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Shirley Marquardt gets new job title: Exec. Director of ferries

Gov. Bill Walker has appointed Shirley Marquardt as the new executive director of the Alaska Marine Highway System.

She’ll head up a new position in the Department of Transportation that “will provide strategic direction to the system as a whole as well as oversight of operations, engineering, marketing and program development,” according to DOT Commissioner Mark Luiken.

In other words, it’s a deputy commissioner job with a different title, and it’s still a politically appointed job, which makes it highly unstable this election year.

Marquardt is the current director of Boards and Commissions for the governor, and was the mayor of Unalaska before that. If there’s someone who understands instability and politics, Marquardt is all that. Plus, she can bring in the Aleutian-to-Cordova vote come November.

“Shirley is an excellent choice for AMHS because she will help orient the ferry system to a stronger business model,” said Gov. Walker. “For the safety and prosperity of coastal Alaska and the businesses across Alaska who use the ferries, service should be reliable and predictable. ”

Marquardt will start in early June and be based at the AHMS headquarters in Ketchikan.

Changing the title for the person heading the ferries from “deputy commissioner” to “executive director” is a step in the process of making the ferries a separate public corporation.

And it comes after a year of no one at the helm of the ferry system. The most recent deputy commissioner in charge of the ferries was Mark Neussel, who left exactly a year ago. Neussl was a retired U.S. Coast Guard captain with 30 years of service; he was a technically savvy Department of Transportation deputy commissioner running the ferries for two years, and also ran the ferry system in 2011 and 2012.

The new corporation that is planned would still receive public funding but would be better for the public in ways not fully explained in this report, made to Southeast Conference last year.

MARQUARDT LEAVES BOARDS AND COMMISSIONS

For the most part, Marquardt’s position as the director of Boards and Commissions has been without controversy. She has overseen the appointments of hundreds of Alaskans to influential policy positions, and few have encountered resistance from the Alaska Legislature.

However, when the name of a Planned Parenthood activist was put forward to serve on a board overseeing the work of direct-entry midwives, the Walker Administration was deeply embarrassed by the choice, after it became public in MustReadAlaska.

And the appointments to the Board of Fisheries have been difficult as well. Walker’s appointment of Roland Maw became a stain on his administration; Maw is still in court fighting several felony charges that he defrauded the Permanent Fund Division by taking dividends when he wasn’t entitled to them.

Walker’s first Director of Boards and Commissions, Karen Gillis, also quit — quite publicly — after saying that Walker had jumped over her and appointed Roberta “Bobbi” Quintavell to a vacant seat on the Alaska Board of Fisheries, undermining Gillis’ credibility. The United Fishermen of Alaska objected to Quintavell’s appointment because of her ties to the Kenai River Sportfishing Association. That group, KRSA, had deep-sixed Walker’s prior choice for the seat, Robert Ruffner.

Again this year, a controversy arose when the governor decided to appoint Duncan Fields of Kodiak to a seat on the board that is normally reserved for a Matanuska-Susitna area person representing sports fishermen. Another kerfuffle ensued and 16 groups signed a letter opposing the appointment. Fields is a commercial fisherman and his appointment would have tilted the board power to the commercial side.

The governor has not yet announced who will take Marquardt’s place running Boards and Commissions.

Not so fast: Edgmon overstepped authority on Kito?

THE COUNCIL HAS THE POWER TO ELECT CHAIRMAN

A former senator says that Speaker Bryce Edgmon does not have the authority to remove Rep. Sam Kito as the chair of the Legislative Council, a joint legislative body that deals with the Legislature’s business in between sessions.

Former Sen. Bill Stoltze said by phone today that the chair of that council is formally appointed by the House and Senate members of the council themselves, and therefore can’t be fired by the Speaker.

He’s right.

“The legislative council is composed of the president of the senate and six other senators appointed by the president, and the speaker of the house of representatives and six other representatives appointed by the speaker. The membership from each house shall include at least one member from each of the two major political parties. The appointing authority in each house shall make and announce the appointment or reappointment of members of the council within 15 days after the convening of the first regular session of each legislature.” – Alaska Statute 24.20.020

The legislative council has the power:

(1) to organize and adopt rules for the conduct of its business – Alaska Statute 24.20.060

“The chair is selected formally by joint House and Senate members of the council,” Stoltze reiterated. It’s a position that rotates between House and Senate every two years.

Stolze referred to the coup of 1981, when Rep. Jim Duncan of Juneau lost control of the House. Even new speaker Joe Hayes was not able to get rid of Leg. Council Chair Hugh Malone. “The terms are set in statute and not subject to uniform rules,” he said.

