Gov. Bill Walker in January, 2017. (James Brooks photo)
Are the stars misaligning for Gov. Bill Walker of Alaska? In just one year his approval rating among voters has dropped from 50 percent to 42 percent.
In the same period, his disapproval rating has risen from 41 percent to 48 percent, according to a major poll released today.
As the first gubernatorial candidates are beginning to file letters of intent, politicos are watching to see if Walker’s fortunes are fading enough for his Democrat base to abandon him and slide a candidate onto the D-ticket. In 2014 the Alaska Democratic Party vacated their gubernatorial candidate and supported Walker as their only path to victory.
A recent straw poll in Eagle River, not scientific but a “sense of the court,” placed Walker sixth, behind Sen. Mike Dunleavy, a Republican who has announced his candidacy. He even placed lower than U.S. Sen. Democrat Mark Begich in this solidly Republican corner of the state.
In 2014, Walker won election with the endorsement and financial support of the Alaska Democrats, winning with 48 percent of the vote.
Morning Consult surveyed 195,704 registered U.S. voters from April 1 through July 10 to determine the latest Governor Approval Rankings.
Gov. Walker, who has left the political party system that hasn’t worked for him, came out in the bottom fifth of all governors.
Only seven others ranked lower than Alaska’s no-party governor.
Cutting the Permanent Fund dividend, his obsession with building a gasline, and lack of leadership were the reasons people have cited in more scientific polling done recently, results of which have not been widely shared.
At the bottom of the popularity pack was N.J. Gov. Chris Christie, followed by Sam Brownback of Kansas:
In the survey, voters were asked it they approve or disapprove of the job performance of President Donald Trump, their state’s governor, both of their U.S. senators, their U.S. House representative and their mayor (if they live in a city with more than about 10,000 residents).
For each question, they could answer strongly approve, somewhat approve, somewhat disapprove, strongly disapprove, or don’t know / no opinion.
Eagle River Republicans’ booth offered a straw poll during the Bear Paw Festival July 12-16. The poll was open to all. Participants self-selected, and were handed a ballot with potential gubernatorial candidates. They were allowed to vote for one.
The results:
The most interesting part of the process, said District 12 Chairman Ron Johnson, was to discover how many people had not heard of anyone on the list.
Johnson surmised that Dan Sullivan, former Anchorage mayor, came out on top because of his popularity as a mayor. Sulliavan isn’t running for governor, but has told people that he is running for Anchorage mayor in 2018, after having had a three-year break from the job. He had not filed as of Tuesday morning.
Joe Miller, who was second most popular on the straw poll, has also not announced he is running. In fact the only person who is certain as a candidate is Mike Dunleavy, who came in fifth, behind Mark Begich.
Straw polls are unscientific, of course. They are conducted with different methods and are useful only as a general gauge of those who self-selected to participate in the poll.
Gov. Bill Walker announced today the State has come to an tentative agreement with Ahtna Corp. over the public right of way on the Klutina Lake Road.
Pertinent settlement terms Ahtna and the State have agreed to, as described by his office, include:
Relocation of public parking and other facilities at the Gulkana River boat launch to protect historic townsite and cemetery
A 100-foot-wide state highway right-of-way along Klutina Lake Road
Fishing, daytime parking, and boating access (without a trailer) from the Klutina Lake Road right-of-way
Three locations along Klutina Lake Road where the public can launch boats using trailers
Camping and overnight parking opportunities provided by Ahtna for a reasonable fee outside of the Klutina Lake Road right-of-way, including at Boys’ Camp
A new 50-foot-wide state right-of-way to connect Klutina Lake Road to state land on Klutina Lake that has excellent potential for public recreation and hunting
The State is accepting public comment on the settlement that will give the public limited access to Klutina Lake and other waterways. Deadline for public comment is Aug. 30.
“This agreement is a good-faith effort to balance private ownership and public access needs,” said Attorney General Jahna Lindemuth. “While every settlement involves give and take, both sides were able to address the issues most important to them in this proposed settlement, including maintaining reasonable public access, and avoid the uncertainty of a long trial and likely appeal. The state will go to court when it makes sense, but we believe a settlement in this case provides a better opportunity to protect access to state lands and waters.”
