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Time to move the Ninth Circuit to Anchorage

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RESIGNATION OF JUDGE KOZINSKI PROVIDES NEW OPPORTUNITY

BY BRUCE FROHNEN
GUEST COMMENTARY

The resignation of Appellate Judge Alex Kozinski amid charges of sexual misconduct spanning three decades provides more proof that the 9th Circuit Court of Appeals is unmanageable. Whatever one makes of the allegations (ranging from groping to showing pornography to clerks and others), their sheer extent and duration indicate a level of administrative chaos in keeping with the court’s general anarchy, and its undermining of judicial process.

Bruce Frohnen

Congress must finally accept the decision reached 40 years ago by its Commission on Revision of the Federal Court Appellate System: The 9th Circuit must be split up. The current situation harms litigants, including accused criminals and victims awaiting final disposition of their cases, along with the businesses, civil associations, and local governments that depend on clear, consistent, and known rules.

62 million people — more than a fifth of all Americans — in nine states, plus Guam and the Northern Mariana Islands, reside in the 9th, which is just one of 12 appellate court districts;

The 9th has the most appellate court judges of any Circuit (29) yet, because of its crushing caseload, consistently has among the most overworked judges on the federal bench;

Litigants in the 9th must on average wait more than 15 months for their appeals to make their way to a final resolution — longer than in any other circuit. There are also too many judges in the 9th for them to hear cases as a group. Such “en banc” hearings in the 9th include only 11 random judges, causing inconsistency and confusion.

This last fact is too often overlooked. The U.S. Supreme Court, along with most every other appellate and state Supreme Court, hears important cases as a single group. This allows for the exchange of ideas, experience, and simple interpersonal contact essential to develop collegiality, reduce tensions, and promote rationality and compromise. Moreover, only an en banc decision can overturn decisions of the Circuit’s typical 3 judge panels. When “en banc” means merely “11 random judges,” the resulting precedent is weak and may be “re-overturned” by a different panel of 11 judges. This creates inefficiency and doubt in applying rules of law to specific cases.

But how, precisely, should Congress reshape the 9th? Attempts to split California between Circuits to dilute its overpowering population and influence run afoul of political realities and rightful claims of state integrity, as does any “California Circuit.” Instead, Congress should pair California with Nevada in a new, two-state 13th Circuit, combining common concerns like gaming, land, and water use, with demographic and ideological diversity. A new, more cohesive 12th Circuit should include Washington, Oregon, Idaho, and Montana. And Arizona should be freed from the 9th, where its inland Western interests are overshadowed, and placed within the current 10th Circuit.

Most important, we should move the current 9th Circuit “offshore” to Anchorage, Alaska. Alaska, Hawaii, and U.S. territories including Guam, the Northern Marianas, Puerto Rico, and the U.S. Virgin Islands, face legal issues too often ignored today. Most of the people in these “non-contiguous jurisdictions” belong to racial and ethnic minority groups, and their cases often concern issues of maritime law crucial to our economy. Yet, they too often are lost within the crowded dockets of three separate Circuits.

True, the new 9th Circuit would cover a vast swath of territory. But average travel times would not increase. The flight time between Puerto Rico and Anchorage is two hours less than that between Guam and San Francisco, where the current 9th is based. Moreover, geographic proximity is not the central problem, here, but rather workload and judges’ attention.

New judicial appointments would be necessary, as would be a rule limiting the number of judges serving on any Circuit to 18 — itself a long stretch for an en banc hearing. Whenever it becomes necessary for more judges within a circuit, the answer should not be to increase the number of judges, but to split the circuit.

Finally, given recent problems in the 9th, it seems best to allow all circuit precedent to be treated as persisting in the new 9th, 12th, and 13th Circuits.

Congress can, and should, increase access to justice through timely appeals and meaningful en banc review, as well as greater attention to underdeveloped areas of law, by reducing the 9th Circuit to a more human, and humane, scale.

Bruce Frohnen is Ella and Ernest Fisher Professor of Law at the Ohio Northern University College of Law.

