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Alaska Democrats call out Mallott for attack on Begich

Suzanne Downing
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LIEUTENANT GOVERNOR SLAMS FELLOW DEMOCRAT IN FUNDRAISING LETTER
The dueling between the Alaska Democratic Party and Gov. Bill Walker has intensified.

Alaska Democratic Party Chairwoman Casey Steinau read a sharp-tongued fundraising letter sent by Lt. Gov. Byron Mallott on Friday, and took him to task for it. This was the state party leader scolding the highest-elected Democrat in the state.

Mallott is a lifelong Democrat who was the Democrats’ nominee for governor in 2014, but who, at the instruction of the Democrats, stepped aside so that Bill Walker could win for governor. Mallott took the back seat as the lieutenant governor candidate. He was allowed by a judge in 2014 to become a petition candidate on the General Election ballot without ever having to gather a single signature.

This time as a Democrat incumbent with an undeclared Walker as governor, Mallott has chosen to run as a petition candidate on the General Election ballot along with Walker. Speculation has been rampant that he could jump ship and form a ticket with Mark Begich.

On Friday morning, Mallott’s harsh-toned letter dispelled rumors that he might join a Begich ticket.

Mallott, Begich, Walker

The two have not had a good relationship this year. Begich visited the governor and lieutenant governor in the spring and told them he didn’t plan to run for governor but had a few words of wisdom for them.

Mallott is said to have bristled at Begich’s impudence, and shot back at Begich that they didn’t need advice from a guy who had lost a statewide election as an incumbent U.S. senator.

After that encounter, Begich formed up his campaign strategy to take on the two.

Mallott’s letter on Friday was gasoline on the fire of that relationship, sending a clear message that no post-primary switcharoo would be in the works, as it was in 2014. At least not now.

Mallott also used the opportunity to call Republican Mike Dunleavy a “cotton candy candidate.”

The letter from Byron Mallott, in full:

The head of the Alaska Democratic Party didn’t take that letter lightly. Casey Steinau blasted out a missive of her own, defending Begich against Mallott’s charges and calling the lieutenant governor’s letter a “disappointing attack.”

Steinau’s letter, in full:

“As you may have seen, the Lt. Governor sent out a disappointing attack Fridaymorning on Mark Begich as part of a fundraising plea. The Lt. Governor’s email wasn’t about a policy difference or a comparison of records, but rather the kind of inaccurate and unnecessary character attack that so many of us had hoped we would avoid this campaign season.

“Specifically, the Lt. Governor claimed that Mark Begich was “nowhere to be found” during the last three and a half years of the Governor’s term. Anyone who knows Mark (as the Lt. Governor has for decades), knows that simply isn’t true.

“The Lt. Governor wrote, “I say to Mark Begich: If you wanted to help, we were waiting for you for three and a half years …” What?

“Mark has been a regular fixture back home in Alaska – spending time with family, friends, and regularly spotted at Home Depot or Fred Meyer. But he was also busy starting a successful business and engaging on important issues across the state. He has been out campaigning and supporting our friends – Democrats – running for office all across the state. He has been a leader and spoken out on important issues – from Fair Anchorage to the PFD to women’s rights and more. And yes, Mark has also reached out and met with the Governor and Lt. Governor – on more than one occasion – to talk about the challenges facing our state and his willingness to be a partner in finding solutions. One of the reasons so many Alaskans support and respect Mark Begich is because whether he is in office or not, he is always working hard for Alaskans.

“Campaigns are competitive and Mark Begich is a tough, proven campaigner, but we hope all the candidates will follow Mark’s lead and focus on laying out a positive vision for how we move Alaska forward rather than trying to engage in misleading, negative, attacks.  

“If you haven’t checked out Mark’s updated website yet, please visit: www.begich.comand read more about his detailed positions and plans to get Alaska back on track. We always encourage a healthy debate on the issues and hope voters will take the time to compare the candidate’s positions on their websites – though you might have a tough time finding Mark’s level of detail anywhere else.

“We couldn’t be happier to support Mark’s positive, energetic campaign about Alaska’s future – and from the looks of his growing support and increasing momentum, Alaskans are sharing in our excitement.

Casey

Casey Steinau, Chair

Alaska Democratic Party

 

Sunday deadline: Register to vote in primary

Suzanne Downing
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0

Sunday, July 22, is the deadline for registering to vote in the Aug. 21, 2018 primary.

