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Eastman faces sanctions from Ethics Committee

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In a politically charged move announced at the onset of the legislative session, the Joint Legislative Ethics Committee decided to remove one of its members.

Rep. David Eastman may be kicked out of the Legislative Ethics Committee for the remainder of the year because he divulged the content of a complaint to someone outside the committee — a reporter.

Eastman says he’s not quite sure what he divulged and the committee is also not telling him. The complaint itself also doesn’t say.

But sometime last spring, an Alaska Journal of Commerce reporter interviewed Eastman and he made known that there was an ethics complaint filed against Rep. Gabrielle LeDoux.

The complaint may have been related to LeDoux telling Rep. Lora Reinbold on the floor of the House that if she didn’t vote the right way on a bill, LeDoux would not give her any money from her political action committee, Gabby’s Tuesday PAC. That would be considered a form of quid pro quo, or even extortion. By any name, an unsavory act.

But the Ethics Act prohibits disclosure of complaints filed with the committee.

If Eastman is removed from the committee, then Rep. Reinbold would step into his place as an alternate. He does have an avenue for appeal, although with the committee stacked with Democrats, it’s not likely to succeed.

Last year, the committee slapped at Rep. Tammie Wilson for sending out a postcard relating to wood stove usage in her community.

Republican Party Chairman Tuckerman Babcock was not impressed:

“It’s pure politics. The timing, the secrecy and the big announcement at the start of the session. They could have counseled him in private, but this is all about tearing someone down,” said Babcock. “Their response is, after one year, to wait until the next legislative session to announce he is kicked off a committee.”

[Read: The Alaska Journal of Commerce story here]

Hostile takeover? LeDoux sends posse to District 15 Republican convention

ATTEMPT TO GABBY-IZE DISTRICT #FAILED

The District 15 Republican convention in East Anchorage rarely attracts more than a dozen political activists, but on Tuesday night, there was a good crowd at the door of the Anchorage Baptist Temple conference room.

In fact, it was the best turnout in years. Curiously so.

It turns out, a lot of those people trying to get in were not Republicans. Some were Democrats. Others nonpartisan.

This was not an accident, but reminiscent of 1974, when a group called the Ad Hoc Democrats, a group with whom Bernie Sanders would have been comfortable, took over the Alaska Democratic Party. The stalwart Democrats never saw it coming, but they were taken over by hippies.

In this case, it was an orchestrated hostile takeover attampt in the Republican district of Rep. Gabrielle LeDoux.

Because it’s a party meeting, these newcomers were required to register as Republicans before they could gain entrance. And because of party rules, new registrants can speak, but are not voting members of the convention.

A few of them did speak on behalf of LeDoux, who was sanctioned by the entire Alaska Republican Party for her role in flipping the House to Democratic control. She is now Rules chair.

The party asked her to register with some other party because she deceived the voters in her district. And the party is running a candidate against her.

On Tuesday, led by Lisa Vaught, LeDoux’s longtime aide in the Legislature, a couple of the newcomers spoke about how LeDoux had helped them in some way.

It was all quite civil even though the room was stacked with people who had never participated in a Republican meeting.

For the final count, there were just a dozen Republicans at the meeting who were actually qualified to vote, and another 16 whose ink was barely dry on their voter registration cards. Chris Nelson was elected chairman of the district, unanimously.

Rebecca Logan speaks to District 15 Republicans.

Because it’s an election season and this is party politics candidates spoke to the gathering: Gubernatorial candidates Scott Hawkins and Mike Dunleavy, Lt. Gov. candidate Edie Grunwald, mayoral candidate Rebecca Logan, and the Republican candidate who is challenging LeDoux, Aaron Weaver.

Self-draining swamp: Park Board Nine quit in frustration

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ALASKAN SPORTSMEN PLEASED

Nine out of 12 members of the National Park System Advisory Board members quit on Monday to spite Interior Sec. Ryan Zinke, who has not met with them since being sworn in last March.

The board’s chairman, former Gov. Tony Knowles, wrote a letter to Sec. Zinke saying that Knowles and the eight others felt they were not part of the new Department of Interior agenda. All of them had terms that expired in May.