Alaska Oil and Gas hires Brandon Brefczynski

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The Alaska Oil and Gas Association has hired Brandon Brefczynski as its new external affairs manager, replacing Sarah Erkmann Ward, who recently launched a consultancy, Blueprint Alaska, with Jennifer Thompson of Thompson & Co. Public Relations.

Raised in Fairbanks, Brefczynski has had a career navigating the Alaska Legislature, most recently as Finance Committee aide for Rep. Steve Thompson of Fairbanks. Brandon also worked for Rep. Tammie Wilson of North Pole, former Rep. Doug Issacson of North Pole, and former Sen. Bill Stoltze of Chugiak.

He served at the Department of Environmental Conservation as the commissioner’s legislative liaison during the Parnell Administration.

As AOGA’s external affairs manager, Brefczynski will be responsible for legislative affairs, policy development, and strategic communication, the organization wrote in a press release today.

“Brandon brings a wealth of experience to our team,” said AOGA Executive Director Kara Moriarty. “We are confident he will be a leader for AOGA as we continue to advocate for the long-term viability of the oil and gas industry.”

Brefczynski graduated from the University of Alaska Fairbanks with a degree in political science.

AOGA is a professional trade association whose mission is to foster the long-term viability of the oil and gas industry in Alaska for the benefit of all Alaskans. More information about the organization can be found at www.aoga.org.

Alaska-based National Park Service insurgents take to Twitter to resist Trump

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Someone (or some persons) in the National Park Service Alaska Region formed an insurgent group in January of 2017, and opened up a Twitter account to openly defy the Trump Administration. They seem to be doing so during business hours.

They call themselves the @AltNPSAlaskaRegion on Twitter and occasionally refer to themselves as park rangers.

Last week they ramped up their resistance. They posted on Twitter this message, which warns the private sector to stay out of the Arctic National Wildlife Refuge or face economic recrimination:

“BREAKING: We need EVERYONE to watch to see who will be bidding on drilling in the Arctic National Wildlife Refuge over the next few years. We must ALL work to spread the word to economically break them. That is one major step in defending this last great wilderness #Resistance

The Alaska Twitter group describes itself as the “The Unofficial #Resistance team of the U.S. NPS Alaska Region. As civil servants we don’t serve this Admin, we serve the American People.”

These public servants also post notes like the following one on Twitter during normal Alaska Time business hours — on a regular basis:

The group, which has a logo that mimics that used by the National Park Service, appears related to the national resistance team called @AltUSNatParkService on Twitter, which purports to be run by Park Service employees on their non-government hours.

That group was also founded last January around the same time as when the Park Service was discovered to be engaged in politically motivated communication.  The Park Service had its Twitter account suspended after it showed side-by-side photos of President Trump’s smaller inaugural crowd and former President Obama’s larger inaugural crowd, without explaining to readers that the  District of Columbia voted 90 percent for Hillary Clinton in November of 2016, which would account for the crowd difference.

The Alaska group has been busy resisting Trump since its January inception, posting 1,336 Twitter messages.

The official Park Service Twitter account, founded in 2009, has posted 8,900 messages in its entire 8-year history.

 

Bureaucracy 101: The structure is same as Territorial days

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OUR MOST CYNICAL CONTRIBUTOR MAKES A CASE FOR WASTE MANAGEMENT

By ART CHANCE
SENIOR CONTRIBUTOR

If some grizzled old character from the Territorial government of 1958 stumbled into the State Capitol in Juneau, he wouldn’t be lost; pictures of people he knew still line the third floor hall.

The old Territorial Office Building is nearly across the street, now housing the Department of Health and So-Called Services.

The Juneau State Office Building is new for his time, but he’d recognize everything on the directory in the 8th floor lobby.

Since 1959 the State has to little avail consolidated the Departments of Highways and Public Works into the second most dysfunctional department of State government: the Department of Transportation and Public Facilities. I appreciate Gov. Jay Hammond’s motivation, but the congenital bureaucrats won that one.

