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At the mercy of bureaucrats

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By ART CHANCE
SENIOR CONTRIBUTOR

I rarely write about anything but State matters, but I was a federal employee for awhile, and I know my way around the US government a bit.

In my time — almost 40 years ago — the federal government was very structured and rule driven. You started a memo with “Pursuant to the authority of nn CFR nnn, I have determined …”

Since the Clinton-Gore “streamlining,” the US has become much more of a cult of personality, and basically if the boss wants it, the boss gets it.

The State was already a cult of personality when I came to work there in 1987. It was the rarest State employee who had a clue why they did what they did or what legal authority they operated under; if the SOP or the boss said do it, they did it.

Back in the 1980s there was still some progeny of the old federal Territorial Service so in the ministerial positions there was at least the attempt to maintain some legal integrity. There were some finance, personnel, and procurement types who still had the skill and guts – and were close enough to retirement or didn’t know any better – to tell a director or commissioner s/he couldn’t legally do something.

By the 1990s those were all gone, though a few, veterans of the Department of Administration, remained dispersed around State government in places they could hide from the Knowles Administration’s “re-engineering” efforts.

We made some attempt to restore ministerial authority in the Murkowski Administration but the “get the boss what he wants” culture had become dominant. Any responsible Administrative Services director, finance officer, or procurement officer should have just flatly told Frank Murkowski he couldn’t buy that damned jet and if necessary told him that if it got mentioned again it would be on the front page of the Empire and the ADN. Instead, the people whose job it was to protect the governor from bad acts helped perpetrate the bad act. As far as I know, they’re all still working for the State and Frank Murkowski isn’t, in large measure because of that jet.

Which brings me to the current federal government.

Clinton-Gore purged everyone from the federal government who’d ever had a Republican thought and removed most ministerial processes in the name of streamlining.  Streamlining is Democrat-speak for “we can do what we want.”

George W. Bush did the usual Republican thing of appliquéing a few buddies in the high-level positions and leaving the Democrats in charge of the rest of the government.

Obama purged everyone on whom any Republican thoughts might have rubbed off. So now we have 25 years of people who were hired or promoted under the Clinton-Gore “streamlined,” anything-goes system. These are the people who are supposed to make sure hires are legal, security clearances are appropriate, travel is in accordance with the rules, and purchases are legal.

The Democrats have prevented the Trump Administration from meaningfully installing a government below the Cabinet officers by slow-rolling every appointment.   To make it worse, it is hard to find potential appointees who are willing to endure being mau-maued on national television, so the Democrats are able to essentially keep the Obama Administration in place below the cabinet officer level.

The grossly ineffective Jeff Sessions, a once-good man who spent too much time in the Senate, remains Attorney General because if he were removed, the Democrats would block confirmation of a successor and a demonstrably corrupt Obama holdover would be President Donald Trump’s attorney general.

There are people whose job it is to arrange the travel of cabinet officers and to make sure that travel is in accordance with the rules.   High-level ‘crats, and especially cabinet officers, don’t make their own travel arrangements; they tell a staffer to arrange a trip to Podunk on Friday, the staffer calls the travel office, and the travel office makes the arrangements.

Even if you’re a cabinet officer you travel cheapest and closest to necessary time unless there is an explicit extenuating circumstance or no other way to travel.  It is someone’s job to know that and even if the traveler wants something else, they can’t have it.

It was somebody’s job to refuse to book the charter flights that got the DHSS secretary fired. It was somebody’s job to refuse to make the travel arrangements that are hanging over Secretary Ryan Zinke’s head.  It was somebody’s job to refuse to even consider buying a $50,000 dining table for Sec. Ben Carson’s dining room, and that somebody who didn’t do their job was probably the one who leaked the contemplated purchase to the media.

Unless and until the Trump Administration gets some middle management hired/confirmed that actually knows how the government is supposed to work, they are going to be bedeviled by set-ups that are quickly leaked, and media demands for the heads of people who made the mistake of trusting the bureaucrats whose job it is to make sure that the rules are followed.

And it doesn’t just happen in DC; I’ve seen more than a few State of Alaska appointees set up and taken out by corrupt ‘crats in Juneau too.

