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Tower of power: Juneau ponders new city hall

Juneau’s city government has grown, and it needs more space. The City and Borough of Juneau proposes to spend $27 million to build a new city hall, a crown of a building resting atop an existing downtown parking garage across from the Merchants Wharf.

City Manager Rorie Watt has been advocating for the new edifice, saying that city government has long since outgrown its current location a block away. The city spends $750,000 a year leasing space in adjacent buildings, and Watt says it’s time to consolidate and ultimately save the city money.

It’s an opportunity for Juneau to rethink its downtown municipal government footprint. While most city halls tend to be in the heart of their downtowns, few places are as congested as downtown Juneau, where the mountains and the sea leave little room for city expansion.

And while government is expanding, Juneau is not growing in population. In 2003, the McDowell Group estimated that by 2018, the population of the capital would be about 34,500 residents. Instead, the 2018 population for Juneau was 32,113, according to U.S. Census estimates. In fact, population has been shrinking for the past two years in this community, where government employment is about 41 percent of the total job market.

The capital city’s budget has continued to grow. For fiscal year 2020, it’s $356 million, a 1.8 percent increase in one year but more than double what it was in 1999, in constant dollars. The city also carries $88 million in general obligation bond debt.

But to the heart of the question: Is downtown Juneau the right place for City Hall?

For those on Chicken Ridge or Starr Hill, yes, but for most of the people in Juneau, buying a pool pass or going to the harbor department isn’t a task that needs to be accomplished downtown, where parking is difficult and where dodging inebriates is an acquired skill. Most of the business that people have with their local governments deal with permits and fees — and using one’s time efficiently is a strong consideration.

NorthWind Architects has scoped out the feasibility of building the two-story government office on top of the parking garage the city built in 2009. City Manager Watt laid out the plan before the Juneau Assembly earlier this week.

But it’s the voters who will ultimately decide if taxpayers should spend the estimated $27 million, plus debt service that would exceed $12 million, on the downtown structure.

The focus on putting City Hall in the crowded downtown corridor ignores the fact that most residents live in the Mendenhall Valley. A massive former Walmart store sits empty at Lemon Creek and could accommodate all city operations with parking to spare.

Assembly member Rob Edwardson said, “20,000 of the 32,000 people in Juneau live out in the valley. Most of our meetings are held in the evening, so it wouldn’t really matter whether they work downtown or not. It would be closer to their homes … which means, again, more accessibility.”

On the upside, having a City Hall with a world-class view of the channel would make working at City Hall more pleasant. It would arguably be the City Hall with the best view on the planet. Political leaders from the City would have easy access to the Capital, as well as all the favorite lunch spots and watering holes around town. Also, because the parking garage doesn’t provide property taxes to the city, the building would not be displacing an existing revenue generator.

On the other hand, moving City Hall out of the downtown core would also eliminate hundreds of vehicles from downtown, freeing up space for shoppers and residents, reducing congestion and pollution, and allowing businesses to attract more local shoppers to the zone.  Repurposing an abandoned building in Lemon Creek would help revitalize a neighborhood that has long needed some solutions and would require half the travel, and therefore half the carbon footprint, of having to go all the way to town to take care of a five-minute chore.

And then there’s the State’s budget and the pending decision whether to continue the school construction debt reimbursement program. If the State does not provide reimbursement, and it’s likely not to, the financial responsibility will be shifted to the municipalities to pay for debts they have already incurred. Last year, the city manager warned of such a possibility.

“Our citizens should be advised that the most likely outcome of school debt shifting by the governor or legislature is a local property tax increase between 4.4% and 13.7% for the next 1, 5 or 10 years,” City Manager Watt wrote last year in an April 29, 2018 memo to the Mayor and Assembly.

Mayor Weldon advised that the public needs to weigh in on the new city hall plan and decide if now is the time to build. Public meetings will take place this summer to discuss the merits. The next municipal election, when the question could be on the ballot, is Oct. 1, 2019.

Sen. Tom Begich wife suing governor over education spending

THE GOOD WIFE: WHAT MAINSTREAM MEDIA WON’T TELL YOU

The wife of an Alaska State senator who sits on the Senate Education Committee has filed a lawsuit against the governor and the commissioner of the Department of Education. It’s over money for education, and it’s supportive of her husband.