The proposed settlement could end litigation between Ahtna and the State of Alaska regarding property interests and use of Klutina Lake Road.
It could resolve long-standing impacts to the Gulkana historic cemetery and townsite — while maintaining public access to fishing areas and outdoor recreation, according to a press release from the governor..
“During my visit to Gulkana last year, traditional Chief Fred Ewan told me he would like his village to regain ownership of his people’s ancestral land and burial sites,” Gov. Walker said. “I listened. The state has been locked in costly litigation for too long. I applaud Attorney General Jahna Lindemuth and Ahtna for coming to an agreement that protects public access to land while finally correcting this 50-year wrong.”
The lawsuit was filed by Ahtna in 2008, claiming the state was trespassing over Native lands by allowing the public to use the historic road.
The State, under former Gov. Sean Parnell, counterclaimed, saying the public has a public right-of-way under federal Revised Statute 2477. Both parties agreed there is an existing public road, but they disagreed on the width, scope of use and the State’s property interests in the road. The parties attempted to settle the lawsuit unsuccessfully under the prior administration.
Gov. Walker’s Attorney General Jahna Lindemuth began negotiating an agreement in 2016, and her actions nearly cost her her confirmation by the Legislature.
In January, the parties again began working through a mediator. After initially failing to come to agreement with the mediator, the parties continued discussions and agreed upon a settlement framework that included the “must haves” for the State (a 100-foot-wide right-of-way and ensuring the public’s ability to continue using the road to access outdoor activities) and for Ahtna (minimizing impacts to its private property rights and enabling Ahtna to better manage its lands and resources).
Copies of the proposed settlement agreement, maps, Judge Guidi’s order, the initial settlement framework (Klutina Lake Road – Framework) and a question-and-answer sheet can be found at www.gov.alaska.gov/klutina-gulkana-settlement. Copies of the material can be obtained from Department of Natural Resources in Suite 1260 of the Atwood Building, 550 W. 7th Ave., in Anchorage, or the Fairbanks Public Information Center at 3700 Airport Way.
Public meetings will be held in:
Gulkana – Tuesday, Aug. 1, from 3-5 pm at the Gulkana Hall, Gulkana, (traveling north on Richardson Highway, turn right at the sign for the village after the Gulkana River bridge)
Glennallen – Tuesday, Aug. 1 from 6:30-8:30 pm at the Alaska Bible College-Murdock Campus Center at 200 College Road
Anchorage – Wednesday, Aug. 2 from 6-8 pm in Room 104 of the Atwood Building, 550 West 7th Avenue
Wasilla – Thursday, Aug. 3 from 6-8 pm in Meeting Room 1-3, Curtis D. Menard Memorial Sports Center, at 1001 S. Clapp Street
Fairbanks – Monday, Aug. 7, from 6-8 pm in the Noel Wien Library auditorium, located at 1215 Cowles Street
Meetings will consist of informational sessions where details of the proposed settlement will be explained, followed by an opportunity for the public to provide comments.
Written comments can be sent to [email protected] or mailed to Department of Law, c/o Natural Resources Section – Klutina/Gulkana Comments, 1031 W. 4th Ave., Suite 200, Anchorage, AK 99501-1994. Written comments must be received by Aug. 30.
Sen. Mike Dunleavy of Wasilla filed a letter of intent with the Alaska Public Offices Commission today to run for governor. He is a Republican.
Dunleavy, who represents District E, left the Republican caucus earlier this spring after breaking with the caucus about cutting the Permanent Fund dividend as part of the overall state budget solution.
His plan was to make more significant cuts to government spending and restructure the Permanent Fund in such a way that the dividends were fully funded in the traditionally calculated method. Before parting ways with the caucus, he served on the Senate Finance committee and was chaired the State Affairs committee.
A former superintendent of schools, Dunleavy earned a bachelor’s of arts in history from College Misericordia, now known as Misericordia University, in Pennsylvania and his master’s degree in education at UAF.