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.

Power play, Begich style

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THE PRICE OF OWNERSHIP

The most powerful political figure in Alaska between now and June 1 is … Mark Begich.

That would make Gov. Bill Walker the most anxious political figure in Alaska, because of … Mark Begich.

Democrats are now worried about Walker’s reelection chances, with good reason. With his “unfavorables” extremely high and his favorables dropping, according to a recent Morning Consult poll, Walker is the least popular governor in the nation. He’s in a public opinion tailspin.

Appointed staff members in the Walker Administration are beginning to look for safe landing spots and have less than nine months to find one. The latest to hit the road is Craig Fleener, who was originally Walker’s running mate, but who was cast aside in 2014, and then given a cushy position that required no deliverables. Fleener is contacting influencers and reconnecting with the “other side.” Last week, the governor’s rural adviser Geoffrey Godfrey clocked out for the last time.

Gov. Bill Walker

Begich and the Democrats will try to push Walker into their Democratic primary once a Supreme Court case is decided this month that determines whether unaffiliated candidates like Walker can run on the Democrats’ primary ballot.

[Read the appellate court decision here that is being challenged by the State]

Organized labor can also be expected to put tremendous pressure on Walker to enter the Democrats’ primary.

If Walker does decide to go that way, Begich could easily beat him in that primary and has until close of business on Friday, June 1 to file as a candidate.

Talk about a nail-biter for Walker.

WHAT DOES THIS ALL MEAN?

It means between now and June 1, Mark Begich owns the governor. He can extract anything from him that he wants because the vainglorious Bill Walker loves being governor and will want to hang on, at any price. It remains to be seen if what Begich really wants is the big white house on Calhoun Avenue.

BLOOD IN THE WATER

For his September campaign kickoff in Anchorage, Walker boasted dozens of co-hosts from across the state, and he has signed up dozens of deputy treasurers for his campaign as a show of force.

But for this Friday’s Walker-Mallott fundraiser in the populous Mat-Su Valley, the governor could muster only a few loyalists, and some are retreads from the inaugural fundraiser above. Notably missing is Democratic Party Chairwoman Casey Steinau, even though she lives in the Mat-Su. During Walker’s election in 2014, her party was the key to his success, but it appears that either Walker is creating distance between himself and the Democrats, or the Democrats are “keeping their powder dry,” as instructed to by Mark Begich in an August letter to supporters.

Meanwhile, Begich will not forget that in 2014, Walker refused to endorse Begich’s re-election for U.S. Senate. Begich, who had won the seat from Sen. Ted Stevens six years earlier, lost to Dan Sullivan and is now looking for just the right comeback.

 

Mayor Berkowitz caught pushing sanctuary city tactics

WATCH THE VIDEO AND DECIDE FOR YOURSELF

Mayor Ethan Berkowitz was videotaped at the U.S. Conference of Mayors recently asking questions of immigration experts about how Anchorage could be more proactive in protecting illegal immigrants from federal immigration authorities.

He asks the experts, “In terms of DACA, in terms of Dreamers, in terms of making sure that we are providing every possible legal protection to people who might otherwise be subject to federal immigration authority.”

The experts explain that Berkowitz, a committed Democrat, can always sign on as an amicus (friend of the court) on existing lawsuits, but that’s not satisfying to him. Berkowitz explains he wants to take a more proactive approach in protecting illegal immigrants from the law.

“But I mean those are done in a defensive posture where you are relying on existing constitutional law,” Berkowitz argues. “Is there something proactive that we can…” his voice trails off as Avideh Moussavian, of the National Immigration Law Center, tells him how her group can help him develop model policies for Anchorage.

Here’s the explosive video of Anchorage’s mayor looking for ways to expand the definition of “welcoming city” during a time when crime is at historic highs, when unemployment is climbing, and when citizens are being asked to cough up more in the way of taxes to pay for declining services:

If only Mayor Berkowitz had this level of commitment to fighting crime in Anchorage.

 

Ballots everywhere — an opportunity for fraud

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PEOPLE IN ANCHORAGE WOULDN’T DO THAT, WOULD THEY?