The lawsuit is pure political theater, and while every news organization in the state wrote about it, none would acknowledge that Sarah Sledge, married to Tom Begich, is the executive director of the litigant, the Coalition for Education Equity.

[Read the complaint: Sarah Sledge Coalition for Education Equity]

[Editor’s note: KTVA’s story late Wednesday mentioned the conflict of interest]

Although Begich is on the Education Committee, he is a member of the Democrat minority in the Senate. Thus, a lawsuit from his wife is not only good theater, it is a power-move for a wife supporting her husband’s political position and ambition.

Of course, Begich used to be a part of this litigious group, according to this flyer from 2015:

Begich was still listed as the government relations director for CEAAC on the organization’s website in September, 2016.

In Anchorage Superior Court today, Sledge’s lawsuit demanded that a $20 million extra appropriation to schools made by last year’s legislature and governor be released by the current governor — immediately.

Gov. Michael Dunleavy has proposed to the Legislature that the appropriation made last year to add an extra $20 million to schools this year be clawed back. It’s unlikely to go anywhere in the House and Senate, but even the Legislature’s own budget director David Teal says the money doesn’t have to be released until June 30.

The Governor’s Office won’t comment on pending lawsuits, but the Sledge-Begich caper is apparently a case of premature litigation, because in fact the funds could be released at any time, since it seems apparent that neither the House nor Senate want to go along with the governor’s plan.

Indeed, the governor has already indicated that if the House and Senate don’t agree, he’ll release the funds, but that didn’t factor into the mainstream narrative.

Dunleavy also wants to eliminate another $30 million that was added as extra funds for the coming fiscal year. In that instance, he has a constitutional case to be made since the funds were committed by the previous legislature, but were not exactly appropriated. It’s the same constitutional problem he has with the Legislature’s “forward funding” of education when there were no actual funds to appropriate.

[Read: The Donnybrook ahead: Education ‘forward-funding]

Senate passes its version of the budget

The Alaska Senate today passed its version of the State’s 2020 operating budget, with all senators except Juneau’s Jesse Kiehl voting for it. For Kiehl, it simply doesn’t spend enough, but it spends too much on Permanent Fund dividends.

The Senate budget has $258 million in cuts to the unrestricted general funds for state operations, and includes $1.94 billion for Alaska Permanent Fund dividends that would amount to $3,000 per eligible Alaskan.

The House Democrat-led budget has $200 million in cuts and is silent on the Permanent Fund dividend. The House majority chose not to commit to a number in the House’s budget bill. Budget analysts infer, however, that the amount left for the dividend would be about a $1,200 check per eligible Alaskan.

The Senate budget also moves $12 billion from the Permanent Fund Earnings Reserve Account, which has about $18.4 billion in it, into the constitutionally protected corpus of the fund. That means future legislators would not be able to get their hands on it.

A bill moving in the House, HB 31, sponsored by Rep. Jonathan Kreiss-Tomkins, does essentially the same thing.

Neither House nor Senate budgets appropriate funds for education for the fiscal year that starts in July, but the Senate’s budget affirms that forward-funding decisions made last year for education in 2020 are approved by this year’s body.

The governor has taken issue with this approach, saying that constitutionally no appropriation has actually been made. This appears to be a point of contention that could end up at the Alaska Supreme Court and leave schools without funding while the court decides whether “forward funding” of education can occur when there is no money to actually appropriate.

For education, both bodies appropriated funds for the 2021 fiscal year, another year of “forward funding.”

“This budget protects the Permanent Fund for future generations of Alaskans, grows the economy, and keeps Alaskans safe,” said Sen. Bert Stedman, R-Sitka, co-chair of the Senate Finance Committee. “The nine-member Senate Finance Committee – representing diverse viewpoints across our vast state – produced a budget Alaskans can be proud of.”

Even the Senate’s most argumentative member, Sen. Bill Wielechowski, stood to praise the budget process, the inclusiveness of the Republican majority, and said he would be a yes vote on the budget, the first time in his 16 years in the Senate. He reminded his colleagues of the work Stedman had done in past years on the budget that preserved billions of dollars, money the state has been living off of for the past few years because of Stedman’s forethought.

