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‘Upskirting’ the issue: Much ado, and a possible lawsuit

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THE DEMS HAVE THE LONG KNIVES OUT FOR SEN. WILSON

The scene of the alleged crime is a well-trafficked corner on the second floor of Alaska’s Capitol. It’s a busy spot and a place where people often gather.

Several months ago, an allegation was made about Sen. David Wilson, who had paused briefly in this public place, and is now defending his honor.

FACTS MATTER

The security tape of activity in the Capitol halls will show the facts of the incident described below. That tape is locked in a safe in the Capitol, guarded by head of Capitol Security, Steve Daigle.

Wilson has asked Legislative Council to let him see the tape, because it involves an allegation against him as a member. Democrats may try to block or delay that request for nefarious reasons related to the politics of destruction.

Rep. Gabrielle LeDoux, chair of the Rules Committee, has already gone on the warpath, even though she has not seen the tape. She is citing “rumors.”

Meanwhile, Wilson is evaluating a possible lawsuit against individuals who have accused him of sexual harassment. He is going to defend himself against libel and slander. He has talked to a lawyer about courses of action.

As Wilson told Must Read Alaska, he was hanging around the hall in front of the House Speaker’s Chambers, where the Democrat Majority was having a private meeting behind the large double doors. Wilson had been in the area in search of a 16-ounce paper cup when he started chatting with people.

A KTVA film crew was outside the room as well. Wilson lingered because he could hear loud music and wondered where it was coming from.

A House Democrat staff member told him to move along. He asked why and she told him it was because he was listening in.

No, Wilson said. If he was listening in, he would do this: He put his ear to the door for a few seconds to demonstrate what listening at the door would look like.

If he was listening in, he said, he would do this: He put his phone down by the bottom of the door, as if to show how someone could pick up some audio.

His phone was off.

The staffer blocked him. It all happened in a matter of seconds, and she then said he was “upskirting” her (filming up her skirt). She was wearing a dress with leggings.

A reporter nearby was wearing leggings with no skirt. Leggings are pants. Pants don’t need skirts.

According to Wilson, the moment the staffer accused him of “upskirting,” he put his hands up, backed away, and said, no, that was not his intent. He was taken aback at the suggestion.

Now, House Rules Chair Gabrielle LeDoux is making accusations, liberal bloggers are making accusations, and Wilson, who once playfully slapped a reporter who got on his nerves, again finds himself in the middle of a liberal witch hunt.

The staffer told the Juneau Empire this: “It’s inappropriate behavior. It seemed weird and inappropriate. … I don’t want to comment on this to the press. I never have.”

Except that she just did. She said it was weird and inappropriate.

Wilson told Must Read Alaska that he never saw where the phone was placed in relation to the staffer. It happened too fast.

CAN STAFFERS TELL SENATORS TO LEAVE PUBLIC SPACES?

Indeed, the halls of the Capitol are walked by members of the public every day. Kids take tours, tourists take pictures, and constituents familiarize themselves with the building by strolling and learning.

No one has asked the question about whether or not a legislative aide can order a lawmaker to leave the hallway. Or order any law-abiding citizen to leave.

Wilson says he was trying to make a point that if a camera crew could remain there, then anyone should be able to stand on that corner.

Perhaps it’s because the legislative staffer perceives the media as “on her team,” or perhaps this whole incident is being used by Democrats to hunt down a senator who had a run-in with a reporter, thus already has a record for behavior inappropriate to a senator.

Now, Senate President Pete Kelly has requested professional conduct training to ensure a healthy and harassment-free workplace.

In a letter to the Legislative Affairs Agency, Sen. Kelly wrote: “It has come to our attention that the Legislature’s workplace conflict and sexual harassment policies may not adequately address the desire we have to maintain the capitol as a safe and welcoming workplace for all.”

He then asks Legislative Affairs to organize training for legislators before the beginning of the next session in January, and a review of legislative procedures for handling complaints. The letter is signed also by Sen. Majority Leader Peter Micciche, Rules Chair Kevin Meyer, and Senate Finance Co-chairs Lyman Hoffman and Anna MacKinnon.

