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Tax by ordinance coming soon?

Suzanne Downing
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ANCHORAGE DAILY PLANET

The Anchorage Assembly has scheduled a work session this afternoon on the proposed ordinance that would lead to imposition of a flat 5 percent retail sales tax on all alcohol sales in the city.

The proposal would, in the case of this particular tax, do away with the city charter’s mandate that a sales tax requires a voter-adopted 60 percent supermajority – and replaces it with a 50 percent-plus-one requirement – and allows the Assembly to implement the tax by ordinance.

The ordinance – predicted to raise about $13 million a year – was proposed by Mayor Ethan Berkowitz, Assembly Vice-Chairman Eric Croft, Assemblymen Dick Traini, and Felix Rivera.

It receipts purportedly would be “dedicated to alcohol and substance misuse prevention and treatment, community behavioral health programs, public safety, and homelessness prevention and response, including abatement of prohibited campsites.” A memorandum detailing the proposal says it also would allow use for capital projects and “construction activities for a potential Alaska Center for Treatment, or secure private investment by providing guaranty funds in the Pay for Success initiative.”

What it does not guarantee anywhere is that the 5 percent tax would remain a 5 percent tax, and there is no guarantee its receipts will not be used for something else in the next administration or the one after that. Additionally, the proposal strips voters of their voter-approved charter protection from sales taxes in this case and hands that power  to the Assembly.

The proposed tax is just another bad idea. If the tax is a good idea – and it most certainly is not – why not let voters deal with it under the existing 60 percent provision in the charter?

 

Two added to administration’s Natural Resources team

Suzanne Downing
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1
Two added to administration’s Natural Resources team

Department of Natural Resources Commissioner Corri Feige filled two top leadership positions with pro-economy oil and gas experts. She announced hiring Sara Longan as a deputy commissioner and Peter Caltagirone as special assistant.

“DNR has tremendous responsibilities for protecting our state’s natural resources and developing them to benefit Alaskans,” Feige said. “Gov. Mike Dunleavy has charged me with maximizing the potential of these resources, and these individuals have the professional experience and proven records of accomplishment that will help me lead ‘Team DNR’ to success.”

Longan will serve as deputy commissioner responsible for the department’s oil and gas activities, which generate the vast majority of the revenue that funds state services. Caltagirone will have special responsibilities for hydrocarbon development and regulation, including the long-sought monetization ofAlaska’s natural gas.

Longan has 20 years’ experience in the resource management, regulatory and environmental science fields in private, academic, and government settings.

With 14 years of State of Alaska service, Longan served nearly 10 years as director of the Office of Project Management & Permitting, serving as liaison to industry and coordinating the regulatory review of large energy and transportation projects including the Point Thomson development.

She returns to DNR after two years as executive director of the North Slope Science Initiative, a joint federal-state project to coordinate science priorities for federal, state and local government agencies.

Longan has three degrees from Oklahoma State University: a bachelor’s degree in natural resources, a master’s degree in environmental toxicology, and a doctorate in public health with an emphasis on health, safety and environmental issues relating to Arctic oil development.

Caltagirone is an experienced trial lawyer who has handled litigation throughout Alaska and the Lower 48. He has represented DNR as an assistant attorney general for the Alaska Department of Law in oil and gas royalty, leasing, and tax litigation. He has also served as counsel to DNR on development of the Alaska LNG project, and provided advice on proposed legislation and regulations.

He returns to State of Alaska service after briefly working with the Alaska Oil and Gas Association as regulatory and legal affairs manager. Caltagirone earned a bachelor’s degree in government and economics from Claremont McKenna College and a law degree at Villanova University School of Law. He is licensed to practice in five states.

Dunleavy budget: Three big changes so far

Suzanne Downing
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2
Dunleavy budget: Three big changes so far

BIGGER PFD, SMALLER REVENUE

Gov. Mike Dunleavy’s early budget is due at the Alaska Legislature on Dec. 15.

His budget team posted it online today with only a few significant changes, but promised more to come in amendments. Amendments are due by Feb. 15.

For expected cuts? Nothing is off the table, but nothing is set in stone.

[The link to budget documents is here.]

The three big changes are in the assumptions:

  1. Not as much revenue should be expected for state coffers as was promised in the Walker budget.
  2. The Walker budget taxed Alaskans’ Permanent Fund dividends in order to balance the budget.
  3. The Walker budget was out of balance by $1.6 billion.

