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Haines activists turn in recall petition, await decision

Street scene of Haines, Alaska, featuring local signs and a bear statute.
View of Haines, Alaska, where a recall election of three Assembly members is unfolding. (Photo by Jeremy Keith, Flickr)

KEEPING IT WEIRD IN HAINES POLITICS

A petition for a recall of three Haines Assembly members has been submitted to the clerk of the Haines Borough.

Clerk Julie Cozzi has 10 days to certify 258 signatures are valid on the petitions. The petitioners, including Don Turner Jr., say they have a few dozen beyond what was required.

Three borough assembly members are the subject of the recall: Tom Morphet, Tresham Gregg, and Heather Lende.

The sponsors behind three Haines Assembly recall petitions turned in their signatures Tuesday afternoon.

Meanwhile, a second borough assembly member has resigned, citing the bitter political climate in the town of 2,508. Margaret Friedenauer, a former public radio reporter at KHNS (Haines), resigned last week, citing the general political climate. Mike Case, former borough mayor, resigned from the Assembly in April after the Assembly majority voted to hire Deborah Schnabel as the borough manager.

The petitioners are accusing Morphet, Jackson, and Lende of violating the Alaska Open Meetings Act, due to the three conducting official business via email on matters pertaining to work at the harbor.

Morphet and Lende, elected last year, are also accused of misusing their official position. Morphet owns the local newspaper, the Chilkat Valley News, and Lende writes obituaries for the newspaper. They had repeatedly pressured the police chief to begin providing the newspaper with a police blotter. The chief, Heath Scott, had discontinued it due to the time it was taking away from other police duties.

Small town police blotters are widely read items and drive sales for newspapers, posing what might be seen as a financially motivated conflict of interest for Morphet and Lende.

If the recall proponents are successful, three temporary Assembly members will be appointed and in October nearly the entire Assembly as well as the mayor’s seat, now held by Janice Hill, will face election.

HIRING OF BOROUGH MANAGER 

Photo of Debra Schnabel
Debra Schnabel, from her Facebook profile.

Debra Schnabel, who is stepping down as executive director of the Haines Chamber of Commerce, comes from a well-known Haines family.

However, her hiring as borough manager, after the Assembly dismissed Bill Seward after just six months, has caused some hand-wringing around town because her brother, Roger Schnabel, owns the construction company, Southeast Road Builders. Southeast Road Builders, a long-time Haines company, is often the low bidder on borough work, which Debra will now oversee.

According to Must Read Alaska sources in Haines, the concern is that Debra Schnabel won’t be able to sign contracts or impartially supervise the work of her brother’s company, or even address performance issues or resident complaints about the company’s services, should they arise.

Southeast Road Builders is doing work on the somewhat contentious harbor expansion and also won the next fiscal year’s winter road sanding contract, which Debra Schnabel will now have to sign on behalf of the borough. The company wins most of the local work because its well established and is locally owned, important in an isolated community like Haines.

The borough’s attorney sent the Assembly a memo saying that Roger Schnabel would be prohibited from contracting with the borough, which may leave the borough having to seek construction services from communities like Juneau or elsewhere.

[Read: Recall fever spreads to Haines, Alaska]

HOMER RECALL ELECTION IS TUESDAY

Meanwhile, on the shores of Kachemak Bay, the town of Homer will hold a special election on June 13 to decide whether to recall three city council members there.

[Read: Homer recall petition gains ground.]

 

Haines police union files complaint against Assemblyman Morphet

Walker’s compromise: ‘Camel’s nose under the tent plan’

Contents of a newspaper ad that was placed by business group ProsperityAlaska and which appeared in newspapers today.

WALKER TAX: $200 MILLION … $700 MILLION … $100 MILLION?

Compromise doesn’t come easy for a governor who has made his living as a litigious attorney. But today, Gov. Bill Walker offered a compromise. It was immediately rejected by his best political friends: The Democrats.

Why? The compromise didn’t bring in enough taxes.

Walker has struggled to establish a need for taxes, and the proof is in the fact that in 17 months, he has asked for an income tax that would raise $200 million, then one for $700 million, and now one for $100 million.

It appears that some tax — any tax — would do, so long as the governor can get the camel’s nose under the tent.

WALKER’S TAXING HISTORY

2016: Walker in January of 2016 said the state absolutely needed $200 million in income taxes or massive layoffs would ensue.

He proposed a simple income tax, but it failed in the Republican-led House and Senate.

If it had passed, Alaskans would be paying taxes to the State of Alaska from the income they are earning today.

By blocking the 2016 proposal, HB 250, Republicans saved Alaskans $200 million — money they are allowed to keep for their own families.

2017: Walker needed not just $200 million earlier this year, but nearly $700 million in income taxes. He alluded to it in late 2016 — his next tax proposal would be higher. He made good on that promise.

Walker worked behind the scenes with Rep. Paul Seaton of Homer, a Republican so liberal his party has abandoned him, to advance HB 115, designed by the Walker administration in concert with a Connecticut tax professor, Dr. Richard Pomp, who never once testified in front of the legislature about the complicated bracket scheme. The original version was so flawed that even Seaton had to pull it back for massive rework.

HB 115 was so complicated, Alaskans would have to hire a tax accountant to complete their tax bill to the state.

[Read: Walker’s new tax scheme: You’re going to need an accountant]

In the interim between 2016 and 2017, Walker used his considerable political muscle to flip the House to Democrat control. The 22-member majority is solidly all-in for an income tax — and no further cuts in State spending.

But the Republican-led Senate would not budge earlier this year.

2017: Now, in special session, the governor recognizes the impasse is real. But he has offered yet another income tax: This one raises just $100 million. He might still need the 60 Revenue workers it was predicted would be needed for his last proposal, to the tune of $14 million in government expenses to collect.

