I’m taking a couple of days off for Christmas. With love and glad tidings for all, I wish you all a very happy Christmas.
And great thanks to all of our first responders and military personnel, busy protecting us while we celebrate.
– Suzanne
Official numbers: Obamacare enrollment in Alaska continues slide
The number of Alaskans enrolling in Obamacare slid sharply this year.
By the deadline on Dec. 15, 18,356 Alaskans signed up for health insurance through the http://healthcare.gov exchange, according to Gov. Bill Walker, who made the announcement on Twitter midday on Friday, Dec. 22.
The Department of Health and Social Services and the Division of Insurance made no announcement.
The number of 2018 enrollees represents a 20 percent drop since 2016, the first year for Obamacare in Alaska, when 23,020 Alaskans enrolled.
Those signing up this year make up less than 2.5 percent of the total estimated Alaska population of 740,000.
That number is misleading, however, because enrolling is not the same as paying.
“Effectuated coverage” is the term that applies when people actually pay for the insurance they’ve signed up for. That figure will not be available until February.
The number of people who ended up effectuating their enrollment by paying for it in 2017 was 14,177, which means nearly 40 percent of those who initially enrolled dropped out without paying. The thousands who dropped out likely felt they could not afford it.
The trend toward lower enrollment is being felt nationwide. The final number of sign-ups on the federal Obamacare exchange was 8.8 million, compared with 12.2 million last year.
The liberally focused media and progressive activists blame the Trump Administration for cutting the advertising budget for Obamacare by 90 percent and also reducing funds for the “navigators” available to help people pick a plan.
In Alaska, navigators are not needed, since there is but one company to choose from: Premera Blue Cross.
Most of those who enroll in Alaska — 93 percent — receive taxpayer support through a subsidy to help them with the extraordinarily high premiums available to the thousands of Alaskans who must purchase the insurance or pay a penalty. Those who are covered by employers pay no such penalty. Others, on Medicaid or Medicare, are covered and don’t pay the penalty.
For 2018, the subsidy for a family of four is available for those with incomes up to $123,000, compared to $98,400 in the Lower 48.
The recent tax bill signed into law by President Donald Trump eliminates the tax penalty for not having insurance, but it is still in effect for 2018. The IRS has made unannounced moves to enforce it by not allowing people to complete their online tax returns without showing evidence that they have health insurance.
The penalty for going without health insurance in 2018 is about $695 per adult, or 2.5 percent of household income, whichever is higher.
Senator Sullivan makes surprise visit to Afghanistan
JULIE FATE-SULLIVAN AND SPOUSES GATHER ON JBER
U.S. Senator Dan Sullivan returned to Washington, D.C. in time for last week’s historic votes, after spending the weekend in Afghanistan with deployed members of the 4th Brigade Combat Team (Airborne), 25th Infantry Division of Joint Base Elmendorf Richardson, also known as the 4-25th and Alaska-based members of the Air Force.
Sullivan left DC last Friday evening, landed in Qatar, and then went on to Afghanistan. He was back in DC on Monday afternoon in time for Senate votes Monday evening and throughout the rest of the week.
Sullivan, who is a Marine Reserve lieutenant colonel, has been deployed during the holidays in years past. He joined the United States Marine Corps in 1993, leaving active duty in 1997, service in the Marine Corps Reserve since then. He was recalled to active duty from 2004 to 2006, in 2009 and again in 2013.
He told troops overseas that he will continue to be their advocate in the Senate, and that he was there to observe in his role on the Armed Services Committee.
In that committee, the Senate’s version of the National Defense Authorization Act was sponsored by Sullivan, bringing $657 million for up to 28 additional ground-based interceptors — about 20 of which will be based at Fort Greely.
“It was an honor to meet and see the men and women of the 4-25 during their deployment to Afghanistan,” Sullivan said.
“These Arctic tough warriors, trained in some of the most challenging and diverse landscapes in the world, continue to prove to the Army and Pentagon leadership why they are a pivotal asset to address emerging security challenges in the Asia-Pacific, the Arctic, and around the world.”
Across the board, the reports were glowing, Sullivan said.”The Spartan men and women are doing an incredible job and proving every day that – as Gen. Mark Milley stated – they are ‘one of the most trained and ready units in the entire United States Army.’