To do so, make sure your Alaska driver’s license or state identification card, and the information you enter at the Division of Election’s online site match.

The online registration form can be found at: https://voterregistration.alaska.gov

Alaska has a hybrid open ballot system. The Alaska Democratic Party, Alaska Libertarian Party, and Alaskan Independence Party allow any registered voters. The Alaska Republican Party allows only registered Republicans, nonpartisan voters, or undeclared voters.

Just one candidate for governor is running in the Democratic Primary: Mark Begich. If you choose the open ballot that contains Democrat candidates, you can choose between Begich and Libertarian Billy Toien.

On the Republican ballot, Mead Treadwell, Michael Sheldon, Merica Hlatcu, Gerald Heikes, Thomas Gordon, Darin Colby, and Mike Dunleavy will be on the ballot.

For lieutenant governor, Democrats have Debra Call.

Republicans offer Lynn Gattis, Edie Grunwald, Sharon Jackson, Kevin Myer, Stephen Wright, and Gary Stevens for lieutenant governor.

Several Republican stronghold primaries of interest include Senate Seat E (Wasilla), where Sen. Mike Shower will attempt to fend off a challenge from Randall Kowalke.

Senate Seat G (Eagle River) has Rep. Lora Reinbold and Rep. Dan Saddler vying for the seat vacated by Sen. Anna MacKinnon.

Senate Seat M (South Anchorage hillside) will test Rep. Chris Birch against newcomer Bekah Halat.

Senate Seat O (Soldotna) has Sen. Peter Micciche challenged by Ron Gillham.

It’s an unusual year for Alaska Democrats because not only do they have a household name running for governor (Mark Begich), for many Democrats they will have a choice in several key races in Democrat strongholds or Democrat-leaning districts: Seats 10, 15, 20, 33, 34:

For House Seat 10 (Wasilla), Patricia Faye-Brazel and Neal Lacy are the Democrats. Rep. David Eastman, a Republican, has no primary challenger.

For House Seat 15 (Muldoon), Democrats Lyn Franks, Rick Phillips, and Patrick McCormack are hoping to advance to the General Election to face Republican Gabrielle LeDoux, who chooses to caucus with the Democrats.

Three Democrats are vying for House Seat 20 (downtown Anchorage): Zack Fields, Elias Rojas, Cliff Groh. The sole Republican in that stronghold for Democrats is Ceezar Martinson.

House seat 33, (downtown Juneau), has Democrats Steven Handy, Sara Hannan, James Hart, and Tom Morphet on the primary ballot.

House seat 34 (north Juneau), has Rob Edwardson and Andi Story on the primary ballot. Republican Jerry Nankervis has no opponents.

Friday: Kidnapping, murder in the city

Suzanne Downing
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1
Friday: Kidnapping, murder in the city

A ROUGH FEW DAYS IN ANCHORAGE

A man who had been assaulted repeatedly, tortured with bleach, hit with a taser gun, and then kidnapped, found the wherewithal to jump out of a white pickup truck at Lake Otis Parkway and Tudor Road at about 4 am. on Friday and into the arms of a construction crew, who quickly called 911.

He’d been beaten up and forced into the truck in the Muldoon neighborhood, but at Tudor, he managed to climb out of the window, while the truck was stopped at the intersection.

The assailants were taking revenge over a stolen vehicle, according to reports. Bonita Severian may have given her keys to a man to take care of while she was in jail. Someone then stole the car, and she appears to have posted a notice earlier in the week on Facebook, putting out a reward for anyone who could locate him:

 

By 3 pm on Friday, police knew who they were looking for and they spotted a white truck at the 3500 block of Lois Drive in the Spenard neighborhood with their suspect driving.

Police said 27-year-old Damen Carl refused to stop and attempted to escape. He surrendered only after officers blocked in his vehicle.

Damen Carl, Bonita Severian

The second suspect in the kidnapping, Bonita Severian, 48, was arrested by 8 pm. in the 32nd Ave. and Pussywillow Street, in the Muldoon neighborhood.

They both face a charge of kidnapping, although no charges are yet recorded in the court file.

Another man, 34-year-old Peter Calugan, is still wanted for kidnapping. Update: Calugan was arrested on Saturday night in the 400 block of East 56th Ave.