Walker is calling it an education head tax, but it’s an income tax. Those who make up to $20,000 a year would pay $50, and those in the $500,000 and up range would pay $500.

This is also what’s known as a “gateway drug,” for government, as it puts an income tax on the books, which the governor and Democrats would come back and “reform” in subsequent legislative sessions.

In his compromise package, Walker also asks for $85 million from increased motor fuel taxes.

But he offers not a single cut to state spending.

“That’s not a compromise. That’s asking for a surrender.” – Tuckerman Babcock, chairman of the Alaska Republican Party.

By now the governor has a Democrat-led House so radicalized that even he can’t even control it. They rejected his proposal before it even hit their desks. As articulated by Rep. Gabrielle LeDoux earlier this spring, “If the Senate thinks we are going to get out of here with just the POMV (Permanent Fund restructuring) they have another think coming.”

Apparently the governor has “another think coming,” too, according to that logic.

[Read: Angry Gabby crashes press conference]

BUSINESS COMMUNITY REACTS

small photo of Scott Hawkins
Scott Hawkins

ProsperityAlaska, a pro-business group headed by long-time businessman Scott Hawkins, responded to Walker’s tax plan with a full-page ad in four newspapers — the Fairbanks NewsMiner, the Kenai Peninsula Clarion, the Juneau Empire and the Alaska Dispatch News. The ad called out Walker and the Democrats for demanding taxes from Alaskans when they aren’t needed to balance the state budget.

“Walkerocracy,” the ad’s headline reads, with a definition that describes it as “a bureaucracy that proposes new taxes on its citizens even though they are unnecessary.”

“If you look carefully at the numbers, we already have enough money to support government at roughly current levels without new taxes,” said Hawkins, who is an economist by training.

“Moving to a percent-of-market-value (POMV) approach to managing the Permanent Fund would close the majority of the budget gap and fund dividends at respectable levels,” Hawkins said. “This would require very small withdrawals from state savings that could be sustained for well over a decade.”

The newspaper ads are similar to a direct mail postcard that arrived in the mailboxes of tens of thousands of Alaska voters. ProsperityAlaska was also responsible for that mailing.

In addition, the group teams up with the Alaska State Chamber of Commerce and the Resource Development Council to grade lawmakers on their votes as they pertain to making Alaska a business-friendly state. Finally, ProsperityAlaska is associated with The Accountability Project, which has weighed in on state legislative campaigns in recent years.

Front and back of postcard that was sent to tens of thousands of Alaskans last week by ProsperityAlaska.

“We want Alaskans to understand that some of our leaders are trying to put one over on us. There is no crisis. “This is a hard-left agenda to penalize working people in order to grow government,” Hawkins said. “Beyond the fact that it isn’t needed, an income tax would hammer an already-ailing economy, deepening and lengthening Alaska’s current recession.”

Babcock added that if the governor wants $100 million, he can get it by cancelling his “fantasy gas line.”

WALKER’S COMPROMISE GROWS STATE SPENDING BY $200 MILLION

Walker’s proposal:

  • Offers no spending cuts, but actually agrees to the Democrats’ $200 million increase in state spending.
  • Cuts down his tax request, while providing no documentation to the public as to why he needed $700 million two months ago, but only $100 million now.
  • Accepts a shortfall of $300 million that could be paid for with savings, even though just weeks ago he said he would not accept anything but a fully funded plan.
  • Shrinks the Permanent Fund dividend.
  • Accepts the Senate’s version of SB 26, a restructuring of the Permanent Fund.
  • Establishes a compromise on oil taxes, but only if he gets his “head tax” and only so long as there are no cuts to the budget.

SENATE SAYS ‘IT’S A START’

photo of Senate President Pete Kelly
Senate President Pete Kelly

Senate President Pete Kelly called the governor’s proposal a good starting point.

“The Senate Majority appreciates Gov. Walker offering a solution. The only way to reach agreement on the issues before us is when all parties are willing to sit down and have a real discussion. These are important issues with real-life consequences for hundreds of thousands of Alaskans. The Senate is currently evaluating the Governor’s proposal. While we’ll agree on some points and disagree on others, an operating budget for FY2 is our highest priority,” he said.

“When we swore an oath of office, we vowed to discharge our duties. Our sole requirement, under the Constitution, is to pass an operating budget each year. The Senate is committed to prioritizing that action, and there is no time to waste. July 1 is fast approaching,” Kelly said.

“We have called on and will meet the House at the conference committee table to carry out those budget negotiations, as we do every year. We have said many times we stand ready to negotiate. Our goal is to deliver a reduced budget that continues essential services for Alaskans, avoids unnecessary layoffs and delivers stability and certainty to our private sector.

“The Majority appreciates the Governor’s willingness to step up with a comprehensive proposal and, while we prioritize a budget, we will continue to talk with the Governor to achieve consensus.

“We have requested additional detail on his proposal, which will help our members make an informed evaluation. We are pleased to see the Governor agrees a small structural deficit – easily absorbed by reserves – such as the Senate included in its fiscal plan, is acceptable,” Kelly said. “The Senate Majority remains strongly opposed to an income tax.”