[Read: A coup to remember]

For his part, Kito went onto Twitter with his complaint: “So I was removed from leg council for speaking truth to power, and all this is my reward for being the 21st vote on the operating budget on two occasions while the rules chair consistently voted against the majority.”

Kito is still steaming mad about Rep. Gabrielle LeDoux being able to vote against the majority, while the Democrats had to stay in their lane. At the end of session, he tried to have LeDoux removed as Rules chair, but it appears that she won the battle and instead had Speaker Edgmon eject Kito from his chairmanship of Legislative Council, although the legality of Edgmon’s move is now very much in question.

[Read: The original story on Kito’s removal as chair is here.]

Kito removed from key role chairing Legislative Council

Rep. Sam Kito, who represents the most liberal district in Alaska — downtown Juneau — was removed as chair of the Legislative Council yesterday. House Speaker Bryce Edgmon has appointed Rep. David Guttenberg in his place.

On Saturday, Kito nearly held up the adjournment of the Alaska Legislature by demanding the removal of Rules Chair Gabrielle LeDoux, and asking for $40 million more for the Alaska Marine Highway System. Otherwise, he’d be a no vote on the budget. In the end, he backed off of those demands.

Kito was a member of the Democrat-led majority but left the caucus earlier this year and said he would not run for his seat again. His replacement as chair of the council, Guttenberg, is also not running again.

The Legislative Council is a standing committee of 14 members of the Alaska House and Senate that conducts the Legislature’s business between sessions.

 

 

Sen. Anna MacKinnon: All done with Senate

The co-chair of the Senate Finance Committee is retiring from office after 12 years in the Alaska State Legislature. Sen. Anna MacKinnon will spend more time with family, she told Steve Quinn of KTVA.

The Eagle River Republican who has served as co-chair of Finance for four years is known for hard work, methodical attention to detail, making tough calls, and unflinching transparency.

But as a wife and grandmother, she has other things in mind for the coming years.

MacKinnon served on the Anchorage Assembly before running for District 17 House in 2006. She challenged Pete Kott, who was embroiled in a corruption probe and ended up going to prison.

In 2008, MacKinnon was re-elected with 6,857 votes, while Democrat Bill Gossweiler received 1,675 votes.

In 2012, she took on Sen. Bettye Davis, and with redistricting having changed the demographics of District G, she moved into the Senate.

She and John MacKinnon married in 2014 and she changed her last name from Fairclough to MacKinnon. Both have children and grandchildren across the Northwest.

Political observers earlier this year noted that she had not filed for re-election, nor had she indicated that she would.

Rep. Lora Reinbold of Eagle River is likely to file for the Senate seat. When Must Read Alaska spoke with her earlier this year, she said she would defer discussion of that until after the session concludes. Others who might file include Rep. Dan Saddler.

Juneau could do worse than Etheridge for Senate

AN OLD-SCHOOL LABOR GUY WHO WANTS JOBS FOR BLUE COLLAR WORKERS

By ART CHANCE
SENIOR CONTRIBUTOR

I don’t live in Juneau any more, but if I did, I’d probably be putting out yard signs for Don Etheridge’s Senate campaign.  Don is a union guy, so he’s a Democrat, but he’s the kind of Democrat that you can do business with; the kind of Democrat I used to be long, long ago.

You can’t be a Mat-Su Valley sort of Senator from Juneau.  I haven’t kept up with the district definitions lately, but Juneau is essentially two towns.   Downtown Juneau and Douglas Island are the Northern Edge of Ecotopia;  the Citizen’s Committee Against Virtually Everything (CAVE) people form the Politburo there.  That’s District 33, which in 2014 gave Bill Walker the highest percentage of votes of any district in the state — 64 percent.

If you live “out the road” in the Mendenhall Valley and beyond you feel like you need a visa to go downtown or Douglas.  Out the Road is District 34. In 2014, Bill Walker only received 49 percent of the vote for governor.

Who gets elected to the downtown House seat is decided over chardonnay and brie in somebody’s living room on Chicken Ridge or on 10th Street, so elections are pretty much a sham downtown.  That enables the communists — excuse me — Democrats, to devote all their efforts to deciding who gets elected from the Valley, which in this case is the Mendenhall Valley.

Don Etheridge, Cathy Munoz

Bill Hudson and Cathy Munoz have been Republicans elected from the Valley with enormous effort and expenditure to overcome the opposition from the Left. They’re better than a real Democrat, but not much.