DREDGING UP DIRT AND IMPROVISED EXPLOSIVE DEVICES

Call it the post-Harvey Weinstein era, when sensitivities are heightened about relationships between workers and those who hold power.

The incident described above happened months ago and has been fodder for rumors and innuendo.

“They’ve sent a letter, but they haven’t bothered to do anything when one of their own members apparently acted inappropriately. It’s one thing to send letters; it’s another thing to do something,” Rep. Gabrielle LeDoux told the Empire.

“In deference to the victim — I’m not going to mention the victim’s name — but there have been rumors in this building about an incident which occurred … in June involving David Wilson, Sen. Wilson,” LeDoux continued.

If LeDoux starts tossing frivolous allegations at the Senate, the blowback could go in a lot of directions, including right back at her.

As with the Weinstein case, once accusations start, they can snowball, and she has members in her Democratic caucus who are vulnerable. Members who have affairs with lobbyists. Members who have affairs with their own staffers. This could easily backfire on LeDoux, who has been the subject of recent rumors herself.

The tape will tell it all. And if Wilson is right, and there was no offense, then he may have a case that can be taken past the court of public opinion and into the court of law.

UAA punked: ‘It’s okay to be white’ counseling offered

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The University of Alaska Anchorage is one of many colleges around the country where a cryptic five-word flyer has been found on campus, proclaiming “IT’S OKAY TO BE WHITE.”

It was the equivalent of a flash-mob prank that’s all the rage with the kids these days.

As with other campuses around the country, the administration of UAA reacted quickly to the threat, immediately sending a note to everyone on its mass email list, offering counseling for those who were offended:

Dear UAA Community,

It has come to the attention of university leadership with the statement “it’s okay to be white” were posted in various places on the UAA campus. Further investigation revealed this is part of a movement occurring at high schools and universities nationwide designed to create racial tension and division with the express goal of eliciting media coverage.

At UAA, we refuse to be divided.

We honor diverse experiences and perspectives — including differences in ideas, religion, gender, gender identity, sexual orientation, ethnicity, race, culture, nationality, age, disability, veteran and socioeconomic status.

To that end, university leadership will use this as an opportunity to engage out campus community in dialogue about our differences, our similarities and our shared values surrounding diversity, inclusion and respect for one another.

Members of our team are here to support you if you need someone to talk to about these flyers. I encourage you to reach out to the Dean of Students Office 907-786-1214 or to the Student Health and Counseling Center 907-746-4040.

Sincerely

Samuel B. Gingerich

Interim Chancellor

ORIGINS OF THE FLYER

The “It’s Okay to be White” slogan was first seen on 4chan (image-based online bulletin board), possibly as a test to see if  the phrase would attract accusations of racism and white supremacy.

Those unfamiliar with 4chan might be showing signs of age, but it’s a wild and uncensored set of forums that are primarily visual. There’s a lot of Japanese animation and video games. Users and those who post are anonymous.

Evidently the academic community fell right into the trap. The flyers were found across the country and in Canada, from Concordia College in Minnesota, Tulane University in New Orleans, and Harvard.

At one university, the flyer was reportedly plastered over a Black Lives Matter flyer.

On Oct. 31, posts showed up on 4chan calling for viewers to post the message “It’s Okay to Be White” in public places as a “proof of concept” that a “harmless message” would cause a “massive media shitstorm.”

An analysis of the news coverage shows dozens of news stories from papers such as The Washington Post to the Huffington Post covering the incident.

At least one university president labeled it hate speech.

When the posters showed up on campus bulletin boards in advance of a Black Lives Matter event, East Tennessee State University President Brian Noland to issue a statement about hate speech.

“This morning, we became aware of flyers that were posted on our campus that support the notion of white supremacy,” Noland wrote on Twitter.

“While we are a campus where the difference of opinion and civil discourse are respected, inciting hate is not tolerated. Such behavior goes against our institutional values where people are treated with dignity and respect.”

COMPARE AND CONTRAST

An earlier version of inclusiveness, “All Lives Matter,” became briefly popular after Black Lives Matter became a cultural phenomenon and lightning rod for rioting.