Peter Calugan

***

Meanwhile, police on Friday arrested Michael Marquez, 19, for tampering with physical evidence in a case that started with a fight among teens, and ended with a dead body in the 500 block of North Bliss Street in Mountain View.

Michael Marquez from social media.

Police said that after a male youth shot the victim in the upper body, he handed the gun to the 19-year-old, who fled the scene toward some apartments. Officers searched the area and eventually arrested Marquez.

The victim is 15-year-old Raynaldo Khotesouvan. He was a freshman at East High School and played on the basketball team. Raynaldo is survived by his mother, father, and 13 brothers and sisters.  A GoFundMe page has been set up by his family.

***

Also on Friday at 4:45 pm, police received word of an “accidental shooting” on the 600 block of North Hoyt Street, also in Mountain View.

The woman victim was dead on the floor of the apartment when patrol arrived. She has been identified as Brittany Sparks.

Clint Registe

Police believe the shooting to be suspicious and several people were detained for questioning. Now, police are asking people to be on the look out for Clint Registe, age 36, who police would like to speak to about what involvement he may have.

Sen. Stedman sends criminal referral for leak of audit information

Suzanne Downing
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Sen. Stedman sends criminal referral for leak of audit information
PUBLIC RADIO REPORTER GOT AUDIT BEFORE LEGISLATORS DID
Sen. Bert Stedman, chairman of the Legislative Budget & Audit Committee, sent the Department of Law a criminal referral for the unauthorized leak of a confidential audit related to the Alaska Mental Health Trust Authority.
The seriousness of the referral pertains to a reporter getting her hands on a confidential draft of an audit of one of the state’s most powerful agencies: The Alaska Mental Health Trust Authority.
The audit was ultimately released and it scolds the agency for not transferring tens of millions of dollars to the Alaska Permanent Fund Corporation for management, but instead managing side businesses itself, against State law.
Stedman believes the audit was given to a reporter by the authority’s executive director before the auditor had briefed the full committee, and before the committee had the chance to review, adopt, or approve the audit to make it a public document.

Stedman said that public radio reporter Anne Hillman asked a state auditor for an interview about the audit, but the auditor recommended the interview wait until the audit was released and Hillman would have a chance to read it first. Hillman is alleged to have told the auditor that she knew what was in it because “she had read the preliminary audit,” Stedman wrote.

“When asked who had provided the copy, Ms. Hillman said it had been provided by the AMHT,” Stedman wrote.

Anne Hillman
“The legislative audit process and the work of the legislative auditor are critical to the legislature’s oversight role of the executive branch and boards and commissions,” he said. “The confidentiality of audits still in progress must be maintained. I have asked the Department of Law to review the release of a confidential audit and decide whether prosecution is appropriate.”
Stedman believes that Mike Abbott, executive director of the Alaska Mental Health Trust, could be charged with a crime for giving an unfinished audit to the reporter.
Abbott was the Anchorage Municipality’s city manager under Mayor Ethan Berkowitz until he left last fall to lead the Alaska Mental Health Trust Authority. He took the position that Jeff Jessee had occupied for years; Jessee joined the University of Alaska staff last year.

In the final report that was released in June, the auditor concluded that the Authority’s board of trustees violated State statutes and terms of an earlier state settlement by not transferring $39.5 million in cash to the Alaska Permanent Fund Corporation.

“Alaska statutes clearly and unambiguously command that cash principal be managed and invested by the APFC. Despite the requirement, the Authority’s board of trustees suspended transfers of cash principal to the APFC for almost 10 years. The board of trustees’ actions appeared to be well intentioned, driven by a desire to maximize revenue for use by beneficiaries. However, the actions did not comply with law and were contrary to the roles and responsibilities outlined in the settlement,” according to the summary provided by the auditor.

Instead of transferring cash principal to the APFC for investment, the lion’s share of the agency’s available money was directly invested in seven commercial real estate properties, five of which were located out of state. The Authority was using the Trust Land Office to close commercial real estate deals and manage real estate properties. Six of the seven properties were then mortgaged and the proceeds were used, in part, for additional commercial real estate deals.

The Authority has defended the practice, saying it was seeking higher returns than what was available through the Permanent Fund.

“The Trust’s investment decisions were authorized by and consistent with applicable regulations and legal advice,” Abbott wrote.