After Sen. Kim Elton went to Hell, or as it’s called, Washington, D.C., to work under President Barack Obama, Dennis Egan became Juneau’s senator. Egan is far more conservative than Juneau Democrats would countenance had his name not been Egan. But there was no way Rep. Beth Kerttula was getting confirmed as a senator, so Egan pulled the short straw. Now Egan is leaving the Senate and the seat is, once again, open.

There is a line-up of lefty punks who’d like to be senator, and a Democrat Party that will pay for it.

And then there is Don Etheridge, who belongs to neither Democrats or Republicans.  I don’t remember when I first met Don; he was an executive board member as I recall when I was on the executive board of Laborer’s Local 71 back in the 1970s or early ‘80s.  We at least knew of each other, as we were on the union side. Unions, in those days, were made up of trade unionists, not communists.

In Local 71, we were understudies, disciples really, of Al Baffone. To this day even though I wound up on the opposite side of the table from him, I’ll freely admit that anything I ever knew about my trade, I learned from Al – and I beat him a few times.

Al Baffone

What we were about in those days was simply getting a decent deal.  We weren’t much about politics and most of us were pretty conservative, at least socially conservative.  None of us were communists; we were the inheritors of George Meany’s purge of the communists from the AFL-CIO in the Fifties.  We just wanted MORE, as Gompers said a century ago. We’d take what we could get, but we knew when there wasn’t any more blood in the turnip.

I went to work for State Labor Relations in 1987.  My co-workers were mostly college-educated white collar elitists, and I was a former member of the Laborer’s Union; we had our issues. It really shocked me how much they hated the State’s blue collar workers, and they weren’t real fond of me because of my association with them. The reality was that Al Baffone and the Laborers had embarrassed them.

Don got special opprobrium because in those days he was the State’s highest paid employee. He was responsible for maintenance of the State’s ferry docks. And by operation of the Fair Labor Standards Act and the Local 71 agreement, Don pretty much lived on overtime, Local 71’s version of very lucrative overtime pay.

Later on, he was with the District Council of Laborers and I was with the State. As I recall we never met in a hearing room, but we spent a lot of time in the Capitol halls.

Don Etheridge is a rational, practical man; Juneau can and has done a lot worse.

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.

Heads and tails: Who is running for office? Don Etheridge of Juneau

 

May is a busy month for filing for office. Be sure to keep up with who is jumping in the deep end of the pool by opening your Must Read Alaska Monday Newsletter and Wednesday and Friday News Flashes. Subscribe on the right side of this page.

The June 1 filing deadline fast approaches. Here are the recent additions to the political season:

Don Etheridge: For the District Q seat representing the capital city, union favorite Don Etheridge of Juneau has filed for Dennis Egan’s Senate position, which will put Egan’s aide Jessie Kiehl in a tough spot.

Kiehl, a Democrat who also serves on the Assembly, wants that Senate job, but Etheridge has union support.

Etheridge is undeclared with any party and is pro-Juneau Access Project. Kiehl is Democrat and anti-road. This will end up being a referendum on the road.

A 1971 graduate of Juneau-Douglas High School, Etheridge has decided to not run in the Democrats’ primary, but go on the ballot via petition.

Etheridge was once described by Must Read Alaska columnist Art Chance this way: “I like Don Etheridge; he’s a big, avuncular working-class hero kind of guy who had the distinction of once being the most expensive employee in State government. Etheridge is the Alaska State District Council of Laborers’ lobbyist in Juneau; he is a fixture in the halls of the Capitol and can get an appointment with anybody who is anybody in State government, whether the Administration is Democrat or Republican. He also has a cool tugboat.”

That is handy because he has also been chairman of the Docks and Harbors Committee for the City and Borough of Juneau. Read Art’s column from 2016 here.

Previously, Larry Cotter has filed for the District Q seat. He is a nonpartisan and will also file as a petition candidate.
Must Read Alaska is told Jessie Kiehl is planning to get in by June 22.
Tiffany Zulkosky
Tiffany Zulkosky: Rep. Zulkosky was appointed to replace the slap-happy Zach Fansler of Kotzebue, who was forced to retire after some dating violence allegations. She has filed to run for the seat.

House Democrats limp across finish line

SEXUAL HARASSMENT AND NO-RULES CAUCUS TOOK ITS TOLL

The drama of the Alaska House both last year and this year culminated this month with a painful limp over the finish line after a brutal 18 months of a “no caucus rules” Democrat-led majority.

