Sunday, November 16, 2025
Home Blog Page 1637

New video: Compeau original starring Don Young no longer ‘up’

5

‘I RIDE IT LIKE I STOLE IT’

UPDATED: The ad referenced in this story is no longer available and the link from this original story has been removed. Here’s the new video. The cameo appearance by Rep. Don Young is gone, (but not forgotten).

https://www.youtube.com/watch?v=tx8pZjyR8Qw

 

Craig Compeau, owner of Compeau’s Marine in Fairbanks, is known for his creative, campy, and often politically incorrect ad campaigns over the years as he sells all-terrain vehicles, jet boats, and snow machines, but this one will have you laughing out loud.

Must Read Alaska stumbled across an uncut version of it online, and it’s safe for work.

When asked about the ad, Compeau said he wants to have it up during the Super Bowl, but the TV stations are balking because in one brief scene a guy walks through a campsite looking for his bottle of blue pills — and he looks incredibly like Don Young, the longest-serving congressman in the U.S.

Either that, or he’s a doppelganger of Don.

The TV stations are worried they’ll have to give other potential candidates equal time, Compeau said. But it’s not a political ad, just one of a series of the Fairbanks Legends ads that Compeau has done.

The ad for the Can-am ATV stars Urban Rahoi, a 98-year-old daredevil bush pilot and World War II hero who has been flying consistently for 82 years. He flew a B-17 bomber when he was 94 years old.

The “old guy” in the middle is Cliff Everts, age 95. He founded Everts Air and is a Fairbanks legend in the aircraft business in Fairbanks and now in Anchorage.

On the right is former legislator Bud Fate, father of Julie Fate-Sullivan and Sen. Dan Sullivan’s father-in-law.

“It’s quite an interesting mix,” said Compeau.

Compeau has removed the 60-second version of the ad and is producing a shorter one. Must Read Alaska will post a copy of it here when it’s available.

“We were just concerned about overexposure before the ad runs during the Super Bowl,” — Craig Compeau

No pun intended.

 

 

Complaint: Alaska Democrats give undeclared aid to independents

0

The Alaska Democratic Party has been giving undeclared assistance to “nonpartisan” and other candidates. Along with Ship Creek Group, a campaign management company based in Anchorage, the Democratic Party has been allowing them to gain a $2,000 advantage over their competitors in races by giving them access to valuable lists, according to a complaint filed with the Alaska Public Offices Commission on Thursday.

Call it list laundering. While some candidates, like Rep. Ivy Spohnholz, paid full value for the data, others, like non-declared Jason Grenn, got the service for pennies on the dollar by going through Ship Creek Group.

It’s illegal, alleges Forrest McDonald, who at times has been a candidate but now mainly runs local and state campaigns. He told the Alaska Public Offices Commission this week that Ship Creek Group has been giving candidates access to a database owned by the National Democratic Party, and that is valued at $2,000 for every client they give it to. Neither candidates nor the party are disclosing the in-kind contributions to the watchdog agency.

Ship Creek Group is paying the $2,000 for access to the database called Votebuilder, and then giving their clients access to voter files as a part of a service bundle.

Votebuilder is exclusive to Democratic organizations and is used by subdivisions of the Democratic Party across the nation, including Barack Obama’s  presidential campaign all the way down to local races.

The Alaska Democratic Party has what’s called a “Coordinated Campaign,” where it offers services to Democrats, and now some chosen nonpartisans.

Ship Creek Group burst on the scene a few years ago, and quickly formed an alliance with the Democratic Party and Union political machine Lottsfeldt Strategies.

John-Henry Heckendorn, Ship Creek’s founder, could be found at Jim Lottsfeldt’s house most nights, along with Midnight Sun AK blog’s Casey Reynolds. Midnight Sun is a subsidiary of Lottsfeldt Strategies, which has also listed members of Ship Creek Group in its stable of talent. Today, Heckendorn is embedded as a de facto state-paid campaign manager for Gov. Bill Walker, and is seen with him everywhere.

