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Eastman in time-out corner

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VALLEY LEGISLATOR REMOVED FROM COMMITTEES

The House Republicans, a 16-member minority, may get smaller still. The team of conservative rivals appear ready to put one of their more difficult members into the time-out corner.

Rep. David Eastman, who is an “in-name-only” member of the Republican Minority, is a conservative lawmaker from Wasilla who goes his own way more often than not, and is also full of surprises. He tends to vote no when his fellow Republicans vote yes, and often votes yes when they vote no.

But it’s not his votes that have gotten him cross-threaded with the Republican Minority.

When the Republicans organized in late 2018, they were a fragile majority of 21. During the announcement of their organization, Eastman sat it out in an adjacent room, refusing to join the rest of the Republicans. That left 20 in front of the microphone.

That fragile majority with Eastman led to the House being taken over by a Democrat-led coalition, which has ruled the roost ever since. It was a coup orchestrated by Republican Reps. Gary Knopp, Louise Stutes, Tammie Wilson, Gabrielle LeDoux, Jennifer Johnston, and Chuck Kopp, all who decided that Eastman would end up with too much power and would always destroy the bare Republican Majority because of that number: 21.

The defectors joined with the Democrats and were rewarded with powerful seats. That bipartisan group has held together, even after two Republicans defected.

House Minority Leader Lance Pruitt has been in the role of trying to keep the minority together with Eastman. Pruitt’s”big tent” strategy was to not alienate the most argumentative member of the minority, but to try to work with him and keep him on the team.

Until last week, that is. Eastman was on the nerves of every member of the House, it appeared, and was on the verge of being removed from the House Chambers after refusing to sit down during a floor session, a violation of decorum.

He had further alienated members of his minority caucus by bringing forth an “ambush” bill that forced everyone to take a surprise vote on an abortion issue.

That lack of consultation with his fellow Republican team members has been part of the problem between him and the rest of the caucus, which typically has stuck together as a solid conservative bloc.

Committee on Committees met on Wednesday evening and removed Eastman from his seats on Judiciary and Rules committees. That reorganization will be up for approval on the floor today. The vote will likely be close to unanimous, Must Read Alaska has learned.

Pruitt has dealt with other rogue members before. When former Rep. Tammie Wilson left the minority caucus and joined the Democrat-led majority, Pruitt kept the door kicked open for her eventual return last year. She finally did split from the Democrat-led caucus and returned to the Republicans before resigning from the Legislature this year.

Pruitt also left the door open for rogue member Rep. Gabrielle LeDoux, who joined with the Democrats to flip the House in 2018, and eventually left that group. She did not return to the Republican minority.

“The door is still open for David. It’s on David to establish the relationships and show that he wants to be a willing member of a team,” Pruitt said.

It’s not fair!

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By ART CHANCE
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I had a sign over my cubicle during the Cowper and Hickel Administrations that said “F**k Fair.”   

I hated the union whines about how something or another was “NOT FAIR.”   Well, genius, tell me how it violates the contract, which they rarely could.   

The union-owned Knowles weenies made me take my sign down. I replaced it with one that said, “When the enemy is in range, so are you.”

The State has filed an unfair labor practice (ULP) complaint against the two largest unions of State employees over their refusal to cooperate with a change to a new bi-weekly pay schedule.  

Art Chance
Art Chance

 I may have filed one or two ULPs against them but it would not be like me; I’m a “Carl von Clausewitz” kind of guy (Prussian general of note) who takes the strategic offensive and assumes the tactical defensive and makes them attack me. In layman’s terms, that means I would do something I knew they would hate and would wait for them to file some action against me.

Some background: An unfair labor practice isn’t a lawsuit or a grievance.  The distinction between a grievance and a ULP is that a grievance alleges a violation of a contract and goes to arbitration, the result of which can be appealed to the courts.  

A ULP alleges a violation of the bargaining law, the Public Employment Relations Act, AS 23.40. et seq, (PERA) and must be heard by the Alaska Labor Relations Agency.   

In this case, the State foolishly agreed to contract terms that required a contract modifying Letter of Agreement to move to a new payroll scheme.   

