Jim Colver will save your Social Security when he gets to Juneau, according to his flyer below. He’s staving off an advancing army behind George Rauscher, who is running to unseat him for House District 9.
The fellow pictured in the flyer below, for the record, is not Jim Colver, unless Jim is a shape-shifter. Jim looks like the photo above. Keep it handy: With the attendance record he has in Juneau, you’d be forgiven for not recognizing him.
LIST OF ENDORSERS FOR GEORGE RAUSCHER GROWS
Here’s who is on the list as endorsers for Rauscher:
Alaska Democrats are sweltering in Philadelphia this week for the coronation of Hillary Clinton as their nominee. On Monday, Elizabeth Warren, who identifies as a Native American at times, mocked Republican Donald Trump for wanting to build a wall on the southern border.
Meanwhile, here’s the wall that the Democrats built to protect their speakers from the angry mobs that are the delegates. Alaskans know a blue tarp when we see one.
Blue Angels land at JBER
SO THAT MEANS BLUE ANGELS BACK IN ALASKA
Arctic Thunder performance is scheduled for Saturday and Sunday at Joint Base Elmendorf-Richardson, starring the Blue Angels flight team. Gates open for the performances at 9 a.m.
This will be their first appearance since Arctic Thunder 2010, the Alaska Air Show Association reports.
“The Blue Angels showcase demonstrate the Unites States Navy and Marine Corps’ commitment to professionalism, excellence and service through these world-class flight demonstrations and community outreach.” Not to mention they will knock your socks off with the sound of freedom in their F/A-18 Hornets and C-130 Hercules.
The weather forecast for JBER this weekend is for clouds but no sign of big storms heading this way.
STATE JOBS DECLINE BY 70
The administration of Gov. Bill Walker is repeating the mantra that it has eliminated thousands of jobs, but most of those have been positions that are simply left unfilled when people move on. The actual number of pink slips given out during the last year is 70.
OMB Director Pat Pitney told the public policy group Commonwealth North that the state’s 26,500 member workforce has dropped to 24,800. This includes the University of Alaska system. The number calculates out to one state employee for every 29 Alaskans.
LABOR COMMISSIONER SAYS COST OF LIVING DUE TO WHA-A-A-T?
Heidi Drygas
Alaska’s Commissioner of Labor, Heidi Drygas, left, makes the case that Alaska’s cost of living is high because of how many people want to live here.
In the most recent edition of the Labor Department’s magazine, Alaska Trends, she writes:
Yes, Alaska has higher prices than the average community in America. We also have higher wages, better job opportunities, and quality of life.
Too often, we forget there’s a correlation between places people want to live and high costs of living. Nearly all places that are desirable — Alaska, Hawaii, or cities like Seattle, Portland, or New York — have higher-than-average costs of living. That’s no accident. An attractive place to live will have a tighter housing market and stronger demand for goods and services. While we should certainly take steps to reduce the cost of living in Alaska, we should also recognize that our costs are at least partly a byproduct of demand to live in our great state.
Following that logic…oh never mind. It speaks for itself. Bread in Barrow, last time we checked, was $8 for a loaf of Orowheat. Because people want to live there.
SECTION EIGHT FOR BED AND BREAKFASTS?
The Juneau Assembly is getting ready to force every landlord in Juneau to take Section 8 housing vouchers. Yes, that means even a bed and breakfast would be required to accept the government vouchers, if Assemblyman Jessie Kiehl gets his way.
The original version of the local legislation said landlords would have to take any type of lawful payment for rent, which means a landlord could not deny someone who wants to pay with an American Express card, even if the landlord doesn’t accept the cards.
More importantly, there are many landlords who simply do not want to participate in government programs like Section 8. They find Section 8 tenants tend to have too many issues, and the maintenance and repair for Section 8 tenants often leave landlords with having to do extensive work on a unit for a month or more after the tenant vacates.
BORROWING WILL BECOME SLIGHTLY MORE COSTLY FOR STATE
One press release you did not see from Governor Bill Walker today was announcing this item: Moody’s downgraded the State of Alaska’s general obligation rating from Aa1 to Aa2. The outlook remains negative.
It was the second time this year.
“The downgrade recognizes the state’s political inability – at least for now – to address its severe fiscal challenges,” the company said in a statement.