Knowles’ letter seemed aimed at maximum political impact — it was given to the Washington Post. He evidently did not advise any of the Alaskans who currently work in the Department of Interior about his planned protest letter.

“Frustrated” is how one reporter described the Park Board Nine.

But outdoors enthusiasts contacted Must Read Alaska expressing approval of the board members’ departure, and said that former Gov. Knowles might finally understand how Alaskan outdoorsmen (and women) have felt during the eight years of the Obama Administration.

“Where was Knowles when the federal government was going after John Sturgeon?” one hunter asked Must Read Alaska. The Alaskan hunter has spent over one million dollars fighting the Park Service all the way to the U.S. Supreme Court. Knowles never has weighed in on the question of whether hunters like Sturgeon should be able to use the Nations River to get to their hunting grounds.

“What letters did he write defending hunting and fishing when the Park Service was making it harder and harder for Alaskans? Where was he on state sovereignty and predator control?”

Nowhere.

Gov. Knowles was sitting on an advisory board that allowed, without objection, former Secretary of Interior Sally Jewell to shut down access to vast areas of Alaska land. He never threatened to quit over the federal government’s overreach during the Obama era.

Rod Arno, executive director of the Alaska Outdoor Council, said the advisory board was changing the mission of the national park system.

“It went from allowing the public to participate in parks to being a policy of preservation and creating a laboratory to study climate change. Sally Jewell was letting them do that,” he said. In fact, cleaning out the board was high on the list of Alaska’s hunting and fishing community.

There are over 1,000 advisory panels across government, with some 37,000 appointees that give their advice to the relevant agencies. The Park System Advisory Board was established in 1935.

Anchorage poll: Berkowitz, Logan or … wait, what … Wielechowski?

A poll was conducted in Anchorage this week. It’s believed to be sponsored by the IBEW and conducted by Hays Research Group, and it’s solely focused on the March 13-April 3 election of Anchorage’s next mayor.

Respondents were asked to choose between current Mayor Ethan Berkowitz, challenger Rebecca Logan and Sen. Bill Wielechowski, who is not running for mayor.

Why Wielechowski? Must Read Alaska spoke to a few campaign experts who theorize that Wielechowski is the perfect Democratic Party candidate: He is not in favor of taking half of the Permanent Fund dividend, he is in favor of income taxes and higher oil taxes, and he is pro-abortion.

Pollster Hays Research Group is using Wielechowski as a test of Mayor Berkowitz’ popularity. They are worried about Berkowitz, due to his record of being ambivalent about crime and too eager to tax.

The poll wants to discover just how badly Mayor Berkowitz is doing in the eyes of the voters. If people say they would vote for Wielechowski over Logan by a bigger margin than they’d vote for Berkowitz over Wielechowski, then the Democrats will know they have a serious problem, and will pour more resources into defending Berkowitz.

Hays Research Group is located in the same downtown office suites as the Ship Creek Group, which specializes in Democrat and Indie-Democrat campaigns, and the campaign offices of Gov. Bill Walker and Byron Mallott.

Quote of the Day: Walker budget transparency fail

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If the legislature were to appropriate the Department of Revenue’s FY19 projection of $206 million to purchase oil and gas tax credits, the increase in UGF spending would be over $430 million. – Legislative Finance Division analysis

More from the Legislative Finance Division analysis of Gov. Bill Walker’s proposed 2019 budget:

“The Governor recognized the budgetary holes (and that some non-replenishing funds were no longer available), understood the conflict between submitting a straightforward budget and taking heat for increasing apparent spending, and appeared to be committed to presenting the budget in a more transparent way. The Legislative Finance Division was, quite naturally, interested to see how the Governor addressed the situation.

“The Governor released a “transparent” budget that shows a reduction of $150 million from the FY18 budget (unrestricted general funds, with dividends and transfers excluded). Does this mean the Governor found a way to fill the holes and reduce spending by an additional $150 million? Not exactly. The Governor’s budget misses the mark on transparency; proposed UGF spending in FY19 exceeds UGF spending in FY18.

“Transparency” is in the eye of the beholder, but perhaps all can agree on a few simple goals. The public and the legislature should know

1. how much money is available on a cash flow basis,

2. how much of that available cash is spent (and how much money is added to—or taken from—various savings/reserve/special accounts) and

3. the amount of surplus or deficit, both on a cash flow basis and after transfers to or from reserve accounts.