Charlotte chosen as next RNC convention site

Suzanne Downing
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0
Charlotte chosen as next RNC convention site

NORTH CAROLINA IS THE PLACE TO BE IN 2020

It is a long way from Alaska. Some 3,445* miles to be exact. But the Republican National Committee officially selected Charlotte, N.C. as host city of the 2020 Republican National Convention.

Southern hospitality won over the glitz of Las Vegas, the other city that was a finalists. Some prospective cities had dropped out of the running, in protest of President Donald Trump.

Cynthia Henry, Alaska Republican Committee Chairwoman, and Brad Parscale, Trump campaign manager for 2020, at the RNC summer meeting in Austin earlier today.

Cynthia Henry, RNC National Committeewoman for Alaska, spoke to Must Read Alaska after the vote, which was unanimous at the RNC meeting in Austin, Texas.

“The representatives here from Charlotte were extremely hospitable and welcoming. Mayor Vi Lyles was present last night and introduced herself to us. We were really impressed with her.”

Henry acknowledged that Lyles was under pressure from her very left-leaning city council to reneg on the contract with the RNC, but she held firm.

“I believe this convention conveys a positive message supporting our city’s belief in acceptance and inclusion. This is our opportunity to, once again, put Charlotte in the international spotlight to demonstrate the democratic process and two-party system that we deeply value,” Lyles wrote on her Twitter feed.

However, Lyles also told the media this week that she would stop short of delivering a welcoming speech at the convention, which is a break from tradition. Her city council had only approved the convention on a 6-5 vote.

“This is a wonderful location for the Republican convention,” said Alaska GOP Chairman Tuckerman Babcock. “Charlotte is a millennial hub, with a dynamic economy, and North Carolina is a state that Donald Trump recaptured for the Republicans in 2016.”

Tuckerman sent his congratulations to longtime national committeewoman Aida Fisher of North Carolina.

Dr. Aida Fisher, RNC Committeewoman, North Carolina

“She’s a senior member of the national committee and an African-American who has brought a huge benefit home to Charlotte. And special thanks to Robin Hayes, the state GOP chairman of North Carolina. Robin is a former member of Congress and he has been to Alaska several times on fishing trips. He will be a masterful host of the national convention.”

(*As for those 3,445 miles, Alaska Airlines, in partnership with American Airlines, flies to Charlotte through Chicago.)

Juneau road project put to sleep by Feds

Suzanne Downing
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14
Juneau road project put to sleep by Feds

‘NO-BUILD’ WALKER ALTERNATIVE ACCEPTED

This week, the Federal Highway Administration made it official: The Juneau Access Project will stay in an induced coma — for now.

After Gov. Bill Walker chose the “no action” alternative for the Northern Lynn Canal route, the agency published its record of decision, a procedural matter, but also a symbolic blow to the infrastructure project.

“Improving Juneau access continues to be a priority for us,” said Walker in a statement issued by the Department of Transportation. “But the practicality of this project – a road extended to a yet-to-be-built ferry terminal through more than 40 avalanche zones, with a history of litigation – that makes it difficult to justify these kinds of expenditures as we focus on a sustainable fiscal future for Alaska.”

The demand to travel the Lynn Canal corridor is 10 times what the current ferry system can accommodate, and the ferry system is becoming increasingly unviable due to maintenance, union contracts, and the high cost for both travelers and the state budget. Ferries are routinely held in port because of needed repairs, and are extremely expensive.

A family of four traveling on the ferry from Juneau to Skagway in a family-sized vehicle pays about $636 to travel one way, $1,272 for a roundtrip. Yet that family only pays for about one third of the cost of their travel on the ferry; the rest is funded by the State of Alaska.

Driving to Skagway would cost that family $50 in gas. Driving to Katzehin and taking a short ferry to Haines or Skagway would cost less than $200. The State subsidies would be substantially less than what is now used to service the Northern Lynn Canal ferry routes.

When Walker was elected, he was pressured by environmentalists to suspend work on the environmental impact statement for the road, something the Parnell Administration had advanced. Now, Walker has directed the Department of Transportation to complete the EIS with the no-build alternative, an action that will prevent the State from having to pay back millions of dollars to the federal government.

But the story doesn’t end there.

Because Walker chose the no-build alternative, he’s left the door open for a future governor to change direction and call for the EIS to be written once again for the road alternative. It would take six months to rewrite the EIS and another year to secure permits. Road building would not occur for several years due to expected lawsuits from environmentalists.