A member of the Senate Armed Services Committee, Sullivan wanted to assess the status and implementation of new U.S. strategy for Afghanistan and to see directly Alaska’s airborne brigade combat team on deployment.
Sullivan successfully fought to overturn the 2015 decision to drastically reduce Army force structure at JBER by 2,600 troops.
He visited members of the 4-25th at Bagram Air Base, Kandahar Air Base, Forward Operating Base Fenty and Forward Operating Base Gamberi.
Sullivan also conducted meetings with senior military and diplomatic leaders through Afghanistan and at Al Udeid Air Force Base in Qatar to receive updates on anti-terrorism efforts, including the fight against the Taliban.
As part of his visit, he and his wife, Julie Fate-Sullivan, held a live video meeting that included spouses of deployed members of the 4-25th. Julie was on JBER with spouses, where she thanked them for their shared sacrifice. She has spent holidays without her husband when he was deployed overseas, and understands what spouses go through.
VIDEO OF SEN. DAN SULLIVAN VISIT TO TROOPS IN AFGHANISTAN
Governor buries the hatchet on Point Thomson
ANNOUNCES EXXON MAY PROCEED
Gov. Bill Walker made the announcement himself this time: The State of Alaska has approved ExxonMobil’s plan to engineer the expansion of the Point Thomson project on the North Slope.
In August, the Division of Oil and Gas issued a six-page letter of denial of the company’s plans at Point Thomson, saying there were instances of conditional language in the company’s expansion. The company submitted a revised plan as requested by October.
Now, with all that in the rear view mirror, the governor struck a jubilant note about how Pt. Thomson could contribute to the gas line he hopes to build from Prudhoe Bay to Nikiski to ship gas to China.
“The Alaska LNG Project has been endorsed by the Trump Administration and the Chinese government. Interest in this project has grown immensely in the last 45 days due to the historic Joint Development Agreement between the State of Alaska, Sinopec, the Bank of China and the Chinese Investment Corp.,” said Governor Bill Walker.
“Our approval of the Point Thomson to Prudhoe Bay pipeline plan adds to the momentum of the Alaska LNG Project and demonstrates the commitment of the Point Thomson working interest owners to move gas from Point Thomson into Alaska Gasline Development Corp.’s 800-mile pipeline,” Governor Walker said in the statement. “The expansion project also helps build a Stronger Alaska, because it will increase oil production out of Point Thomson by 50,000 barrels per day.”
“It’s clear that ExxonMobil is committed to commercializing North Slope gas, particularly from Point Thomson. This helps align the company’s work in Alaska with the State of Alaska and AGDC,” said Natural Resources Commissioner Andy Mack, in the governor’s press release.
It may be a signal that Walker is ready to make peace with Exxon. The announcement, coming at a time of year when the public is generally distracted, is a signal that he doesn’t want much scrutiny focused upon it.
Walker has held a well-known, decades-long grudge against Exxon. He even sued the State of Alaska over its settlement with Exxon during the Parnell Administration — a good settlement that led to billions of dollars in investment and 10,000 barrels of condensate being put into the Trans Alaska Pipeline.
He reluctantly dropped his suit against the the Exxon settlement once he became governor in 2015.
[Read the State’s letter to Exxon approving the plan of development]
And by nice, we mean …
You’ve worked hard this year to make Alaska a better place. I know you have, because I hear from so many Alaskans, and from every corner of the state.
Thank you for your donations throughout the year — they’ve allowed Must Read Alaska to remain standing and fighting for common-sense conservative values and an economy that has room for everyone who wants to be a part of it.
I value you as a reader, and appreciate every contribution, large and small. Donate today, if you find this work important to Alaska.
May God bless you.
Life expectancy in America drops again
For the second year in a row, American life expectancy has dropped, and the Centers for Disease Control says it’s due to opioid use.
In 2016, life expectancy at birth was 78.6 years for the total U.S. population—a decrease of 0.1 year from 78.7 in 2015, the agency says.
For males, life expectancy went from 76.3 in 2015 to 76.1 in 2016—a decrease of 0.2 year. For females, however, life expectancy remained 81.1 years.
For those who make it to age 65, men can expect to live another 18 years, while women will typically live another 20.5 years.
The problem is making it that far. In the past two years, opioid drug abuse has contributed to a shortened lifespan overall.