According to McDonald’s complaint:

  1. The Alaskan Democratic Party owns access to a data service known as “Votebuilder.”
  2. Access to “Votebuilder” is only given to candidates who pay the party to join what is called “the Coordinated Campaign.”
  3. The Coordinated Campaign service costs $1,000 for a municipal race, $2,000 for a state house race, $4,000 for a state senate race, and $25,000 for a statewide campaign.
  4. Votebuilder access is strictly limited to Coordinated Campaign members, and limited access or individual mailing lists are not available for purchase.
  5. The Democratic Party has an undisclosed relationship to “Ship Creek Group.” No APOC transaction history between the Democratic Party and Ship Creek Group has been disclosed to pay for Votebuilder access.
  6. One transaction is disclosed in Federal Election Commission filings, but the October 2015 transaction is insufficient to explain the goods and services received.
  7. Some candidates using Ship Creek Group’s services paid the fee, while others did not, possibly to avoid disclosing coordination with the Alaskan Democratic Party so voters would not be made uncomfortable.

SMOKING GUN?

The evidence McDonald offers is:

  1. Alaska Democratic Party Campaign disclosure statements between Feb 2015 and Sept 2017 showed that some Ship Creek clients disclosed payment for Coordinated Campaign data service while others did not. No transactions between Ship Creek Group and the Alaskan Democratic Party to pay for data services were disclosed to APOC.
  2. Ship Creek Group pricing memo (shown below) explicitly states that they use the Democratic Party Database, “Votebuilder.”
  3. FEC filing entry which shows that Ship Creek Group paid only once for data access, and they only paid $2,000 although the actual fee for statewide use of Votebuilder per campaign is $25,000.

McDonald’s complaint lists the following candidates who used Ship Creek Group and his research on who did or didn’t pay for the data service was reported to APOC is noted:

  1. Eric Croft, Anchorage Assembly – Paid data access fee in full $1,000
  2. DeLena Johnson, Palmer House seat – did not pay for data access valued at $2,000
  3. Dean Westlake, Kotzebue House seat – Paid data access fee in full $2,000
  4. Forrest Dunbar, Anchorage Assembly – did not pay for data access valued at $1,000
  5. Gary Knopp, Kenai House seat – did not pay for data access valued at $2,000
  6. Ivy Spohnholz, Anchorage House seat – Paid data access fee in full $2,000
  7. Jason Grenn, Anchorage House seat – did not pay for data access valued at $2,000
  8. Adam Wool, Fairbanks House seat – did not pay for data access valued at $2,000
  9. John Weddleton, Anchorage Assembly – did not pay for data access valued at $1,000
  10. Zach Fansler, Bethel House seat – Paid data access fee in full $2,000

Rep. DeLena Johnson says that she told Ship Creek Group specificially to only use Division of Election data, and not to use the Democrats’ data.

The complainant, Forrest McDonald, runs a campaign consultancy called Fire Island Strategies. When he started looking into the relationships between Ship Creek Group, the Democratic Party, and certain candidates, he concluded that some nonpartisan clients are also using the Democrats’ database in violation of the national party rules, which excludes all but Democrats from access.

Jason Grenn and John Weddleton are registered as “other.” Gary Knopp and DeLena Johnson are Republicans, and it’s unclear if the fees they paid to Ship Creek Group covered use of the Democrats’ list.

McDonald also alleges that candidates like Grenn were not disclosing that they used the Democrats’ database, because they were trying to hide their affiliation with the Democratic Party.

SHIP CREEK GROUP’S SERVICE MENU

Like many campaign consultancies, Ship Creek Group offers myriad services. Here’s what the company’s “startup campaign service package” offers; access to the Democratic Party’s Votebuilder database is shown in red. That is the service that McDonald alleges some candidates didn’t have to pay for but received full advantage:

ITEM

AMOUNT

COST

SCG Campaign Startup

Services as described above.

$3,000

Votebuilder

(For duration of campaign)

$2,000 (for State House race)

Campaign Flier

5,000

$750

Digital Payments Processor

(For duration of campaign)

$.30 per trans. + 3% * amount.

Fundraising Mailer

1,000 households.

$1,000

Fundraiser Supplies

Food, remit envelopes etc…

$500

Facebook Ads

500 ‐ 1,000 page likes

$250

Website Hosting

(For duration of campaign)

$200 ($40 per month)

Office Supplies

Paper, envelopes, rubber bands…

$300

Yard Signs

500 lawn signs, 25 4by8s

$2,000

TOTAL

$10,000

  

“The FEC filing entry shows that Ship Creek Group paid only once for data access, and they only paid $2,000,” McDonald said.

