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Case for fewer rules, more transparency

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By WIN GRUENING
SENIOR CONTRIBUTOR

In Alaska, amid much fanfare, an application for a voter initiative purporting to address legislative conflicts was certified by the Lt. Governor in October.

The measure, innocuously titled, “Alaska Government Accountability Act”, is being co-sponsored by Rep. Jonathan Kreiss-Tomkins, D-Sitka, Rep. Jason Grenn, I-Anchorage, and political activist Bonnie Jack of Anchorage.

According to the sponsors, the act would primarily reinforce conflict of interest rules surrounding legislative votes.

Our state legislators are already governed by the Legislative Branch Ethics Act, and I believe this latest salvo goes too far and would lead to needless litigation and government dysfunction.

The measure includes wording identical to House Bill 44 promoted by Rep. Grenn in last year’s legislative session. After it failed to pass, Rep. Grenn and supporters formed Alaskans For Integrity, a sponsoring group backed by Democrat strategist, Jim Lottsfeld. The group, almost entirely funded by Outside money, is spending hundreds of thousands of dollars using paid signature gatherers to meet a January deadline to qualify the measure for the November ballot.

The proposed act would require a legislator to declare conflicts of interest before voting in a legislative committee and ask to be excused from voting in the legislature if the legislator has a financial conflict.

The proposal contains some other seemingly beneficial provisions, such as curbing legislative foreign travel and restricting foreign money from influencing our elections. However, the measure adds language restricting legislators from “taking or withholding official action that would help or harm the financial interests of a legislator’s family, employer, potential employer, and anyone from whom the legislator’s immediate family earned more than $10,000 in the prior year.”

This provision clearly targets employees of oil companies – specifically Sen. Kevin Meyer and Sen. Peter Micciche – who both work in the oil industry.

This is a slippery slope.

By expanding the definition of whose financial interests could be affected by a potential legislative action or vote, this will effectively ensnare many more legislators who have financial connections to all sorts of industries.

Rep. Chris Tuck and Sen. Bill Wielechowski both earn significant income from a union representing over 5,000 members throughout Alaska. Presumably neither could take any official action that might benefit union workers.

Rep. Neal Foster is a member of the board of directors of two Native corporations that have scores of subsidiary businesses that potentially could conflict with any official action he might take.

And that’s just for starters. There are many more examples. This applies to actions affecting entities related to a legislator’s immediate family as well.

Taking this to its illogical conclusion, one could argue that fishermen could not vote on legislation affecting the fishing industry and lawyers couldn’t vote on any legal issue such as, say, tort reform. Even though they may be self-employed, theoretically couldn’t their vote benefit them significantly?

Although the measure carves out an exception when voting for a budget appropriations bill, one wonders why voting on an issue would be forbidden in committee or on the House or Senate floor but not after the issue is buried in the budget.

Alaskans understand that part-time citizen legislators and their spouses are permitted (and expected) to earn outside income. Unnecessary burdens discouraging citizens from government service should be avoided. Otherwise, our legislature would eventually be limited to people who are retired, unemployed, or independently wealthy.

Voters were completely aware of the employment of Sen. Meyer and Sen. Micciche when they were elected and may have chosen them partly because of their knowledge and expertise in the oil industry. Likewise, others were elected by voters fully cognizant of their union affiliations, Native corporation alliances, or chosen vocations.

Obviously, if legislation solely benefited a legislator’s employer a true conflict would exist. But why prevent legislators from voting on matters affecting a general industry or membership group to which they belong?

What exactly is the problem this initiative would cure? No current legislator or anyone running for elected office is hiding their employment. Often, candidates and legislators cite their employment as qualifications in campaigning for elected office.

Isn’t this just a “solution” looking for a problem? Or another partisan effort to gain political advantage? And why only attack the Legislature? The Executive Branch has far less scrutiny and oversight.

Alaska’s #1 problem is our revenue shortfall: what public opinion poll suggests it is corruption?

Alaska’s ethics laws seek to restore the public’s trust in our elected officials and foster good government. Ethics reform should concentrate more on transparency and accountability instead of creating more arcane, impossible to enforce rules that create loopholes.

Who wants the drama of another hyped-up initiative campaign? Provided with the facts, voters can determine whether an elected official has a conflict.