Dunleavy jumps back in governor’s race
Sen. Mike Dunleavy suspended his campaign for governor in September to focus on his health. Today, he said that concern is behind him and he’s back in the race. 100 percent, he said.
Dunleavy made the announcement on Facebook during a live video broadcast at noon Alaska time. Over 50 people tuned in during the broadcast.
The senator from Wasilla left the Republican Senate Majority last winter over differences on using the Permanent Fund as part of the solution to the state’s budget crunch.
Sitting in his living room in front of his Christmas tree, and speaking to the camera, he said his campaign will focus on three things: Public safety, budget, and protecting the Permanent Fund and by extension, the Permanent Fund dividend.
His first-ever Facebook live video was less than 10 minutes in length. He asked the public to contact him through his web site, AlaskansforDunleavy.com to offer their support, both as volunteers and financially.
Immediately after his Facebook video, his campaign posted a press release.
“Senator Mike Dunleavy is thrilled to announce he is re-engaging his campaign for Governor, effective immediately. Three months ago, Senator Dunleavy suspended his campaign for Governor due to a medical condition that required at that time, undetermined treatment and recovery.
“I am glad to report that, thanks to great physicians, nurses and care providers, the medical treatments were successful, and my recovery has been excellent. In late August, I underwent a medical procedure to address atrial fibrillation,” said Dunleavy. “This condition was not life threatening, but was a serious impediment to handling the rigors of the campaign trail. I also received treatment in November for some inflammation of the heart tissue (myocarditis) that had been causing serious fatigue. The outpouring of well wishes and prayers from Alaskans all across the state was truly humbling and inspiring.”
Dunleavy said he needed to know beyond a shadow of a doubt that his health be well enough that he could follow through.
“Broken campaign promises are nearly the rule and not the exception these days. Then after they are repeatedly lied to, voters are chastised for not engaging by the very same politicians that didn’t keep their word. That is simply unacceptable to me,” stated Dunleavy.
“Alaska needs a leader that listens to, respects, believes in, and protects Alaskans,” said Dunleavy. “There is simply no excuse for the position our state is in – a significant rise in crime, both violent crime and crime that endangers our economic stability like theft, an economy in recession, the highest unemployment rate in the country and millions being wasted in government at the expense of the people and private sector. There exist viable solutions to the challenges facing us, and with the help of all Alaskans, I will work to swiftly and immediately enact systematic change to improve safety, get expenditures in line with revenues, and protect the Alaskan PFD as its founders envisioned.”
WHO WILL FILL HIS SHOES IN THE SENATE?
Rep. George Rauscher, District 9, said he is heaviliy considering that since Dunleavy can’t run for Senate and governor, “I would heavily consider running for his seat.”
Another likely candidate would be Rep. David Eastman, District 10.
Juneau what we’re grateful for? Abundance
By WIN GRUENING
SENIOR CONTRIBUTOR
With all the negative economic news making headlines in Alaska, sometimes it’s tough to stay positive. But we have plenty of reasons to be thankful.
Imagine where Alaska would be if we didn’t have core industries supporting our economy every day – 365 days a year.
A past column touched on some bright spots: legislation authorizing drilling in ANWR, the increased military expenditures in Alaska for missile defense, regulatory reform, and Alaskans appointed to high profile Federal agency positions directly affecting our state.
These developments are important, but we need to recognize the continuing importance of Alaska’s major private-sector industries: oil & gas, mining, seafood and tourism.
In 2017, Prudhoe Bay production and Trans-Alaska Pipeline operations celebrated 40-year anniversaries. Since pipeline operations commenced, 17.5 billion barrels of oil have been transported from the North Slope to the Valdez Marine Terminal. Despite the recent downturn in oil prices, Alaska’s oil industry has reversed recent production declines and remains the single most important economic engine in Alaska.
The positive impacts of this sector cannot be overstated. According to a recent McDowell Group study, oil and gas industry spending in Alaska accounted for 45,575 jobs and $3.1 billion in total wages in Alaska last year. After accounting for state and local government spending of taxes and royalties paid by the industry, an additional 58,300 jobs and $2.9 billion in wages were added to Alaska’s economy.
The total, 103,875 jobs and $6.0 billion in wages, represents nearly a third of wage and salary jobs in Alaska.