The “All Lives Matter” meme was quickly labeled racist by the left, who said the phrase showed insensitivity.

The “IT’S OKAY” poster was found in the student union building at UAA and in Beatrice Hall, where the cafeteria is.

The administration removed the flyers from places in campus where flyers are disallowed, but left them up on the public notice boards, according to officials.

[Read: Snowflakery: Gender discrimination training mandatory at UA]

Walker strikes a deal with Sinopec, Bank of China, China Investment Corp

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THE MONEY THE CHINESE OFFER? $43 BILLION

Governor Bill Walker tonight will brief the Alaska Legislature on a deal he has struck with the Communist Chinese. The details of the meeting were embargoed, but press was sent an advisory about a media briefing to take place following the meeting with the Legislature, and a press release was posted this evening.

At 8:30 pm, legislators began filing to the Third Floor of the Capitol, where they are to meet in the Governor’s conference room to hear the briefing from the governor, who will conference in from China. There was secrecy around the meeting, which will not be televised to the public.

China state-controlled television pegged the LNG deal at $43 billion, about what the low estimate is for the cost of building the project.

Here is the contents of the release from the Governor’s Office:

BEIJING—It was a historic day for the State of Alaska and the United States as Governor Bill Walker signed the five-party joint development agreement (JDA) for the Alaska liquefied natural gas (Alaska LNG) project. This historic signing is the most significant step toward finally monetizing Alaska’s vast resources of natural gas. President Donald Trump and President Xi Jinping were present for the signing ceremony at the Great Hall of the People, underscoring the international importance of the agreement.

“Because Alaskans need well-paying jobs and affordable energy to power our homes, schools and businesses, this Alaska LNG project is critical,” Governor Walker said. “The gasline is key to building a Stronger Alaska. I thank President Trump for the full support he and his administration have shown for this project, as it brings the United States one step closer to energy dominance. When President Xi visited Anchorage six months ago, he shared with me his desire for deepening the mutually beneficial ties between China and Alaska. I thank him for expediting that vision to reality. I especially thank Commerce Secretary Wilbur Ross and his team for their strong belief in the Alaska LNG project, and all of the hard work they put into making this day happen.

“I also thank the Alaska Legislature for staying the course in funding the Alaska Gasline Development Corporation so the state could reach this historic milestone. Additionally, I thank BP, ConocoPhillips and ExxonMobil for recognizing the potential benefits to the State of Alaska when they offered in February of 2016 to transition the lead of the project to the State. AGDC President Keith Meyer, his staff and board members have worked tirelessly since that transition to bring Alaska to this point with the market. I thank them for their countless hours and sleepless nights.”

The joint development agreement was signed by the State of Alaska, AGDC and three of the largest Chinese energy and finance companies—Sinopec, Bank of China and China Investment Corporation.

  • Sinopec, one of the largest oil and gas companies in the world, generates $456 billion in annual revenue.
  • Bank of China is one of the five largest banks, with clients in more than 50 countries and regions.
  • With an estimated $813.5 billion, China Investment Corporation is the world’s third largest sovereign wealth fund.

“This agreement has all five necessary signatories—the buyer, the lender, the investor, the developer and the state,” Governor Walker said. “This is a big project with big players and big benefits. There are more steps before a final investment decision is reached, but having the largest LNG buyer in the world participating in this project means the Alaska LNG project has favorable market engagement at the highest level. This project will finally allow Alaska to reach its full potential as a state. As we move from having one of the highest unemployment rates in the country to the lowest, we will build a Stronger Alaska.”

AGDC PRESS RELEASE DESCRIBES IT AS MOU, NOT A DEAL

The Alaska Gasline Development Corporation issued this press release which makes it sound more like a memorandum of understanding, and an expression of interest. It mentions no deal or agreement to fund the front-end engineering:

November 9, 2017 – Beijing, China – Alaska Gasline Development Corporation (AGDC), the State of Alaska, China Petrochemical Corporation (Sinopec), CIC Capital Corporation (CIC Capital), and Bank of China (BOC), today announced a joint development agreement to advance Alaska LNG, Alaska’s strategic gas infrastructure project.