Ballots were in the mail on Tuesday and by Wednesday some Anchorage residents were already receiving them — multiples of them. In one case, a man received two ballots to himself — one as Richard and the other as Rick. Residents in apartment buildings report receiving ballots for numerous previous residents.

This reporter was in possession of over a dozen ballots by Friday night — mostly belonging to neighbors who have since moved away — and was left wondering how many such stray ballots could be voted, signed, mailed and then slip by the human signature verifiers undetected? Thousands, we imagine. (Testing such a weakness in the system would be voter fraud, although Alaska law itself is weak in this area).

And then there’s the mail theft problem.

BALLOTS IN THE WILD

On Friday, the education and outreach coordinator for the Anchorage Municipal Clerk sent out this notice:

FOR IMMEDIATE RELEASE
 
Earlier today, MOA Elections was contacted by voters who reported theft of Vote by Mail ballot packages in the Chugiak area. The location of the reported theft was in the vicinity of Whispering Birch Drive, Oberg Road and Deer Park Drive. Forty-six ballot packages were turned in to the Chugiak Post Office.
 
The Municipal Clerk’s Office filed theft reports with the United States Postal Service Inspector General and the Anchorage Police Department. The APD Case Number is 18-502374. If anyone witnessed this crime or if someone has evidence of the crime, they are urged to contact APD by calling Dispatch at 786-8900, referencing Case #18-502374. Citizens may also contact Crime Stoppers at 561-STOP(7867).
 
The ballot packages turned in to the Chugiak Post Office were damaged and wet. The stolen ballot packages will be voided and new ballot packages will be issued to the voters. 
 
The Clerk’s Office thanks the alert community members who brought this to our attention, as their actions help us to ensure the integrity of the election. The Clerk’s Office considers reports of ballot tampering and theft of ballot packages as very serious and will follow up on those reports for referral to APD and the USPS Inspector General.
 

The Clerk’s notice identifies a problem that didn’t exist before — ballots are being found everywhere. But the Clerk doesn’t have a remedy other than to say that this is a problem that can be addressed only if the ballots are turned into the police, city or post office so they can “ensure” the integrity of the election.

A SYSTEM BUILT ON TRUST

How will Anchorage residents know that once they put their ballots in the mail or in a drop box that it will actually be counted?

Must Read Alaska called the Muni’s voting hotline (907-243-8683) and asked, “We used to be able to see our ballot go into a tabulation machine. We had certainty our ballot was counted and anonymous. Now, how can we be sure?”

The answer is less than satisfactory. It’s a system built on trust.

Ballots will feed into a scanner and two elections officials will check signatures against a database to verify identities.

Yes, the voting central offices are relatively secure and every corner is watched by a camera. But the only way to know if your ballot was actually received and counted is to call and give them your name and other identifiers. They will be able to look it up on a list. The information won’t be posted publicly but is public.

The number to call to verify that your vote was received is 907-243-8683 or e-mail the clerk’s office at [email protected].

The last day to vote is April 3. Mail your ballot, using a first-class stamp, or save on postage by bringing the ballot to a secure drop box in your area.

Must Read Alaska has concerns about the voting integrity and the ability of organized political groups to con ballots from trusting people and either mail them on their behalf — or not mail them.

In Palm Beach County, Florida last year, detectives found that extensive voter fraud had occurred when candidates and their surrogates cajoled voters into voting for them, helped them fill out their ballots, and on occasions actually filled the ballots out for them and signed them. No arrests were ever made.