“Some candidates, like Ivy Spohnholz, are wide-open Democrats and disclosed their relationship. But there was another category of candidates who did not disclose it,” McDonald said. That includes Republicans Gary Knopp and DeLena Johnson, of Kenai and Palmer, respectively.

APOC has yet to post the complaint on its web site. But staff will look at the allegations and make a decision about whether giving free access to valuable lists that some candidates pay dearly for is a form of unfair and undisclosed advantage.

Then, the agency will need to decide whether it will subpoena documents from candidates, Ship Creek Group, and the Alaska Democratic Party, which was notified of the complaint earlier today.

McDonald did not pursue whether Ship Creek Group is allowing Gov. Bill Walker to use the Democrats’ data from Votebuilder or from another source.

“What comes to mind, was this being used by the governor’s paid operative, John-Henry Heckendorn and his company, to grant favors to some candidates and not others?” said Tuckerman Babcock, chairman of the Alaska Republican Party.

The Democratic Party has changed its rules to allow others to run in their primary. But the national rule governing the use of Votebuilder is clear — it’s for Democrats only. If you’re using it, you’re part of the Coordinated Campaign of the Alaska Democratic Party.

Quote of the Day: AG calls SB 91 an experiment? Wait, wha-a-t?

0

“I don’t know if we got it right. I mean I think time will tell whether this experiment, because that is what it is. But there is evidenced based that, you know, resulted in the criminal justice reform changes that are under Senate Bill 91.”

– Attorney General Jahna Lindemuth responding to a question from Rep. Charisse Millett about repeat drug offenders.

IMG_7540.mp4

On July 11, 2017, Gov. Bill Walker wrote in the Alaska Dispatch News: “The criminal justice reform bill makes a number of very positive changes. A 13-member criminal justice commission — made up of judges, prosecutors and members of the law enforcement community — spent seven months participating in a rigorous, data-driven process that led to 21 recommendations.

“Each recommendation was rooted in research, and most were modeled after successful policies in other states. Those recommendations became SB 91. The bill was vetted through more than 50 hearings in five legislative committees. It passed with two-thirds majorities in both the House and the Senate.

“For the past decade, criminal justice policy has been developed without data or research. That needed to be changed. SB 91 is a reform effort aimed at maximizing the public safety return for each dollar spent.”

Borough residents face double taxation under governor’s wage tax

2

EXISTING ‘REQUIRED LOCAL CONTRIBUTION’ IS A TAX

By DAN BOCKHORST
GUEST COMMENTARY

In an address to Commonwealth North last month, Gov. Bill Walker claimed that Alaska is the “only state in the nation that doesn’t have a broad-based tax.”

DAN BOCKHORST

Scott Kendall, his chief of staff added that the lack of a broad-based tax creates what he called the “Alaska disconnect,” which occurs when growth leads to higher State costs without providing revenue to pay for the higher costs.

Remarkably, Gov. Walker overlooked in his comments the State’s Required Local Contribution for schools, which has been in place for more than a half-century and currently generates more than one-quarter of a billion dollars for the State annually.

Last year, Alaska Supreme Court Justice Daniel Winfree stated plainly that the Required Local Contribution “is a State-imposed mandate that municipalities raise specified funds for the State’s public schools system; it is a revenue source for the State — and a tax by any other name remains a tax.” (State v. Ketchikan Gateway Borough, 366 P.3d 86, 2016).

The State Required Local Contribution tax certainly does not suffer an “Alaska disconnect.” The RLC tax revenues are $11 million (4.6 percent) more this year than they were last year. Compared to five years ago, annual State RLC tax revenues have grown by more than $35 million (16.3 percent).

The State RLC tax is broad based; it applies to those living in Alaska’s 19 organized boroughs and 15 city school districts (684,797 Alaskans – 92.5 percent of the state’s population).