I was a part of implementing a couple or three new payroll systems, and we did it with no grievances or ULPs, because we actually knew how to do labor relations. But, then, I didn’t know how to rent apartments like their go-getter of a labor relations manager.

The courts really don’t like labor and employment disputes so they always defer to an administrative agency with specific subject matter expertise.  After the administrative agency hears and decides the matter, the courts will review the decision to determine if it offends the law.

A mandatory subject of bargaining under PERA is a matter of wages, hours, or terms and conditions of employment, and a union and an employer must bargain about mandatory subjects.  A pay scheme is a mandatory subject.   

The term “unfair labor practice” really isn’t about fair; it is about practices that are illegal under the bargaining law.  It is illegal for the unions to refuse to bargain with the State over the new pay scheme. It is illegal for the unions to refuse to bargain in good faith over the implementation of a new scheme. It doesn’t mean they have to agree to anything, but it does mean they can’t just throw up obstructions to avoid an agreement.

Since I find myself giving the State lots of “paint by numbers” instructions from the sidelines, here’s what they should have done. When the unions wouldn’t bargain with them or didn’t bargain in good faith, they should have declared impasse and implemented their new pay scheme. Then the unions would have had to file a ULP to stop the State from the unilateral implementation. You’re the employer, you sign the paychecks; you make them stop you. 

But then, I’m not a nice guy.

Art Chance is a retired Director of Labor Relations for the State of Alaska, formerly of Juneau and now living in Anchorage. He is the author of the book, “Red on Blue, Establishing a Republican Governance,” available at Amazon. 

COVID-19 response: State retiree health plan says ‘stock up now’ on your meds

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RETIREES BEING GIVEN ACCESS TO TELEMEDICINE

The Alaska Division of Retirement and Benefits is taking proactive steps to try to keep retirees in the State’s AlaskaCare health insurance plan from getting sick. The changes announced today come in response to what the division referred to as a “national public health emergency” due to the COVID-19 virus.

There are about 60,000 retired beneficiaries in the AlaskaCare plan; that include retirees, their spouses, and in some cases their dependents.

The division lifted restrictions on early medication refills for certain prescriptions.

The new policy, valid through the end of March, allows members using the State of Alaska retiree prescription plan OptumRx to refill medications earlier than they typically would “to ensure an adequate supply in the event of unforeseen circumstances.”

The policy does not apply to opioid medications, but does allow retirees to stock up on most of other medications, to assist those who are planning to self-isolate and minimize public contact over coming weeks.

“We are actively working to support health and safety by making early refills or replacements of lost or damaged medications readily available without any additional administrative burden or additional cost. AlaskaCare will be optimizing member benefit flexibility while the potential risk for exposure to the novel coronavirus remains a public health concern,” according to the plan’s home page. 

Members may call their pharmacy and request they transfer prescriptions from the pharmacy to OptumRx Home Delivery. To start home delivery, log in to OptumRx.com, use the OptumRx app, or call (855) 409-6999.

Members may also call OptumRx at (855) 409-6999 and request home delivery prescriptions be transferred to their local pharmacy.

Also, effective March 9, AlaskaCare retiree plan members will have access to a Teladoc service with $0 copay.

This telemedicine service is already available to AlaskaCare current employees, and is being expanded to help former employees of the State of Alaska get access to a doctor without causing strain on what is expected to be a burdened medical system. Additionally, it will help retirees who need more routine care get help they need without going to doctors’ offices or clinics, where they might come in contact with someone with the virus.

“A benefit of Teladoc is the ability to fulfill other health care needs that are unrelated to the coronavirus without an appointment or waiting. Using telemedicine can reduce the strain on the local medical system and helps you and your family members avoid unnecessary contact,” the division wrote.

Retirees on AlaskaCare can Register here after March 9 for Teladoc. Mobile App: Teladoc.com/mobile . Phone: (855) TELADOC (835-2362)

The AlaskaCare retiree plan will also waive the member deductible and coinsurance for respiratory syncytial virus (RSV), influenza, respiratory panel, and COVID-19 testing that is deemed medically necessary under the terms of the plan. This will be effective as soon as administratively possible, anticipating the week of March 9, 2020, according to the division.

