run, but things must change. Many others think this gravy train can just keep on chugging. However, Alaska can no longer afford the budgets that were constructed and funded through one revenue stream over the past 30-plus years.

The discussion is turning more and more toward taxes. I’ll admit that I’m on the record stating that someday Alaska will have a broad-based tax. However, I always followed up that opinion by stating this decision should be years if not decades down the road, well past my tenure as commissioner of revenue.

Step one must continue to be fiscal discipline in order to get our spending habits adjusted. That must be accomplished well before we implement any sort of tax. My concern is that once a tax is on the books, the budget in place at that time will be the new base going forward. Cutting below that will be nearly impossible and the budget will only go up from there.

I believe our population and workforce is far too small to provide the level of revenue we would need to extract from working Alaskans in order to continue a “business as usual” approach to budgeting that includes the PFD. We’ve all heard the many angles and perspectives on the PFD: It’s a God-given right; it’s a welfare check; it’s free money; reducing it is a “tax”; it’s our birthright.

Regardless of where you stand on the PFD issue or government spending in general, it all comes down to math. The math is simple but unfortunately does not balance despite the governor’s best efforts: Government spending and services + PFD does not equal currently available revenue. I give Governor Dunleavy tremendous kudos for tackling the government spending issue and trust he will keep up the battle he has undertaken.

As the commissioner of revenue, I look at any potential tax implementation and its interaction with the current revenue streams and budget expenditures as a fairly simple exercise. The politics and policy are extremely difficult but the math is simple: A new tax means the department I’m responsible for will have to stand up a bureaucracy in order to extract revenue from the private sector. Or in the case of an oil tax change, take more money from the companies that are willing to invest the billions we as a state do not have yet is required to monetize our resources. Any new tax will be used to sustain this unsustainable budget, as well as provide the revenue to distribute PFD checks every October as the Department of Revenue has done for 38 years.

When I accepted the job of revenue commissioner I did so based on a path forward in which the math equation allowed for the available revenues to be split between a healthy but reduced government and provide net-positive revenue to Alaskans through the PFD. It is apparent that many have not accepted the realization that our three decades of spending patterns cannot continue.

I have loved serving the state of Alaska and Governor Dunleavy as commissioner of revenue. I’ll never forget the very sage advice Governor Dunleavy gave to his commissioners at one of our first Cabinet meetings. To paraphrase, he said, just run our departments. Don’t let the policy/politics swirling around get in the way of us doing our most important job… serving Alaskans.

I have been blessed with the best department in the entire state and really wish it was that simple. But my department will be at the heart of all discussions this session as it usually is, and I want the governor to have someone who is 100% aligned with his vision. I have therefore notified the governor that I will be resigning from his Cabinet.

I will continue in my position for as long as he needs so a smooth transition can take place. I will remain optimistic about Alaska’s future but we must agree to start walking down this path together not for our own perceived immediate needs but for the tremendous future that I believe Alaska will continue to have.

Bruce Tangeman was appointed commissioner of the Department of Revenue in late November 2018. He previously served as policy director for the Alaska Senate majority, vice president and chief financial officer of the Alaska Gasline Development Corp., and deputy commissioner in the Department of Revenue during the administration of Gov. Sean Parnell.

Breaking: Revenue commissioner resigns

Politics

Suzanne Downing

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November 15, 2019

10

Department of Revenue Commissioner Bruce Tangeman has resigned.

“Bruce has dedicated a significant portion of his life to public service and I thank him for the outstanding work he has done within my administration. His leadership and oversight of the Department of Revenue enabled many lasting changes and efficiencies. His character and strong work ethic have been a valuable asset to our team,” said Governor Dunleavy. “I wish him all the best for his future endeavors.”

Commissioner Tangeman will oversee the rollout of the upcoming Fall Revenue Forecast and the FY2021 Budget, and continue in his role until a replacement is found to ensure a smooth transition.

Tangeman joined the Administration last year after serving as policy director for theAlaska Senate majority, and vice president and chief financial officer of the Alaska Gasline Development Corp. He was deputy commissioner in the Department of Revenue in the Parnell administration.

Data point: Crooked Creek homicides equal 2% of residents in 90 days

The 907

Suzanne Downing

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November 15, 2019

2

Data point: Crooked Creek homicides equal 2% of residents in 90 days

Alaska State Troopers arrested a 30-year-old Crooked Creek man on Saturday, charging him with first degree murder in the death of a 26-year-old family member.

Troopers say Ronald Waskey and Evan Waskey were involved in an altercation, during which Evan died. Ronald was arraigned Monday and is now in custody at the Yukon Kuskokwim Correctional Center.

On Sept. 23, Troopers arrested 29-year-old Harold M. Gregory, after a woman’s body was found at a residence in Crooked Creek six weeks earlier. Gregory is being held on a Murder II charge in the Yukon Kuskokwim Correctional Center.

Crooked Creek has been losing population. A decade ago, it was home to more than 135 people. This year it has — or had — a population of about 94, according to the State Division of Community and Regional Affairs, which means the village has lost two percent of its population to murder in the past 90 days.

To compare, if Anchorage had seen a 2 percent murder rate, that would be more than 5,800 murders in the last 90 days.

Statewide, it would be as if 14,200 Alaskans had been knocked off since August.

Instead, Anchorage is aghast because the murders this year have totaled 26 known homicides so far. That’s closing in on last year’s total of 28 in the municipality.

[Read: 11th murder puts Anchorage ahead of pace from 2018]

Two murders in 90 days, is a relatively small number for those on the road system worried about the triple homicide this month in Wasilla. Anchorage is averaging more than two per month.

But for rural Alaska villages like Crooked Creek, the isolation, close family relationships, and lack of law enforcement make it especially troubling when two people end up dead, and another two end up in jail. Between the two, and the two accused in their deaths, four percent of the village was somehow directly involved in a murder since August, not counting the parents, siblings, cousins, and extended family of the victims, who suffer the grief and sorrow. There are very few last names in a rural Alaska village, and only 31 families altogether.

Crooked Creek, 120 miles up the Kuskokwim River from Bethel, is served by the Village Public Safety Officer program through the Association of Village Council Presidents. But the village tribal government has no public safety facilities of any kind, according to AVCP’s assessment of public safety.

Alaska’s $500 limit for campaigns working way through U.S. Supreme Court

Juneau ponders its priorities

A governor under seige

Louisiana lesson for Alaska: Jungle primaries lead to this

Resigning, but optimistic

Breaking: Revenue commissioner resigns

Data point: Crooked Creek homicides equal 2% of residents in 90 days

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