Oil development is often targeted for additional burdensome regulatory review and taxes – advocated by environmental groups opposing any expanded operations. Yet, if not for this industry there would be no Permanent Fund to cushion the effects of our current recession.
The mining industry, while not as large in scale, remains a growing force in Alaska’s economy. With over 8,600 jobs and $675 million in total payroll the mining industry accounted for some of Alaska’s highest paying jobs with an estimated average annual wage of $108,000, over twice the state average.
The mining industry is particularly important for residents of over 50 communities throughout Alaska, half of them in rural Alaska where jobs are scarce. Northern Southeast Alaska has benefited greatly from its two mines, Kensington and Greens Creek. Currently, Greens Creek Mine is Juneau’s largest private employer and property tax payer with over $1.4 million in annual property tax payments.
The seafood industry, our state’s largest exporter, is a major factor in our economy – employing 60,000 workers earning $1.6 billion in wages and accounting for $9 billion in total economic activity.
The demographic and geographic diversity of participants in this industry is unique. 31,580 fishermen earned income in Alaska’s commercial fisheries (over half were Alaska residents) including skippers and crew. Those fishermen operated a fleet of 8,600 vessels.
Alaska’s 2014 seafood harvest of 5.7 billion pounds had a total ex-vessel value of $1.9 billion. This production generally places Alaska sixth in seafood export value compared to all other seafood producing nations.
Our fourth major industry, tourism, or more broadly, the visitor industry, continues to prosper in our state.
In 2016, 1.8 million out-of-state visitors came to Alaska – the highest volume on record. 55 percent came via cruise ship, 40 percent arrived by air, and 5 percent were highway/ferry visitors.
Southeast is the most visited region in Alaska, capturing 67 percent of the overall market, followed by Southcentral (52 percent) and Interior (29 percent). Alaska visitors spent an average of $1,057 per person here (not including transportation to or from the state or any cruise/tour packages).
The cruise industry’s visitor volume creates tremendous multiplier effects throughout the economy. In Juneau (and other SE ports) marine passenger fees add tens of millions of dollars to municipal coffers.
Looking at these numbers, it’s hard to understand why responsible economic development always seems to generate such controversy.
These four major industries produce the oil, gas, minerals, seafood, and experiences bringing outside dollars to our state. Along with smaller private-sector producers, they provide the jobs and revenues that support government services, non-profits and associated service industries: retail, construction, medical, arts and culture, and transportation among others.
They deserve, but often don’t receive our gratitude.
But there’s more to be grateful for (just to name a few):
- Service organizations whose members volunteer to help those less fortunate;
- State-of-the-art medical facilities;
- Perseverance Theatre (have you seen “Steel Magnolias” yet? It’s terrific);
- Alaska Airlines – whose regular and dependable service continues to garner awards;
- Juneau’s superb municipally-provided recreation facilities;
Many states (or countries) would love to have the diversity and richness of economic potential we have supporting our communities and quality of life.
We may not agree on everything, but can we agree on that?
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.
Second big Pebble announcement: Permit application on Friday
Just days after Northern Dynasty Minerals of Canada announced it had brought on a major partner, the company today says it has final paperwork ready to file for a major permit from the U.S. Army Corpos of Engineers for the Pebble Project in Western Alaska.
The permit application, expected Friday, Dec. 22, will initiate federal and state processes under the National Environmental Policy Act, or NEPA.
“At the outset of 2017, we established three ambitious corporate objectives for Northern Dynasty and the Pebble Project,” said Northern Dynasty President & CEO Ron Thiessen in a press release this morning. “We committed to reaching a resolution with the US Environmental Protection Agency (“EPA”) to restore the Pebble Project to normal course permitting, to re-partnering on the Pebble Project and to initiating permitting under NEPA. As we approach the end of the year, I’m proud to report that we will hit our mark on all three important milestones.”
The company announced a settlement agreement with EPA in May, after the EPA had said it would not even allow a permit application to be filed. Under the Obama Administration, the EPA took extraordinary steps to pre-empt any movement toward the application process, and the agency was found to be colluding with environmental groups.
Pebble sued, and the evidence was overwhelming. In the settlement with the EPA, the agency agreed to withdraw its denial and allow Pebble to apply for a Clean Water Act 404 permit with the US Army Corps of Engineers.