Is spending up or down?

“The Governor posed this question and answered it by reporting that the methodology proposed in his Budget Transparency Report shows the FY19 budget is $4.68 billion, down $150 million from FY18’s $4.83 billion budget. The Governor’s fiscal summary apparently does not follow the rules of the Budget Transparency Report; it shows a $316 million reduction (from $4.50 billion to $4.18 billion). Considering the $300+ million in budget holes left after the FY17 legislative session, a $316 million reduction would be nothing short of amazing.

“The Legislative Finance Division’s version of the fiscal summary (page 8) shows that proposed unrestricted general fund (UGF) spending (before accounting for dividends and transfers) is up $228 million—from $4.35 billion in FY18 to $4.58 billion in FY19 (line 36).

“If the legislature were to appropriate the Department of Revenue’s FY19 projection of $206 million to purchase oil and gas tax credits, the increase in UGF spending would be over $430 million. That number is far more in line with expectations regarding a $300+ million hole plus a Public Safety Action Plan that increases spending by $16 million (plus $18 million as a FY18 supplemental appropriation).

[The entire analysis is found at this link.]

Rep. Wilson: Harassment victim was revictimized through inaction

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Rep. Tammie Wilson said today that the House Majority was sweeping sexual harassment complaints under the rug.

She thanked the women of the Republican House minority for wearing black in solidarity with the victims of sexual harassment.

In late 2017, reports of sexual harassment surfaced that led to the eventual resignation of Rep. Dean Westlake. The harassment by Westlake had gone on for months.

Westlake had been chosen by the Alaska Democratic Party to challenge Rep. Ben Nageak in 2016, and Westlake won District 40 against the Nageak with the help of Outside money and Anchorage resources. The man who ran the campaign for Westlake, John-Henry Heckendorn, is now the right-hand man to Gov. Bill Walker.

“I read that same report that we just heard about [from Rep. Matt Claman] and I must have taken it quite differently. Or else I got a different report,” she said.

“We didn’t take it seriously, not in my mind, she said, refuting Claman’s earlier remarks that everything was done properly in response to an allegation made nearly a year ago.

“That allegation was made in March,” Wilson said of the complaint made by former aide Olivia Garrett against Westlake, who was forced by his fellow Democrats to resign.

“I saw nothing in that report that said there was any investigation in March. In fact, what was concerning is a representative helped write that [complaint letter]. And from my understanding — and this is from the papers that anyone can read — they were the ones who encouraged the victim to keep it confidential, to have it handled in the Legislature,” Wilson said.

“I’m standing up because — April, May, June, July, August, September, October, November, December — before something else was done.

“We revictimized. As a body we are held accountable because we made a young lady go out and have to retell her story. And I’m assuming that the reason she did that, Mr. Speaker, is that it fell on deaf ears. Because someone doesn’t make that decision easily.”

Wilson said she wrote a letter asking for a third-party investigation.

[Read: Rules Committee Investigation: Westlake hugged, grabbed, flirted]

“I don’t think we should be investigating ourselves. And that’s exactly what’s happened. I saw nothing in the paperwork that was released yesterday that said in March when the allegation came forward that there was any investigation at all.

“There’s this huge span of time that nobody can account for.”

 

Rep. Mark Neuman asked for an outside investigation as well, because of the seriousness of the situation.

Rep. Chris Tuck, the House Majority Leader and man initially responsible for the lack of action against Westlake, spoke on the topic and said the harassment victim never asked for an investigation.

However, the actions the victim described constitute a crime that was never reported to authorities by Tuck or House Speaker Bryce Edgmon.

Breaking: Gillam decides not to run for governor

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After considering a run for Alaska governor for the past year, businessman Bob Gillam has decided against it. Earlier in the month, he told Must Read Alaska it was a possibility.  Gillam informed close associates of his decision this morning.

Robert “Bob” Gillam is the founder of McKinley Capital Management, one of the most successful businesses in Alaska.

He has been an opponent of an income tax and also has fought the Pebble Mine project, spending tens of millions to prevent the mine from being built in the Bristol Bay watershed.