Sen. Kelly and other members of the Senate leadership asked the governor for clarification. They sent a letter to the governor today, looking for guidance on the following topics:

  • “HB 57/HB 59: Operating & Mental Health Budgets – House versions – Is the intent of your proposal to restore all Senate cuts or just the more significant cuts? Does your proposal include forward funding education from the earnings reserve account at $1.7 billion as in the House version?
  • HB 111: Oil and Gas Tax Credit Reform – Senate plus 100% ring fencing – Your administration shared language relating to the ring fencing provision with the Senate on Saturday, June 3, 2017. Is this the language you propose to achieve the stated goal of “100% ring fencing?” If not, please define “100% ring fencing.” Does your administration have modeling showing the impact to industry of implementing ring fencing? How would you intend to address shared development costs.
  • SB 12: Education Head Tax – Is your goal to reach $100 million in revenue? Is it your intent that this tax is designated? If so, to education generally, or to school facilities, construction and maintenance, as in SB 12? Is it your intent that this tax must be bracketed? Are there other changes to SB 12 you would advocate for in a final bill? What year do you intend this tax to take effect (to be assessed on income)? What are the costs associated with developing and implementing the tax, both initially and ongoing? What is your proposed approach for collecting from self-employed individuals?
  • SB 26: Permanent Fund Protection Act – Some provisions in the House CS are clean-up and a good approach; does your proposal accommodate such changes? The Senate version of SB 26 features appropriation and draw limits; please confirm that these are included in your proposal.
  • SB 23: Capital Budget – Governor’s priorities plus Senate deferred maintenance and oil and gas tax credit payment – Please identify your proposed priorities. Please be specific in listing, other than deferred maintenance and oil and gas tax credit payments, which items from the Senate version your proposal includes or does not – whichever list is shorter.

Race for governor starts in a living room

Sen. Mike Dunleavy, former Sen. Charlie Huggins (with author Suzanne Downing), and former Sen. John Binkley were among those  who spoke to Republicans at a private briefing on Sunday afternoon. 
Scott Hawkins, president of Advanced Supply Chain International

IS THE GOVERNOR’S RACE ON? Why, yes it is. At Mike and Bonnie Porcaro’s house on Sunday, a group of 46 leading Republicans, (members of the Freedom Club, who donate $100 a month to the Alaska Republican Party), heard presentations from six possible Republican candidates for governor.

None committed to running, but each one spoke and answered questions for a half an hour in the event that went from 2 pm to 6 pm.

It was strictly off the record, but attending from the Freedom Club were Tom Anderson, Tom Anderson Sr., Kristie Babcock, Alaska Republican Party Chairman Tuckerman Babcock, Nick Begich, Dharna Begich, Wiley Brooks, Adam Crum, Joey Crum, Ric Davidge, Larry DeVilbiss, Susan Fischetti, Lynn Gattis, Becky Huggins, Dan Kendall, Dawn Linton-Warren, Kris Warren, Dave Stieren, Rebecca Logan, David Morgan, Randy Ruedrich, Elyce Santerre, Stacey Stone-Semmler, Julie Tisdale, Sheila Cernich, Portia Noble, Jeremy Price, Jon Faulkner, Mike Fell, Albert Fogle, Cynthia Henry, Kurt Olson, Marcus Sanders, Rina Salazar, Christy Strutz, Josh Walton, Rick Whitbeck.

Bob Gillam, president of McKinley Capital Management

The possible candidates who gave half-hour presentations were former Lt. Gov. and former Sen. Loren Leman, former Sen. Charlie Huggins, businessman Scott Hawkins, businessman Bob Gillam, former Sen. John Binkley, and Sen. Mike Dunleavy. All different styles, with different emphases. (Missing was possible contender Mike Chenault, stuck in Juneau).

Candidates came in through the side door, had about 40 minutes total, with a presentation and question and answers. Then they exited through the front door, with breaks between them to prevent that awkward moment.

Motivated line of the day: Every candidate was asked about his strategy to beat Mark Begich, should he be the Democrats’ nominee. 

“I’ll get up extra early every day to beat Mark Begich,” one of the presenters quipped. That got the room clapping and chuckling, and agreeing that they would too.

All presenters were critical of the governor’s tax plan and refusal to bring down the size and expense of government.

Loren Leman, former Lt. Governor and Senator

Takeaway from Sunday: All the candidates who attended were stellar, according to several in the audience. They all face the issue of having to quickly grow their name recognition on a statewide basis, and they all face fundraising challenges, in a state where maximum contributions are capped at $500 per individual.

“We have an impressive line up of candidates. There was a real sense of optimism, and as each candidate went through, it built. Each one had obviously given this considerable thought and analysis and each brings a wealth of experience and skills,” said Cynthia Henry, National Committeewoman for the Alaska Republican Party. “Any one of them could be formidable candidate against whomever they [the Democrats] bring.”

“People were really excited and it was a frank and open discussion, and we were happy that all of these candidates were willing to be so open and transparent. To have these six in the same room with this core group of supporters was very powerful.” said Kristie Babcock of Kenai, who organized the event.

Republican Governors Association side-eyes Alaska: Among those attending the afternoon at the Porcaro’s was Dave Rexrode, political director for the Republican Governors Association, where he oversees and directs the day-to-day efforts to elect Republican governors. He’s probably looking at who is electable and who the RGA would go to the mat for. He was meeting with several candidates separately during his two-day visit.

Ridesharing bill not signed, and Juneau starts taxing already

Photo of Juneau International Airport entry
Juneau International Airport, where the airport board is proposing a special tax for ridesharing users. (Photo by CruisAir, Flickr)

THAT DIDN’T TAKE LONG

House Bill 132, if signed into law, makes Alaska the last state to permit ride-sharing companies like Uber and Lyft. Walker has 15 days to consider the bill once it is transmitted, which may be this week.

Meanwhile, local communities are getting ready for the ridesharing economy. One is priming the pump to tax it out of existence.

Juneau’s International Airport board of directors last week approved a fee structure that charges ridesharing services like Uber or Lyft $100 a year to operate at the airport, plus $3 every time the drivers enter airport property with their company geo-tracking device turned on — $3 to pick someone up, and $3 to drop someone off.

Typically, ridesharing companies like Uber and Lyft make far less than taxis operating the same route. Currently, taxis pay $150 or more a year per vehicle to operate at the airport, but there is no additional fee.

A rider using a ridesharing service out of the Juneau airport, heading home to the Mendenhall Valley, could pay $3 on a $10 ride, or close to 30 percent in taxes to the city.