The agreement was signed in the presence of United States President Donald Trump and China President Xi Jinping, and expresses the common interests in the preparatory work of Alaska LNG.

Alaska LNG is designed as a 20 million tonnes per annum (MTPA) integrated LNG system comprised of a three train liquefaction plant in Southcentral Alaska at Nikiski; an approximately 800 mile, 1.1 meter diameter gas pipeline; a gas treatment plant on the North Slope of Alaska; and various interconnecting facilities to connect the Prudhoe Bay gas complex to the gas treatment plant.

Under the agreement, the parties have agreed to work cooperatively on LNG marketing, financing, investment model and China content in Alaska LNG, and get a periodic result by 2018.

“Today’s agreement brings the potential customer, lender, equity investor, and developer together with a common objective of crafting mutually beneficial agreements leading to increased LNG trade between Alaska and China,” said Keith Meyer, president, AGDC.

“Sinopec is interested in the possibility of LNG purchase on a stable basis from Alaska LNG,” said Sinopec.

“This is an agreement that will provide Alaska with an economic boom comparable to the development of the Trans-Alaska Pipeline System in the 1970s,” said Governor Bill Walker, State of Alaska.

“CIC Capital is an experienced financial investor in the energy and infrastructure sectors and has long been interested in investing in American LNG infrastructure. CIC Capital is pleased to work with fellow industry and financial partners on this project,” said CIC Capital.

“As the most internationalized bank in China, Bank of China is willing to facilitate the China-U.S. energy cooperation and provide financial solutions for this transaction by taking advantage of its vast experiences and expertise in international mega-project financing,” said Bank of China.

Sinopec is a huge, state-owned, fully integrated energy and chemical company. Based in Beijing, Sinopec is the largest oil and gas company in the world by revenue with annual revenue of USD 455.49 billion.

CIC Capital is China’s direct investment arm, which is mandated to make direct investments and manage bilateral and multilateral fund investments in order to pursue long-term financial returns and promote international investment cooperation. CIC Capital is a market-oriented commercial entity with a specialized mandate and global reach. As a long-term financial investor, CIC invests on a commercial basis.

Bank of China is a state-owned commercial bank. Bank of China ranks top 10 largest banks in the world by market capitalization value and provides a comprehensive range of financial services to clients in 52 countries and regions around the world.

CHINA SPY SHIPS OFF ALASKA

Earlier this year, the Chinese had spy ships located about 100 miles off the coast of Alaska for several days, according to a report by CNN. The incident occurred just prior to the test of the U.S. missile defense system.

[Read: Chinese navy ships enter Alaska waters]

“US Navy Capt. Scott Miller, spokesperson for the North American Aerospace Defense Command, said the ship is believed to be a ‘communications’ or ‘intelligence’ vessel and confirmed it has been in the area for the last few days,” CNN reported in July. It was verified by other military officers.

CHINESE HUMAN RIGHTS WATCH

The Chinese are among the worst human rights violators on the planet. According to Human Rights Watch, which wrote this about the Chinese regime:

More than three decades after pledging to “reform and open up,” there are few signs the Chinese Communist Party intends to change its authoritarian posture. Under the leadership of President Xi Jinping, who will remain in power until 2022 and possibly beyond, the outlook for fundamental human rights, including freedoms of expression, assembly, association and religion, remains dire.

China made modest improvements in a few areas in 2016. These include trial regulations promulgated in February that may reduce the rate of pretrial detention, the Supreme People’s Court’s continued efforts to retry cases of wrongful convictions and executions, and the acceptance by courts of discrimination cases brought by lesbian, gay, bisexual, and transgender (LGBT) individuals. But such developments pale in comparison to the government’s systematic efforts to silence independent civil society voices, its passage of abusive new laws, and a highly politicized anti-corruption campaign that is further undermining an already weak judicial system.