With the government running deficits of more than $3 billion per year, and with pensions owed to defined benefit recipients (Tiers 1-3), the state is structually imbalanced now that oil prices are low, Moody’s said.
Moody’s also recognized that Alaska has huge reserves: “extremely large” is how the company describes Alaska’s reserve funds, which can buy the State a few more years. The company made an assumption that Alaska will achieve sustainability before running through its piggy bank, also known as the Alaska Permanent Fund.
Moody’s also downgraded the state’s lease-appropriation bonds and its “moral obligation” bonds.
During the Sean Parnell Administration, the state had a AAA rating from all three bond agencies, but oil prices were high and the governor and legislature made big payments into the pension system.
Gov. Bill Walker, governing during a time of low oil prices, failed to adapt state spending to income, and has not been able to bring his Democrats in the Legislature to the table to make realistic budget cuts.
UNDERSTANDING MOODY’S RATINGS
Aaa: This is “triple-A,” the highest rating Moody’s assigns as the highest mark for creditworthiness.
Aa: This is “double-A” and is the next highest tier, indicating very strong creditworthiness.
A: This is called “single-A” and is the third highest tier of above average creditworthiness.
Baa: Known as “B double-A”. This is the lowest tier that is still ‘investment grade.’ This points to average creditworthiness.
In each rating level, Moody’s also adds a number from 1-3, with 1 being better and 3 being weaker.
Some enterprising researchers found the following documents at WikiLeaks.
Below, Jake Hamburg, communication director for the Alaska Democrats, reassures the DNC that the party has sent the DNC a lot of intelligence on the Bernie Sanders movement here in Alaska. This in spite of the glaring fact that 82 percent of Democrats in Alaska voted for Bernie. Is the Alaska Democratic Party following the direction of its members or bowing to the national committee’s rigging of the nomination for Hillary Clinton?
Among others passing along deep research to the National DNC was Kay Brown, executive director of the Alaska Democratic Party, here referencing the help she’s received from Hal Gazaway, the chair of District 19 Democrats. Gazaway, readers will recall, ran for state House in 2012, but withdrew from the rase after winning the primary.
THE MAYOR IS JEWISH, AND DWS HAS TAKEN NOTE!
Another gem is a note from Debbie Wasserman Schultz herself, (hrtsleeve@gmail) in which she delights in the fact that the mayor of Anchorage is Jewish, and acknowledges that Schawna Thoma, who works for Northern Compass Group (Begich), gets her marching orders from the senator himself.
We presume that’s not Senator Sullivan. Northern Compass Group is described as “a full-service consulting firm that helps clients develop tailored, strategic plans to achieve sustainable solutions for even the most daunting challenges. Our team’s diverse expertise in business, government, and politics delivers results that will last. Using proven strategies driven by the Begich approach of bringing stakeholders together, we are committed to creating a realistic road map that gets our clients where they want to go.”
Nearly all the staff members of Northern Compass Group are former staffers for the senator, who was bumped out of office in 2014.
ELVI GRAY-JACKSON IN WIKILEAKS
More organizing with local Democrats, including Assemblywoman Jackson, and once again a reference about Shawna Thoma getting her marching orders from the “senator.”
Duly Noted: Elvi Gray Jackson says she’s “from Jersey and won’t be bullied and doesn’t want to have to curse anybody out.”
Alaska Gov. Bill Walker last week told the Anchorage Chamber of Commerce that his relationship with energy companies working in Alaska is “quite good.”
“Our relationship with the oil industry is actually quite good. I have weekly meetings with them either individually or collectively and it’s quite good,” he said during an explanation of why he is pressuring the Prudhoe Bay producers for their marketing plans for natural gas.
Jim Flood, Exxon
And yet, there’s evidence that he may be mistaken.
We obtained the letter from Jim Flood, of Exxon, dated July 22, and we see a fissure between the governor and Exxon. But, of course, it’s well known in political circles that Walker hates Exxon.
Flood is the ExxonMobil Development Company’s vice president of Arctic and Eastern Canada, responsible for major upstream projects in Arctic Russia, Alaska, and offshore Newfoundland.