His political experience includes being elected a board member of the Mat-Su School District, where he served also as board president.
His resume includes working as a superintendent, principal, vice principal, teacher, program manager of the Alaska Statewide Mentor Project, and owner of an education consultancy.
He is married and has three children.
“We welcome a strong candidate to the Republican primary race for Governor,” said Tuckerman Babcock, chairman of the Alaska Republican Party. “The Republican Party looks to Alaskans to choose the best Republican candidate, and then we expect our team to offer the best choice for Governor in 2018. The race is on! Our platform is clear for the Republican team: More oil and gas = low taxes = more jobs. Our State Convention is planned for Anchorage, March 8-10, and we invite all Republicans to save the date.”
* * *
Dunleavy wasn’t the first Republican to file for governor for 2018. That award goes to Michael Sheldon of Petersburg, who filed his letter of intent and has a web site.
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Rep. Chris Birch speaks in favor of the HB 111 compromise, saying no legislation is perfect, but ending cashable credits is a milestone.
A FINAL END TO ACES
A cash incentive program that has been successful in bringing smaller oil companies to explore and produce oil in Alaska’s North Slope oil patch has come at a price — one the State of Alaska can no longer afford.
In the late hours of Saturday night, both the House and Senate agreed to end the cashable credits that brought companies such as Caelus Energy and Armstrong Oil and Gas to Alaska.
The credits program was part of the old ACES tax regime. House Bill 111 addressed some of the unintended problems that ACES created.
WHAT HOUSE BILL 111 DOES
Instead of cashable credits, HB 111 moves companies to a tax deduction system, limiting the timeframe for when companies can deduct their net operating losses, basing it on actual production. It’s a measure that is going to make it more difficult for smaller oil companies, because getting a field into production takes many years of investment and initial losses.
The bill will save the State $200 million in the remainder of 2017, but will make it harder for Alaska to attract the smaller companies to what is an expensive operating environment, where oil tax systems have changed constantly.
HB 111 allows oil companies to carry forward losses for either 10 or 7 years, depending on the field’s production. The bill sets an interest rate of 5.25% above the prime rate for money owed to the state by any entity, so effectively 7 percent, as the prime rate is 1.75 percent currently. This is the rate for all delinquent taxes, not only oil and gas.
“The Senate initiated credit reform in 2015,” said Sen. Cathy Giessel, who has led the effort to reform the cash payment program, starting with the Cook Inlet oil and gas fields in legislation that passed in 2016. “Tonight’s action is the culmination of that work and sets the State on a responsible, sustainable course.”
“We’re committed to maintaining a fair, competitive oil tax regime that secures these private-sector opportunities,” said Giessel, chair of the Senate Resources Committee. But she told reporters that, “This bill — make no mistake about it — is a tax increase.”
Senate President Pete Kelly, R-Fairbanks, said, “We do not believe this cash payment reform will significantly curtail investment or endanger jobs.”
The legislation has other provisions, such as “ring fencing,” which limits the ability of explorers to transfer net operating losses between fields before getting to production. In the future, carry forwards can only be used against the field where they were incurred until production begins. In the past, they could be applied to any N. Slope field where the company had a working interest.
Rep. Tammie Wilson, R-North Pole was a no vote on the legislation, saying the fiscal notes on the bill did not add up, and she would need more time to study the bill. Other no votes were Republican Reps. Cathy Tilton of Wasilla-Chugiak, Mark Neuman of Big Lake, George Rauscher of Mat-Su-Valdez, David Eastman of Wasilla and, surprisingly Democrat Sam Kito of Juneau. Rep. Ivy Spohnholz of East Anchorage was not present.
Rep. Tammie Wilson of North Pole speaks about the fiscal notes on HB 111 and her concerns about being rushed to vote on the legislation.
The Senate was unanimously in favor of the bill.
Gov. Bill Walker signaled that he will sign the legislation, but once again called for an income tax on Alaskans, although did not refer to it specifically: “Alaskans deserve a complete fiscal plan and economic stability for the future. I urge lawmakers to continue with this spirit of compromise and collaboration, and pull together to fix Alaska.”