Over 16 human rights lawyers and activists—detained after a nationwide sweep of rights advocates in July 2015—were the clearest victims of the authorities’ hostility towards independent civil society. Most were held in secret and not allowed to communicate with their families or lawyers of their choosing. Families, lawyers, and supporters who inquired about the cases or sought the detainees’ release also became targets of the authorities’ wrath.

The secrecy surrounding these detentions stood in stark contrast to the aggressive state media campaign to smear the detainees, many of them well-known for their years of activism. The publicity, which departed from the quieter treatments of past political trials such as that of Liu Xiaobo’s in 2009, appears designed to punish the activists and advance President Xi’s campaign to depict independent civil society as a national security threat.

Chinese authorities’ enforced disappearance of critics from Hong Kong and other countries in 2016 garnered headlines globally. Beijing’s decision to interfere in a politically charged court case in Hong Kong in November undermined judicial independence and the territory’s autonomy. In the ethnic minority regions of Xinjiang and Tibet, Beijing continued its highly repressive rule, curtailing political activity and many peaceful expressions of ethnic and religious identity.

Authorities also moved to further limit freedom of expression. In November, the government passed a Cybersecurity Law, which will strangle online freedom and anonymity, and further clamped down on media outlets for reporting that departs from the party line. Authorities also issued multiple directives to tighten control over the internet, which has long been a beacon of hope as a relatively free public space, despite online censorship and surveillance.

The Chinese government continues to lead the world in the number of people executed, with 46 crimes eligible for the death penalty. Scholars in China claimed in September that executions had “fallen about 60 percent” to “a few thousands” in 2005, but official statistics remain state secrets. 

This story is developing and will be updated.

Big reveal: Alaska gasline deal is on with China

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GOVERNOR TO BRIEF LEGISLATURE TONIGHT

Governor Bill Walker will brief the Alaska Legislature on the deal he has signed with the People’s Republic of China. The briefing is at 9:15 pm.

Bloomberg is reporting that the Alaska Gasline envisioned by Gov. Bill Walker is part of a $250 billion package of deals, memorandums and handshakes that President Donald Trump is brokering in China.

The AK-LNG agreement with Sinopec, the Chinese government-owned oil and gas company, or Sinochem, the government chemical company, could reduce the trade deficit between the countries by $10 billion a year if built, according Bloomberg’s sources. The trade imbalance issue is important to the president.

The details from Bloomberg:

  • The White House expects to announce upwards of $250 billion in business deals in China this week, the sort of U.S. jobs-based diplomacy that President Donald Trump likes.
  • Commerce Secretary Wilbur Ross mentioned the number in a meeting with chief executives in China on Wednesday, but offered few details, according to two people who attended the meeting. A U.S. official confirmed the amount.
  • Many of the deals are expected be in the form of nonbinding memorandums of understanding, not contracts.
  • “Addressing the imbalance in China trade has been the central focus of collaborative discussions between President Trump and President Xi,” Ross said. “Achieving fair and reciprocal treatment for the companies is a shared objective.”
  • Alaska Gasline, and representatives from more than 20 companies planned to accompany Trump, who arrived in Beijing on Wednesday and sits down for formal talks with President Xi Jinping on Thursday.
  • Among the CEOs taking part in the visit are Kevin McAllister of Boeing Commercial Airplanes, Steve Mollenkopf of Qualcomm and Keith Meyer of the Alaska Gasline Development Corporation, according to a list provided to U.S. companies in China taking part.
  • Trump has complained that China engages in unfair trade practices and has pledged to close the trade deficit. 
  • The deals are expected to focus heavily on the energy sector.
  • One of the biggest deals the Trump administration is currently negotiating is a multibillion-dollar energy investment from Chinese oil and gas giant China Petroleum & Chemical Corp., known as Sinopec, that would bring thousands of new jobs to hurricane-ravaged areas in Texas and the U.S. Virgin Islands. This deal, too, would be a memorandum of understanding.
  • According to a government document obtained by Bloomberg News, the announcement will include agreements between Alaska Gasline Development Corp. and Sinochem.