Sen. Natasha von Imhof, co-chair of senate Finance, said she was voting for the budget even while having misgivings about funding the entire statutory amount of the dividend, at the expense of programs and services.

Sen. Tom Begich also rose to praise the process, acknowledgeing that the budget would face the veto pen of the governor, once it has gone through conference committee with the House.

The governor has proposed a budget that is $1.03 billion smaller than that offered by Gov. Bill Walker in 2018. After conference committee comes up with a final budget to present to him, he is likely to restore most of the cuts that he proposed in February with his amended budget. Although no one really knows how much he’ll cut.

Tuesday is the first meeting of the conference committee, which is 10 days from date of adjournment, May 15.

Democrat majority spurns governor’s crime bills

PUBLIC TESTIMONY AT 5 PM

The House Democrat-led majority has decided to move ahead with Rep. Matt Claman’s watered-down crime package, HB 145, which removes the tougher provisions proposed by Gov. Michael Dunleavy’s original HB 49.

“HB 49 has morphed into HB 145 which was authored by Rep. Matt Claman who is an ardent proponent of SB 91,” said Rep. Cathy Tilton of Chugiak-Wasilla.

The watered down version that House Finances is considering, Must Read Alaska has learned, includes dramatically different language that includes much lighter presumptive sentencing ranges. Rather than 1-3 years for some felonies, for instance, the sentencing guideline would be rolled back to 90 days to two years.

Petty theft, a Class B misdemeanor, would go from 0-90 days to 0-30 days. It lowers penalty for escape or removal of ankle monitor. There are dozens of such changes made from the governor’s bill that remove penalties from those who commit crimes.

The governor’s summary on his original HB 49 can be read here.

The replacement bill by Claman in Judiciary that the House is now considering:

  • fails to return discretion to prosecutors, judges, and law enforcement.
  • fails to address problems identified by Department of Corrections regarding probation and parole.
  • fails to repeal the “catch and release” bail system that SB91 created.
  • is silent on pretrial release.
  • fails to adequately address Alaska’s drug epidemic and rising crime rates.

The 25-member House majority includes eight Republicans. After a blow-up in the caucus on Tuesday, it appears that Claman won his version of the bill over the objections of House Finance Co-chair Tammie Wilson, who had previously championed the governor’s crime bill. The tension between Wilson and Claman led to Wilson temporarily leaving the caucus.

Today, Wilson told her committee members that the current bill, with all of the Claman changes made to it, is so complicated that she feels lawmakers will not fully understand it, as they did not understand SB 91, when they voted to pass it. Claman sat in the back of the committee room to guard the changes he has made.

This evening the House Finance Committee will hold public hearings on the crime bills.

Call in Time: 5 pm, Wednesday, May 1
Call in Number: (907) 563-9085

Tammie’s back with Dems

After less than 24 hours of rumors and uncertainty, Rep. Tammie Wilson has struck a truce and is back with the Democrat-led majority in the House.

As of last night, she had quit that caucus, but hadn’t found a landing place. This morning things were smoothed over, and any rancor was undetectable.

The dust-up is due to the soft-on-crime legislative maneuvers of Rep. Matt Claman. He’s been gutting the governor’s rollback of SB 91, and Wilson is a proponent of the governor’s legislation. SB 91 is blamed for a major crime wave across the 49th State.

Wilson convened the House Finance Committee today and was present in the House floor session, and there were no signs of the breakdown that occurred last night in the majority.

If she had quit the caucus, Rep. Jennifer Johnston would have become co-chair of Finance, and also on the conference committee that will negotiate a final budget with the Senate.

From the Administration’s perspective, the Dunleavy camp would likely prefer Wilson to remain on Finance, since she is considered more fiscally conservative than Johnston. Wilson on the conference committee would be more likely to strike a more conservative budget deal with the Senate.

Eight Republicans have joined the caucus led by Rep. Bryce Edgmon, and they have the numbers even without Rep. Wilson. The majority has 25 members, and the Republican minority has 15.

[Read original story: Tammie Wilson walks out on Democrat caucus]

MTA to build fiber optic cable to Canada, link to Lower 48

STATE IS GOING TO BE MORE OPEN FOR BUSINESS WITH HIGHER SPEEDS

Today there’s no terrestrial fiber-optic connection from Alaska to Canada or the Lower 48.