The electorate will vote accordingly.

Win Gruening was born and raised in Juneau and retired as the senior vice president in charge of business banking for Key Bank in 2012. He is active in civic affairs at the local, state, and national level.

 

Huggins suspends race for governor

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Charlie Huggins today suspended his campaign for governor. In a letter on Facebook this evening, the U.S. Army veteran thanked his supporters, and acknowledged that the race was about to become very competitive and expensive.

His suspension leaves former Sen. Mike Dunleavy of Mat-Su, Scott Hawkins of Anchorage, Mike Chenault of Kenai, and Michael Sheldon of Petersburg as the Republicans in the race.

Businesman Bob Gillam has decided not to run, and former Sen. John Binkley of Fairbanks is still on the fence but expected to announce his decision within days.

Huggins wrote on Facebook:

Dear Fellow Alaskans,

Alaska’s best days are ahead.

I declared my candidacy for Governor because I know in my heart, with good leadership, Alaska will come out of this recession stronger and more united.

My life experiences as a leader prepared me for the challenge of running for Governor and to articulate the right path forward for our great state. Along with being steadfast on pro-life, pro- family and pro- 2nd Amendment, I continue to believe we need to ensure public safety is 1st priority, restore a full dividend to Alaskans and no statewide tax without a vote of the people.

These are the bedrock principles.

When I started my campaign, I saw a clear road to victory. However, this potentially could be the most expensive race in Alaska history.

After much prayer and deliberation, Becky and I have decided suspending the campaign is the right thing to do for our family and our State.

But we’re all-in when it comes to this – It’s vital we elect a new governor this cycle. We absolutely must have a leader.

Today, I thank the many Alaskans for their encouragement and give a shout out to the sacrifices of all my fellow Veterans. I appreciate hearing your concerns and talking with you about the role of Service to our State.
Thank you!

With gratitude from a Vietnam Veteran,

Charlie

NO ENDORSEMENT

Huggins’ departure comes just weeks after Mike Dunleavy jumped back into the race after resolving a serious health issue. Huggins, who had not announced his bid for governor until Dunleavy had suspended his campaign in September to deal with his health issues, was forced to rethink his campaign once Dunleavy rejoined the race. Dunleavy is from the same Mat-Su Valley region of the state and has significant financial resources to run on.

Huggins spent much of the afternoon calling family and friends to let them know of his decision. He called Dunleavy as well and the two agreed to get together for lunch soon.

Huggins declined to endorse any of the remaining candidates for now.

DUNLEAVY STATEMENT

“Along with the rest of Alaska, I learned last evening, that my friend Charlie Huggins has decided to suspend his campaign for Governor.  Charlie is a leader, a man of God, of country, and of family. I am honored to have served the people of Alaska alongside him,” Mike Dunleavy said.

“Charlie and I spoke via phone last night, and I look forward to sitting down together and talking more with him as the campaign moves forward.

“I fully agree with Charlie that Alaska’s best days are ahead, and I understand and respect the strength and courage it takes to make difficult decisions like this, made in the best interest of Alaska and for Alaskans.  Along with Charlie, I know without question that Alaska absolutely must elect a new Governor.”

“There is much at stake for our great state and this election is critical.  The path forward starts this year, with a new leader who will listen to Alaskans and take immediate action to improve public safety, cut the size and scope of state government, and protect the Permanent Fund and PFD.”

“Alaska’s best days are ahead, and I have great optimism. More than anything today, however, I just want to thank Charlie and his beautiful family for their service and commitment to our country, and to our state.  Charlie Huggins is truly a great American.  I am honored to know him, and blessed to call him friend.”

Eastman faces sanctions from Ethics Committee

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In a politically charged move announced at the onset of the legislative session, the Joint Legislative Ethics Committee decided to remove one of its members.

Rep. David Eastman may be kicked out of the Legislative Ethics Committee for the remainder of the year because he divulged the content of a complaint to someone outside the committee — a reporter.

Eastman says he’s not quite sure what he divulged and the committee is also not telling him. The complaint itself also doesn’t say.

But sometime last spring, an Alaska Journal of Commerce reporter interviewed Eastman and he made known that there was an ethics complaint filed against Rep. Gabrielle LeDoux.