However, the State RLC tax is not universal; 19 school districts in Alaska — regional educational attendance areas or “REAAs” — are exempt from the RLC tax. There is no rational basis for the exemption (e.g., financial capacity). Residents of the 19 REAA school districts have simply chosen to remain unorganized since statehood, and thereby avoid the tax. In contrast, residents in Anchorage, Fairbanks, Mat-Su, Kenai, Kodiak, Juneau, Sitka, and Ketchikan were forced by the legislature and governor more than a half-century ago to form boroughs and pay the RLC tax.

Last year, the Fairbanks Daily News-Miner addressed the matter in an editorial as follows:

. . . [the State RLC tax] has caused division between areas of the state with borough government and those without: Why does the state require those in municipalities to pay more?

. . . It’s a fundamental disparity that has yet to be addressed by the state, and the amount local governments contribute is huge . . . .

. . . the issue is still in dire need of correction. . .

. . . this is a problem the state created itself, one it is currently exacerbating and one it must resolve to prevent resentment between state residents inside and outside boroughs. – Fairbanks Daily News Miner

This week, the Alaska Legislature convened a special session to consider a new tax – a tax on wages and net earnings from self-employment.

If the new wage tax proposal is enacted as presently written, residents of boroughs and city school districts will be double taxed.

Alaskans and nonresident workers in Alaska will pay the estimated $320 million annual statewide wage tax, which is equivalent to $432.53 for each of Alaska’s 739,828 residents. Of course, residents of Alaska’s 19 organized boroughs and 15 city school districts will also continue to pay the RLC tax, which currently extracts $251,962,124 – the equivalent of $367.94 for each of the 684,797 residents of boroughs and city school districts.

This means residents of organized boroughs and city school districts would pay the equivalent of $800.47 per capita in those two State taxes (1.85 times the $432.53 per capita tax for those who do not live in organized boroughs and city school districts).

If Gov. Walker’s wage tax is in our future in some form, legislators should modify the measure to institute a long overdue remedy to effectively eliminate the disparity of the RLC tax. This could be done by imposing two rates for the wage tax, one for residents of areas subject to the RLC tax and another rate that is 1.85 times higher for those who currently evade the RLC tax.

The State’s onerous and disparate tax in the form of the Required Local Contribution has existed for more than a half-century. The disparate taxation needs to end NOW.

Dan Bockhorst worked in the field of local government in Alaska for more than 40 years, including nearly 10 years as Manager of the Ketchikan Gateway Borough, 27 years as chief of staff to the State of Alaska Local Boundary Commission, and 4 years as the Haines city administrator.  He is retired and lives in Ketchikan.

 

Salary commission takes bite out of legislators’ pay

3

A state salary commission on Wednesday recommended a 10 percent cut to legislators’ pay, taking it from $50,400 per year to $45,360.

The State Officers Compensation Commission also reduced the per diem of legislators, who normally get about $200 per day for meals and lodging while in session. Now, they’ll see those payments cut by more than half.

Glenn Clary, who took over as chairman of the commission this week, said the Legislature must approve or reject those salary and per diem schedules by passing a bill within the first 60 days of regular session, and aren’t able to adjust the recommendations. It’s all or nothing.

Clary said the salary cuts are not retaliatory but that Alaskans have seen half of their Permanent Fund dividends taken from them by the Legislature this year, and “I’d like to hear from legislators about why they should not allow these recommendations to go forward.”

Commission member Duane Bannock wrote: “If the new salary (90% of $50,400) is considered, the total compensation package is now $52,380 ($3,780 x12 months + $2,340 x 3 months). It’s hard for me to think anyone can complain about a job that pays $52,380 + benefits for only being a part-time legislator, especially considering the fiscal position of the state.”

The commission did not touch the salaries of the governor, lieutenant governor or commissioners.

While Juneau is an expensive place to set up temporary residence for lawmakers, Juneau legislators Sen. Dennis Egan and Reps. Sam Kito Jr. and Justin Parish receive 75 percent of the per diem of other legislators, although they are not out of town on assignment.  The Compensation Commission did not alter that arrangement.

Quote of the Day: Wielechowski says oil tax reform a failure

1

 

FROM THE WAY-BACK MACHINE

“We were told by the Governor [Parnell] and his consultants that the last year’s Oil Wealth Giveaway would increase production within a matter of years … Today’s announcement by the Administration confirms that this approach is an utter failure, a flop of epic proportions.”