And yet, Matanuska Telephone Association, or MTA, has announced it’s going to build that connection — between North Pole, and the Alaska-Canada border, where it will connect with Canadian carriers and the rest of the continental U.s.

Nick Begich, on the board of MTA, said the project should be completed by the middle of next year. MTA is a cooperative telecommunications company, with 30,0000 customers,

The historic effort caught the attention of Wired Magazine today.

Gov. Michael Dunleavy attended the announcement today and said “This is good for individuals, schools, businesses and all Alaskans.” He said it aligns with his administration’s goals of Alaska being open for business.

The region’s political leaders were ecstatic: “What tremendous news out of Palmer today!” said Sen. Shelley Hughes (R-Palmer).  “I am very grateful for the innovation and forward-thinking that’s been taking place at MTA that’s led to the launch of the all-terrestrial fiber project. It’s exciting that it’s underway now – not years away, that it’s the latest in infrastructure to move us ahead into the future, and that it puts the potential for an information technology hub right in our own backyard.”

“This is a critical step in advancing Alaska’s technological advantages, developing our economy further, and ensuring that Alaska remains competitive with the rest of the world,” said Rep. DeLena Johnson (R-Palmer). “This new project, upon completion, will decrease Alaska’s reliance on vulnerable undersea fiberoptic cables, provide new technological security for our state, and drive down costs on Alaskan families and businesses.”

The cable will be buried along about 270 miles of the Alaska Highway, with the hope being that the high-speed cable will encourage companies to build data centers in Alaska.

 

Breaking: Tammie Wilson walks out on Democrat caucus

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WILL REPUBLICANS LET HER BACK IN?

[Editor’s note: Rep. Tammie Wilson is back as House Finance co-chair as of 9 am on Wednesday morning. Observers in the Capitol say she made up with the Democratic leadership and she is back in the chair in House Finance.] Three independent sources confirmed Tuesday that Rep. Tammie Wilson, a North Pole Republican, has left the Democrat-led caucus that she joined earlier this year, when they offered her the plum position of co-chair of House Finance. But it’s unclear if her differences with the caucus led her to walk out on her own accord, or if she was pushed to the side.

Speaker Bryce Edgmon is said to be trying to coax her out of her office at this hour. Earlier she was packing boxes, evidently preparing to move out of the spacious Finance co-chair suite.

Wilson got sideways with the Democrats when she was standing in defense of the Gov. Dunleavy crime bills, which roll back the leniencies of SB-91 legislation from two years ago. Rep. Matt Claman, chair of Judiciary, has been trying to kill the bills offered by the governor.

Jennifer Johnston, who was vice chair of House Finance, becomes co-chair with Neal Foster. She is from South Anchorage.

So now the question becomes: Where are Bart LeBon and Steve Thompson, the other Fairbanks Republicans who joined the Democrat-led caucus? Will they stay or will they go? And who will be the new person on Finance to take Wilson’s place?

As far as the Democrats go, they haven’t wanted Wilson to serve on the budget conference committee because she is far too conservative for their tastes. She and Rep. Cathy Tilton could negotiate down the larger budget that the House has offered.

And now that the House budget has passed, the Democrats don’t need Wilson.

At this point, Wilson appears to be a caucus of one. Check back, this a developing story.

MRAK Almanac: May Day! May Day!

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May 1, 1919: 100 years ago today Cleveland, Ohio witnessed violent demonstrations organized by Socialist leader Charles Ruthenberg, with unionists, socialists, communists, and anarchists to protest against the conviction of Eugene Debs. Brought to you by … Socialists.

May 1, 1919: Anarchists mailed bombs to dozens of prominent leaders across the country, including Ole Hanson, the mayor of Seattle.

May 1, 1999: The Alaska Native Heritage Center opened its doors to the public. It’s the 20th anniversary today.

 * * * *

May 1: If you’re in Seattle today, the 20th Annual May Day March for the Rights of Immigrants and Workers happens in the early afternoon, and then there’s an anarchist rioting event that may overlap it, worth noting and avoiding. Violence could be quite random.

May 2-4: Anchorage is hosting the annual Rotary convention at the Captain Cook Hotel. There will be literally hundreds of do-gooder Rotarians swarming the downtown area, so this is a very good weekend to venture downtown, as in safer than usual.