The complaint may have been related to LeDoux telling Rep. Lora Reinbold on the floor of the House that if she didn’t vote the right way on a bill, LeDoux would not give her any money from her political action committee, Gabby’s Tuesday PAC. That would be considered a form of quid pro quo, or even extortion. By any name, an unsavory act.

But the Ethics Act prohibits disclosure of complaints filed with the committee.

If Eastman is removed from the committee, then Rep. Reinbold would step into his place as an alternate. He does have an avenue for appeal, although with the committee stacked with Democrats, it’s not likely to succeed.

Last year, the committee slapped at Rep. Tammie Wilson for sending out a postcard relating to wood stove usage in her community.

Republican Party Chairman Tuckerman Babcock was not impressed:

“It’s pure politics. The timing, the secrecy and the big announcement at the start of the session. They could have counseled him in private, but this is all about tearing someone down,” said Babcock. “Their response is, after one year, to wait until the next legislative session to announce he is kicked off a committee.”

[Read: The Alaska Journal of Commerce story here]

Hostile takeover? LeDoux sends posse to District 15 Republican convention

ATTEMPT TO GABBY-IZE DISTRICT #FAILED

The District 15 Republican convention in East Anchorage rarely attracts more than a dozen political activists, but on Tuesday night, there was a good crowd at the door of the Anchorage Baptist Temple conference room.

In fact, it was the best turnout in years. Curiously so.

It turns out, a lot of those people trying to get in were not Republicans. Some were Democrats. Others nonpartisan.

This was not an accident, but reminiscent of 1974, when a group called the Ad Hoc Democrats, a group with whom Bernie Sanders would have been comfortable, took over the Alaska Democratic Party. The stalwart Democrats never saw it coming, but they were taken over by hippies.

In this case, it was an orchestrated hostile takeover attampt in the Republican district of Rep. Gabrielle LeDoux.

Because it’s a party meeting, these newcomers were required to register as Republicans before they could gain entrance. And because of party rules, new registrants can speak, but are not voting members of the convention.

A few of them did speak on behalf of LeDoux, who was sanctioned by the entire Alaska Republican Party for her role in flipping the House to Democratic control. She is now Rules chair.

The party asked her to register with some other party because she deceived the voters in her district. And the party is running a candidate against her.

On Tuesday, led by Lisa Vaught, LeDoux’s longtime aide in the Legislature, a couple of the newcomers spoke about how LeDoux had helped them in some way.

It was all quite civil even though the room was stacked with people who had never participated in a Republican meeting.

For the final count, there were just a dozen Republicans at the meeting who were actually qualified to vote, and another 16 whose ink was barely dry on their voter registration cards. Chris Nelson was elected chairman of the district, unanimously.

Rebecca Logan speaks to District 15 Republicans.

Because it’s an election season and this is party politics candidates spoke to the gathering: Gubernatorial candidates Scott Hawkins and Mike Dunleavy, Lt. Gov. candidate Edie Grunwald, mayoral candidate Rebecca Logan, and the Republican candidate who is challenging LeDoux, Aaron Weaver.

Self-draining swamp: Park Board Nine quit in frustration

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ALASKAN SPORTSMEN PLEASED

Nine out of 12 members of the National Park System Advisory Board members quit on Monday to spite Interior Sec. Ryan Zinke, who has not met with them since being sworn in last March.

The board’s chairman, former Gov. Tony Knowles, wrote a letter to Sec. Zinke saying that Knowles and the eight others felt they were not part of the new Department of Interior agenda. All of them had terms that expired in May.

Knowles’ letter seemed aimed at maximum political impact — it was given to the Washington Post. He evidently did not advise any of the Alaskans who currently work in the Department of Interior about his planned protest letter.

“Frustrated” is how one reporter described the Park Board Nine.

But outdoors enthusiasts contacted Must Read Alaska expressing approval of the board members’ departure, and said that former Gov. Knowles might finally understand how Alaskan outdoorsmen (and women) have felt during the eight years of the Obama Administration.

“Where was Knowles when the federal government was going after John Sturgeon?” one hunter asked Must Read Alaska. The Alaskan hunter has spent over one million dollars fighting the Park Service all the way to the U.S. Supreme Court. Knowles never has weighed in on the question of whether hunters like Sturgeon should be able to use the Nations River to get to their hunting grounds.