Starting on March 9, 2020, the AlaskaCare retiree health plan temporarily will cover the influenza vaccine received at a pharmacy or other health care provider. Influenza vaccines are already available to AlaskaCare employee plan members. 

The changes will be in effect until the national public health emergency is terminated by the Secretary of Health and Human Services or until 90 days, which ever comes first.

Additional information is available at: AlaskaCare.gov.

To monitor the latest information on COVID-19:

State union bosses sued for unfair labor practices

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The Division of Personnel and Labor Relations has filed unfair labor practice grievances against two of the major State public employee unions.

The Department of Administration asserts that the Alaska State Employees Association and the Alaska Public Employees Association-Supervisory Unit are interfering with the conversion to a statewide biweekly payroll system — a system the unions had asked the State to adopt.

The unions’ collective bargaining agreements require them to convert to biweekly payroll “as soon as feasible.”

Converting prior to 2020 would have allowed state employees to take advantage of a system that pays based on number of days worked rather than set calendar dates.

In years with additional workdays, like this leap year of 2020, most salaried employees will earn more pay in a biweekly system than a semimonthly system. Employees paid hourly rates will see no difference in pay. 

“Transitioning from 2 payroll systems to one system for all employees is good for our employees and good for the State. It will mean less payroll corrections and delays in pay, the State wrote in a news release. “We tried to get ASEA and APEA employees an extra $2 million in pay for 2020 by transitioning them from semimonthly to biweekly payroll in December 2019, but the unions refused.”

Both unions have engaged in bad faith bargaining and violated their contracts, according to the division.

“ASEA has not timely responded to our efforts to enforce Article 21.07(A)(1),” the State said in its complaint.

The State has been attempting since August, 2019 to negotiate with the ASEA about the conversion and even went to mediation with ASEA.

Other employees across all three branches of state government have already converted to biweekly payroll or are converting in June. Other divisions of government, such as municipalities and the University of Alaska, have long been using the biweekly payroll, which is a simpler for employees and employers. ASEA even asked for the state to convert for years, but once Gov. Dunleavy took office, the unions started running the clock out.

It’s rare for the State to file grievances against public unions. If the Alaska Labor Relations Agency finds probable cause, there will be a hearing. The only relief the State is seeking is for the unions to uphold the terms of their contract so the conversion can take place in June; there is no monetary amount sought.

New House Permanent Fund bill: 80% for government

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Reps. Chuck Kopp and Jennifer Johnston today introduced House Bill 306, their suggestion for how to pay for government and give some kind of a Permanent Fund dividend to Alaskans.

The bill would give 80 percent of available revenue from the Permanent Fund Earnings Reserve to government, while 20 percent would be used for the annual dividends to Alaskans.

“House Bill 306 provides stability for our economy and communities and puts an end to the structural deficit built into the state budget,” explained the news release from the House Majority press office.

“Private sector and community leaders have been pleading that the state prioritize stability and certainty in our fiscal planning,” said Kopp, an Anchorage Republican, in the news release.

“HB 306 makes clear that we view it to be more important to preserve the health of our economy and communities than allow the dividend to continue to dictate our budget structure.” – Rep. Chuck Kopp

The bill, should it be signed into law, would halve the size of last year’s dividend, which was $1,600. The bill has been referred to just one committee, Finance, co-chaired by Rep. Johnston, the bill’s cosponsor.

HB 306 is a statutory change, which may mean nothing in practical terms, since there is already a statutory formula that the Legislature has ignored for three years.

Four years ago, Gov. Bill Walker took half of the dividend, but did not use it for government. He just left the money in the Earnings Reserve Account. Three years ago, the Legislature started following the governor’s lead, using half of the dividend for government.

Now, the recommendation is 80 percent for government.

A separate bill from Rep. Adam Wool recommends that only 15 percent of the available funds from the Earnings Reserve Account be used for dividends, with the remaining 85 percent used for government.

Westerdam heads to Juneau early, but no passengers

SHIP HAS NO VIRUS, BUT ONE BUSINESS OWNER IS MAD

The first cruise ship of the season in Juneau wasn’t expected until April 24 with the arrival of the Carnival Spirit. But it’s now likely that the Holland America’s Westerdam will dock in Juneau for about three weeks in late March prior to the start of its summer cruising season in Alaska and the Pacific Northwest.

