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Op-ed: Alaska has bright future if we keep oil taxes competitive

By JOE SCHIERHORN AND JIM JANSEN

Alaskans have good cause for celebration. The recently approved Willow project can reverse the last 10 years of population decline and outmigration, provide hundreds of jobs, dramatically increase Alaska’s oil production, fund state services for the next 40 years, provide permanence to the PFD and the Permanent Fund and revitalize Alaska’s economy. At peak production, this major oil project on the North Slope will increase oil production in Alaska by up to 180,000 barrels per day.

Last fall, Santos sanctioned over $2.6 billion to start phase one of the Pikka project, which will produce up to 80,000 barrels per day, giving us another reason to celebrate. This, combined with the Willow project, could mean up to 50% more oil flowing through the pipeline.

Alaskans can be proud today. We have consistently voted to maintain tax stability over the last 10 years which ensured the investment climate to allow Willow and Pikka to be funded. The Alaska voter said no to the repeal of SB 21 in 2014, and no again in 2020 to a poorly designed initiative that would have raised taxes on our legacy fields by as much as 300%.

Stable tax policies have allowed North Slope producers to halt production decline from fields that are approaching the half century mark. And explorers continue to make world-class discoveries despite highly volatile oil prices. We have a bright future if we can keep Alaska competitive and continue to attract investment to our resources industries.

Despite these encouraging and hopeful facts, the Senate Rules Committee recently introduced SB 114 which would make significant changes to SB 21, increasing taxes on new fields and existing North Slope oil production.

Among other changes, it adds instability and complexity to the tax system by dramatically changing the deductibility rules for capital costs of new projects like Willow and Pikka, which negatively impacts project economics and cash flow. Not only is this short-sighted view blatantly unfair to an industry that made investment decisions based upon our current oil tax structure, but it is also a major risk to the future viability of our state should these changes derail these projects.

Alaska’s leaders must be diligent today. It’s time to keep our eye on the future, maintain our competitiveness and investment stability and enjoy the long-term prosperity we are offered with Willow and Pikka.

Changing our tax structure at this late date on those projects’ developments could spoil the greatest opportunity of this generation.

Joe Schierhorn is Chairman and CEO of Northrim Bank and co-chair of KEEP Alaska Competitive. Jim Jansen is the Chairman of Lynden and co-chair of KEEP Alaska Competitive. Photo: North Slope work, by Rob Bussell.

Gov. Inslee won’t seek another term in Washington state

Washington State Gov. Jay Inslee announced Monday that he will not be seeking a fourth term in office.

Inslee, who has served as governor since 2013, is the nation’s longest serving current governor.

He is the second Washington state governor to serve three consecutive terms; Republican Dan Evans was the first. Washington has no term limits for governor.

“Our last decade of Washington’s storied history is one of growth and innovation. I am proud to have played a role in our state’s leadership on so many fronts.  We’ve passed the nation’s best climate policies, the most successful family leave benefits, the best college scholarship programs, a more fair legal justice system, and the most protective actions against gun violence. We’ve shown that diversity is a strength worth fighting for. This has been ten years of dynamic success,” he said.

“As governor, I have seen my role as inspiring our state ever forward and ever higher. I’m gratified to be able to say that this approach has worked to improve Washingtonians lives in many ways and many places,” Inslee said in a statement.

“Now is the time to intensely focus on all we can accomplish in the next year and a half, and I intend to do just that. I look forward to continued partnership with legislators and community leaders to address Washington’s homelessness crisis, speed our efforts to expand behavioral health services, continue our fight against climate change, and continue making Washington a beacon of progress for all,” he concluded.

In fact, Washington is right behind California when it comes to its number of residents living outside with no shelter — the second highest homeless population in the country by state.

Among cities, only New York City and the Los Angeles metro had more homeless people than Seattle and King County last year, when more than 250 people died on the streets and in the woods of King County, setting a record, according to KUOW. Hypothermia was the leading cause of those deaths.

Inslee highlighted what he sees as his achievements since 2013. In his words, they are:

Fish, family, freedom, and flushables

Rep. Mary Peltola has cosponsored a bill that would ban flushable wipes — the wipes that are flushable but don’t break down in sewer or septic systems. Unflushables, in other words.

The bill would not ban the popular wipes, but require the “flushables” to be properly labeled as non-flushable.

The WIPPES Act — Wastewater Infrastructure Pollution Prevention and Environmental Safety Act — is a product of Oregon Sen. Jeff Merkley, Maine Sen. Susan Collins, Michigan Rep. Lisa McClain and Peltola, to address the wastewater infrastructure concerns caused by the flushing of wet wipes that don’t break down in sewer and septic systems.

“During the COVID pandemic, Anchorage wastewater workers reported pulling up to 6,000 pounds of wipes daily out of the sewer system,”  Peltola said. “To address this issue, I’m proud to be a leader on the WIPPES Act, a common-sense bill that would take a significant step towards reducing the amount of trash that ends up in our sewers, rivers, and oceans. Every step that we can take to improve our wastewater infrastructure and marine habitats is worth it, especially when it’s as simple as adding a sentence to a package. It’s time to wipe out this problem for good.”

Public testimony opportunities for Monday and Tuesday

HB 66 is a bill requested by Gov. Mike Dunleavy that would increase penalties for illegal drug purveyors who distributes a substance that results in the death of the recipient. The penalty would be second-degree murder and there would be no time allowed off of the sentence for good behavior.