[Read: Palm Beach Post report on voter fraud in 2017 mail-in voting]

IF YOU DON’T TRUST THE SYSTEM

If you have less than full confidence that the Anchorage vote by mail system is secure, you can use five accessible vote centers that will open March 26:

  • MOA Election Center
  • 619 East Ship Creek Avenue, Suite 100 at Door D (on the east side of the building)
  • All Municipal ballots will be available at this location.
  • Open:
  • Monday, March 26, 2018 to Friday, March 30, 2018, from 8:30 a.m. to 4:30 p.m.
  • Monday, April 2, 2018, from 8:30 a.m. to 4:30 p.m.
  • Election Day, April 3, 2018, from 7:00 a.m. to 8:00 p.m.
  • Anchorage City Hall
  • 632 West 6th Avenue, Room #155
  • All Municipal ballots will be available at this location. 
  • Open:
  • Monday, March 26, 2018 to Friday, March 30, 2018, from 8:00 a.m. to 5:00 p.m.
  • Monday, April 2, 2018, from 8:00 a.m. to 5:00 p.m.
  • Election Day, April 3, 2018, from 7:00 a.m. to 8:00 p.m.
  • ZJ Loussac Library
  • 3600 Denali Street, First Floor
  • All Municipal ballots will be available at this location. 
  • Open:
  • Monday, March 26, 2018 to Saturday, March 31, 2018, from 10:00 a.m. to 6:00 p.m.
  • Sunday, April 1, 2018, from 12:00 noon to 5:00 p.m.
  • Monday, April 2, 2018, from 10:00 a.m. to 6:00 p.m.
  • Election Day, April 3, 2018, from 7:00 a.m. to 8:00 p.m.
  • Eagle River Town Center (Same building as the Library) 
  • 12001 Business Boulevard, Eagle River
  • Community Room #170
  • Only Chugiak-Eagle River ballots will be available at this location.
  • Open:
  • Monday, March 26, 2018 to Friday, March 30, 2018, from 8:00 a.m. to 5:00 p.m.
  • Monday, April 2, 2018, from 8:00 a.m. to 5:00 p.m.
  • Election Day, April 3, 2018, from 7:00 a.m. to 8:00 p.m.
  • O’Malley’s on the Green
  • 3651 O’Malley Road
  • All Municipal ballots will be available at this location.
  • Open:
  • Monday, March 26, 2018 to Friday, March 30, 2018, from 10:00 a.m. to 6:00 p.m.
  • Monday, April 2, 2018, from 10:00 a.m. to 6:00 p.m.
  • Election Day, April 3, 2018, from 7:00 a.m. to 8:00 p.m.

map of Accessible Vote Center locations.

[Read: Double ballots, closed post offices, food for votes]

The Rogoff files: Fraud, deception, and reckless disregard

THE ROGUE PUBLISHER’S BANKRUPTCY CONTINUES 

Facing creditors who are accusing her of fraud, the former owner of the Alaska Dispatch News appears to be getting deeper into legal peril. Bankruptcy fraud is serious stuff.

Yet Alice Rogoff — yes, that Alice Rogoff — claims she is owed $16 million plus change by the Dispatch, the now bankrupt carcass of the former newspaper of Alaska’s largest city.

That newspaper was reborn in September as the Anchorage Daily News and is now owned by the Binkley Company, its rescuer.

Creditors have until Monday night to file all of their claims against the woman who waltzed into the newspaper business in Alaska in the early 2000s, and crashed a newspaper along with her airplane.

Rogoff, who purchased the paper when it was the Anchorage Daily News, and then changed its name to the Dispatch, filed her original Chapter 11 claim in Alaska bankruptcy court last summer. It didn’t take long for the court to realize the company had little value.

The East Coast divorcee and jetsetter claims to be her own largest creditor, conveniently. But there are many others to whom she owes money, examples of which include everything from the tax man, to a small shoe company, to a medium-sized landlord:

  • IRS $24,462, presumably for back taxes
  • Boot Country $119, presumably for work boots for workers
  • Arctic Partners: $2.4 million, presumably for rent not paid these many months.

A reasonable person might think she could pay for the boots, at least. Instead, she has been flying off to London, Boston, and even Barrow.

Other creditors will likely file before the Monday midnight deadline.

ELECTRIFYING CLAIM

And then we come to M&M Wiring: a whopping $1.529 million.

M&M is engaged in a take-no-prisoners approach to the rogue publisher from the East, and is claiming that Rogoff and her representatives were operating shell companies — businesses that they kept changing the names of and were using to stay one step ahead of creditors. Their claim narrative makes her operation sound vaguely criminal.