PRIVATE SECTOR RESPONSE: THIS HURTS SMALL COMPANIES
The Alaska Oil and Gas Association noted on Twitter, “Make no mistake: HB 111 will have a negative impact on investment in Alaska. 7th tax change in 12 years.”
One oil company associate speaking on condition of anonymity said the legislation will lead to major companies once again dominating oil production from the North Slope: “So the types of players the Democrats have been courting for years — the small companies — they have effectively just chased away.”
Ending the cash credits was one part of the overall fiscal plan. The governor has also repeatedly called for a “broad-based tax” on Alaskans as a “must have” part of his complete fiscal plan. He is no longer using the words “income tax,” though that is what he has in mind.
DEMOCRATS STRUGGLING IN CAUCUS
The difficulty that the House Democrat-led majority is having within its ranks was evident on Saturday, when the conference committee for HB 111 was set for 1 pm, but did not convene until after 9:15 pm, less than three hours before the special session would end.
That delay was because Reps. Paul Seaton of Homer and Les Gara of Anchorage blew up the fragile compromise by once again trying to force even more onerous conditions on the small oil explorers. Outside of caucus, no one knows what their demands were, but they were enough to keep legislators on campus until the final hour.
Rep. Les Gara of Anchorage talks about how the state has gone from the best credit rating in the nation in 2014 to the worst credit rating in the nation in 2017. He was making a case for income taxes during the waning hours of the second special session: “There’s a big part of the job this legislature has not been able to come together to do.”
Rep. Geran Tarr, the Democrats’ chair of the conference committee on HB 111, was attempting to get to a resolution, but every time she and Sen. Giessel had a handshake agreement, Tarr took it back to her Democrat-controlled caucus, where it was rejected by members more powerful than she.
For much of the afternoon and well into the night, it appeared that the legislation would fail altogether.
CAPITAL BUDGET NEXT
Because of the deep philosophical differences between Republican-led Senate leadership and Democrat-led House leadership, Gov. Walker was forced to separate all items of legislation into individual special sessions, so that Democrats could not leverage every important piece of legislation against some other one in order to get an income tax passed. The Senate Republicans have held firm on opposing income taxes at this time.
The capital budget — money for road work and other infrastructure — is the next critical item remaining. Early Sunday, Senate President Pete Kelly invited the House to tackle the capital budget in a third special session, which would begin this week. House leadership did not immediately respond.
As drafted, the capital budget would use $56 million in state money to bring in $1.2 billion in federal money. Without a capital budget in place by July 31, negative impacts on jobs and infrastructure work would occur by October.
The capital budget has not been as contentious as the other items, but was held hostage by Democrats during regular session.
“We are close to agreement and should continue negotiations toward a prompt resolution,” said Sen. Peter Micciche, Soldotna, Senate majority leader.
“Alaska is facing tough economic times,” said Sen. Anna MacKinnon, Eagle River, who co-chairs of the Senate Finance Committee. “Job losses are high, our unemployment rate at 6 percent is the highest in the nation, and we’ve lost ground on other key indicators. Eliminating cash payments to oil companies was a good step forward, and we must now turn our focus to a capital budget.”
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“I’m a Conservative who believes in lower taxes. They lead to a more enterprising economy. But I’m not somebody who believes you can fund lower taxes by borrowing more money.” – George Osborne
George Osborne, a member of British Parliament for 16 years and former Chancellor of the Exchequer, is noted as a social liberal and fiscal conservative. He understood the temptation to avoid the hard choice of reducing government deficits by cutting expenses while continuing to support the economy through lower taxes.
Osborne understood that raising taxes or borrowing money to fund unnecessary expenses eventually drives jobs and investment away and weakens your economy.
Win Gruening
As Alaskans, we tend to focus on budget battles occurring at the national and state level. Indeed, those battles will have a significant effect on our community and each of us, as individuals.