The departments of Labor and Commerce are kinda-sorta’ combined. They’ve changed the name of the Department of Education, but not changed its function of making sure the education racket gets most of the budget.

We did succeed in pushing Pioneer Homes out to Health and Social Services, but I think it is even worse managed there than it was in the Department of Administration. The only thing that is truly new is Hammond’s Department of Environmental Conservation, and it’s no prize. When I left in 2006, it was the highest paid department of State government, and the competition for that is tough.

In sum, the organizational structure of the State government in 2017 is almost unchanged from the organizational structure of the Territorial government of 1958.

In 1958 most of Alaska didn’t have telephones.  Mail, still delivered by sled dogs in some places, was the only method of communication.  Five-part carbon copies were the rule and you hand wrote or dictated a memo that was typed by a clerk typist on an Underwood manual typewriter.

Everything in State government is done at least in triplicate. The State works just like it did in the days of rotary phones.   The DOT&PF consolidation was meant to eliminate the regional structure of the old Department of Highways, Alaska’s first and foremost source of graft and corruption, but even 40 years after Jay Hammond passed into history, the DOT&PF still has a regional structure with hereditary heads.

At some theoretical level, the governor dictates the “Governor’s Budget” through the Office of Management and Budget.  There is a fur ball between OMB and the departments’ budget weenies over just what the department gets.  I always hated the weenies in my Admin Services Division more than OMB. The Admin weenies wanted to make sure you knew they were really your boss; I never accepted that and I knew how to find a legislator on the Finance Committee at the Triangle or the Bubble Room to make sure I got my way.

If it isn’t apparent by now, I’ll make it clear; I hate Administrative Services directors, and the ones with MBAs are the most egregious.

The MBA is the worst thing that ever happened to Western Civilization.

Every department of State government has a budget and finance unit at the department level; there is a budget officer and a finance officer who have ministerial authority – which they never exercise.

Then each division of any size has its own budget and finance people, and smaller divisions pay the departmental budget and finance people to do the budget and finance work for them.

Then down to the section level, they all have budget and finance sections who do the same work, but their job is to make sure that the upper level never knows what they’re hiding. It goes down to sections and work units; everything is still  done in at least triplicate and often in quadruplicate or even more.

Nothing adds value; it just gives jobs and power to bureaucrats at ever lower levels.

All of these levels can be collapsed upward to the highest organizational level that gives commonality. In most departments there should be no organizational levels below the department.

Many departments should have much of their organic functions performed at an enterprise level. There is no reason for IT at the department level other than the department’s managers being able to glom on to some contract or deal that makes him some money.

I’d love to scratch into Mark Boyer’s dealings with Cisco that led to that former commissioner of Administration being named their national lobbyist and bringing his IT director along with him. Oh, well, Ethics Laws don’t apply to Democrats.

Like modern American corporations, Alaska’s government only needs one level of administration. Corporate America thinned the org chart 20 or 30 years ago. State government could easily reduce its workforce by 20 – 30 percent just by redrawing the org charts.

Don’t get me wrong; it would hurt; there would be foreclosed houses and repossessed cars – there would be an economic impact, but it could be done.

If you want to save some money, some highly compensated bureaucrats who live in houses with waterfront views, and who own boats, airplanes, and have a lot of other amenities, such as women on the side, have got to go.

One of my formative experiences in State government was when just after noon every Friday during the summer I watched a State Range 20 employee, (and I, too, was a Range 20 at the time), cruise his 40-foot boat down Gastineau Channel toward Taku Harbor.

Sorry folks, you can’t be a State Range 20, be an honest person, and also own a 40-foot boat. I was a division director, my wife was a deputy director, and an old 24-footer was at the limit of our means; I bought a 10-year-old, 30-footer for the proper optics and entertaining when I was angling to become a director, but hanging onto us almost broke us.

The real problem is that legislators don’t have a clue about how the Executive Branch works, and few of them even want to know — or be the ogre who puts workers out on the street.

But in reality, services might actually be improved if the State organizational chart was reduced by a third.