Earlier this week, Northern Dynasty announced a a partnership with First Quantum Minerals Ltd. for a $150 million option that will provide for the right to buy a 50 percent interest in the Pebble Project and a further investment of $1.5 billion. Pebble has received an initial $37.5 million installment.
“We are very pleased to move the Pebble Project forward to the next important phase by initiating the NEPA permitting process this year, as we committed to do,” said Tom Collier, Pebble Partnership CEO, in today’s press release.
“The project design we’re taking into permitting includes a substantially reduced development footprint and meaningful new environmental safeguards that respond directly to the priorities and concerns we’ve heard from stakeholders in Alaska. Not only are we confident that Pebble as currently envisaged will secure development permits from federal, state and local regulatory agencies, we are confident it will co-exist with the world class fisheries of Bristol Bay and earn the support of the people of the region and the state.”
DEVELOPMENT HIGHLIGHTS
The Pebble Project is a copper-gold-molybdenum porphyry deposit located on state land in the Bristol Bay Region of southwest Alaska, approximately 17 miles northwest of the community of Iliamna. The land has been set aside for generations as state mining land.
The project sits over two two contiguous deposits. On the West is a near surface resource of approximately 4.1 billion metric tons. To the east East is a deeper deposit with an estimated 3.4 billion metric tons.
Under the development scenario the Pebble Partnership will submit for federal and state permitting on Dec. 22, 2017:
- The footprint of Pebble’s major mine facilities (pit, tailings storage facility) will be substantially smaller than previous planning iterations, at approximately 5.9 square miles;
- There will be no primary mine operations in the Upper Talarik watershed, minimizing the project’s environmental footprint and addressing stakeholder concerns related to potential impacts on local salmon productivity;
- The Tailing Storage Facility will incorporate a more conservative design, including enhanced buttresses, greater slope angles and an improved factor of safety;
- Potentially acid generating tailings will be separated from other tailings and stored in a lined TSF. All tailings storage will be consolidated in a single drainage-area (the North Fork Koktuli);
- The mine plan does not include permanent waste rock piles, significantly reducing risks associated with water quality;
- Cyanide will not be used in the mineral recovery process at Pebble. (While cyanide is used safely in Alaska and around the world to enhance gold recoveries, Pebble has taken a decision not to employ it in direct response to stakeholder concerns);
- A new ferry route across Iliamna Lake will be evaluated in order to minimize road construction, stream crossings, bridges and culverts, as well as the proposed mine’s impact on local wetlands; and
- The mine will be designed to withstand the greatest possible seismicity predicted by science.
COMMUNITY BENEFITS
The company is offering these anticipated benefits associated with the Pebble Project:
- During mine operations, estimated annual payments to the Lake & Peninsula Borough will be $19-21 million; estimated annual payments to the State of Alaska will be $49-66 million per year;
- Total direct and indirect jobs created for Alaskans during mine operations will be 1,500-2,000;
- The Pebble Partnership will advance a revenue sharing plan to enhance local and regional financial benefits associated with development of Pebble;
- The project will align with State of Alaska public priorities by facilitating the development of low-cost energy for rural communities;
- The Pebble Partnership will work with local commercial fishing interests on ways to help with non-Pebble related challenges associated with price and run variability, and the decline of local participation in the fishery; and
- The Pebble Partnership will advance a business development and mentoring initiative to ensure that Alaska Native village corporations are ready to compete for construction and operations-phase contracts.
CONTROVERSY
The environmental groups opposing the Pebble Project say the project will harm salmon stocks. Save Bristol Bay sums up the opposition with this statement on its website: “Pebble mine threatens one of the world’s last great salmon fisheries in Bristol Bay, Alaska. Tribes, commercial fishermen, sportsmen and women, local businesses and many others across the country are working to protect these iconic and productive rivers and the people they support.”
The opposition to the project crosses political lines, and the project will likely be an issue in the upcoming gubernatorial race in 2018. Gov. Bill Walker, who has aligned with the Alaska Democratic Party, is opposed to the project. Potential gubernatorial candidate Bob Gillam, a Republican, is also opposed to it. Other leaders say they want to see the project’s specifics before they pass judgment.
Learn more about the Pebble Project from the company’s web site.