From Fairbanks, Gillam attended the Wharton School of Business at the University of Pennsylvania and UCLA’s Anderson School of Management. He was a classmate of President Donald Trump at Wharton, and has visited with the president on a few occasions in the past year.

As of 2015, his company had $7 billion of assets under management, making him one of the wealthiest Alaskans — one who could have self-funded his own campaign.

The onerous financial disclosure requirements of Alaska’s election laws makes all his finances and his client base exposed, something he doesn’t want, and something that would hurt his business, he said in a conversation with Must Read Alaska today.

He also has big opportunities in his company he wants to act on.

Gillam is an economic conservative and a social moderate.

Dunleavy’s replacement: Rauscher, Smoldon or Braund

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The Republican committee charged vetting candidates to replace Sen. Mike Dunleavy, District E, forwarded three conservative candidates to Gov. Walker for consideration:

  • Rep. George Rauscher, who represents District 9
  • Todd Smoldon, economics educator and District 10 precinct leader
  • Tom Braund, retired federal worker and District 9 precinct leader

In the rounds of voting that took place over several hours, over 200 votes were cast by the committee. Only two of those votes were for former Rep. Jim Colver, who had put his letter of interest before the committee prior to the deadline. He did not get an interview.

Colver had been ousted by voters in 2016 by now-Rep. Rauscher. The party also withdrew support for Colver when he and Rep. Gabrielle LeDoux led a breakaway group, the Musk Ox Coalition, that aligned with the Democrats. Because Colver submitted his name in time, there is always the chance the governor will skip over the Republicans’ chosen and pick his clear political ally. However, a Colver choice would have to get past the Alaska Senate, which would be a tough sell.

These appointments don’t always go smoothly. Gov. Sarah Palin got into a standoff with Senate Democrats in 2009 over a replacement for Sen. Kim Elton, who went to work for the Obama Administration. Senators would not confirm her choices until she picked former Juneau mayor Dennis Egan, who was confirmed and still serves as Juneau’s senator.

The selection committee interviewed five people and deliberated late into the night:

  • George Rausher
  • Todd Smoldon
  • Tom Braund
  • Vicki Wallner
  • Tom Arts

The committee went to a majority voting method, meaning each had to get over 50 percent of the vote to become one of the three finalists on the list that will be given to the governor. The governor now will nominate the person to succeed Sen. Mike Dunleavy, who has stepped down in order to run for governor, and the Alaska Senate will confirm. The chosen successor would have to run to retain the seat later this year.

District E stretches from the Mat-Su Valley over to Valdez.

 

Heads and Tails: Lobbyists shift clients

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We’re going through the lobbyist reports, and it appears the recession is causing things to shift around even in the persuasion economy. Here are some tidbits, although reports are not all in, it appears:
Sonia Henrick

Sonia (Christianson) Henrick has opened her own consulting and lobbying firm, Good Faith Consulting, working with lobbyist Dave Parish….She has worked for Sen. Lisa Murkowski, Gov. Sean Parnell, and ExxonMobil…

Royce Weller has ended his lobbying association with Ashley Reed and is in business with Kris Knauss as the new company called Confluence Strategies….Confluence Strategies appears to be now representing GCI along with Reed Stoops…But Eldon Mulder and Sam Kito Sr. no longer represent GCI, and neither is Ashley Reed….

Speaking of Confluence Strategies, the new group also has “flanged up” with Kent Dawson, who has a an A-list of clients…

Myer Hutchinson, son of lobbyist Kim Hutchinson, is working as a lobbyist for Charlie Miller…

Jim Lottsfeldt appears to have picked up the lobbying business of the ACLU for the third year in a row but has yet to report lobbying contracts with the Municipality of Anchorage…

Diane Blumer is in business association with Ray Gillespie…But ATT is being represented this year not by Gillespie, but (we are hearing) by Jerry Mackie...

In nonpolitical people news, Alaska’s top figure skater, Keegan Messing, (dual citizenship with Canada) is on the Canadian Olympic team for competing in South Korea. Which anthem will they play if he makes the podium?

And RIP to George Brown, 96, founder of the Lucky Wishbone restaurant and a wonderful Alaskan.