The full Bloomberg report is here:

https://www.bloomberg.com/news/articles/2017-11-08/trump-team-said-to-plan-250-billion-in-deals-from-china-visit

 

Sheldon Fisher: ‘We owe the credits’ to oil companies

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AND BY ‘OWE,’ HE MEANS …

For the past three years, the Walker Administration has paid only lip service to a huge debt owed to small oil explorers that came to Alaska to look for oil in Cook Inlet and the North Slope.

Instead of paying the credits owed, Gov. Bill Walker has stiffed the companies by paying only the required minimums.

The impact on Alaska’s reputation as a stable oil province has been felt around the world.

One company owed money by the State of Alaska has filed for bankruptcy, while others are getting nervous the State of Alaska could simply starve them to death.

Walker has another chance to get it right as he prepares his next budget for the Dec. 15 deadline. As he cuts a deal with China on the gasline this week, banks around the world are watching to see if he makes good on current promises. Bankers are waiting and growing impatient as they have to keep refinancing small oil companies who can’t make their own timely payments because of Walker’s actions.

A SHIFT IN APPROACH? 

Last week, a slight shift of message occurred during a Senate Finance Committee meeting, when Sen. Anna MacKinnon asked Commissioner of Revenue Sheldon Fisher whether the Walker Administration understands that the State actually is obligated to pay these bills.

In a week full of dramatic hearings on criminal justice reform and opening the Arctic National Wildlife Refuge Coastal Plain for oil development, the nuanced answer Fisher gave might have been lost in the din.

“Yes, we acknowledge we owe the credits,” Fisher said. “And the only question is what is the rate of which we are going to pay them off and something we need to work on.”

It signaled a change in the Walker Administration doctrine, which has developed a hostile stance with not only major multinationals like Exxon, but now with small independent oil companies.

Fisher and the Office of Management and Budget are in the final stages of budget preparation. Gov. Walker must present to the Legislature his FY19 budget by Dec. 15, a budget that will be debated and signed during his re-election cycle.

THE BLUE CREST CASE

For the past three years, Walker has vetoed payments due to small oil explorers like Caelus Energy, Glacier Oil and Gas, ASRC, and Blue Crest.

These are among the companies lured north by the State of Alaska with promises of certain tax credits to entice them to explore for oil in Alaska.  But, since the Walker Administration stopped paying those credits as soon as it took office, those small independent companies are having to explain to their own lenders why they are not getting paid the now-delinquent tax credits they were planning to use to service their bank debt.

In August of 2016, Blue Crest Energy of Fort Worth, Texas hit the pause button on its oil wells in Cook Inlet. It was getting ready to lay off 150 or more full-time workers. It could not afford to continue if the State was not going to pay it the money owed Blue Crest for getting the Cosmopolitan Unit into production.

“What (the governor’s action) did is create a tremendous distrust of the state’s integrity going into the future,” BlueCrest President J. Benjamin Johnson told Petroleum News in 2016. “Unless something is worked out to help the small oil companies work through the payment delay, this is going to have a long term negative impact to the state and will surely come into play as the state tries to obtain financing for new capital programs.”

 

HENDRIX

John Hendrix

At the time, the governor’s oil and gas adviser, John Hendrix, said the Administration needed to see some production from the field so the state could get some royalties. The problem was, Blue Crest was producing and needed cash to keep going and it needed the State to pay its bill.