This is a story of dueling letters:
A letter from Keith Meyer, the new president of the Alaska Gasline Development Corporation, to the Alaska Senate Natural Resources Committee, states that the state’s gasline partners — BP, ConocoPhillips, Exxon — want the state to take the lead role in the gasline project because the partners had decided to put it on the shelf.
WHAT MEYER SAID IN SCOLDING THE LEGISLATURE
THE RESPONSE WAS SWIFT
And a letter from Jim Flood in response, in which Exxon wishes to correct the record:
Dear Keith,
We have received a copy of your letter to Senators Meyer and Giessel dated July 13, 2016. While much of the letter relates to the Alaska Gasline Development Corporation (AGDC) and its relationship with the Legislature, there are statements within the letter ExxonMobil considers inaccurate and therefore require a response.
While its important to correct these inaccuracies so interested parties can understand how the Alaska LNG Project parties arrived at our current status, it’s also important to recognize the fact that ExxonMobil has an aligned interest to work with the State of Alaska to commercialize North Slope natural gas resources. Towards this goal, we’ve worked with Administrations for several years and as we stated in a joint press release issued February 17, 2016, with the State, BP, and ConocoPhillips:
“ExxonMobil remains committed to commercializing Alaska’s natural gas, and we are committed to working with the Project participants to explore options that would continue to progress that goal’ This includes supporting a transition to the type of State run project you reviewed with the Legislature on June 29, 2016.
As part of this transition, we would like to use this letter to clarify ExxonMobil’s position on elements of your July 13, 2016 letter. First, we object to your characterization that the schedule presented on June 29, 2016 “removes any focus or commitment on completion within any specified timeframe” During preparation for testimony, the subject schedule was included at AGDC’s specific request to show the time frames for FEED, EPC, and start-up of the facilities. The schedule was presented generically to allow the reader to define start-up as a function of the Project management “gates.’ described on the next page of the presentation.
The lack of progress on the requirements to move through the gates was the core of the issue discussed with the State on February 9, 2016; which are also mischaracterized in your letter. As the Project agreements restrict each party’s ability to comment on any other parties’ actions or statements, we are documenting ExxonMobil’s position on the subject meetings and invite other parties to independently share their position. At no time did ExxonMobil ever suggest we “shelve the Project”. Our position was to focus the right level of resources on the critical path regulatory process while allowing the parties to resolve open commercial and fiscal issues.
On January 18, 2016, the State Administration sent us a letter outlining the agreements and actions required before the end of the regular session or “other options” would be considered. The letter, however, failed to include progress on a fiscal agreement. As ExxonMobil has previously stated, one of our prerequisites for entering FEED is a mutually acceptable fiscal agreement with the necessary predictability and durability to underpin a project of this scale. As such, in February, we offered two concepts to the Project participants to progress the Project: 1. Support transition to a State run project, or 2. Pace AKLNG project work to match current market conditions while continuing to advance regulatory approvals and cost reductions concurrently with work on fiscal and commercial agreements to provide the information necessary for a FEED decision.
As you testified in the Joint Resources Committee hearing, “right now we know that we’ve got to reduce the cost of this system”. if the parties went with Concept 2, we would continue to follow the staged gate process and work cost of supply to improve project competitiveness. As lead party under the existing pre-FEED Joint Venture Agreement, we have offered a 2017 work program and budget that is consistent with this concept. Nonetheless, ExxonMobil supports working with the State on either concept and the State Administration has chosen Concept 1 — a State run LNG project. The Governor has publicly stated a State run project would not be subject to the same taxes as an industry project and a state owned project may provide unique federal tax benefits. Furthermore, the Governor has said the State and alternative investors may accept a lower return on equity. These options could reduce cost of supply and ExxonMobil supports considering these options, as well as others that might commercialize North Slope gas.
Additionally, on page two of your letter you mischaracterize a recent public comment saying ExxonMobil has a “lack of willingness to chase this project”. As previously stated, we are fully committed to developing a plan that can successfully benefit all parties, including Alaskans. ExxonMobil has demonstrated this commitment in several ways, including: • Spent $96 million on gas commercialization efforts prior to AKLNG, including work related to progressing the Stranded Gas Development Act and the Alaska Gas Inducement Act. • Funded 25% of the $107 million in Concept Select work and 33% of the $460 million spent on Pre-FEED to date, for a total ExxonMobil spend of $179 million on AKLNG. • Provided over two thirds of the people on the Alaska LNG Project Management Team which has successfully designed the AKLNG infrastructure and progressed the requisite permits. • Funded 33% of the costs to secure the LNG Plant land and DoE export permit authorization. • Funded 62% of the $4.2 billion Point Thomson Initial Production System for a total share of $2.6 billion The Project included significant pre-investment for gas sales and included a larger condensate export pipeline to support a potential gas export project.