Yet, the same battle is also playing out at the municipal level throughout Alaska as communities struggle to balance declining revenues apnd faltering economies with the needs and wants of our citizens.
Juneau’s declining school enrollments, stagnant population, weakening retails sales, rapidly growing homeless problem, and epidemic of petty crime, and opioid abuse indicate harder times ahead.
By the end of 2017, employment throughout the state will have fallen to 2010 levels meaning the economy will have lost 15,000 jobs.
Juneau, supported by the mining and tourism sectors and government employment (which provides 38% of all jobs), has yet to feel the full effects of Federal and State cutbacks. But these changes are coming as government program costs are either reduced or shifted to municipal budgets.
In the FY18 CBJ budget beginning July 1, city staff and the Assembly were unable to align revenues and expenses and were forced to use cash reserves to balance the budget. Two vacant city jobs were eliminated, cuts to other city services were minimal, and our deficit was plugged with an infusion of $800,000 from our existing fund balance.
While the Assembly has decided for now against raising property taxes or our current sales tax, other funding ideas are being floated in response to several proposed community projects.
Normally, these projects could be funded from within the portion of the existing 5 percent sales tax reserved for capital projects and deferred maintenance. This component – amounting to 1 percent — is up for renewal in October and is projected to raise about $43 million over the next five years.
However, the competition for these funds is very keen and topping the priority list are community infrastructure needs including rehabilitating Juneau’s drinking and waste water systems along with facility upgrades and maintenance at our airport, harbors, and municipal buildings.
It’s generally recognized these projects should take precedence since they are basic infrastructure needs and, in many cases, come with significant matching funds from Federal and State sources.
It is unlikely there will be enough money left for other projects on the list to receive any significant support. Two of the largest projects, the new Juneau Arts and Culture Center (JACC) and a pre-school program designed to provide early learning and affordable universally available child care (Best Start) are requesting $5 million and $14.5 million respectively.
Besides sales taxes, two other funding methods being considered are to tap another tax source or have CBJ borrow the money.
So far, the JACC has raised about 20 percent of what they will need but is a long way from reaching their goal of $26 million. Supporters have suggested raising the current Juneau Hotel/Motel Tax by 1-2 percent to aid this project and perhaps even provide some additional funding for Centennial Hall – now currently losing about $600,000 annually.
Because the “Best Start” project request is a perpetual operating subsidy and would consume almost one-third of all future 1 percent sales tax requests, alternatively some or all of their request could be voted on this fall as a bond proposition. If passed, this would add to Juneau’s existing debt service levy and have the effect of raising property taxes.
These proposals deserve scrutiny as the Assembly decides how best to allocate sales tax proceeds and whether to approve any tax increase.
A question: Is it wise now to incur additional debt for new programs or facilities?
Regardless of the merit of any proposed project, voters should consider carefully any new tax proposals or bond propositions in light of continuing state economic contraction and the current uncertainties surrounding State school and bond debt reimbursement.
Now, more than ever, we need to encourage economic development that brings new jobs and investment to our community allowing our population and tax base to grow.
Increasing our debt service (and property tax) or raising taxes on visitors staying in hotels, motels or B&B’s will have just the opposite effect.
Win Gruening retired as the senior vice president in charge of business banking for Key Bank in 2012. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is active in community affairs as a 30-plus year member of Juneau Downtown Rotary Club and has been involved in various local and statewide organizations.
Last year, Americans spent $1.6 billion on getting their skin inked.
According to Harris, a polling firm, nearly half of Millennials (47 percent) and over a third of Gen Xers (36 percent) have at least one tattoo, compared to 13 percent of Baby Boomers and one in ten “Matures” (10 percent).
In Alaska summers, body art becomes particularly noticeable as people show off their arms, legs, shoulders, and other inked surfaces. Some of it is artistic; other tattoos leave much to be desired.
Inking of skin on the Last Frontier is as old as Alaska itself: Natives have been practicing it for hundreds of years, although now they use modern tattoo ink rather than the ancient method of using soot.
When it comes to political persuasion, it’s all about the same: Republicans-27 percent, Democrats-29 percent and Independents-28 percent.