Holland America Line says it plans to simply take the ship out of service for those weeks, which were previously booked for Asia cruises. With the spread of the COVID-19 virus, Asia cruises are being cancelled and ports are facing ever-changing restrictions.

No one on the ship has had the virus that has circled the globe in the past two months.

The Westerdam, which flies under a Netherlands flag, is due to arrive without passengers in Honolulu on March 16. After receiving clearance there, it will travel to Alaska, and be docked for three weeks. It’s expected to arrive March 24.

By the time it arrives in Juneau near the end of March, it will have been empty of passengers for more than a month. While transiting the Pacific, the crew, all of whom have tested negative for the virus, will be disinfecting the ship further out of an abundance of caution.

Juneau’s City Manager Rorie Watt advised the Assembly and an assembly member leaked the news to the media earlier this week before the decision was announced by the company, forcing Holland America to play catch up in informing city leaders.

At least one local business manager in Juneau is unhappy with the arrival of the ship. Collette Costa, co-owner and manager of Gold Town Theater, wrote that she doesn’t welcome the “nihilistic, abusive industry” putting Juneau residents at risk:

“Hey folks, before we begin, have y’all heard about the city’s brilliant decision to let this CORVID-exposed cruise ship sit here for a couple of weeks at the end of the month??  So apparently the city officials aren’t happy lapping at the water-dish of this nihilistic, abusive industry for 6 months a year, they need to extend that time frame while simultaneously risking the physical and mental well-being of its year-long residents by capriciously deciding–without our knowledge or consent–to let this ship sit at our docks.  So anyway, if you care at all, maybe throw a letter to Rorie Watt at [email protected].”

Others in Juneau don’t share the sentiment. One resident immediately scribed a note to Watt:

Acting on [Collette Costa’s] suggestion, I’m dropping a note to let you know that I, for one, do not share Collette’s fears. I’m sure that any medical professional will affirm that based on the timeframe since the passengers departed the ship (of which none have been diagnosed), the prevention steps taken to disinfect the ship and the monitoring of the crew, we can confidently welcome this economic boost to Juneau. My mental well-being is enhanced knowing that numerous local business will benefit by this unexpected, and timely, injection of cash. Thank you for whatever role you or other city officials played in approving this short-term ship visit.

House passes a ‘play it safe’ budget, but no dividend yet

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After hours of amendments, most of which failed, the Alaska House of Representatives approved a $4.5 billion operating budget. The document now goes to the Senate for its consideration and vote, then will land in a conference committee before heading to the governor’s desk.

The operating budget, which passed largely along caucus lines, lacks an appropriation for the Permanent Fund dividend, and also lacks a complete funding source, as there were not enough votes to dip into the Constitutional Budget Reserve.

As the Democrat-led majority did last year, they severed the dividend from the rest of the budget to take up that item separately.

The budget is largely the same as requested by the governor, with a few changes in funding sources, and a few other modest modifications. It’s not so much that the House majority supports the governor’s budget, but it’s not taking any chances in an election year.

A couple of additions added to the House budget:

  • $180,000 to fund one dairy inspector for the one dairy farm left in Alaska. Without dairy inspections, the farm would be out of business, since it is governed by regulations that require state inspections.
  • $1 million more for Alaska Public Radio.

The budget passed 23 to 16, with Rep. Sharon Jackson excused. The Constitutional Budget Reserve provision vote failed to pass on a vote of 23 yeas and 16 nays. To access funds from the account, the Legislature needs a 3/4 vote.

Just say ‘no’ to politically driven recall petition

By CYNTHIA HENRY

We need your help. Alaska is facing an important political issue that could change the course of our great state. I have followed state and local government in Alaska for more than four decades and have never been more dismayed by the actions of some political activists who didn’t get their way. We need the help of good men and women.

I am referring to the Gov. Mike Dunleavy recall initiative. Nationally and in our state, political entities who are not in power are using impeachment and recall as tools for removing officeholders for political reasons. That was not the intent of the framers of federal and state constitutions.