To review:

Just last year, the new House liberal majority, feeling its oats and ready to rumble, censured Rep. David Eastman , a freshman Republican, for comments he made while not in the chamber.

Rep. Ivy Spohnholz led the chest-beating about Eastman’s remarks about rural women and their possible abortion-and-shopping trips to the city. Democrats, including Reps. Dean Westlake and Zach Fansler, chastened Eastman and tried to shame the Republican minority in the House, too.

A year later, not one, but three of the Democrats were forced from office for offenses against women: Westlake and Fansler were removed. Rep. Justin Parish was shamed into not running again. At least one other is running scared — scared that people will find out about his dalliances with staff members.

In happier times, Gov. Bill Walker poses with Reps. Zach Fansler and Dean Westlake, who he pushed into office.

The Democrats went from a majority of 22 to a fragile majority that teetered on 21 and at times 20, as first Rep. John Lincoln and then Rep. Tiffany Zulkosky were selected to replace Westlake and Fansler. They were solid, but they were brand new.

The Democrats were in trouble. They had a nonbinding caucus and the Rules Chair, Rep. Gabrielle LeDoux, had but one friend left in the House — Rep. Louise Stutes of Kodiak. By April things were going quite sideways for both of those women, who had already been kicked out of the Alaska Republican Party for double-crossing the Republican caucus.

Rep. Sam Kito

Then Rep. Sam Kito of Juneau said he wasn’t running again, and his votes and behavior started making the Democratic majority nervous.  He was erratic. They could not count on him.

This weekend, the operating budget was held up in the House for 24 hours because Kito was demanding that LeDoux be kicked out of the caucus. That, and he wanted $40 million for the ferry system. Or else.

The House leadership was split for much of the session, not only over whether to pay out a full Permanent Fund dividend, but also they were divided on the details of the restructuring of the Permanent Fund, moving to an endowment model — the POMV, as its called.

Between the reputation hits the Democrats were taking with Westlake, Fansler, and Parish, and the mess that the House had made in the fall during special session, when the governor asked for fixes to Senate Bill 91, (Senate Bill 54 reforming criminal justice reform), things had snowballed.

Democrats had sought repeated taxes on Alaskans and had gotten none, as the Senate held firm.

They’d sought levies on the oil industry, and gotten none, as the Senate held firm.

They had rashly tried to stuff the capital budget into the operating budget in 2017 (which ultimately went nowhere) and in 2018 sent over an education funding package to the Senate that had no funding attached to it (yet another embarrassment).

And this year, they all face re-election.

The Senate, a solid conservative majority, recognized that the House was in a mess and offered help: Pass a POMV bill and you can have your education funding for this year and next, the Senate offered. The House could either dig in its heels or agree. It agreed.

Reps. Geran Tarr and Louise Stutes

And miraculously, even Rep. Geran Tarr, who is rabidly anti-oil, pulled back her oil tax bill. Her co-chair of Resources Committee, Rep. Andy Josephson, let the oil tax credit bonding bill move ahead, even through he hates tax credits.

It was almost as if the House Democrats were saying, “OK, we’ve tried it the Bernie Sanders way. Now let’s try it the Joseph Lieberman way.” Enough of ideologues, it was time to deal.

And so, no taxes on Alaskans.

No taxes on oil producers.

Full funding of education.

Creative funding mechanism for past-due oil tax credits.

Funding for troopers.

And a budget that is bigger than what the Senate wanted but not embarrassingly so.

Speaker Bryce Edgmon

Speaker Bryce Edgmon, who had watched as his entire no-rules caucus nearly come apart at the seams with class warfare breaking out all over, was able to bring his whole difficult crew together to adjourn in the wee hours of Sunday morning.

Some say there is a maturing that has occurred. Others say it’s been a humbling experience for the Democrats, who have been embarrassed repeatedly by their butt-grabbing, cheek-slapping colleagues.

Being in a position where they have actually had to lead may have forced some of the Democrats to understand that lawmaking is about the art of compromise with an imperfect organization made up of mere mortals.

 

Stealth anti-Pebble resolution on Mat-Su agenda?

The borough manager of Mat-Su is asking the Assembly to approve a resolution that some say is a stealth endorsement of the “Yes for Salmon” initiative that appears to be headed for the November ballot. That initiative is a shot across the bow of the proposed Pebble project in western Alaska, but also has industries worried across the state.

Manager John Moosey’s resolution wording is elastic, but supports “requirements that outline a clear standard so that responsible resource development protects our fisheries and enhances our communities and our economies.”

