Saturday, December 27, 2025
Home Blog Page 1450

LeDoux, original Muskox Coalition member, dissents with Democrat majority

SYMBOLIC VOTE OVER PERMANENT FUND DIVIDEND AMOUNT CAUSES RIFT

In a move that surprised some and delighted others, Rep. Gabrielle LeDoux, a nominal Republican from Muldoon, today broke away from the House Democrat-led Majority, and voted in favor of the Senate’s version of the operating budget.

That was tantamount to voting against the House Majority’s budget that she had voted for days earlier.

“I do not do this lightly because the bipartisan caucus is a binding caucus, demanding we all vote on budget votes. So I know that there are going to be consequences for this vote. But I am willing to live with this decision, Mr. Speaker,” LeDoux said, addressing the chair during what is normally a procedural vote.

She worried aloud about the Senate budget, even as she said she would vote in favor of it, because it cuts the ferry system too much and transfers too much money from the Earnings Reserve Account of the Permanent Fund into the corpus of the fund, “leaving us with no leeway in a market downturn.”

But she said the sticking point for her was that the fully funded Permanent Fund dividend is important to her East Anchorage constituents. And she felt that since the House budget does not contain any money at all for the Permanent Fund dividend, this was her only possible chance to vote affirmatively for the full dividend.

Whatever comes back from the conference committee will likely have a much smaller dividend than the $3,000 that the Senate has set in its budget (as the House has not provided any funds for Permanent Fund dividend yet.)

“Where our (House) budget has no PFD, and the thought was to discuss and debate the PFD in a separate bill. But I don’t see this happening right now,” she said, her voice quavering.

“It makes me sad I will be leaving this caucus where I have many friends. I feel those who vote against concurrence feel they are doing the right thing. I am doing the right thing voting in the way my constituents would want me to vote,” she said.

She then reminded the body of how the original group of “Muskox Caucus” rebellion against the Republican Majority in 2015 got started, by reading them a letter that four of them in the Chamber had penned to Speaker Mike Chenault in 2015. In that letter, signed by Ledoux, and Reps. Louise Stutes, Bryce Edgmon, and Neal Foster, the four said that any major changes to the way the Permanent Fund dividend was handled should go to a vote of the people.

Muskox-Coalition-letter-May-20-2015-Page 1

Muskox-Coalition-letter-May-20-2015-Page 2

The other two who signed the letter, Reps. Jim Colver and Paul Seaton, have since been removed by their constituents, who considered them not reliable Republicans.

LeDoux was the only member of the House to end up voting in favor of the Senate budget today. Several rose to speak against the Senate budget for reasons ranging from “It’s unfunded” to “it cuts too much.”

Rep. Louise Stutes stood a few minutes later to curtly address the matter of the letter she had signed, which had been read aloud by LeDoux.

Stutes said, “That was then and this is now. I did sign that letter.” She went on to say that services were needed across the state and that the Legislature’s “Percent of Market Value” approach to the Permanent Fund dividend was satisfactory in addressing a reduced dividend amount.

LeDoux’s vote was largely symbolic, since she had, in fact, voted in favor of the House budget last week and since the House and Senate budgets were clearly going to the conference committee, where they will be negotiated line by line.

And after all, the House Majority still has 24 members in it, a safe majority. But her move is a blow to the leadership of Rep. Bryce Edgmon, who looked shaken during the rest of the floor proceedings.

If the Republican Minority allows LeDoux to rejoin them, they’ll have 16 members — possibly enough to help Gov. Michael Dunleavy preserve vetoes he might make to the final budget.

It takes a total of members of the House and Senate to override a governor’s veto.

LeDoux’s move gives the minority a slight emotional advantage going into next year and may persuade members like Rep. Bart LeBon and Steve Thompson to rejoin the Republicans.

As for Dunleavy, he can veto spending in the budget sent to him by the House and Senate, but if he’s sent a budget with a smaller Permanent Fund dividend than has been established by Alaska Statute, he will not be able to add money back to that dividend.

Breaking: U.S. Army Corps extends comment period for Pebble

BIG WIN FOR ENVIRONMENTAL NGO INDUSTRY

The U.S. Army Corps of Engineers – Alaska District has bowed to pressure from Alaska’s senior Sen. Lisa Murkowski and environmental nonprofit groups and extended the public comment period an additional 30-days for the Pebble Limited Partnership draft environmental impact statement.

The corps had set the environmental impact statement period to end in May because in June, everyone in Alaska goes fishing. The extension will allow the environmental industry to continue their “click here” fund-raising through June.

The extension is all about putting the project final decision into the next presidential administration, making it purely about presidential election politics.

The deadline for submitting comments about the draft EIS is now June 29. The Corps will consider all comments received by that date before finalizing the document and making a permit decision in 2020. The extension brings the length of the public comment period to 120-days, shorter than what environmental groups wanted.

The Corps released the draft environmental impact statement on Feb. 20 with the formal public comment period beginning March 1.

The Corps conducted nine public hearings in Alaska to take comment on the permit application and draft EIS. Meetings were held in Anchorage, Dillingham, Homer, Igiugig, Kokhanok, Naknek, New Halen, New Stuyahok, and Nondalton.