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 simultaneously a Republican and a Democrat. This was a grave insult to hermaphrodites, but he has not apologized.

Alaska Democrats on ANWR victory: Crickets

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The passage of the historic tax reform — with the keys to ANWR’s oil and gas sector — was met with silence from Alaska Democrats, inclusive of state senators, representatives and party leaders.

The published statement from Gov. Bill Walker was, at best, “meh.”

Walker wrote in a press release last week: “Moving forward, we will continue to dialogue with all Alaskans, and ensure that any potential development in the 1002 Area takes into consideration Alaskan concerns previously expressed.”

[Read Walker’s complete press release here.]

Not a ringing endorsement — but a nod to his Democratic base. What does Walker mean by “takes into consideration Alaskan concerns previously expressed?”

He’s referring to those Democrats not done with the #Resistance. He is speaking to the party of Senators Maria Cantwell and Elizabeth Warren.

The Left is gearing up and going after the brand reputation of any oil company that dares to bid on leases in the 1002 Area of ANWR, as seen in this warning:

KUAC Radio, out of Fairbanks, says the fight isn’t over. In this report, it quotes environmental groups as saying they will fight on to prevent oil exploration in the 1002 area of ANWR.

Libya explosion sends North Slope prices up

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Libya’s National Oil Corporation confirmed an explosion at a pipeline near Maradah that is operated by al-Waha Oil Company. The line outage is expected to drop Libyan output by 70,000 to 100,000 barrels per day for an unknown period.

The price of West Texas Intermediate oil popped up about 2.6 percent, settling at $59.97 a barrel in New York. Brent crude was trading at $67.05; typically Alaska North Slope crude slightly lags the price of UK Brent.

ANS prices are estimated by the Department of Revenue; the price estimate posted most recently was $64.41, but that was on Dec. 22.

The explosion in Libya was said to be a terrorist attack. According to the Libya Times, “We broke the news earlier today on Twitter citing LNA officials who blamed the explosion on “Islamist militants from the so-called Benghazi Defence Brigades”.

In 2016, news reports said ISIS had sent a group of terrorists to attack several strategic oil fields and the foreign workers in Libya. Since 2011, when Muammar Gaddafi was toppled, the country has been producing less than one fifth of the oil it had previously produced.

The bombed out pipeline links oilfields belonging to al-Waha Oil and the port of Sidrah on the Mediterranean Sea that ships 447,000 barrels per day, nearly half of the country’s overall production. al-Waha is a subsidiary of National Oil Corporation and is a joint venture with Hess Corp, Marathon Oil Corp and ConocoPhillips.

In August of 2016, North Slope oil was selling at about $50 a barrel and state analysts did not expect it to rise further, due to an oversupply of oil in the world markets. Today, that oversupply has been largely absorbed.

The Alaska Department of Revenue now forecasts North Slope oil to be $56 per barrel in the fiscal year ending in July, and $57 in FY 2019. Since Oct. 27, oil has remained over $60 a barrel.

It appears that the actual price could exceed the state’s forecast, at least in the short term. Each dollar in price represents about $25-$30 million in revenue for the State of Alaska. That gives an approximate $100 million more to the State of Alaska than it expected, if oil remains over $63.

But the Department of Revenue says the State needs prices to be at $102 a barrel in order to pay for the services it currently provides.

With West Texas Intermediate hovering around $60 per barrel, production from the nimble U.S. shale oil regions can be expected to surge over the next 3 to 6 months. But for now, oil prices are trading at the upper end of their expected midterm range of $40 to $60 per barrel.  These comparatively higher prices will inure to the benefit of the Alaska State Treasury, at least for now.

Gov. Bill Walker proposed a $4.7 billion budget (Undesignated General Funds only) for FY 2019, which is $500,000 more than he proposed a year ago.

Top jobs in Alaska for 2018: Health care

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MEDICAID EXPANSION DRIVES ONE SECTOR

While most job categories are flat or down in Alaska, health care jobs have been a growth industry.  The timing of this trend coincides with Gov. Bill Walker’s expansion of Medicaid to tens of thousands of Alaskans.