Those who live closer to the airport, say within a three-mile radius, would pay a $1 per mile tax, while those living farther away would be paying a smaller portion of their ride in taxes.

Americans for Prosperity Alaska Director Jeremy Price isn’t impressed that the taxing is so lopsided against ride-sharing services.

“The Governor hasn’t even signed the bill yet, and Juneau airport officials are already looking for ways to gouge the consumer by placing a $3 tax on Uber or Lyft trips. Alaskans deserve better.” – Jeremy Price, Americans for Prosperity

Why the airport board is swinging so hard in favor of taxis is unclear. Whether Juneau travelers get dropped off by a friend or family member or a ride service, their use of the pick-up and drop-off zone is the same.

Uber’s General Manager for the Northwest was working on the issue today and was optimistic there would be a resolution that will allow the new business model to grow in the capital city.

“We have a conference call with several folks from Juneau tomorrow, and I expect this to be an important point of discussion. We hope to reach an agreement on a set of acceptable terms very soon,” he said.

But his optimism may be guarded. It appears that if Juneau puts on a special tax for Uber and Lyft users, those companies will not enter the Juneau marketplace.

[Read: Ridesharing bill passes, making way for Uber, Lyft]

Reality strikes: Alaska has always been left-leaning

Historic photo of Alaskans marching under the banner of Alaska for Alaskans.
Marching under the banner “Alaska for Alaskans,” a rival AFL sponsored union tried unsuccessfully to capture the cannery contracts in 1939. (University of Washington photo.)

By ART CHANCE
SENIOR CONTRIBUTOR

Art Chance

A recent commenter at Must Read Alaska implored readers to resist the  “invasion of the Marxists” in Alaska.

That is a fundamental misapprehension of Alaska history. The Marxists have been here all along. In reality, conservatives and/or Republicans are the invaders.

Alaska was such a solidly Democrat territory that it was only allowed into the union concurrently with solidly Republican Hawaii so that the party balance in the U.S. Senate could be maintained.

Alaska never fell into the International Workers of the World-Wobbly orbit or into Harry Bridges’ communist West Coast Longshoremen’s union orbit, but in the Forties and Fifties, Alaska was a solidly Democrat, leaning socialist, and trade unionist body politic.

The nation recoiled from union/Democrat excesses during and just after World War II, culminating in the Taft-Hartley Amendments to the National Labor Relations Act in 1948.

The Republicans retook Congress in 1948 with the theme of, “Had Enough Yet?”

The Republican Congress passed Taft-Hartley over five Harry Truman vetoes, and union power began its decline. Even today, after a couple of drinks, talk of Taft-Hartley will bring a tear to an old trade-unionist’s eye.

But Alaska was a federal territory and right-to-work was not a threat here. In fact, Delegate Ralph Robertson of Juneau refused to sign the Alaska Constitution in large measure over the Convention’s refusal to include right-to-work language in the proposed Constitution.

The massive Cold War federal projects were all completed with union workers being paid imaginary Davis-Bacon wages. One of Robertson’s major issues was that the federal projects were being done by Outside contractors employing Outside unions that wouldn’t even allow Alaska workers to join.

At Statehood, Democrat power was based on the liquor industry’s money, Native votes, and Big Labor’s organizational skills. The Democrats’ mantra was “Liquor, Labor, and Natives.”

Republicans were all but irrelevant.

There was a bit of a conservative/Republican voice; Walter Hickel was a Republican succeeding Bill Egan in 1966, but a Republican in 1966 was hardly a conservative and to the end of his days and even in his latter-day revival in the 1990s, Hickel was hardly a conservative except on social issues.  

Anchorage Times publisher Robert Atwood was pretty close to somebody a modern conservative would recognize as a conservative, but even he was very much a creature of the statist culture of early Alaska.

C. R. Lewis was a powerful voice from what was, for the times, the “far right.” A wealthy businessman, he was thought by some some to be a John Bircher, but he was mostly a “small l” libertarian voice.

That was the political landscape in Alaska when oil was discovered at Prudhoe Bay in 1968, and the State chartered a flight to take the $968 million dollar check the oil companies paid for the leasehold rights to develop Prudhoe Bay to New York. During Bill Egan’s reprise as governor in 1970-7474, the question on many Alaskan’s lips was, “What happened to the $968 million?”

When I came north in 1974, I was your standard long-haired, dope-smoking, FM-radio-listening leftist and was only barely beginning my recovery from the Sixties and college; there were lots of kindred spirits — and many were much farther left than I was.

The Ad Hoc Democratic Coalition, which was the far-left McGovernite wing of the Democratic Party, was challenging for control of the party by 1972 and ultimately bolted the Democrat nominee, incumbent Bill Egan, to endorse the Republican Jay Hammond.

I spent many an evening in fashionable, and some not so fashionable living rooms downtown planning “The Revolution.” In the 1974 election, Hammond won and Democrats, led by the Ad Hoc contingent, controlled the Legislature.

While Hammond was nominally, only nominally, a Republican, his administration was mostly Democrats and many of them allied with the Ad Hoc contingent. The Alaska we live in today was structured by the ensuing two or three Legislatures and the progeny of those leftist appointees are still firmly in command of State government and most of the major towns and cities.

It is all but lost today that the survival of Alaska as a state was anything but certain in the early days.   While much is made of the exuberance of Statehood supporters’ role in Statehood, the reality is that Alaska and Hawaii owe their statehoods to the Soviet Union’s anti-colonial pressures around the World, and the seeming hypocrisy of the United States as it pressured European powers to divest of their colonies while maintaining its own colonies in the form of the Territories that were denied full citizenship.

America’s great fear was that Alaska would be a continuing burden on the federal Treasury and only the Cook Inlet oil discoveries allayed some of that fear. Even with Cook Inlet oil revenue and the lease payment for Prudhoe Bay, Alaska was still a very scruffy place in the Seventies.