M&M alleges that Rogoff, her agents and legal representatives caused the electrical company to do more than a million dollars worth of work, and incur other costs, including attorneys fees.

According to M&M’s claim, Rogoff (or the Dispatch as the debtor, if you will) was losing $125,000 a week because of bad management and because Rogoff or her representatives raided the assets of the Alaska Dispatch News LLC. Yet they kept on ordering more work to be done by M&M.

Rogoff’s company is now in Chapter 7 bankruptcy. Liquidation, in other words, because there is no hope of it returning as a viable business entity.

“Rogoff and the Debtor contracted with M&M knowing that they did not have the money to pay for the improvements that Rogoff caused to be made to the Arctic Partner’s building located at 5900 Arctic Blvd,” the claim reads.

In layman’s terms, she knowingly stiffed M&M.

M&M claims that Rogoff, the Dispatch (Debtor), AK Publishing, the Moon and the Stars LLC were “essentially interchangeable, with respect to incurring and the payment of their respective obligations by the Debtor to its creditors detriment.”

This falls under the Alaska Unfair Trade Practices and Consumer Protection Act. M&M alleges Rogoff/Dispatch has engaged in unfair and deceptive actions.

THEN COMES THE ‘F’ WORD: FRAUD

M&M Wiring is accusing Rogoff/Dispatch of committing fraud and/or unfair business practices when she retained the electrical contractor to perform improvements to the Arctic Partners’ building, where Rogoff intended to move the newspaper printing presses.

Further, she and the Dispatch continued to promise to pay M&M in order to keep them working on the Arctic Partners’ building, even while she knew her newspaper was losing nearly half a million dollars a month and could not pay what it owed to M&M.

According to M&M Wiring, she and her attorneys knew they were engaged in an unfair or deceptive act or practice, had the “authority to control the activities,” and were recklessly indifferent or knew it was highly probable that the corporate entity or one of its agents, employees or attorneys were committing an unfair or deceptive act or practice and “intentionally avoided the truth.”

Here’s the kicker: M&M says Rogoff and her agents, and this would appear to include members of her legal team, “are personally liable for the injured party’s damages.”

“Rogoff knew that her actions or that of the agents, employees or attorneys and had authority to stop it, but failed to take reasonable action to do so,” according to the claim.

THE SHELL GAMES CONTINUE

Rogoff still has other court cases pending, specifically with GCI, which goes to court later this year, and her former partner at Alaska Dispatch Publishing LLC, Tony Hopfinger, who has sued her for $1 million or so he says she owes him. She paid him his first payment of $100,000 for a contract that she wrote on a bar napkin.

[Read: Clock is ticking for Dispatch]

[Read: List of Rogoff debts goes into millions]

But while Hopfinger cools his heels and waits for Rogoff to clear her other debts through the court, Rogoff has quietly changed the name of that company. A February filing with the Alaska Department of Commerce shows the new name of the company as M.O.N. LLC.

And she has quietly taken a personal asset that she specifically told the courts had no value — ArticNow.com — and changed its name to ArticToday.com, and is up and running again as a for-profit electronic newspaper.

What’s this? Juneau warming to a road?

A new McDowell Group poll shows that Juneau residents are warming up to the idea of a road to Katzehin River, and a short ferry crossing to Haines and Skagway.

The poll shows that while 54 percent of respondents said they support the project to Katzehin, some 60 percent would really like the project if it went all the way to Skagway. That Skagway option is not currently on the table and has many challenges associated with it, both environmental and cost.

The survey asked more than 400 people with both landline phones and cell phones their views on transportation issues facing the Capital City. The median age of the respondent was 49; the median age of Juneau is 47. Men favored the road more than women: 60 percent of male respondents wanted the road built.

The First Things First Alaska Foundation, which is a pro-road nonprofit group, and the City and Borough of Juneau commissioned the poll. For the Foundation, it was a big risk, according to those close to the group, because the McDowell Group is known to only conduct fair opinion polls, and the chips would have to fall where they may.

One takeaway, said Denny DeWitt of First Things First, is that the opposition to the road has been so vocal for years that the public thought the general sentiment was against the road.