High paying resource jobs have been in rapid decline but federal funds have grown the health care sector sharply.

The State Department of Labor tracks employment categories and sorts them into “Strong, Moderate, and Low” columns that indicate how many jobs the State sees opening up in coming months and years.

Whether dental assistants or health care aides, health care jobs in Alaska are in the “Growth strong / Openings high” classification, and most of those jobs will be centered in Anchorage, the state’s health care capital.

One job that is in the “Growth strong, Openings moderate” category is in crop and greenhouse work, a nod to the growing marijuana industry.

Labor expects more than 129-300 jobs will materialize in each of these job titles during the next 10 years:

The entire list can be seen and sorted at the Alaska Department of Labor website.

Minimum wage: Workers get inflation adjustment, tax break in 2018

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As Alaskans turn the page to 2018, those on the first rung of the wage ladder will see their paycheck increase by a modest four cents an hour, due to an indexed minimum wage increase the State of Alaska set two years ago in statute.

Going from $9.80 to $9.84 an hour is but 32 cents a day, or $6.40 a month more in wages.

But the real boost that these workers will see starting in January is the 3 percent extra they’ll be getting in their paychecks thanks to federal tax reform passed last week by Congress and signed into law by President Donald Trump.

Those making between $9,526 and $38,700 will pay 12 cents on every dollar earned to the IRS, rather than 15 cents. Taxes apply only to the taxable portion of their income. A minimum wage worker in Alaska will very likely pay less than $800 in federal taxes on a $20,467 annual income.

[Calculate your estimated taxes under the tax reform that is now law.]

It’s unknown how much of that will be clawed back by the State of Alaska, if Gov. Bill Walker’s income tax actually passes. Walker has introduced another state income tax, one in a series he has attempted to get passed in this three years in office.

MINIMUM WAGE TRENDS IN ALASKA

Alaska minimum wage jobs encompass about 1 percent of the Alaska workforce, mainly those who work in either restaurants or seasonal seafood processing.

Tips don’t count toward the minimum wage. Most in the seafood processing field are banking overtime pay, calcuated at 150 percent. Slime-line workers on floating processors start at minimum wage but typically work 16-hour shifts.

A ballot initiative passed by Alaska voters raised the minimum wage in 2015 and again in 2016. Alaska statute requires it to be adjusted from here on, using the Consumer Price Index for the Anchorage metropolitan area for the preceding calendar year.

The federally set minimum wage is still $7.25, unchanged since 2009. But Sen. Bernie Sanders, other Socialists, and many Democrats have advocated for a $15 national minimum wage. Such a wage balanced between the low cost of living in a place like Alabama, compared to the high cost of living in Alaska, would have big consequences for workers.

In fact, Rep. Geran Tarr, D-Anchorage, introduced HB 45 in January to increase the Alaska minimum wage to $15, or $31,200 per year.

That bill was referred to the House State Affairs Committee on Jan. 18, and was put on the back burner. It’s likely to be activated again during the 2018 legislative cycle and will fuel debate in an election year.

When wages in Seattle increased to $15 in 2017 for large employers, the city saw a 9.4 percent drop in hours worked by low-skill, entry-level workers, according to the National Bureau of Economic Research. That equaled 14 million hours per year in lost wages.

A recent study by the University of Washington found that after accounting for fewer hours and higher unemployment, Seattle’s sharp increase in minimum wage actually reduced the total income of minimum wage workers.

While the Bernie Sanders Democrats like to portray the minimum wage as applying to struggling families, in reality it mainly affects younger and part-time workers seeking to gain work experience or workers with additional tip income, such as restaurant staff.

Economists say that a $15 an hour minimum wage is a tipping point that makes it more economical for some industries to convert to automation, rather than use human labor. In Alaska, think seafood processing.

Must Read Alaska taking Christmas off

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I’m taking a couple of days off for Christmas. With love and glad tidings for all, I wish you all a very happy Christmas.

And great thanks to all of our first responders and military personnel, busy protecting us while we celebrate.

– Suzanne