Dunleavy’s revised Revenue forecast book for 2019 and 2020 says oil is not, in fact, going to sell for an average of $76 a barrel in 2019 or $75 in 2020, as was predicted by the previous governor.

The more realistic average is $64 a barrel.

The amount of money being forecasted for paying Alaska Permanent Fund dividends is now at $1.94 billion, which is a placeholder amount. It would mean dividends of about $3,000 for every eligible Alaskan. In the past, and in this Administration, the amount of the dividend is calculated in August, after the end of the fiscal year.

That means there’s an expense to the state of an additional $900 million that wasn’t accounted for in the Walker budget.

How much will need to come out of the Constitutional Budget Reserve? None so far, said Office of Management and Budget Director Donna Arduin.

But right now, there’s a $1.6 billion unallocated spending reduction, and everything is on the table for those reductions, she said.

Rick Rydell leaves airwaves for Fish and Game post

Suzanne Downing
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7

ALSO, BEN MULLIGAN, EDDIE GRASSER TAPPED FOR KEY POSITIONS

Popular talk show host Rick Rydell, whose legal surname is Green, is joining the Department of Fish and Game as a special assistant to Commissioner Douglas Vincent-Lang.

Green is part of a trio of top appointments announced today that include Ben Mulligan as deputy commissioner, and Eddie Grasser as Director of the Division of Wildlife.

“These are talented individuals who will play integral roles as the department renews its focus on putting food on the plates of Alaskans, protecting and maintaining the state’s management authority, building dialogue and trust, and ensuring that the department is contributing to the economy and well-being of our citizens,” said Vincent-Lang.

Rick Green

ABOUT GREEN

Green ended his long talk show career this morning, signing off for the last time from his drive-time slot on Anchorage station 650 KENI. He began his radio career at age 16 in Billings, Montana, changing his last name to Rydell to avoid confusion with his father, who also was also a radio personality. Green is an avid outdoorsman, hunter, fisherman, and author of books and articles. Since his teenage years, he has almost never been without a radio show somewhere in the Northwest.

Green will be charged with outreach to user groups and will work closely with the state’s hunters and fishers to improve communication and build trust.

He is a lifelong member of the National Rifle Association, a member of the Alaska Outdoor Council and a former hunting and fishing guide. He served on the Fish and Game Advisory Council for three years.

“Fish and Game in Alaska has always been my passion,” said Green. “I’m thrilled to work under Gov. Dunleavy and Commissioner Vincent-Lang to work to restore trust in the department, build communication and serve the public.”

Ben Mulligan

ABOUT MULLIGAN

Ben Mulligan is the new deputy commissioner of Fish and Game, effective Jan. 3.

Mulligan was a legislative liaison for Fish and Game during the Parnell Administration. He ran his own consultancy and is leaving the Alaska Chamber of Commerce this month, where he serves as vice president.

As deputy commissioner, Mulligan will oversee statewide fisheries and wildlife regulatory and management issues. He will also act as chief of staff to the commissioner.

Mulligan brings to his new role a long, successful history in the business community, working closely with lawmakers and on fisheries-related issues. Prior to his five years at the department, he worked for then-Rep. Bill Stoltze in a variety of positions including chief of staff. He earned his B.S. in biology with a fisheries emphasis from the University of Wyoming.

“I have appreciated the complexity and importance of fish and wildlife issues in Alaska since I started work at my first fisheries technician job in Bristol Bay,” said Mulligan. “The department is full of Alaskans who love their jobs and the resource they help manage. I look forward to working on those issues with them once again on behalf of the commissioner and all Alaskans.”

Eddie Grasser

ABOUT GRASSER

Eddie Grasser is the new director of the Division of Wildlife Conservation effective Dec. 26. He’s returning to the department after more than 12 years away.

Grasser has worked on issues and activities related to wildlife and wildlife conservation for more than 50 years. He spent five years as chief of staff for the Alaska State Legislature House Resources Committee before opening Grassroots Strategies, a consulting firm specializing in natural resources advocacy work. Grasser has been vice-president of Safari Club International since 2013.

He has played active roles with the Alaska Outdoor Council, the Alaska Fish and Wildlife Federation and other outdoor groups. In addition to his long history advocating for wildlife conservation, Grasser acted as special assistant to the commissioner of ADF&G from 2005 to 2006.

“I look forward to working with everyone and helping the division provide stronger conservation measures that will benefit all Alaskans,” said Grasser.