In fact, in 2016 Gov. Bill Walker opted for a “no-build” (also known as “no-access” alternative) to Juneau Access because so many vocal Juneauites, many in his own administration, oppose the road. They comprise the most liberal, isolationist faction of the capital city.

But this first scientific data shows that Juneau as a whole actually favors the Juneau Access Project.

“This is the first true data set where folks are not bullied because they have a difference of opinion. This is the first time they could just answer the question and be safe and secure in their answer, and not be shouted down for it,” DeWitt said.

Those who favor the road have been subject to personal attacks, he said, and people who have private lives don’t revel at the idea of being heckled and booed at meetings. They just stay home.

“Folks are of the most part are saying, ‘I’ll be darned, that’s not what we’ve been told all this time,” DeWitt said. “This was a hell of a big crap shoot for First Things First,” because they sat down with McDowell Group and knew the company wouldn’t sign off on anything but a credible poll.

DeWitt has a point about the public opinion. In 2014, 40 out of 55 people speaking at a public hearing on the Juneau Access Project spoke against the project and only 13 spoke in favor of the 48-mile road, which is slated to cost $574 million. All but 10 percent of the project is federal money that has already been set aside.

Last week both state representatives from Juneau, Justin Parish and Sam Kito III, voted against restoring the state portion of funding that had been reserved for the project, which would bring hundreds of jobs to the Juneau area. The McDowell survey shows them out of step with more than half of their constituents.

While a road to and from the road system out of Haines and Skagway is still controversial, more Juneau respondents liked the concept of a second bridge to North Douglas, known as the North Douglas Crossing. Nearly 8 in 10 surveyed residents support the construction of a second bridge, including a solid 37 percent who strongly support the project. Just 14 percent are opposed.

The number one reason that people cited favoring the second crossing was access.

The ferries for the crossing from Katzehin to Haines and Skagway are already being built in Ketchikan as part of a project developed in 2013-2014, when the state decided to fund the entire ferry build, and turn back federal funds to allow an in-state shipyard to have a better chance at bidding the project. The award went to Vigor Alaska.

[Read: Road is essential infrastructure]

 

 

Booze summit: Bethel gets visit from Zulkosky, governor’s office

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BOOZE IS CAUSING PROBLEMS IN THE REGION

Rep. Tiffany Zulkosky, in office since being sworn in March 9, returns to Bethel this weekend with representatives from Gov. Bill Walker’s cabinet. They’ll address the gathering crisis developing with alcohol sales, Bethel residents, and people from nearby villages.

Letters from the villages of Napaskiak and Marshall, dry villages, have urged Walker to declare a state of emergency over liquor in Bethel, because too many village people are dying or being seriously injured since the city went “wet” in 2016.

Among those traveling to the “listening session” are Commissioner of Public Safety Walt Monegan, and representatives from the lieutenant governor and attorney general’s offices.

Zulkosky’s listening session on the impact of Bethel’s liquor store on surrounding communities begins at 5:30 pm Saturday at the high school, Room C-22.

The first liquor store to open in Bethel, which had been a dry community, was in May of 2016. By the first winter, 2017, the Bethel Search and Rescue team was overwhelmed with dozens of calls from people in danger because of consuming alcohol and being exposed to the cold. The volunteer team could not keep up and was working itself into exhaustion.

RURAL AFFAIRS ADVISER HITS THE ROAD

Not attending the meeting as a representative of the governor is Jerad Godfrey, Walker’s former Rural Affairs Adviser. Godfrey is ending his service to the governor after reportedly becoming cross-threaded with Lt. Gov. Byron Mallott, who is also Alaska Native.

Godfrey was the Director of Corporate Affairs for Afognak Native Corporation. He chaired Alaska’s Violent Crimes Compensation Board for 13 years, having been appointed by Alaska’s last three governors. Gov. Walker appointed him Rural Affairs Adviser in 2015.

No announcement has been made of his departure. Godfrey is of Alutiiq descent and was raised in Juneau, Northway, Bethel, Kodiak and Eagle River.