When I first drove it in 1974, the Parks Highway was not yet finished and was about an axe handle wide.  The intersection of the Parks and the Glenn Highways was a flat intersection of country roads with a stop sign on the Parks side.  The Glenn Highway became Fifth Avenue and four-lane when approaching Merrill Field.  The New Seward Highway dropped to two lanes southbound at Tudor Road, which was itself a two-lane road.

Back then, the City of Anchorage and the Anchorage Borough were completely separate entities and many houses out in the Borough, what we now call South Anchorage and the Hillside, didn’t have siding on them because that allowed them to be considered unfinished and the taxes were lower on an unfinished house.

The political fight all through the Seventies was over development versus conservation and when the money began to flow over spend it or save it. Wally Hickel and Bob Atwood were the champions of development and spending, Jay Hammond and the Democrats were the champions of saving and conserving.

Establishing the Permanent Fund and the Dividend were the last hurrahs of the save-and-conserve crowd and the 1980 Election was the end of openly liberal Democrats at the statewide level. I still held some positions with organized labor and attended a Democrat “workshop” to contemplate how the once mighty Democratic Party had lost its last statewide office with Sen. Mike Gravel’s defeat by Clark Gruening and Gruening’s subsequent defeat by Republican Frank Murkowski.

The first day of that workshop sounded like a meeting of the Soviet Politburo. We in organized labor were the conservatives among the Democrats, and Democrat conventions had erupted into brawls between conservatives led by organized labor and the Ad Hoc left and far left contingents of the Party.

I sat that evening before the fireplace in the main room of the lodge, sipping scotch and talking politics with a conservative Democrat legislator as “sweet perfume” wafted through the air. The general theme of our conversation was “who the Hell are these people.”  That was my last act in organized labor and as a Democrat, though I stayed registered as one for a while longer. That term turned out to be the legislator’s last term as well.

We’ve had the good fortune of having one or both bodies of the Legislature in Republican control since the early Eighties.  Since Hammond’s second term ended in 1982, we’ve had four terms of nominal Democrat governors and four terms of nominal Republican governors if you include Hickel as a Republican.

None of them had any real signature achievement such as Hammond’s Permanent Fund.  Palin’s signature achievement is a negative one as she rendered the conservative/Republican/libertarian coalition that had governed the state since the early 1980s into warring factions. She also gave the Democrats and organized labor, now led by public employee unions rather than the building trades, a power they haven’t had since Bill Egan was governor.

Not even in the days of the mighty jet-owning pipeline unions would Jess Carr or Duane Carlson have dared to throw down the gauntlet as today’s AFL-CIO President Vince Beltrami has done.

As the result of the organization they put together to oppose oil tax reform and Anchorage’s AO-37, the Left, led by the AFL-CIO and the National Education Association, has control of the Governor’s Office, the House, and threatens the Senate.

What we need is a determined opposition from the Republican Party, something we haven’t had since Sarah Palin burst into the china shop.

Art Chance is a retired Director of Labor Relations for the State of Alaska, formerly of Juneau and now living in Anchorage. He is the author of the book, “Red on Blue, Establishing a Republican Governance,” available at Amazon. He only writes for Must Read Alaska when he’s banned from posting on Facebook. Chance coined the phrase “hermaphrodite Administration” to describe a governor who is both a Republican and a Democrat. This was a grave insult to hermaphrodites but he has not apologized.

Walker says climate change harms Alaska’s military readiness — huh?

Muir Inlet, 1941 at top, and 2004 on the bottom.

Everyone loves talking about the weather. And everyone loves talking about Donald Trump.

Yesterday, The Donald gave them a chance to talk about both.

What did Gov. Bill Walker of Alaska talk about? “Climate change [blah blah] military readiness in Alaska.” It was mystifying.

Trump on Thursday announced the U.S. is on its way out of the Paris climate agreement. It had been foreshadowed for months, so it was not a surprise. This is a president who is trying to do what he said he’d do when he ran for the nation’s highest office.

The criticism from the Left was immediate and howling. There’s no need to review it here, but it’s worthy noting that former President Barack Obama took instant exception to the undoing of his climate change handiwork.

Obama said this was America “vacating its leadership role” on the world stage and that it will hurt the country economically and politically.

John Kerry, Obama’s secretary of state, came out blazing, saying Trump turned his back on “humanity’s most existential crisis.”

“The President who promised ‘America First’ has taken a self-destructive step that puts our nation last,” Kerry said. “This is an unprecedented forfeiture of American leadership which will cost us influence, cost us jobs, and invite other countries to walk away from solving humanity’s most existential crisis.”

“Vacating leadership.” “Unprecedented forfeiture.” “Existential crisis.”

In fact, the climate accord that Barack Obama signed was never binding. It was never a good deal for America. It never amounted to a hill of beans. The Paris Accord was climate theater.

“If the decision shows he is more mindful of American economic interests than they are, the other virtue of pulling out is to expose the fraudulence of this Potemkin village,” noted the Wall Street Journal.

The “vacating of leadership” argument is also a ruse. America has never been about letting the rest of the world decide who we are or what we are. The U.S. already has a good record of reducing greenhouse gases, and it was all done without an international agreement. We need others to come up to speed. And we need our innovation to kick into high gear, which American businesses can do and have done.

“I don’t think we’re going to change our ongoing efforts to reduce those emissions in the future either, so hopefully people can keep it in perspective,” said Secretary of State Rex Tillerson.

That “keeping it in perspective” was unlikely in this litmus test era in which we live: Either you’re for the planet or against it, and the Paris Accord is the dividing line for the environmental industry and the rest of working Americans.

Alaska’s delegation in Washington was more circumspect than the environmental lobby.

Sen. Dan Sullivan said the accord “significantly disadvantaged the U.S. economy and American families and workers relative to other nations, especially China.”