Gail Fenumiai returns as Elections Director

Suzanne Downing
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14
Gail Fenumiai returns as Elections Director

A veteran of Alaska elections, Gail Fenumiai, will return as the director of the Division of Elections starting in January. The announcement was made by the office of Lt. Gov. Kevin Meyer today.

Fenumiai was the division director for seven years and had 10 years of additional experience working at the division. She was in charge during the controversial write-in campaign for Sen. Lisa Murkowski, when ballots had to be judged one by one as to the voters’ intent regarding the spelling of Murkowski and the filling in of the oval.

But former Lt. Gov. Byron Mallott said he wanted to “move in some new directions with the Division of Elections and it was felt that it was time for different leadership,” according to his former chief of staff.

The leader Mallott chose was Josie Bahnke, the city manager of Nome. ““I think it’s just that the lieutenant governor would like to move forward and reach his goal of having the best elections division in the country,” Claire Richardson said at the time.

Fenumiai returns at a time when some have had their faith in the elections division shaken.

In 2016, voting irregularities in several rural communities were enough to bring a court challenge over the District 40 results. Voters in some villages in that district were allowed to vote both a Republican ballot and a Democrat-other ballot.

The court ruled to allow the results in that district to stand, chalking up the illegal voting to poor training in the Division of Elections.

“Gail has the skills, wisdom, experience and judgement to restore Alaskan’s faith and trust in our elections process and that is exactly what we pledge to do.” said Lt. Gov. Meyer.

Fenumiai most recently worked as a regional coordinator at Catholic Community Service in Juneau, she begins working at the Division of Elections on Jan. 2, 2019. Region 1 Elections Supervisor Lauri Wilson will serve as Interim Director.

This is a developing story. Check back for updates.

Soros-laced gift to ADN will support ‘investigative’ journalism

Suzanne Downing
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21

Alaska’s largest newspaper has just been awarded a grant from ProPublica, a George Soros-funded organization that is a politically charged entity.

The Anchorage Daily News was one of several newspapers receiving such grants.

Soros is a major funder of left-leaning causes and is the force behind the Open Society Foundation. He is, in a nutshell, the “Koch Brothers” of the Left — a symbol of a rich man who made billions of dollars in business and now uses some of his money to influence the course of human events in the way that he sees fit.

The founders of ProPublica are actually Herbert and Marion Sandler, who have bequeathed over $1 billion dollars to groups such as the American Civil Liberties Union, Earthjustice, MoveOn.org, and the American Constitution Society, which opposes the work of the right-leaning Federalist Society.

The Sandler Foundation currently supports a multitude of left-leaning organizations.

As for Soros, since 2003, he has spent more than $48 million funding news media properties and journalism schools, according to the Media Research Center.

In response to Gov. Bevin’s video, the Soros Foundation called Bevin “anti-semitic,” which has become a common counter-attack from the Left.

“Those who bring to light uncomfortable truths are dismissed as ‘fake news’ or, in our case, the work of the ‘Soros-funded’ ProPublica, the all-purpose, vaguely anti-Semitic epithet meant to connote left-wing bias,” wrote editor-in-chief Stephen Engelberg.

The President of ProPublica Richard Tofel said the remarks were “tinged with anti-Semitism.”

Juneau conservatives watched that same demonization of their points of view play out this election cycle. Earlier this year, Republican women in the capital city sent a campaign flyer warning people that if they gave Jessie Kiehl their vote, “you may as well give him your wallet.”

The message on the opposite side of the postcard clearly stated that the GOP women oppose more taxes and that Kiehl was a tax-and-spend Democrat to be avoided. There was a choice, the women said. Choose the Democrat and hold onto your wallet.

But instantly the Juneau progressives attacked full force, and called the Republican women “anti-semitic.” Kiehl is Jewish. The issue was so toxic it quickly made it into the local newspaper The Juneau Empire.

It’s the same tactic ProPublica is using to shut down dissent.

WHAT WILL PROPUBLICA PAY FOR AT ADN?

Under the one-year grant from ProPublica, the salary and benefits of reporters will be paid for by the organization, which states that only 2 percent of its funding comes from Soros.

In Anchorage, that reporter is Kyle Hopkins, a general assignment reporter who has distinguished himself with his innovative crime-related reporting.