With tattoos ubiquitous, some are beginning to have doubts about health consequences and even regrets. As with mercury in tooth fillings, are there heavy metals in tattoo ink that can leach into the bloodstream? Will they grow out of their tattoo designs, or regret the way the art turned out? Changing one’s mind about a tattoo is expensive, painful, and there’s no guarantee of a clean removal. But there are other concerns: Infection and toxicity.
JUST HOW SAFE?
Few consumers know of the health risks of having ink embedded in the lower layers of their skin. It’s an issue not widely studied with any scientific rigor. We’ve compiled some food for thought culled from the FDA’s Office of Cosmetics and Colors and other medical sources:
Although it’s rare, you can get serious infections from equipment that isn’t sterile, or infections from ink contaminated with bacteria or mold. Using non-sterile water to dilute the pigments (ingredients that add color) is a common culprit, although not the only one.
There’s no way to tell if the ink is safe, as it can be contaminated even if the container is sealed or the label says the product is sterile. It can be counterfeit ink, made in China or other unregulated places.
In 2015, the FDA alerted tattoo artists not to not use tattoo inks marketed and distributed by A Thousand Virgins, in certain shades of grey. The ink was found to be contaminated with mycobacterium chelonae in unopened bottles the ink, a problem discovered after the Florida Department of Health investigated an outbreak of mycobacterial infections in people who recently got tattoos.
WHAT ABOUT INFECTION?
If you get a tattoo, guard it with your life while your skin heals. A 31-year-old man died recently after he reportedly ignored warnings about swimming. He contracted a flesh-eating bacteria infection while swimming in the Gulf of Mexico five days after he got a tattoo on his leg: It was a design of a crucifix and pair of praying hands.
You might see a rash, red bumps and you may develop a fever, accompanies by shaking, chills, and sweats. A rash may also indicate an allergic reaction; because the inks are permanent, the reaction maybe something you end up living with — permanently.
WHAT OTHER RISKS ARE THERE?
Tattoo ink can contain the same pigments used in printer toner or car paint. The FDA hasn’t actually approved any pigments for injection into the skin for cosmetic purposes.
Some people are concerned about heavy metals being introduced into the body from a variety of environmental pollutant sources. At a time when many people look for pesticide-free foods and are trying to eliminate chemicals from their personal care products, few who are getting tattoos know what is in the ink.
Some common elements found in tattoo ink are carbon, titanium, copper, chromium and iron.
Some heavy metals are known toxins. In one study of 30 tattoo inks, the most commonly identified elements were aluminum (87 percent of the pigments), oxygen (73 percent of the pigments), titanium (67 percent of the pigments), and carbon (67 percent of the pigments). Other studies have found heavy metals cadmium, cobalt, nickel, and mercury.
At least one nutritionist is warning about heavy metal toxins in her liver due to her tattoos. But the vetted medical literature on this possible health concern is lacking.
WHAT ABOUT SCARRING?
Scar tissue can form or you can get small bumps around the tattoo, as your body mounts a defense to a “foreign” material. It’s rare but it happens.
WHAT DO I LOOK FOR IN A STUDIO?
The University of Michigan health department has posted a “know before you go” guide for students:
The staff and studio area should be very clean. The studio should have separate areas for piercing and tattooing.
The studio should have and use an autoclave (equipment used to sterilize the necessary equipment). If there is not an autoclave, do not agree to a procedure.
Needles and other “sharps” should only be used once and should be opened (from individual packages) in front of you before the procedure.
Staff should wear new latex gloves during each procedure.
Piercings should not be done with a piercing gun as the “gun” cannot be properly sterilized in an autoclave and can spread infections.
Jewelry used for piercings should be non-allergenic only (stainless steel-300 series, gold, niobium, titanium or platinum) and should be available in a variety of sizes.
Inks used in tattooing should be placed in a single-use cup and then disposed. Ink should never be taken directly from the main source bottle or returned to that bottle.
Ask about after-care instructions. Read and understand the instructions before getting a tattoo or piercing.