A McDowell Group poll this year found that 54 percent of Juneau residents support extending Juneau’s road north to the Katzehin River, where a ferry would connect travelers to Haines and Skagway. Thirty-nine percent remain opposed to the project.

Campaign violation alleged against Vazquez

Suzanne Downing
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0
Campaign violation alleged against Vazquez

House District 22 candidate Liz Vazquez, hoping to win back the seat she lost to Rep. Jason Grenn, is the subject of a campaign complaint with the Alaska Public Offices Commission.

Chaz Rivas filed the complaint, which was logged and acknowledged this week by the commission staff. In it, he alleges that Vazquez is running her campaign under three different names: Liz Vazquez for State House, Alaskans for a Brighter Future, and Liz Vazquez for House. She also is alleged to have posted items on Facebook without the proper “paid for by” disclosure. And Rivas notes that on her donation function on her web site, there are not proper “paid for by” disclosures.

Vazquez has 15 days in which she may file a response to the complaint, including any objections and documentation to support her response.

Vazquez said today that her disclosures are proper. The reason the complaint was filed, she said, was because her campaign is doing so well. She has over 100 yard signs out, and is adding three to five signs per night during her door-to-door. She added that anyone can file a complaint, but that doesn’t make it legitimate.

Complaints of this type are typically filed by supporters of opposing candidates and have the effect of distracting a candidate from campaigning. This complaint comes in the last month before the primary election, and Vazquez will have to respond, a time-consuming process.

Vazquez is running in the Republican primary against Sara Rasmussen; the winner of the race will face Grenn, who is proceeding as a nonpartisan candidate to the November ballot, and must gather signatures on a petition to do so.

The commission will conduct an investigation and then may assess a penalty against Vazquez. Penalties can be hefty, but are typically negotiated down.

The complaint is a reminder that candidates need to be vigilant about their “paid for by” disclosures in social media.

Ethics committee finds against Rep. David Eastman

Suzanne Downing
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A legislative ethics committee, which heard evidence on July 17 about whether Rep. David Eastman disclosed confidential information to a reporter, found clear and convincing evidence that he did.

Eastman had been kicked off the ethics committee last year for violating the confidentiality of the committee. He asked for the hearing, which went on for hours and was televised on Alaska Legislature’s online television.

Must Read Alaska is in travel status. Readers can read the decision here:

Ethics Committee Decision on Eastman

Oops: State mistake leads to multimillion Medicaid error

Suzanne Downing
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Oops: State mistake leads to multimillion Medicaid error

DHSS DEMANDS HEALTH CARE PROVIDERS PAY BACK 

Fifteen million dollars in billing errors by the Alaska Department of Health and Social Services to health care providers resulted in overpayments during the past six months — overpayments that were easily not noticed by providers but are now being clawed back by the State.

About 1,100 medical providers will be required to return anywhere between a few dollars to hundreds of thousands of dollars apiece due to an administrative error, according to Deputy Commissioner Jon Sherwood, who oversees the Medicaid program. His department has made no formal announcement of the massive error and Commissioner Valerie Davidson is not taking a visible leadership role in managing the crisis for health care providers who are on the hook.

The Anchorage Daily News expands on the impacts of this mistake.

HOW DID THIS HAPPEN?

Last year, DHSS decided to roll back to its 2015 allowable reimbursement rates to save the State money, after Medicaid costs grew out of control.

The Medicaid program cost the State $1.7 billion plus $45 million in supplemental funds appropriated to keep the program from running out of money through the end of Fiscal Year 2018.

The rollback never happened due to an administrative oversight. The full reimbursements kept going out, and many medical providers simply assumed the rollback had not yet taken place.

The State is now demanding that medical providers pay back 10.3 percent of what Medicaid paid them between Oct. 1, 2017 and June 11, 2018.

Medical providers who contacted Must Read Alaska said they are stunned and furious that the State has shown such ineptitude in handling Medicaid payments, not discovering the error until June, long after workers have been paid and other payments have been made with the money.

“Governor Walker expands Medicaid, then cuts reimbursements by 10 percent, then fails to execute his reduction in a timely manner, so now is going back retroactively to take money back,” said one medical executive, clearly exasperated.

DHSS has made no public announcement of the situation and has yet to inform each provider what the back-due payments will be and when those payments are expected.

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