To date, about 8,400 public comments have been uploaded to the EIS website.

Comments can be electronically submitted on the public website: https://www.pebbleprojecteis.com; or written comments mailed to:

U.S. Army Corps of Engineers, Alaska District
ATTN: DA Permit Application 2017-271, Pebble Limited Partnership
645 G Street Suite 100-921
Anchorage, Alaska 99501

All comments become part of the public record. For more information, visit https://www.pebbleprojecteis.com.

Marquardt out as ferry system executive director

Shirley Marquardt, appointed by Gov. Bill Walker as executive director of the Alaska Marine Highway System, has been sent home. Tuesday was her last day.

Marquardt was the director of Boards and Commissions for Walker when he moved her into the Department of Transportation to oversee the ferry system. The Walker Administration relocated her to Ketchikan in August in what some saw as an election year move to bolster Walker’s reelection odds in southern Southeast Alaska.

Although the position, which had been created for her, has been discontinued, John Falvey remains as the division director for Marine Highways.

Gov. Michael Dunleavy is going a different direction with ferries than past administrations. Due to severe revenue shortfalls, his plan to balance the state budget strips much of the funding for the system, which is heavily subsidized and poorly utilized. Dunleavy’s Administration would prefer to see the private sector pick up some of the current routes.

Dunleavy’s budget proposes a $95.6 million cut to the ferry system, which represents a 69 percent reduction and will result in the sale of a couple of the more costly vessels. The governor’s proposed funding for ferries is $42.4 million.

The Senate budget cuts ferry funding by $43.6 million, but the House only was able to find $10.9 million in cuts. Those two budgets will be reconciled into a final legislative budget in the next several days during conference committee, and then will be transmitted to the governor for his likely vetoes.

Made-in-Alaska ferry has open house in Auke Bay

In celebration of the Alaska Marine Highway’s first Alaska Class ferry revenue voyage, the ferry system will hold an open house in Juneau on the new Alaska Class Ferry, the M/V Tazlina.

The event is planned for the Auke Bay Ferry Terminal on Sunday, May 5, from 3-5 pm. The vessel will be open to the public and will remain docked.

The Tazlina is named after the Tazlina Glacier located 43 miles north of Valdez. It was designed by Elliott Bay Design Group of Seattle, and constructed at Vigor Shipyard in Ketchikan. The Tazlina is the first Alaska Marine Highway ferry built in Alaska, along with its sister ship the M/V Hubbard.

Christened in Ketchikan on Aug. 11, it’s scheduled to begin service May 7, operating as a day boat in Lynn Canal between the communities of Juneau, Haines, and Skagway.

The Tazlina is 280 feet long, seats up to 300 passengers, and carries 53 standard vehicles. Amenities include observation lounges with comfortable chairs, a covered heated solarium, a cafeteria-style restaurant, a children’s play area, and a quiet room.

MRAK Almanac: Great Alaska Aviation Gathering

May 3, 1917:  Gov. John F. A. Strong approved a bill creating the Alaska Agricultural College and School of Mines, now the University of Alaska. With a federal land grant, the school got funding from the Alaska Territorial Legislature in 1922, when the first building was completed. By the first commencement in 1923, there was a single graduate.

May 4, 1911:  Cordovans shoveled Canadian coal from the wharf into the bay to protest the federal government’s decision to withdraw coal, oil, and timber land in Alaska from private ownership. It became known as the Cordova Coal Party.

May 6, 1984: Gov. Bill Egan died of lung cancer. It’s the 35th anniversary of the passing of the first governor of the state of Alaska.

 * * * *

May 3: Alaska Aviators Forum – featured speaker Steve McCaughey, executive director of the national Seaplane Pilots Association, talking about the Western Governors Association efforts to limit floatplane access to waterways around the U.S. on the basis of invasive species transfer. Aviator Hotel Anchorage, 7 pm.

May 3: GOP Luncheon at Denny’s in Fairbanks with speaker Mike Welch, Mayor of North Pole.

May 3: EagleExit meeting in Eagle River / Chugiak, as people organize to detach from the municipality of Anchorage and create a new municipality / borough. Eagle River Lions Club, 7 pm. Take the survey: https://www.surveymonkey.com/r/CDWYKT3

May 4-5: The Great Alaska Aviation Gathering at the FedEx Hangar, (South Terminal). Draco will be in attendance. Check it out:

May 4-5: Arctic Comic Con convention at the Dena’ina Center in Anchorage.

May 4: Alaska State Judo Championship, Wells Fargo Sports Complex, 2801 Spirit Drive, Anchorage, starting at 9 am.

May 4: Alaska Aviation Museum, BBQ and open air party, 4721 Aircraft Drive after the Aviation Gathering, $10, 5-8 pm.
Anchorage,

May 5, 7, and 10: Chill! It’s a Drill! Merrill Field plans an aircraft emergency exercise involving the fire and police departments. You may hear sirens, see emergency lights, or hear a message that an aircraft emergency has been issued. Approximately 10:30 am.

May 10: Fairbanks Chamber of Commerce Military Appreciation Banquet. Black tie for a good cause. 6 pm. Details

Check previous editions of the MRAK Almanac for other events in May that may not be shown here.

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