Ask questions! How long has the person been piercing or tattooing? Are they knowledgeable? Ask to see photos of their work. Do you like it?
Ask if you can watch the preparation for and an actual piercing or tattooing of another person. Not all studios will let people watch, but this may give you a chance to check out sterilization and techniques.
If you feel uncomfortable in a studio or with the staff, leave.
Gene Zerkel and U.S. Air Corps friends standing in front of a C-47 in Texas at the time when he became an instructor for the B-25, circa 1950. Zerkel family photo.
Gene Zerkel, an Alaska aviation pioneer, died July 9, 2017 at age 90. Services for him took place on Thursday.
Zerkel came to Alaska after being a wing-walker in air shows, flying to help build the eastern stretch of the DEW line through Canada, and managing a non-union airline for 14 years that served the auto industry in Detroit.
He started Great Northern Airlines, formerly Fairbanks Air Service, then led operations and maintenance at Mark Air before launching Alaska Aircraft Sales and Maintenance at Lake Hood.
Gene is survived by his wife of 48 years, Joyce Zerkel; and his children, Kathryn (John) Mangan of Dublin, Calif., Karyn (Steve) Marriott of Huntersville, N.C., Kristina (James) Adams of Mattawan, Mich., Karla (Randy) Cobb of South Rockwood, Mich., Karol Gore of Alisa Viejo, Calif., Kenneth Gene (Lisa) Zerkel II of Denver, Colo., Kyle (Zoya) Zerkel of Oberstaufenbach, Germany, Keenan Zerkel of Anchorage, Alaska, Kirk (Katherine) Zerkel of Anchorage and Kira Zerkel of Anchorage; his brothers, James (Beverly) Zerkel of Joplin, Mo., Jerry (Sue) Zerkel of McKinney, Texas, and Ron (Sharon) Zerkel of Ft. Meyers, Fla.; 22 grandchildren; 18 great-grandchildren; and one great-great-grandchild. He was preceded in death by his father, Oliver Kenneth “OK” Zerkel; his mother, Sarah Marie Zerkel; his sisters, Kate Sauers and Sherryl Martin; and his grandson, Andrew Cobb.
Joyce Zerkel and Joy Journay wrote the following biography of him when he was inducted into the Alaska Aviation Legends in 2014. It is edited lightly and presented here with her permission.
By JOYCE ZERKEL and JOY JOURNAY
Kenneth Gene Zerkel was born in 1926 at his aunt and uncle’s farmhouse west of Berne in Wells County, Ind. Zerkel was the oldest of six children.
When World War II broke out, Zerkel enlisted in the U.S. Army Air Corps as a pre-aviation cadet in December 1942, but because of his age he had to wait until February 1945 to be called to active duty.
“During the months I waited, I took flying lessons at Smith Field in Fort Wayne, Ind., where I soloed a Piper Cub,” Zerkel said.
To make a living after soloing, Zerkel worked as a time keeper, line boy at an airport, railroad firefighter, and a hostler for the Pennsylvania Railroad.
After a short stint with the McComb Air Show in the Midwest where Zerkel was wing-walking and ferrying aircraft from city to city, he was called to active duty in the Army Air Corps in February of 1945. While there, he took flight training twice as a cadet, but when the end of WWII approached he was sent to teletype mechanics school.
Zerkel finished his commercial and flight instructor ratings in 1946 while working at Airgo as a pilot. He was then hired as a commercial pilot and flight instructor.
“Later I re-enlisted in the U.S. Air Force as an aviation cadet in 1949, and was sent through primary pilot training at Goodfellow Air Force Base in San Angelo, Texas,” Zerkel said. “I wanted to go to the Military Airlift Command at Hickam Field in Hawaii, but was retained as a B-25 instructor at Reese Air Force Base.”
Zerkel then left the Air Force in August 1953 and went to work as a first officer with the Flying Tiger Line in Burbank, Calif. A short time later Flying Tiger and Slick Airways started a merger and Zerkel was furloughed, once again returning to Indiana.