In addition, ExxonMobil has stated multiple times that our gas resources are available to sell to any project, including a State run project, on mutually agreed, commercially reasonable terms. Towards that goal, our bi-lateral negotiating team remains ready to re-start discussions on gas sales to support the State run Project.
We hope this letter will help clarify the historical facts and allow us to be more successful in working together in the future. We look forward to working with you to transition the Project to the State, explore options to reduce the cost of supply, re-engage on gas sales negotiations, and develop the necessary fiscal regime to commercialize North Slope gas.
Sincerely,
Jim Flood
IMPORTANCE OF TRUST
While the history of why the gasline project came to a dead halt are in dispute, what is apparent is that Keith Meyer was simply telling the Legislature a story that the governor had told him, because Meyer had not actually been around for most of the events he described.
The governor may have frayed the trust with Exxon, and he is deeply mistrusted by the Legislature. Now, will his own president of AGDC put his trust in Walker’s word, or has he been burned by his boss?
Alaskans will be sweltering in Democrats’ Mecca. Photo: Twitter @AlaskaDemocrats.
THE CITY OF BROTHERLY SHOVES
The Democratic Convention started in chaos, with shoving, shouting Sanders protesters starting in on the Rules committee yesterday. Today, the California delegation booed Nancy Pelosi off the stage during their opening breakfast. Then they booed the disgraced Debbie Wasserman Schultz out of the room of the Florida delegation’s breakfast, as Florida delegates shouted “Shame!”
Donna Brazile, the Democratic strategist, is replacing Wasserman Schultz as interim chair of the Democratic National Committee until November. Besides Pelosi and Harry Reid, there will be a lineup of speakers auditioning for a place in the Clinton White House or, better still, an ambassadorship to Bermuda.
LAST WEEK’S AWKWARD TWEET:
PC INCORRECT TRIGGER WARNING
Must Read Alaska is your safe space for conservatives. Political correctness enforcers, your check-in time over at the Democratic National Convention is now. The National Weather Service issued an excessive heat warning until 6 p.m. for Philadelphia, with high humidity and temperatures in the high 90s, making the heat index 105 degrees. Feel the Bern.
Imagine: All week long, stuck with Democrats in sticky Philly while they decide which lives matter, how to grow government, and how often shout down the Old Guard. What could go wrong?
WIKILEAKS: CAPTAIN COOK HOTEL OK, OTHERS NOT SO MUCH
An update on the WikiLeaks story as it pertains to the now-deposed Debbie Wasserman Schultz‘ trip to Alaska for the Democrats’ state convention in May.
Kay Brown
Debbie Wasserman Schultz’ staff was warned about Politically Correct hotels in Anchorage, and those to avoid. The note came from Alaska Democratic Party Executive Director Kay Brown:
One of the nicest (union acceptable) hotels in Anchorage is the Hotel Captain Cook Fourth Avenue And K Street, Anchorage, AK 99501) · Recommend DO NOT use the Hilton or Sheraton as they are both involved in labor disputes.
Wasserman Shultz today resigned as head of the Democratic National Committee, after leaked emails showed that she and her staff rigged the nomination process for Hillary Clinton and against Bernie Sanders.
We followed several email threads in an earlier post today, a few that showed how the national officers pressured Brown to work her spy network harder in Alaska to uncover any plots that Bernie Sanders supports had to disrupt the Democratic Party’s state convention. Brown evidently had moles inside the Sanders operation who were feeding her information about a planned walk out.
ALASKA DEMS DUPED INTO HILLARY MONEY LAUNDERING SCHEME
Earlier this summer, it was revealed that the Alaska Democratic Party collected tens of thousands of dollars from a political committee close to Hillary Clinton. In its latest FEC report, the party showed it raised $43,500 from the Hillary Victory Fund, including from several millionaires and billionaires not in Alaska.