But John Hendrix took a hard line on the small companies. He told the Alaska Dispatch News:” We want them to have success and they’ve been working hard, but we need to see some production also. Drill for oil, not tax credits.”
It was a slap in the face.
Earlier this year, BlueCrest planned to suspend development drilling at the Cosmopolitan unit, saying the $75 million to $100 million the State owes it are too big a concern to ignore.
The hard line that Walker has taken against the small explorers has many observers concerned. Hendrix not only implied that Blue Crest wasn’t producing out of Cosmopolitan (which it has been), but he’s been badmouthing Caelus Energy, too, dismissing their massive find at Smith Bay. Hendrix’s attitude toward the Smith Bay field is now lore being passed through industry representatives in Alaska whenever they gather to discuss the future of oil in Alaska.
Rep. Les Gara even brought it up during committee hearings last week, saying that Hendrix was not a fan of Smith Bay.
“I know Mr. Hendrix was around and he was not so happy about it being pitched as a find,” Gara said. “As he described it, it was maybe a couple of wells and nobody knew of whatever pools of oil they saw were blocked off by formations that would make the field too difficult to drill.”
No one knows why Hendrix turned from an advocate for the oil exploration sector to someone now viewed as an adversary. He was brought into the Governor’s Office to be a powerhouse and help the governor get his priorities right. He came directly from Apache Corporation, a company that took tax credits payments from the State of Alaska, produced nothing, and left the state. He has served on the board of the Alaska Oil and Gas Association.
WALKER IN CHINA MAKING NEW DEALS
This week, Gov. Bill Walker is in China trying to complete a deal for the gasline he imagines will be built across Alaska. But while he’s signing ink to a memorandum of understanding, Walker has a string of broken deals and broken companies behind him.
While he travels back to Alaska from China, his budget people may want to hammer out a plan for paying those delinquent tax credits, because the banks who would finance his gasline — Bank of America, Credit Suisse, ING — are watching to see if his administration is even credit-worthy in light of its lack of performance on current debts.
In the past, Walker has proposed ways to pay down the tax credit debt, but it’s always been a lever against oil companies: He won’t pay them unless there’s a broad-based tax, and a higher oil taxes. He’s always said he had to have his whole fiscal plan — all the marbles — before he’ll make good on his obligations.
“The policy gyrations have also not been lost on our banks, Glacier Oil & Gas CEO Carl Giesler told the Alaska Business Monthly. “Many of the banks we’ve talked to about a revolving credit facility literally end the conversation when we mention that our assets are in Alaska. The state’s oil and gas sector has relatively few operators. The current fiscal policy uncertainty compounds the difficulty banks have committing human and financial resources to a relatively small market for lending services. Also, some banks have been burned by making loans against earned cashable tax credits that have not been paid.”
The reputation problem Alaska has is real. Walker’s challenge now is to show that Alaska is open for business, not only to China, but to small American companies and the banking community.

Jerry Nankervis files for House seat in Juneau

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A longtime member of the Juneau Assembly filed a letter of intent with the Alaska Public Offices Commission to run for  House District 34, a seat held by Democrat Justin Parish.

Jerry Nankervis, who serves as deputy mayor in Juneau, filed for the Mendenhall Valley seat earlier today. He is a Republican.

Juneau Democrats and Republicans alike see Parish as a weak legislator, and it’s possible he’ll face a primary in August if local Democrats think he can’t beat Nankervis, a retired police captain who has served on the Assembly since 2012.

Parish took office in January of 2017 after beating longtime Juneau Rep. Cathy Munoz, a Republican. Parish, a former school crossing guard, had run unopposed in the Democratic primary.

Rep. Justin Parish

Nankervis spent 24 years on the Juneau Police force, and has also been active in youth hockey in Juneau, in addition to his work on the Assembly. His bachelor’s degree is in science with a conservation emphasis. He’s married and has two sons.

Nankervis listed his main priorities as keeping Juneau affordable, maintaining the capital in Juneau, and jobs.

“On issues like crime, taxation and developing our natural resources, I believe my views very much reflect those of my Mendenhall Valley neighbors,” he said in a statement. “I don’t think we can tax our way out of a recession, and I am a firm believer in individual rights and personal property rights.”

Big per diem elephant: Executive branch

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Every fiscal hawk is looking for cuts to State government. Sometimes those cuts are right in front of a legislator — on a plate in a restaurant, perhaps. In Juneau, that’s not cheap.

The State Officers Compensation Commission reduced legislators’ per diem during a short work session in October. Lawmakers typically get between $20,000 and $35,000 a year to cover meals and lodging while in session. The commission chopped that about in half, although the calculation is unclear and the recommendations must still be approved by the Legislature.

The commission, however, did not touch the per diem of members of the Executive Branch during its review. That’s not in its purview, except for that of the governor and his cabinet.