May 3: Alaska Family Council Spring Banquet, with speaker Jill Stanek, of the Susan B. Anthony List. Cornerstone Church, 10431 Brayton Drive, Anchorage, 7-9 pm. Details

May 4: Alaska Family Council Spring Banquet in Wasilla, with speaker Jill Stanek, of the Susan B. Anthony List. MatSu Resort,1850 E Bogard Rd, Wasilla. Maybe even a guest appearance by the governor. 5 pm. Details

May 4: Kentucky Derby Party at Simon & Seaforts, 420 L Street, Anchorage. 11:10 am. Details.

May 4: Editor’s choice: Alaska Barefoot Mile wine-and-cheese tasting fundraiser at the Megan Room, at Davis Constructors. All proceeds from the event support Human Trafficking organizations Joy International and Priceless, which use the funding to end human trafficking and assist survivors of human trafficking. 6-9 pm. Details.

May 11: The 2019 Alaska Barefoot Mile Walk, to bring awareness to human trafficking around the world. Second annual event in Alaska. Meets at Town Square in Anchorage. Davis Constructors is the event sponsor, 1-4 pm. Details.

Mark Begich’s lucrative port contract

Mark Begich was mayor of Anchorage from 2003 to 2009, when the most critical design and funding decisions were made about the expansion of the Port of Anchorage, now called the Port of Alaska, although essentially a department of the municipality.

It all went horribly wrong in those six Begich years.

Begich blames the previous mayor, George Wuerch, for signing a contract with the Maritime Administration (MARAD), an agency of the U.S. Department of Transportation, to provide oversight of the project. The contract was signed weeks before Begich took office.

But the project went forward and melted down under Begich.

Now, the Anchorage Assembly has given Begich’s consulting company part of a $45,000-$100,000 contract to see what can be done for a project that has been on hold since 2010.

The contract to look into the port expansion disaster and suggest a path forward has been co-awarded to Ascent PGM and Begich’s Northern Compass Group. They were the only two who bid on the study.

Ascent is a project management group, an incarnation of the old “Rise Alaska” group founded by Leif Selkregg, a man with long ties to the Alaska Democratic Party establishment. Roe Sturgulewski is one of the senior executives in the group; he’s married to Carol Murkowski, one of the Gov. Frank and Nancy Murkowski offspring.

If you’re thinking there are a lot of blue-blood political names in the mix, you’re right. Sturgulewski is also the son for former Sen. Arliss Sturgulewski, while Selkregg is the son of a once-well-known civil rights activist, the late Fred Selkregg, who arrived in Anchorage before Statehood. Leif is also the sibling of Sheila Selkregg, who served on the Anchorage Assembly during the Sullivan Administration. The two are registered and reliable Democrats.

That political lineage also includes former Gov. Bill Sheffield, who was the Port director from 2001-2012. He, too, is a loyal Democrat.

Selkregg’s  Rise Alaska has changed hands after it ran out of billable business during the capital project slowdown in Alaska in 2010, when the number of federally funded projects coming to Alaska dried up; Sen. Ted Stevens was gone from office as of January, 2009. Freshman Sen. Mark Begich (2009-2015) was a welter weight senator, unable to steer projects to Alaska, in spite of his friendship with President Obama. Congressional earmarks were out of fashion.

Selkregg is not without expertise, however. His companies have worked on other port projects around Alaska.

Northern Compass is, well, a political arm of Mark Begich. If some famous people are “famous for being famous,” then Begich is politically connected because he’s politically connected. He’s a Democrat, the current mayor of Anchorage (Ethan Berkowitz) is a Democrat, and most of the Anchorage Assembly leans left.

The costs of the port’s 10-year expansion project have skyrocketed from $350 million to close to $2 billion at last count. No one person can figure out why. The work was supposed to be competed in 2013, but was halted in 2010 when the new mayor, Dan Sullivan (not the senator) realized he had inherited a mess. After reviewing the work, Sullivan stuck a fork in the project and declared it “done.” There would be lawsuits. Most have been resolved in the municipality’s favor; the MARAD lawsuit is still pending an outcome.

Maybe Begich and Selkregg can navigate a path forward for the port. The question will then be, how much will tariffs have to go up to support the completion. That’s a question whose answer every consumer and business in Alaska will have an interest.