– Sen. Bill Wielechowski on April 7, 2014, in a press release criticizing SB 21, his legislative colleagues who voted for it, and the governor who signed it. SB 21 had passed one year earlier and had yet to face a Democrat-led referendum to repeal it on the August 2014 primary ballot. Oil production in 2014 totalled 530,000 barrels per day, and today it has edged up to 533,000 barrels per day.

 

Production forecast is out: SB 21 is working

3

ADMINSTRATION FINALLY ADMITS OIL PRODUCTION IS INCREASING

For three years in a row, Alaska’s oil fields have been producing more each year. That hasn’t happened since the 1980s.

Since Alaskans voted by referendum to support Senate Bill 21, the oil tax reform bill of 2013, energy companies felt they could invest and get a fair shake from the State, and oil production began increasing as a result.

But last spring, the Walker Administration’s production forecast predicted a catastrophic 12 percent decline for FY 2018 — that’s the current fiscal year. The administration had to walk back its forecast, blaming it on “stale numbers.”

The Department of Revenue also predicted that within 10 years, the pipeline would be carrying less than 350,000 barrels a day, a level at which many experts say the pipeline would struggle to operate.

Instead, there’s been a 2 percent increase, year over year — for three consecutive years. Today, the pipeline is carrying an average of 533,000 barrels a day, some 6,000 barrels more per day than last year.

A 14 PERCENT MISS AND THE ORIGINS OF FAKE NEWS

The 12 percent drop predicted by Walker, and the 2 percent increase in actual production — for a whopping 14 percent swing in projected output — shows that the Departments of Natural Resources and Revenue are still struggling to produce their own forecasts, which used to be done by a third party contractor.

It also may show that the Administration is willing to present fake numbers to lawmakers and the public in order to create a fake fiscal crisis that would convince legislators to enact one or more of the governor’s tax proposals.

“You can’t ask for taxes if the people don’t believe you. Once people figure it out, you have a hard time restoring crediblity.” – Tuckerman Babcock, chair of the Alaska Republican Party.

Under the old ACES tax regime, implemented during the Palin Administration, production was dropping more than 7 percent per year.

Today, the long-term declines have given way to actual increases. Much of the increased production this year is coming from Caelus, Hilcorp, ConocoPhillips, BP, and Exxon.

Hilcorp and Caelus came into the state, in part, to take part in the tax credit program. Hilcorp started in Alaska with the Cook Inlet Recovery Act, and did well enough that it purchased several fields on the North Slope and is now the poster child for how tax credits worked to increase production.

Caelus is still waiting for its credits to be paid.

MORE OIL ON THE WAY — IF ALASKA REMAINS STABLE

Armstrong Oil and Gas earlier this year predicted it has found 1.2 billion barrels of light crude, which may be the largest onshore discovery in America for the past 30 years.

The field is located in a prospect called Horseshoe, near the North Slope village of Nuiqsut and production could start in 2021 with 120,000 barrels a day, according to Plattes Analytics.

Caelus Energy has a huge find at Smith Bay on the North Slope.

Because of the conservative nature of the oil forecasts, only a fraction of those finds is included in the state’s prediction, which bodes well for production stability on the North Slope.

“The voters got it right with SB 21,” said one oil analyst, who has worked with oil tax legislation for several years. “Now if the state would pay its tax credits and get the hell outta the way, you would see a huge spike in production.”

Berkowitz budget puts Muni property up for collateral

4

 BORROWS $60 MILLION FOR PENSION OBLIGATIONS

The budget proposed by Anchorage Mayor Ethan Berkowitz has a sleeping giant in it — a plan to incur over $68 million in debt in order to pay another debt. The details were revealed at the Tuesday night Municipal Assembly meeting.

As the municipality heads into 2018, Berkowitz has proposed an overall budget of $519 million — the largest in Anchorage history, and the second year in a row the municpality will have pierced the $500 million mark.

Instead of trimming spending, Berkowitz plans to borrow more than $68 million to pay back an amount that is owed by the municipality to the Police and Fire Retirement System. He plans to put city properties up as collateral.

The city is obligated by settlement to pay $10.3 million a year until the pension fund is made whole. The obligation totals $68.6 million.