Other newspapers who won grants include:

  • Illinois Newsroom (Urbana, Illinois)
  • Mississippi Center for Investigative Reporting (Jackson, Mississippi)
  • MLK50: Justice Through Journalism (Memphis, Tennessee)
  • NOLA.com | The Times-Picayune (New Orleans)
  • The Public’s Radio (Providence, Rhode Island)
  • Reckon by AL.com | The Birmingham News (Birmingham, Alabama)
  • The Charleston Gazette-Mail (Charleston, West Virginia)
  • Connecticut Mirror (Hartford, Connecticut)
  • The Daily Herald (Arlington Heights, Illinois)
  • Louisville Courier-Journal (Louisville, Kentucky)
  • The Post and Courier (Charleston, South Carolina)
  • The Sacramento Bee (Sacramento, California)
  • WNYC (New York)

ProPublica calls itself “an independent, nonprofit newsroom that produces investigative journalism in the public interest. With a team of more than 75 dedicated journalists, ProPublica covers a range of topics, focusing on stories with the potential to spur real-world impact. Its reporting has contributed to the passage of new laws; reversals of harmful policies and practices; and accountability for leaders at local, state and national levels. Since it began publishing in 2008, ProPublica has received four Pulitzer Prizes, three Peabody Awards, two Emmy Awards and five George Polk Awards, among others.”

In other words, it openly admits it is cause-oriented and has a mission to change public policy.

(Must Read Alaska is an independent online newsroom that is a privately held news and commentary publication, which produces journalism that is also in the public interest, with one writer and an occasional columnist. It has not received a Pulitzer Prize in its three-year history, and likely never will.)

Fourth Avenue Theater – Demo permit issued

Suzanne Downing
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12

A demolition permit has been issued for the 77-year-old 4th Avenue Theater in Anchorage. The building, whose construction started in 1941, is owned by Peach Investments of California, which is also owner of nearby properties. The company bought it during a foreclosure in 2009.

The permit allows for complete demolition down to the building’s foundation, and was issued this week.

In 2017, the Alaska Historical Commission unanimously voted that the theater was of “significant to Alaska historic and cultural heritage.” The theater is on the National Register of Historic Places. But it’s up to the current owners’ and a building like this would cost more to refurbish than to demolish.

Those who have tried to preserve the theater have had no luck raising the funds to do so. In 2011, the Rasmuson Foundation awarded a grant to help restore the building, but later rescinded the grant after the Anchorage Assembly decided to not guarantee a loan that would have made restoration possible.

Then, when the Great Recession hit Alaska, private investment dried up and the building has become somewhat of a urinal for homeless people downtown.

The theater was designed by B. Marcus Priteca and Seattle architect A.A. Porreca. In the Art Deco style, it contained silver and gold murals and a depiction of the Big Dipper on the ceiling. The fate of those large and unwieldy murals is uncertain, as they would have to be moved somewhere, at great cost.

The company tried to get a demolition permit from the city in 2016, but was denied.

Peach Investments is owned by Joe and Maria Fang of San Francisco. Originally, the company had planned to incorporate the old theater into a complex that included shopping, parking structure and other attractions.

Day 10 of Dunleavy: Meeting with President, Sec. of Interior, Transportation, FEMA

Suzanne Downing
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Day 10 of Dunleavy: Meeting with President, Sec. of Interior, Transportation, FEMA

On Gov. Mike Dunleavy’s 10th day in office, he held substantive meetings with key political figures in the Trump Administration, including the president himself.

It was a jam-packed day in Washington to establish firm relationships and thank federal partners for their efforts helping Alaska since the Nov. 30 earthquake.

Dunleavy joined with 11 other newly elected governors in a round table discussion with Donald Trump and several of his cabinet members.

While it was a familiarization trip for the others, there was immediate connection between Dunleavy and Trump because the president has focused a lot of his administration’s efforts on earthquake recovery after the 7.0 temblor hit the most populated region of Southcentral Alaska.

Dunleavy and the president engaged for several minutes discussing the quake, while other governors looked on. It was obvious the president had looked at footage from the quake, and Dunleavy thanked Trump for the administration’s quick and robust response. Dunleavy was positioned nearly directly across from the president during the meeting, which was surrounded by a large scrum of news camera operators.

It didn’t hurt Dunleavy’s reputation at the table that he flipped the Governor’s Office to Republican control from a governor who had not had a productive relationship with this president’s administration.