Sen. Lisa Murkowski said that an accord wasn’t necessary to continue the work of stabilizing the climate.

Alaska Gov. Bill Walker disembarks Air Force One with former President Barack Obama, in August of 2015 in Anchorage.

Then then we come to Alaska Gov. Bill Walker, who issued the most enigmatic statement of the day:

“Alaska is the United States’ only Arctic state. In spite of the United States’ withdrawal from the Paris climate accord today, Alaska will continue to work to boost national defense and security measures for our 6,640 miles of Alaskan coastline, increase resilience for Arctic communities, and provide energy leadership for the nation.” [Italics ours]

In two sentences, Walker said that in spite of the withdrawal, Alaska will work on national defense and provide energy leadership, although that phrase has no more meaning than the accord itself.

Just a day earlier, he was applauding the possible production of more oil in Alaska, when Secretary of Interior Ryan Zinke had signed a secretarial order to open up more federal land that the Obama Administration had put on ice in the National Petroleum Reserve Alaska.

Yesterday Walker said, “I applaud Secretary Zinke for removing the obstacles so that Alaska can play a greater role in securing the nation’s energy dominance.”

Now, Walker refers to a vague “energy leadership.”

Trump is indeed calling for energy “dominance,” and that’s where we’re heading for the next four to eight years — providing more oil to the world and to our own economy. Not less oil. Growing a stronger economy. Not a weaker one.

Walker continued: “Alaskans know that our landscape is changing at an accelerating pace. We are experiencing social and economic upheaval caused by shrinking sea ice, rising sea level, increasing intensity of storms, and increasing coastal erosion. Alaska communities such as Shishmaref, Kivalina, and Newtok are literally washing into the ocean.”

This is interesting. Is Walker really blaming all of our social and economic ills on the 1.3 degree change the earth has experienced in the past 100 years? We see some shorelines being eroded in Alaska, while other shorelines are rising due to isostatic rebound (glacier weight rebound). In some areas of Alaska, the land is rising so fast out of the ocean that surveys are inaccurate after only a couple of years.

“The land is ascending so fast that the rising seas — a ubiquitous byproduct of global warming — cannot keep pace. As a result, the relative sea level is falling, at a rate ‘among the highest ever recorded,’- 2007 report by a panel of experts convened by Mayor Bruce Botelho of Juneau.” – New York Times, 2009

Someone call Bruce Botelho and tell him about the “existential crisis.”

Is Alaska really seeing an increasing intensity of storms? There is no proof given for that statement on the State’s climate change information page. Only speculation and a lot of broken links.

If anything, Alaska is experiencing milder winters and we’re using less fuel to heat our homes. Well, except for this winter, which was more like the old days, when we just talked about the weather.

“Erosion threatens remote radar sites essential to maintaining control of U.S. airspace when it is most needed to detect and counter Russian incursions. Melting permafrost imperils military installations in Interior Alaska.  Easier maritime and air access to Alaska creates homeland security and defense threats,” Walker said.

Ah, bring on the Russians, the old Red Scare. Climate change will put us at risk of the Ruskies. Worth taking a look, but this is truly an imaginative stretch.

“International military interest demonstrates the importance of the Arctic and subarctic in planning our nation’s defense strategies. We stand ready to assist the Trump Administration in achieving the goal of protecting Americans, their communities, and their way of life,” Walker concluded.

And what a “stand ready,” “way of life”conclusion for Gov. Walker’s tortured statement that ends up signifying nothing. Just like the Paris Accord.

Reactions to Interior’s big announcement from protest to praise

While a small band of well-trained protesters chanted outside the Dena’ina Center in downtown Anchorage, Interior Secretary Ryan Zinke and business leaders from around the state gathered for the first secretarial order to ever be signed in Alaska.

The Alaska Democratic Party had issued a call to protest along with an environmental group or two that stood outside the Dena’ina, (and for a brief time came inside the building, only to be thrown out by security). They were a noisy bunch, but otherwise well behaved, as professional protesters go.

WILDERNESS SOCIETY UNHAPPY: At the national level, the Wilderness Society was ready with a press release saying this was an assault on the survival of the Gwich’in tribe.

“The survival of the Gwich’in Nation is at stake,” said Nicole Whittington-Evans, Alaska regional director for The Wilderness Society. “We need to continue to protect and preserve the Arctic National Wildlife Refuge, which has values far beyond whatever oil might lie beneath it. Some places are so special that they should simply be off limits, and the Arctic Refuge really is—as our report says—too wild to drill.”

[Read: Zinke signs order to restart oil in Arctic]

Zinke was applauded by those in attendance at the Alaska Oil and Gas Association conference, for taking preliminary steps to open up the National Petroleum Reserve Alaska and the Arctic National Wildlife Refuge for oil development.

Secretary Zinke’s order updates the assessment of the North Slope oil and gas resource basin in calling for the development of a revised plan for the National Petroleum Reserve-Alaska (NPR-A) and the Section 1002 Area of the Arctic National Wildlife Refuge (ANWR).

“Shutting down wealth comes with a consequence. Energy itself is a strength of our country. It’s better to produce it here with reasonable regulations than watch it get produced overseas with no regulation,” Zinke said, after having described the environmental catastrophe of oil development he has seen in the Middle East and African continent.

GERAN TARR SINGING NEW TUNE: The Alaska House of Representatives Natural Resources Committee issued a press release praising the action:

“Alaska’s North Slope is one of the most productive oil basins on earth, but there is still immense untapped potential in the largely unexplored NPRA and 1002 area of ANWR,” wrote Rep. Geran Tarr, who co-chairs the committee. “Though still years from production under the most optimistic scenario, I hope today’s order will improve the partnership between the state and the federal government to increase resonsible resource development in Alaska.” Then she expanded on the need for higher taxes from the oil production.