The budget avoids the $10 million annual obligation to the pension system by borrowing $68 million and paying it in one lump sum, and then paying back the loan over a longer period of time.  In the past years, the $10.3 million minimum payment was included in the operating budget.

Think of refinancing your home loan from a 10-year to a 30-year mortgage. Or paying off one credit card with another one. It’s a similar concept.

The lump payment must be agreed to by the pension board that oversees the fund.

“This ordinance would essentially allow the Municipality to forward-fund several years of contributions by making a lump-sum payment into the System of approximately $68.1 million. That amount would be treated as a ‘credit’ against the Municipality’s annual payment obligation. Following the financing, the Municipality’s payments to the System for at least the next six years would be eliminated,” the proposed ordinance reads.

The financial effect is that borrowing the money and paying off the obligation would reduce the city’s payment flow from $10 million a year for six years, but  would require paying $6.4 million for decades into the future — all the way to 2033, long after Berkowitz is out of office.  And, it would result in millions of dollars in interest costs that are not currently incurred by simply making the minimum annual payment.

The budget trick makes sense for a mayor going into an election cycle. Berkowitz, up for reelection in April, has had a tough year with soaring crime, unkept promises regarding public safety, and excess property taxes that were promised to be returned to taxpayers but were spent instead. And then, his administration and the liberal Anchorage Assembly raised property taxes by another 5.4 percent.

Now comes more borrowing.

“Did you look at the title?” asked Assembly member Amy Demboski of Eagle River. “It looks like a land lease. But it’s really putting city property up for collateral instead of trimming the budget. This allows them to hide $10 million in pension obligation debt that is normally included in the budget. It’s what we call cooking the books.”

Whatever you call it, it’s a way to push off payments into the future so that Berkowitz can have the size of government he wants going into the April 3 election.

Candidate for mayor Rebecca Logan raised an eyebrow when she learned of the Berkowitz borrowing plan: “In the explanation of the ordinance it says it ‘may be of benefit’ in the long run. It really downplays the risk. This is why the Senate would not go along with the governor’s obligation bond last year.

“But the underlying problem is we’re taking on debt to pay down debt. And we’re growing government.” – Rebecca Logan

Last October, Gov. Bill Walker attempted to borrow up to $3.5 billion to cover Alaska’s pension shortfall, but after running into opposition from the Republican Senate, he dropped the plan. The state was already sinking rapidly in its standing with major credit ratings agencies such as Moody’s and Standard and Poor.

Runoff: Charlie Pierce leads for Kenai Borough mayor

5

The Tuesday runoff election for Kenai Borough mayor appears to favor Charlie Pierce, with 51.66 percent and Linda Hutchings with 48.34 percent of the vote. Some 6,792 votes have been counted, but absentee and early votes are not included in that tally. There are as many as 1,000 votes yet to be counted and technically Hutchings could close the 226-vote lead.

The Oct. 23 runoff was the result of a three-way race on Oct. 3, when none of the candidates received more than 50 percent to have an outright win. Dale Bagley was on that ballot, and he received 29 percent of the vote, with Pierce at 38 percent and Hutchings at 31 percent. The election will be certified on Oct. 31, according to borough election rules.

The contest between Pierce and Hutchings grew testy in some political circles, and two weeks ago a lawyer representing Pierce served his opponent with a letter demanding that Hutchings and her surrogates stop making accusations of domestic violence against Pierce or face a defamation lawsuit. Later, some supporters of Hutchings posted actual court documents on social media to make their points.

Seventeen years ago, Pierce was charged with assault in the fourth degree during a dispute with his now ex-wife. The charge was reduced to harassment and he pleaded no contest, performed 40 hours of community service, and took a court-ordered class.

Pierce worked for ENSTAR Natural Gas Company for 39 years, with over two decades as ENSTAR’s division operations manager on the Kenai Peninsula. He retired in 2016. He also served on the Kenai Peninsula Borough Assembly from 2008-2014.

The outgoing mayor, Mike Navarre, heads to the Walker Administration, where he will serve as commissioner for the Department of Commerce, Community, and Economic Development. Navarre has served since Dec. 1, 2011 as borough mayor.

The borough government in Alaska is akin to a county government in other states. The Kenai Borough covers 29 communities on the Kenai Peninsula in Southcentral Alaska.

Borough election page results by precinct.