Revenue, CBR up, production flat, deficit down

DEPT OF REVENUE SPRING 2018 REVENUE FORECAST

The spring revenue forecast is out from the Department of Revenue today. On the whole, the state’s revenue picture is brightening a bit.

The State’s revenue forecast includes educated guesses for oil prices, oil production, and state revenue.

Unrestricted General Fund revenue is now forecast to be $2.3 billion in both FY 2018 (the year that ends June 30) and FY 2019 (the year that begins July 1). That’s money that will go into the General Fund and will be available for spending by the State for services.  It represents an increase in expected funds of $468 million over two fiscal years.

The revenue forecast is driven by expected North Slope oil production averaging 521,800 barrels per day in FY 2018 and 526,600 barrels per day in FY 2019. This is essentially flat since the previous oil production forecast.

Alaska North Slope oil prices are forecast to average $61 per barrel for FY 2018 and $63 per barrel for FY 2019. Last fall, the price was expected to be $56 for 2018 and $57 for 2019. Today’s ANS price is $65.

“Expected revenue has increased approximately $125M -$250M per year across the forecast period.  This is good news for all Alaskans.  Unfortunately, even after this additional revenue, Alaska continues to face a budget deficit in excess of $2.3 billion. The Administration will continue to work with the Legislature to address the fiscal gap during this legislative session,” said Sheldon Fisher, commissioner of Revenue.

The spring 2018 revenue forecast is at the Department’s website, at www.tax.alaska.gov.

An opportunity we can’t afford to miss

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BY CURTIS THAYER
PRESIDENT, ALASKA CHAMBER OF COMMERCE

As the president and CEO of the Alaska Chamber of Commerce, I was pleased with the recent passage of the Tax Cuts and Jobs Act of 2017. Its enactment is having a positive effect on our economy. Already, because of the tax bill, we are seeing new business investments, workers are seeing bigger pay checks because of less withholding, and in some cases getting bonuses. And, let’s not forget that opening the 1002 area of the Alaska National Wildlife Refuge (ANWR) was included in the bill as well.

The Alaska Congressional Delegation — U.S. Sens. Lisa Murkowski and Dan Sullivan and U.S. Rep. Don Young — deserve our thanks and gratitude for their part in helping get this legislation passed.

While we’ve heard quite a bit about the bill and its various components, including the fact that we’ll likely even see a reduction in some of our utility bills, it’s possible that you didn’t hear about one section that may prove to be one of the most important parts of the legislation.

The tax bill included a provision introduced by Sen. Tim Scott, R-South Carolina, to create an avenue for the more than $2 trillion in unused capital gains in our country to flow to distressed and rural areas.

If we can attract some of this capital to Alaska, it could be a game changer for our state.

How does it work? Based on income data, each state has a certain number of “Opportunity Zones” within which investment funds — which provide significant capital gains tax breaks for investors — can be established. Such funds will go to build or to supplement economic development projects in those areas.

In Alaska, we have 68 low-income census tracts and the governor can nominate up to 25 of them as Opportunity Zones. Designations are due by March 21 to the U.S. Department of the Treasury unless a waiver is requested and granted.

That means there’s no time to waste in letting the state know of your community or business’ interest in your area being nominated.

While I’m not a tax expert, many who are experts say that an Opportunity Zone designation could attract investors to projects, which could ultimately be a huge boost to communities.

A significant amount of economic growth has bypassed many of the communities and villages outside of our economic hubs. I believe that this provision could benefit many mom-and-pop enterprises in those communities and could provide incentives to invest in the areas in our urban areas that are under served. They could also lure investments to bigger development projects that are already underway in our state, which could benefit both the region and the state as a whole.

Congress has enacted a potent tax incentive for investors to reinvest investment gains designed to provide capital to businesses in distressed communities. Gov. Bill Walker will have to balance targeting the tax incentives to the most needy areas and selecting communities where new businesses are likely to be successfully launched. Let the governor’s office know if your community or business can benefit from a designation as an Opportunity Zone.

This is one of those opportunities that we can’t afford to miss.

Curtis W. Thayer is lifelong Alaskan and president and CEO of the Alaska Chamber of Commerce.