This was the same Tarr who voted against the ANWR resolution that passed the House in February, with Reps. Zach Fansler, David Guttenberg, and Justin Parish voting staying on her side to deny the House unanimous support of responsible oil development.

Kara Moriarty

MORIARTY THANKFUL: Kara Moriarty, president and CEO of AOGA, was exuberant about Zinke’s order: “Today’s announcement by Secretary Zinke is not one we will soon forget. When he said, ‘Alaska matters,’ he finally acknowledged the hardworking Alaskans who have felt isolated and disconnected with their federal government in recent years.

“That frustration is easily understood when you consider that 70 percent of Alaskans have long supported the responsible development of our state’s oil and gas resources. That support is rooted in Alaska’s decades-long track record of safely producing oil and gas while supporting a vibrant economy.

“Secretary Zinke’s order will help launch a new era in energy production and economic growth in Alaska, which is home to a full one-third of the country’s oil and gas reserves.

“We are excited and gratified by today’s announcement, and appreciate the Secretary of Interior taking time to listen and consider the opinions of all Alaskans. AOGA looks forward to working with Secretary Zinke and his team as these orders take effect.” – Kara Moriarty, AOGA president

Sec. Ryan Zinke signs a secretarial order beginning the process to open the National Petroleum Reserve Alaska.

MURKOWSKI ENTHUSIASTIC: Sen. Lisa Murkowski, who had ushered Sec. Zinke throughout his trip across Alaska, was also beaming:

“This is exactly the type of announcement that so many Alaskans have been asking for: a smart, timely step to restore access to our lands, throughput to our Trans-Alaska Pipeline, and growth to our economy under reasonable regulations that do not sacrifice environmental protections.

“I thank Secretary Zinke for traveling to Alaska this week, for meeting with stakeholders to understand the unique needs and opportunities of our state, and for moving quickly to ensure we are finally allowed to realize more of our tremendous resource potential.”

WALKER MUTED: Governor Walker’s statement was workmanlike, but lacked authenticity and never mentioned jobs, families, or the need to put more oil into the pipeline to help pay for state government:

“Thanks to Secretary Zinke’s leadership, we are ushering in an era of unprecedented federal-state partnership to develop Alaska’s resources. This order allows for greater state input as Alaskans continue our strong record of safe and responsible oil and gas development. I applaud Secretary Zinke for removing the obstacles so that Alaska can play a greater role in securing the nation’s energy dominance.” – Gov. Bill Walker

Walker had not been invited to speak during the event, nor was he invited on stage to take part in the signing, Must Read Alaska has learned. However, he invited himself, and also crashed Sec. Zinke’s press conference held immediately afterward.

In a letter to Zinke a few days prior to the announcement, Walker cited two critical reasons why Interior should open land management plans for the National Petroleum Reserve Alaska:

“There is an increasing need for community access and connection that should be recognized by the federal government, and the Petroleum Reserve is seeing its first petroleum production in almost a century…

“Regarding access and connectivity, communities across the western North Slope are evaluating how infrastructure may improve subsistence access, cultural ties, costs for goods and services, and economic opportunities. These are matters where the local communities may have differing needs, approaches, and perspectives, but they all require a federal land manager that evaluates the cumulative benefits of a community infrastructure in the NPR-A rather than prohibiting any activity that has even an incidental impact.”

It’s unclear to what Walker was referring.

Walker did not mention the importance of jobs in a state with the highest unemployment in the nation, suffering from a recession. More than 18,000 jobs have disappeared over two years under his watch.

His references to access and connectivity, and the “evaluating” message baffled some observers, who asked whether Lt. Gov. Byron Mallott had authored the letter and press release. It was, they observed, less than a full-throated endorsement.

 

Race for governor: Prospects grow

Gov. Bill Walker may face several strong competitors during the 2018 race for governor. He is pictured here in an urban assault vehicle during a visit to the Kenai Alaska State Troopers post. (Governor’s Office photo)

WHO IS IN THE QUEUE? Nat Herz of the Alaska Dispatch News brought forward a few candidates, citing Bill Walker, Mike Dunleavy, Mike Chenault, and Scott Hawkins in his Sunday story about 2018’s race for Alaska governor.

But who else might run? We’ve created a list of possible contenders:

Republican Prospects:

Bill Walker, governor: Wedged into a no-man’s land, he’s cunning. We don’t know if he’ll go full Democrat or try to be a Republican again. Walker is a known political risk-taker. And he loves the job, so look for him to run.

Sen. Mike Dunleavy

Mike Dunleavy, senator: This is almost a certain run. He’s distanced himself from his fellow state senators on key issues by leaving the Republican-controlled caucus in the Senate. Anchors a strong conservative base in the Mat-Su. Long-time educator, married to Alaska Native.

Rep. Mike Chenault

Mike Chenault, representative: His retail political skills are better-than-average for the Railbelt. Name recognition strong. Likeable, politically savvy, warm, tough. He has to decide.

Scott Hawkins

Scott Hawkins, businessman: President of Advanced Supply Chain International, chair of Prosperity Alaska, bipartisan appeal, economist. Deep political connections. Strong fund raiser. (Disclosure: Is an underwriter of Must Read Alaska).

Ralph Samuels

Ralph Samuels, former representative and once a gubernatorial candidate: His reaction has been “no way.” His wife’s reaction: “Don’t even…”

John Binkley

John Binkley, former senator and once a gubernatorial candidate. Businessman, Fairbanks, deep Interior roots. His reaction is: Strong maybe. His wife’s reaction is: Are you nuts?

Bob Gillam

Bob Gillam, owner of McKinley Capital Management. He says he’s 99 percent sure he’ll run…on some days. On other days he just wants someone who understands economics to do it. He would have to give up a lot, including turning over his company management to his son. But he has the deepest pockets.

Pete Kelly

Pete Kelly, senator: Will he? Principled, reasonable, skilled, deeply sincere for public service. Word is that the Fairbanks political veteran is looking for someone to run, just not him.