The resolution is on the consent agenda of the Assembly’s Tuesday meeting. That’s what has some eyebrows raised.

Consent agendas typically are approved without much discussion, allowing governing bodies to sweep up routine business into one action. The items on a consent agenda are considered noncontroversial and self-explanatory, matters that can be consolidated and approved with one motion and vote, and usually take less than 30 seconds of a meeting.

The resolution loosely describes the need for “science-based standards and forward looking policies to help ensure a balance between the critical fish and wildlife resources of the region with other needs of the population, including responsible resource development.” These are all things that the State is already charged with doing — using science and balancing competing needs.

Skeptics wonder where the wording came from and who is behind the resolution. Brian Endle, one such critic, wrote that the resolution will:

  • Increase restrictions on nearly all development, especially the oil industry
  • Increase the ability of groups inside or outside of Alaska to bring litigation against Alaskan industry
  • Increase project time span and costs for Alaskan industry via permitting
  • Drastically increase the cost and decrease the ability to build ice roads in Alaska
  • Support riparian regulations (government regulation of shoreline)

But Borough Manager John Moosey explains that in 2017, the Alaska Board of Fisheries made a recommendation to strengthen the Department of Fish and Game’s permitting program by considering the creation of enforceable standards aimed at protecting fish habitat and guiding the permitting process. Alaska’s Title 16 has not been updated since statehood, he wrote.

However, the Yes for Salmon (or Stand for Salmon) initiative proponents are saying the same thing: A rewrite of Title 16 is needed to prioritize salmon habitat over all other needs and human endeavors. Yes for Salmon is a requirement that all andronomous fish be protected through stringent regulations throughout the watersheds of Alaska.

Some say that will destroy  mining, oil, and gas, and that the initiative is a naked attempt to shut down the Pebble Project by creating standards that are impossible to meet.

The Mat-Su Borough meeting is Tuesday, May 15 at 6 pm in the Assembly Chambers, 350 E. Dahlia Ave., Palmer.

Legislature passes operating budget

The House and Senate passed the final version of the State’s operating budget for the fiscal year starting July 1. Now, adjournment is just some formalities away.

With $3.1 billion in unrestricted general funds added to a previously passed $1.28 billion education budget, the total is $4.39 billion, plus $1 billion for Permanent Fund dividends of $1,600 each to qualifying Alaskans.

The minorities of each body voted against the budget, (Republicans in the House voted no, and two Democrats and two Republicans in the Senate did the same. Sen. Begich and Wielechowski, both Ds, voted for the budget, with Republicans Shelley Hughes and Mike Shower voting against it.)

This year’s operating budget inched higher than last year’s by $170 million, but is still $1 billion less than 2015.

The budget increases come in large part from the Department of Health and Social Services due to the Walker administration actively recruiting applicants for the traditional part of Medicaid (not the expansion), where the state must pay 50 percent of the cost.

The budget draws $600 million from the Constitutional Budget Reserve and covers some of the gap with a structured, sustainable drawdown of $2.7 billion from the earnings portion of the Permanent Fund, based on an endowment model approach called POMV — percent of market value. The Legislature earlier had passed the structure necessary to limit the amount of money lawmakers can spend from the Permanent Fund’s earnings.

None of this came with the multiple taxes that have been sought by Gov. Bill Walker and the House Democrats since 2015. The budget is also smaller than that requested by the governor; he asked for $4.7 billion.

And legislators set a Permanent Fund dividend that is more than 30 percent larger than what Gov. Walker proposed in December; he wanted dividends set at $1,216.

“The Legislature prioritized the state’s constitutional obligations in this budget,” said Sen. Anna MacKinnon, co-chair of the Senate Finance Committee. “There’s still much work to be done. The Legislature must continue to pursue legislative reforms to reduce the size of government and fix the structures and programs that aren’t providing the maximum return for Alaskans.”   

“A lot of thought and hard work went into this budget,” said Senate President Pete Kelly (R-Fairbanks). “I am grateful for the work of my colleagues as well as the patience of Alaskans throughout this process.”

The operating budget passed the Senate by a vote of 15 to 4 and the House 21 to 19 for a combined vote of 36 to 23.

The unrestricted general funds for agency and statewide operations — those funds that the Legislature has control over — is the $4.39 billion amount. Add in designated funds and federal funds, along with the Permanent Fund dividend payments, and the budget swells to $10.3 billion, or about $14,000 per Alaskan.