Gov. Bill Walker, who is eschewing some of his own salary by donating it to charitable causes, has driven up legislative per diem costs by failing to veto over-spending and then calling lawmakers into numerous special sessions, during which they collect the extra per diem for being herded into Juneau.

An analysis of State per diem shows the Executive Branch, which includes the Governor’s Office and thousands of state workers, is 10 times that of the entire Legislature, which has traveled back and forth to Juneau to meet the requirements of the Special Sessions.

In all, Executive Branch state employee per diem exceeds that of all other branches of government — University, Legislature, and Judiciary — combined.

 

 

HOW DOES PER DIEM WORK FOR LEGISLATORS?

An explanation of how legislative per diem is awarded is in the Alaska Legislature 2016 Salary and Business Expense Report, detailing salaries, per diem and travel expenses during the calendar year 2016:

Legislators are reimbursed per diem for lodging and meal expenses during a session. During the regular session held in the capital city, the 57 Legislators whose place of permanent residence is not Juneau were reimbursed $223 per day from January 19, 2016 through February 29, 2016, and $213 per day from March 1, 2016 through April 30, 2016 and $247 per day from May 1, 2016 through May 18, 2016. Juneau Legislators received $167.25, $159.75 and $185.25 per day, respectively. In 2016, the 29th Legislature convened for 121 days in regular session.

a. Regular session per diem amounts received by Juneau Legislators should not be compared to session per diem amounts received by Legislators whose place of permanent residence is not Juneau as the daily rates are lower for Juneau Legislators.

The 29th Legislature convened in two Special Sessions during 2016. The first Special Session ran from May 23, 2016 through June 19, 2016, and lasted for 28 days. The Juneau per diem rate was $247 per day. Juneau Legislators received $185.25.

The second Special Session of 2016 (the 5th Special Session of the 29th Legislature) ran from July 11, 2016 through July 18, 2016, and lasted for eight days. The Juneau per diem rate was $247 per day, and Juneau Legislators received $185.25.

Legislators in travel status to a place other than their place of permanent residence are reimbursed a short term per diem rate or actual lodging expenses plus a meal allowance to cover costs associated with their business travel.

The 2016 legislative payroll and expense breakdown can be found here:

http://akleg.gov/docs/pdf/LBERS16WholeReport.pdf

Quote of the day: Pitney on Walker payroll tax

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“Again we are looking at a way to provide fiscal certainty, connect the economy to the state services received, get significant fiscal certainty. But we will continue to have the question of increased revenue or reduced services as we go forward.”

– Pat Pitney, Director of Management and Budget, answering questions in the House Finance Committee, admitting that the $325 million the Walker Administration seeks to gain in a payroll tax will cover only half of the fiscal gap she anticipates the state having on an ongoing basis.

In other words, this is just a start. The Walker Administration will be back for more next year.

MAGA: Ward, Scoresby named to Agriculture posts in Alaska

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Jerry Ward, a former state senator from Southcentral, has been named the state director for rural development in Alaska at the Department of Agriculture.

Ward was an early and active supporter of President Donald Trump, and was co-chair for Trump’s Alaska campaign. An Alaska Native, he served in the State Senate from 1997 to 2002.

He was on the president’s  transition team, where he served as the liaison to the 500-plus federally recognized tribes. He also was on the “beachhead” team at the Department of Education for the Trump transition.

“It is a honor to be selected by the President to fill the extremely important role of State Director of Rural Development in Alaska. I look forward to working with the President, Secretary of Agriculture, and the Assistant to the Secretary for Rural Development to increase rural prosperity and enhance customer service through innovation and partnerships in our state,” Ward wrote in a note.

Under Barack Obama, the state director position was held by Jim Nordlund, who resigned in January.

The Rural Development program added $2.1 billion into rural communities in Alaska during the eight years of the Obama era, for everything from business startups to sanitation systems in remote villages.

Bryan Scoresby was named director of the department’s Farm Service Agency for Alaska. From Wasilla, Scoresby began his career with the USDA in 1987 and came to Alaska in 1992 to serve as District Director of the Farm Service Agency.