“What letters did he write defending hunting and fishing when the Park Service was making it harder and harder for Alaskans? Where was he on state sovereignty and predator control?”

Nowhere.

Gov. Knowles was sitting on an advisory board that allowed, without objection, former Secretary of Interior Sally Jewell to shut down access to vast areas of Alaska land. He never threatened to quit over the federal government’s overreach during the Obama era.

Rod Arno, executive director of the Alaska Outdoor Council, said the advisory board was changing the mission of the national park system.

“It went from allowing the public to participate in parks to being a policy of preservation and creating a laboratory to study climate change. Sally Jewell was letting them do that,” he said. In fact, cleaning out the board was high on the list of Alaska’s hunting and fishing community.

There are over 1,000 advisory panels across government, with some 37,000 appointees that give their advice to the relevant agencies. The Park System Advisory Board was established in 1935.

Anchorage poll: Berkowitz, Logan or … wait, what … Wielechowski?

A poll was conducted in Anchorage this week. It’s believed to be sponsored by the IBEW and conducted by Hays Research Group, and it’s solely focused on the March 13-April 3 election of Anchorage’s next mayor.

Respondents were asked to choose between current Mayor Ethan Berkowitz, challenger Rebecca Logan and Sen. Bill Wielechowski, who is not running for mayor.

Why Wielechowski? Must Read Alaska spoke to a few campaign experts who theorize that Wielechowski is the perfect Democratic Party candidate: He is not in favor of taking half of the Permanent Fund dividend, he is in favor of income taxes and higher oil taxes, and he is pro-abortion.

Pollster Hays Research Group is using Wielechowski as a test of Mayor Berkowitz’ popularity. They are worried about Berkowitz, due to his record of being ambivalent about crime and too eager to tax.

The poll wants to discover just how badly Mayor Berkowitz is doing in the eyes of the voters. If people say they would vote for Wielechowski over Logan by a bigger margin than they’d vote for Berkowitz over Wielechowski, then the Democrats will know they have a serious problem, and will pour more resources into defending Berkowitz.

Hays Research Group is located in the same downtown office suites as the Ship Creek Group, which specializes in Democrat and Indie-Democrat campaigns, and the campaign offices of Gov. Bill Walker and Byron Mallott.

Quote of the Day: Walker budget transparency fail

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If the legislature were to appropriate the Department of Revenue’s FY19 projection of $206 million to purchase oil and gas tax credits, the increase in UGF spending would be over $430 million. – Legislative Finance Division analysis

More from the Legislative Finance Division analysis of Gov. Bill Walker’s proposed 2019 budget:

“The Governor recognized the budgetary holes (and that some non-replenishing funds were no longer available), understood the conflict between submitting a straightforward budget and taking heat for increasing apparent spending, and appeared to be committed to presenting the budget in a more transparent way. The Legislative Finance Division was, quite naturally, interested to see how the Governor addressed the situation.

“The Governor released a “transparent” budget that shows a reduction of $150 million from the FY18 budget (unrestricted general funds, with dividends and transfers excluded). Does this mean the Governor found a way to fill the holes and reduce spending by an additional $150 million? Not exactly. The Governor’s budget misses the mark on transparency; proposed UGF spending in FY19 exceeds UGF spending in FY18.

“Transparency” is in the eye of the beholder, but perhaps all can agree on a few simple goals. The public and the legislature should know

1. how much money is available on a cash flow basis,

2. how much of that available cash is spent (and how much money is added to—or taken from—various savings/reserve/special accounts) and

3. the amount of surplus or deficit, both on a cash flow basis and after transfers to or from reserve accounts.

Is spending up or down?

“The Governor posed this question and answered it by reporting that the methodology proposed in his Budget Transparency Report shows the FY19 budget is $4.68 billion, down $150 million from FY18’s $4.83 billion budget. The Governor’s fiscal summary apparently does not follow the rules of the Budget Transparency Report; it shows a $316 million reduction (from $4.50 billion to $4.18 billion). Considering the $300+ million in budget holes left after the FY17 legislative session, a $316 million reduction would be nothing short of amazing.