Loren Leman

Loren Leman, former lieutenant governor: He has strong name ID, and conservative chops. Also, Alaska Native and a former senator. Checks a lot of boxes.

Sean Parnell

Sean Parnell, former governor: Perhaps the most qualified, with six years in the job, and more as lieutenant govenor, senator, representative, and community council. He’s young (54), and has lots of enthusiasm for public service. But why would he jump back in the fray? More likely an eye for Congress.

Joe Miller

Joe Miller, former candidate for Senate. The Democrats are courting him to run so they can match him up against Mark Begich, giving Begich a winnable hand.

Ben Stevens

Ben Stevens, former Alaska Senate president and son of the late U.S. Sen. Ted Stevens: He’s been running a tug and barge company in Cook Inlet for several years. Had a run-in with the U.S. Justice Department but was cleared. Those who know him know he is principled. His name is popping up as a possibility.

Charlie Huggins

Charlie Huggins, former senator: Greatly respected, Valley support, good name ID, military record, capable. He is thinking about it.

The Alaska Republican Party State Convention is scheduled for March 8-10, 2018 in Anchorage. Word is that all Republican candidates will be “voted up or down” at the convention in an advisory vote. This tells us Gov. Walker will not subject himself to that vote. Scott Kendall, chief of staff, has been chatting people up, and will be running that decision.

Democrat Prospects:

Bill Walker is a strong bet for the Democrats, even though he is not with any party.
Ivy Spohnholz, representative. The Democrats’ rising star from Anchorage clearly has those ambitions. She may make a play for House Speaker. More likely will run for lieutenant governor.
Bryce Edgmon, House Speaker, has to figure out what he’ll do next. Does he go for governor? Lt. Gov.?
Mike Navarre, former representative and mayor of the Kenai Borough, has been popping up a lot lately. He was approached by Mark Begich to run for his lieutenant governor but he said, to the effect, “How about you run for LG and I run for Guv?” His mayoral term ends in October.
Bill Wielechowski, senator: Almost a certainty. He has voted against an income tax and against Permanent Fund restructure.
Ethan Berkowitz, mayor of Anchorage: He’s exploring it, at least.
Mark Begich, super lobbyist and former senator: He won’t “decide” until the first quarter of 2018. Smart move on his part — letting himself appear to be be drafted is his best play.

LITE GOV. BYRON MALLOTT: Does Mallott go with Walker or Begich? Or whichever prevails? What does an Ivy Spohnholz do in that situation? Perhaps she does a Hollis French. At least French landed a good job out of it.

SPEAKING OF DEMOCRATS, Mark Begich was making a fund-raising appearance on Tuesday for the Democrats at Bill Sheffield’s house.

Naturally, it was co-hosted by Leslie Ridle, deputy commissioner of the Department of Administration for the “nonpartisan” governor. Ridle was a long-time top aide to Sen. Begich. The plot thickens:

ANCHORAGE MAYOR, 2018:  Forget about governor….The Anchorage municipal race is less than 11 months away. Two big changes make it unpredictable:

  • Everyone filing for a Permanent Fund dividend in 2018 will be registered to vote (if eligible). That will add tens of thousands of people to the voting role in Anchorage.
  • Anchorage will be a vote-by-mail city. The municipality will maintain a few in-person locations for voting, but will encourage everyone to mail in their ballots.

These changes have implications for candidates and campaign managers. Ballots can be mailed in by voters three weeks before the April 3 deadline, and as the Montana congressional special election just revealed, a lot can happen in the last three weeks.

Republican prospects:

Dan Sullivan, former mayor, is everyone’s top-of-mind: He’s getting his band back together.
Scott Hawkins, businessman, and a number of people are trying to recruit him.
Bill Evans, former assemblyman, lawyer. Is not a Republican, refiled as nonpartisan.
Bill Starr, former assemblyman from Eagle River, a tough neighborhood to run from for mayor.
Anna MacKinnon, current senator from Eagle River, who might be able to pull it off. She has the experience.

Democrat prospects:

Ethan Berkowitz, mayor, but he may make a play for Rep. Don Young’s seat in Congress.
Eric Croft, assembly member, retread, school board, Democrat.
Forrest Dunbar, assembly member, and darling of the Left.
Elvi Gray Jackson, former assembly member.
Emily Tyrrell, director of sustainability at First Alaskans Institute. What, you’ve not heard of her? Once upon a time she worked for Pebble. Now, she’s hard-D.

Pink slips? No state budget? Seaton has the reins

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An anonymously sent flyer went to some Alaskans two weeks ago blaming Rep. Paul Seaton for leading the charge on an income tax. Now, he has refused to call a meeting of the conference committee on the state’s budget, HB 57, until he gets that income tax passed by the Senate. He is the presiding officer of that committee.

It’s been 16 days since the conference committee for the State operating budget met.

The first and only time the committee met was on May 15, for an organizational meeting called by Rep. Paul Seaton, who is the presiding chair of the committee. He leads the House Democrats’ side of the bargaining table.

What does the presiding chair do? He calls the meetings. He sets the schedule for resolving the differences between the House and Senate versions of HB 57, the operating budget for 2018.

Seaton has said there will be no budget until there is a state income tax, HB 115. And the Senate won’t pass an income tax. The Senate majority, who are mainly Republicans, say SB 26 means there is no need for an income tax.

Has Seaton dug in his heels and will he let state government shut down because he can’t get his $700 million income tax?

[Read: Income Tax? You’re going to need an accountant.]

Today, Gov. Bill Walker’s administration emailed 20,000 layoff notices to state workers. It the Legislature fails to pass a budget by July 1, the government ceases to operate because it has no authority to pay anyone.

The layoff notice was just the warm-up act for the official pink slips, which will be sent through the mail on Thursday.