The Alaska Democratic Party sent the money straight out — directly to the Democratic National Committee. In a legal money laundering scheme, the Bernie Democrats in Alaska unwittingly supported the corrupt Hillary machine.
At their March caucuses, Bernie Sanders won by an 82 percent landslide, but superdelegates like Kim Metcalfe of Juneau were able to rig the election at the local level, as the nomination was being rigged simultaneously at the Democratic National Committee level.
Metcalfe earned scorn from Democrats across the country for disregarding the will of Alaska Democrats.
SUPERDELEGATES AND OTHER CRONIES
A petition has been launched online to oust Metcalfe, poster child for the arrogant super delegate. Here’s what the petitioners say:
Kim Metcalfe
The state of Alaska voted 81.6% for Bernie Sanders for The President, which should mean that the Superdelegates would vote in the interest of their state. But for Kim Metcalfe it is about voting for her personal interests. She has openly said the she doesn’t care what the state of Alaska wants, she is voting for Hillary Clinton. Why do we want someone representing the people if she openly doesn’t care about her state, we put her in power to vote for us not against us. I don’t know any other job where you can go against orders and keep the job, the amount of disrespect she has shown to the voters of Alaska is disgraceful, unethical and a huge slap in the face. So in conclusion I believe we need to immediately remove Kim Metcalfe from her position as a Superdelegate for The State of Alaska. If you cant respect your states choice for The President Of The United States of America, then you don’t deserve to be representing that State.
Today, at pre-convention meetings of the Rules Committee of the Democratic National Committee, dozens of protestors pounded on the door and screamed at the committee as they attempted to deliver petitions with more than 600,000 signatures of people demanding the Party end the use of unelected officials to determine presidential nominees. The leaked DNC emails confirmed an excessive level of collusion by party officials to ensure that Bernie Sanders’ candidacy could not advance.
In Alaska, of the 523 delegates who attended the Democratic Convention, just 97 supported Clinton.
There is a lot of old fashioned river panning needed to find nuggets in the WikiLeaks dump of the Democratic National Committee’s emails.
Items relating to Alaska are gold: Begich’s link to Margaret Stock, Alaska Dispatch reporters getting critiqued, worries over Bernie rebels in Anchorage.
As DNC Chair Debbie Wasserman Schultz prepared to be the keynote speaker at the Alaska Democratic Party’s Convention in May, there was the usual back-and-forth email exchange, including a gazillion copies of her draft speech among the WikiLeaks documents.
But there was also plenty of handwringing over rumors of a planned walk-out of the state convention when DWS, as she’s referred to in the emails, rose to speak.
Kay Brown, executive director of the Alaska Democrats, was being pressed by comrades at the national level to have her spies get more intelligence about the protest event that was being staged at the nearby Egan Center in Anchorage by Sanders supporters, an event that would start with the walkout at the Dena’ina Center, where the Alaska Democrats were gathering.
Excerpts:
From: Khan, Ali Sent: Wednesday, May 11, 2016 1:39 PM
To: Bonosky, Garret Cc: Alvillar, Raul
Subject: Alaska “Counter” Event
Hey man, I know Kay Brown has already told me she’s been in touch with you guys regarding the “evolving” situation on the ground in Alaska, but, nonetheless, I wanted to flag this newest development for you. Just in case! I’ve also mentioned it in the political briefing, FYI.
We can’t go to DWS [Debbie Wasserman Schultz] with just Facebook intel. Kay told me she has friends inside the Bernie organization there who may be able to provide some more information.
WIKILEAKS II, DISS-PATCH EDITION:
Then there’s a diss from the Alaska Democratic Party communications director on Alaska Dispatch reporter Alex DeMarban:
To: Miranda, Luis
Subject: Alaska Dispatch News Inquiry
Alex DeMarban from the Alaska Dispatch News is wondering if the chairwoman or yourself would like to respond to criticism he has been hearing a lot at the convention that the chairwoman stacked the deck against Bernie and for Hillary Clinton. I don’t think he’s particularly friendly, as he wrote this article: http://www.adn.com/article/20160513/riled-sanders-fans-rise-state-democratic-convention-begins I have no history with this reporter and he seems to have a difficult time comprehending and recording information.