Also on the trip to D.C., Dunleavy met for nearly an hour with the Secretary of Interior Ryan Zinke. That was the first time the two had met face to face, and the conversation was more of a get-to-know-you opportunity, and a chance for them to talk about their visions for responsible resource development on federal lands.

They met in Zinke’s office with a crackling fire in the fireplace nearby. In attendance were Assistant Sec. of Interior Joe Balash and head of BIA and Assistant Sec. of Interior Tara Sweeney — both Alaskans. Kate McGregor, Chief of Staff for Policy and an expert on oil and gas, also attended.

The group was already gathered when Dunleavy walked into the office a the Interior Department.

“Damn, you’re tall,” were the first words out of Sec. Zinke’s mouth. That set the tone for a relaxed and wide-ranging conversation that touched everything from sports to their mutual interest in moving the resource economy of Alaska forward.

Dunleavy thanked Zinke for all he has done for the state so far, and thanked him for the pro-Alaska team he has put together. Then they took a photo outside with the Washington Monument in the background.

Dunleavy also met with Brock Long, administrator of the Federal Emergency Management Agency, and Sec. of Transportation Elaine Chao. The discussion with those two focused on earthquake recovery and the extensive infrastructure needs.

All seemed thrilled to have a governor they can work with, according to those who were on hand for the meetings.

Stedman assembles strong, diverse team for Southeast

Suzanne Downing
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Stedman assembles strong, diverse team for Southeast

ADDS BUDGET EXPERT PETE ECKLUND

Sen. Bert Stedman of Sitka has assembled an experienced staff from Southeast Alaska that puts the region in a strong position, as he takes over the co-chairmanship of Senate Finance.

Stedman has been put in charge of the operating budget. He was co-chair of Finance from 2007-2012.

His team is also likely the most diverse staff in the Legislature, with three Alaska Natives and a Filipino in influential positions. Added together, his team’s ancestral ties to the region span tens of thousands of years.

For a part of the state that has lost population since President Clinton shut down the timber industry, having such a strong team in place going into the 2020 Census and redistricting process is no small achievement for the region.

Stedman brought Pete Ecklund out of retirement to be his budget expert. Ecklund has served in that role before in the House for former Finance Co-Chair Mark Neuman and for former Senate Finance co-chair Sen. Lyman Hoffman. He’s known in the Capitol as a top budget expert who works quietly in the background.

Ecklund is from Ketchikan and is Tsimshian. There is likely no one in the Capitol who can work his way around the budget as deftly as Ecklund; he is on par with Legislative Finance Division Director David Teal. Multiple lawmakers have succeeded because of Ecklund’s expertise.

Sen. Bert Stedman, left, with his staff from last year, including Melissa Kookesh, David Scott, and Chief of Staff Randy Ruaro. As co-chair of Senate Finance he has added budget expert Pete Ecklund and aide Elizabeth Bolling.

Also from Ketchikan is Stedman’s Chief of Staff Randy Ruaro, who is an attorney and is a lands and energy expert. Ruaro, who was deputy chief of staff and counsel to Gov. Sean Parnell during nearly his entire term in office, is of Filipino lineage and now lives in Juneau. His wife is Tlingit with deep ancestral ties throughout the region.

David Scott is a legislative aide to Stedman. He’s Metlakatla-raised and is also Tsimshian. Scott has worked as a legislative aide for 12 years and is a former rescue swimmer for the U.S. Navy on the U.S.S. Stetham.

Melissa Kookesh is from Angoon and is Tlingit. She is chair of the board of Kootznoowoo, Inc. and is former assistant to the president of Tlingit Haida Central Council. She is the niece of former Sen. Al Kookesh.

Stedman himself is a fourth-generation Alaskan and claims Norwegian heritage. In 1908, the Stedman family homesteaded in Kake, where the senator’s great grandfather Charles operated a fox farm and worked as a hunting guide and shipwright.

Senator Stedman’s grandfather, Ken Stedman, his father, Ken Jr., and his mother, Bernice Espeseth, were all born in Southeast Alaska. His mother’s family migrated from Norway in the 1920s and settled in Petersburg, where his mother was born. Bernice’s family and their descendants have fished out of Petersburg for over 85 years.

Also on staff is Elizabeth Bolling of Ketchikan, who worked in the legislative office of former Gov. Bill Walker and was staff to Rep. Daniel Ortiz of Ketchikan.

Stedman represents much of Southeast Alaska, including Ketchikan, Wrangell, Metlakatla, Petersburg, Sitka, Klawock and Hoonah.

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