I urge you not to sign the recall Dunleavy petition for the following reasons:

The grounds cited for the Dunleavy recall are flimsy and politically driven. I followed the 2018 gubernatorial election closely. Gov. Dunleavy’s actions when he took office were completely in line with what he talked about on the campaign trail.

Granted, Gov. Dunleavy’s budget cuts in his first budget were dramatic, as he attempted the balance revenues and expenditures. We all hate to have our ox gored. But as the governor knows, and we all know, there are checks and balances in the budget process.

The Legislature has funding authority and can change or ignore budget items presented by the governor. Gov. Dunleavy has shown that he is open to compromise and readily listens to constituents from all parts of our state. That was very evident with last year’s compromise he worked out with the University of Alaska’s leaders. Submitting a budget with cuts to meet revenue projections is not a recall offense.

To my dismay, the process of setting the amount of the Permanent Fund dividend is smack-dab in the middle of the political arena – where it should never be.

For decades, Alaska governors and legislators let the statutory formula dictate the dividend amount. There was very little grumbling from residents. “It is what it is,” was what we heard on the street or in the mall. Now that the politicians are setting the amount of the dividend, we have created a monster. 

Gov. Dunleavy’s position is not unreasonable: The state should pay out the amount the statutory formula computes or change the formula. Submitting a budget including the statutory formula amount for the PFD is not a recall-worthy offense.

Reasonable Alaskans need to have their voices heard. I see this recall effort as the beginning of a very slippery slope. I fear the establishment of precedent where some partisan groups who don’t agree with political, policy or budget priorities of a governor, will start a recall effort. Strong individuals will not step up to lead our great state if they fear bold action will result in a partisan recall effort.

Leaders of both major political parties should carefully consider the enormous implications of condoning this politically motivated recall effort.

Please do not go on record with your name and signature to support the recall of our governor. He won the election with more than 145,000 votes and we should respect the decision of the electorate. 

I don’t believe there are legitimate grounds for a recall, and neither should you.

Cynthia Henry, longtime Alaskan and business owner, has served on the Fairbanks School Board, Fairbanks North Star Borough Assembly and University of Alaska Board of Regents. She chairs the Keep Dunleavy group.

Democrats, media win: Penney cancels Dunleavy contract to develop business

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After weeks of badgering by Democrats in the Legislature, the rainmaker hired to lead a business development effort for the State of Alaska has decided that the time is right to step aside.

Without saying it in these exact terms, his published statement indicates he can’t develop business for Alaska with that many political knives in his back.

Clark Penney issued a statement on Tuesday morning that thanked the governor for the opportunity to work on his Alaska Development Team.

“Though the goal has been to carry out Governor Dunleavy’s mission to work with industry and increase economic activity in Alaska, my participation has become a distraction leading to a challenging environment for my colleagues. I believe in the work the team and I are doing in creating a brighter future for Alaska, but at this time I will be stepping away from this contract effective immediately.  My hope is the good work we started will continue, Penney wrote.

Penney continued: “Alaska is my home and passion.  Everything I have done in this position is about giving back to the place I grew up and will raise my family.  There are significant projects worth millions of dollars, we are removing barriers to doing business and creating relationships with industry.  I leave knowing I helped move this forward as a member of the Alaska Development Team.  I am confident they will finish the job.  Serving Alaska has been a true honor.”

He thanked the governor, the team at the Alaska Industrial Development and Export Authority, and his fellow ADT colleagues, and said his company, Penney Capital, would continue to support the governor’s private sector growth initiatives from the sidelines.

Penney, who runs a successful business and by most estimations did not need to take the Dunleavy contract for the money, was singled out by Democrats and the mainstream media because his grandfather Bob Penney was one of the more prominent supporters of the Dunleavy campaign for governor. Democrats saw that as a soft place to put the knife as they attempted to show that it was a quid pro quo arrangement. They wanted the contract to be put out to bid, rather than sole-source.

The contract, which totaled less than $100,000 a year, has become the object of fascination by Democrats and the mainstream media, who showed no such interest in the millions of dollars spent by the previous administration in contracts for a nonexistent Alaska gasline.