“A week after making an offer to purchase Interior-based Fairbanks Air Service, George Patterson and I met with Mr. Usibelli and offered to take over management of the Fairbanks Air Service company for $3,000 each in compensation. Mr.Usibelli said, ‘Absolutely not,’ but would let us take over management for a period of 90 days,” said Zerkel.
“At the end of 90 days, by June 1974, we had made $300,000 so Usibelli decided he wanted us to stay as part owners,” said Zerkel. “The stock was divided between me, Usibelli, George Patterson and Hawley Evans who had partnered with Usibelli.
“Eventually, George and I bought all the stock and were sole owners. We moved the operation from Fairbanks to Anchorage in 1978 and changed the name to Great Northern Airlines,” Zerkel said.
Neil Bergt, chairman and owner of Alaska International Air, approached Zerkel to see if they would sell Great Northern.
“This was the right time, and we sold in 1980,” Zerkel said.
Zerkel then went to work for Bergt as vice president of operations, and MarkAir was chosen as the company name. After years in a fare war and fierce competition, Alaska Airlines forced MarkAir into filing Chapter 11 proceedings.
In 1991, Zerkel obtained an airline operating certificate and restarted Great Northern Airlines, providing passenger and freight service between Anchorage and Seldovia.
“I continued to expand the air charter business, founding Great Northern Air Guides, to offer fly-in fishing, hunting, and flightseeing trips in Southcentral Alaska as well as a flight school, Alaska Air Academy,” Zerkel said.
Zerkel was awarded the Wright Brothers Master Pilot Award in 2007 from the Department of Transportation and Federal Aviation Administration in recognition of more than 50 years of promoting aviation safety within the aviation industry.
In recent years, Zerkel was far more relaxed and deferred business endeavors to his son Keenan, general manager at Alaska Aircraft Sales — owned by the Zerkel family — at Anchorage’s Lake Hood.
Gene Zerkel was selected for the “Alaska Aviation Legends” in 2014, an annual project that recognizes the pioneers who made Alaska’s aviation industry and culture what it is today. More information is available at the Alaska Air Carriers Association.
In November, 2016, Alaskans were invited by Lt. Gov. Byron Mallott to contribute a brief essay to “150 Reasons We Love Alaska,” a publication to be distributed in early 2017 during Alaska’s sesquicentennial year.
The project was part of the Alaska Historical Society. Lt. Gov. Byron Mallott chairs the Alaska Historical Commission. Peter Metcalfe, a media expert in Juneau, was overseeing publication of the book.
According to the Historical Society, Alaskans’ “thoughts about Alaska music, art, books, science, food, relationships, adventures are welcomed; whatever describes who we are as Alaskans and what we want to be.”
Coordinated by Mallott, the Alaska Dispatch News in Anchorage would publish and distribute the book that would include all the contributions.
But now, the bottom has fallen out of the project: Contributors recently learned that the Dispatch had withdrawn. The note to writers follows:
From: “Peter Metcalfe”
To: “Peter Metcalfe”
Subject: 150 Reasons We Love Alaska
Contributors:
This email blast is to everyone who contributed to this publication.
The attached is the publication as it was close to completed three weeks ago when we received word from Alaska Dispatch News that for reasons due to printing plant issues the company is unable to contribute the printing as previously offered.
[You will note the unfinished numbering — once that is in place we’ll have precisely 150 reasons.]
I had hoped that by now we would have found a simple resolution, but that is not the case.
I am now approaching other publishers to accept the project. The fall-back position is to get a distribution offer and then raise the funds to self-publish. We have potential contributors that make self-publishing a viable option.
This is deeply frustrating… every one of you took the time to make your creative contributions, and I’ve put in uncounted hours in hopes of providing a collective expression of our love of Alaska.
Please stand by. I am determined to see this project through to printing and distribution in advance of Alaska Day, October 18.
Any ideas you have, feel free to share.
Sincerely,
Peter Metcalfe
Metcalfe Communications Inc.
(Anyone with ideas for publishing the book should contact the Lt. Governor’s Office or Peter Metcalfe, or leave a comment below.)