All the best, Jake Hamburg Communications Director, Alaska Democratic Party
WIKILEAKS III, MARGARET STOCK EDITION:
DWS MOVEMENTS
5/14/16 – Anchorage Alaska Done with meeting; wandering. Checking out market then going to meet with Schawna [Thoma] and [Margaret] stock at 5:45pn; speech prep 5-530 with Luis
Readers will recall that Schawna Thoma is with Mark Begich’s Northern Compass Group, and that Margaret Stock is charading as an independent as she runs for US Senate for Alaska.
WIKILEAKS IV, ANGRY BERNIE EDITION:
From: Kate Houghton Sent: Friday, May 13, 2016 12:16 PM To: Debbie Wasserman Schultz Cc: Tracie Pough; Miranda, Luis; Banfill, Ryan; Bonosky, Garret; Alvillar, Raul; Moore, Colby; Khan, Ali; Maureen Garde Subject: Alaska Update Importance: High
DWS – I spoke with Kay who is the Executive Director at the Alaska Democratic Party. She cannot tell us what level of “enthusiasm” folks have on the ground but she has taken meetings with a few people who are of the “Trump-style” enthusiasm (aggressive and angry). There will be 550 people seated at the dinner. Of those about 50 are expected to walk out. However, they do want to stay for dinner so we are switching your slot in the speaking program from the end to during the dinner. This adjustment will not be made public. There are no mags at the event and I have told them not to purchase any. The event is barely breaking even and it will also be difficult to find them at the last minute. The Mayor’s Office will be assigning an Officer to be with you. As you know this is pretty standard practice and I will make sure to speak with the Officer in advance about how you like to be staffed at events. The state party is aware that Shelby will be in the audience and that you will not be addressing any of the questions from the letter. The Chair of the party in her opening remarks will make sure to tell everyone that this is a civil event and that they are looking forward to hearing about the national Democratic work happening to support whoever will be the nominee. Signs have also been banned from the event. Please let me know if you want additional follow up. Thank you, Kate
I spoke to Scott Arceneaux. He’ll lean on Kay for the state party to be more assertive in taking ownership over the fact that they’re happy to have the DNC there. Ryan is putting together points on her record as a progressive and what the DNC has been doing to strengthen state parties and build national infrastructure that he’ll get to Scott, and Scott to Kay, for them to talk positively about why she’s coming in advance. Also mentioned to him that Begich should introduce the Chair.
Governor Bill Walker announces the hiring of a new oil and gas cabinet position. He recently also rehired his former law partner and former attorney general, on contract.
In the strangest press release yet from the Walker Administration, Gov. Bill Walker goes to unusual lengths to argue that all is right and proper with the recent pop-up contract he told the Department of Law to sign with his former attorney general.
Strange, in that exactly one month ago, Assistant Attorney General Jim Cantor reported to Attorney General Craig Richards.
Now, Cantor is the interim AG, and Richards, who walked out on the job with just a few hours’ notice, reports to Cantor, or so the contract says.
Strange, in that the contract allows a significant amount of wiggle room for Richards to work on just about any duty he is assigned, for any amount of time, in a thoroughly adjustable arrangement:
Governors don’t typically issue press releases when their Departments of Law sign contracts with attorneys. But this governor did because this is clearly different in scope and in appearance:
SHADOW GOVERNMENT
Craig Richards, as a contractor for the state, has far more power and access than interim Attorney General Cantor. And pity the incoming attorney general, who by all reports is smart, capable, and honorable.
Jahna Lindemuth will discover that Richards has far more influence with the governor than she will have. From lawyers to clerks, the workforce of the Department of Law knows who is has the direct line to the governor: Richards.
Richards has privilege, access, and a longstanding business relationship with Walker. The two will continue to run the state uninterrupted, in the father-son, Batman-Robin relationship they’ve tilled over the years as partners.
But one of this duo, while representing the governor, is no longer a sworn officer of the state. He’s a free man, not bound by the same rules as Walker. Not bound by much at all.
The unique arrangement between Walker and Richards leaves the public even further shut out of their government, as work provided by a contractor like Richards is even tougher to access through public records requests.
Defying the promise of transparency that ushered him into office, Walker is building a parallel governing group, with consultants like Richards helping him run the show, and transparency officers like Grace Jang, Walker’s communications director, sinking deeper into the patterns of explaining away and covering up.