“The Legislative Finance Division’s version of the fiscal summary (page 8) shows that proposed unrestricted general fund (UGF) spending (before accounting for dividends and transfers) is up $228 million—from $4.35 billion in FY18 to $4.58 billion in FY19 (line 36).

“If the legislature were to appropriate the Department of Revenue’s FY19 projection of $206 million to purchase oil and gas tax credits, the increase in UGF spending would be over $430 million. That number is far more in line with expectations regarding a $300+ million hole plus a Public Safety Action Plan that increases spending by $16 million (plus $18 million as a FY18 supplemental appropriation).

[The entire analysis is found at this link.]

Rep. Wilson: Harassment victim was revictimized through inaction

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Rep. Tammie Wilson said today that the House Majority was sweeping sexual harassment complaints under the rug.

She thanked the women of the Republican House minority for wearing black in solidarity with the victims of sexual harassment.

In late 2017, reports of sexual harassment surfaced that led to the eventual resignation of Rep. Dean Westlake. The harassment by Westlake had gone on for months.

Westlake had been chosen by the Alaska Democratic Party to challenge Rep. Ben Nageak in 2016, and Westlake won District 40 against the Nageak with the help of Outside money and Anchorage resources. The man who ran the campaign for Westlake, John-Henry Heckendorn, is now the right-hand man to Gov. Bill Walker.

“I read that same report that we just heard about [from Rep. Matt Claman] and I must have taken it quite differently. Or else I got a different report,” she said.

“We didn’t take it seriously, not in my mind, she said, refuting Claman’s earlier remarks that everything was done properly in response to an allegation made nearly a year ago.

“That allegation was made in March,” Wilson said of the complaint made by former aide Olivia Garrett against Westlake, who was forced by his fellow Democrats to resign.

“I saw nothing in that report that said there was any investigation in March. In fact, what was concerning is a representative helped write that [complaint letter]. And from my understanding — and this is from the papers that anyone can read — they were the ones who encouraged the victim to keep it confidential, to have it handled in the Legislature,” Wilson said.

“I’m standing up because — April, May, June, July, August, September, October, November, December — before something else was done.

“We revictimized. As a body we are held accountable because we made a young lady go out and have to retell her story. And I’m assuming that the reason she did that, Mr. Speaker, is that it fell on deaf ears. Because someone doesn’t make that decision easily.”

Wilson said she wrote a letter asking for a third-party investigation.

[Read: Rules Committee Investigation: Westlake hugged, grabbed, flirted]

“I don’t think we should be investigating ourselves. And that’s exactly what’s happened. I saw nothing in the paperwork that was released yesterday that said in March when the allegation came forward that there was any investigation at all.

“There’s this huge span of time that nobody can account for.”

 

Rep. Mark Neuman asked for an outside investigation as well, because of the seriousness of the situation.

Rep. Chris Tuck, the House Majority Leader and man initially responsible for the lack of action against Westlake, spoke on the topic and said the harassment victim never asked for an investigation.

However, the actions the victim described constitute a crime that was never reported to authorities by Tuck or House Speaker Bryce Edgmon.

Breaking: Gillam decides not to run for governor

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After considering a run for Alaska governor for the past year, businessman Bob Gillam has decided against it. Earlier in the month, he told Must Read Alaska it was a possibility.  Gillam informed close associates of his decision this morning.

Robert “Bob” Gillam is the founder of McKinley Capital Management, one of the most successful businesses in Alaska.

He has been an opponent of an income tax and also has fought the Pebble Mine project, spending tens of millions to prevent the mine from being built in the Bristol Bay watershed.

From Fairbanks, Gillam attended the Wharton School of Business at the University of Pennsylvania and UCLA’s Anderson School of Management. He was a classmate of President Donald Trump at Wharton, and has visited with the president on a few occasions in the past year.

As of 2015, his company had $7 billion of assets under management, making him one of the wealthiest Alaskans — one who could have self-funded his own campaign.

The onerous financial disclosure requirements of Alaska’s election laws makes all his finances and his client base exposed, something he doesn’t want, and something that would hurt his business, he said in a conversation with Must Read Alaska today.

He also has big opportunities in his company he wants to act on.

Gillam is an economic conservative and a social moderate.