HB 28 would make marijuana convictions erased from public view for certain convictions that happened before the general legalization of cannabis.

HB 114 would increase taxes on oil companies like Hilcorp, which is an S corporation and thus avoids some state taxes.

These are three of the bills that will be subject to testimony on Monday and Tuesday. Here are some of the bills that Alaskans may wish to testify on:


Consideration of governor’s appointee Board of
Game – Stanley Hoffman
H RESOURCESMay 1, 2023, 1 pm
HB 66CONTROLLED SUB.;HOMICIDE;GOOD TIME DEDUC.H FINANCEMay 1, 1:30 pm
HB 28ACCESS TO MARIJUANA CONVICTION RECORDSH FINANCEMay 1, 1:30 pm
SB 114OIL & GAS PRODUCTION TAX; INCOME TAXS FINANCEMay 1, 1:30 pm
SB 84MONEY TRANSMISSION; VIRTUAL CURRENCYS JUDICIARYMay 1, 1:30 pm
SB 116ASSOCIATE AND PROFESSIONAL COUNSELORSS LABOR & COMMERCEMay 1, 1:30 pm
SB 132EMPLOYMENT TAX FOR EDUCATION FACILITIESS EDUCATIONMay 1, 3:30 pm
SB 56AK PERFORMANCE SCHOLARSHIP; ELIGIBILITYS EDUCATIONMay 1, 3:30 pm
HB 158MILITARY; UNITED STATES SPACE FORCEH MILITARY & VETERANS’ AFFAIRSMay 2, 1 pm
HB 3GOLD AND SILVER SPECIE AS LEGAL TENDERH FINANCEMay 2, 1:30 pm
HB 83CITIZEN ADVISORY COMM ON FEDERAL AREASH FINANCEMay 2, 1:30 pm
SB 127TAXATION: VEHICLE RENTALSS TRANSPORTATIONMay 2, 1:30 pm
HB 4ELECTIONS:REPEAL RANK CHOICE/OPEN PRIMARYH STATE AFFAIRSMay 2, 3 pm
HB 60RUNAWAYS; DFCS/DOH: DUTIES/LICENSING/INFOS HEALTH & SOCIAL SERVICESMay 2, 3:30 pm
SB 138ELECTIONS; VOTER REG.; CAMPAIGNSS STATE AFFAIRSMay 2, 3:30 pm
SB 95LICENSE PLATES: SPECIALTY ORGANIZATIONSS STATE AFFAIRSMay 2, 3:30 pm
HB 8ELECTRIC-ASSISTED BICYCLESS STATE AFFAIRSMay 2, 3:30 pm
SB 61US PRESIDENT ELECT. POPULAR VOTE COMPACTS STATE AFFAIRSMay 2, 3:30 pm

Death of print news: Weekend Empire was last to be printed in Juneau

On Friday evening, the Juneau Empire‘s printing press spit out the final edition to be printed in Juneau, and then rumbled to a stop. The weekend newspaper would be the last before the press is dismantled and shipped south on a barge for a final decision on its future — to be sold for scrap or to some newspaper that wants to risk such an investment.

The Juneau Empire has moved to twice-a-week print editions that will be printed in Pierce County, Washington and flown to Juneau for Wednesday and Saturday delivery via the U.S. Postal Service.

The Goss brand press was originally situated in the old Alaska Light and Power building in downtown Juneau, but was moved to the Empire’s new building on Channel Drive in 1986. The Empire has downsized since the early 2000s, and moved out of those waterfront offices in 2021, as Morris Communications sold the building to Southeast Alaska Regional Health Consortium. The newspaper, which is now owned by Sound Publishing, then leased back the ground floor area where the massive press is located. That lease expires at the end of May, the newspaper reported.

Moving to two times a week, with out-of-state printing and Juneau’s famously variable weather and flight schedules, may prove challenging to the capital city newspaper, which is downsized from a newsroom of more than 22 in 2000 to just three or four people in 2023.

Murkowski votes against reinstating paying firefighters’ back pay after they were fired for refusing Covid shots

The attempt to restore jobs and back pay for firefighters who were terminated for refusing or criticizing the Covid-19 vaccine failed, due to the “no” votes of four Republicans and all Democrats, including Alaska Sen. Lisa Murkowski.

The “Support the Reinstatement of Trained and Effective Firefighters” amendment proposed by U.S. Sen. Rand Paul of Kentucky was defeated 54-45 in the Senate.

The amendment sought to provide funding to fire departments that fired firefighters for their refusal to take the vaccine or their opposition to Covid-19 mandates, only if they reinstated those firefighters and offered them back pay.

Republican Sens. Susan Collins of Maine, Mitt Romney of Utah, Mike Rounds of South Dakota, and Murkowski voted against the amendment. Dianne Feinstein did not vote, as she has been sidelined by age-related illness, including dementia.

“It seems bizarre and contradictory to provide financial support to increase fire department staffing when decisions were made to terminate trained and effective firefighters for no good reason. Firefighters tend to be young and fit, the very people who had the least to worry about COVID-19,” said Paul, before the vote.

“These people were never a threat to their communities. On the contrary, they served their communities bravely and made their neighbors safer. What was done to them, what was done to police, what was done to first responders was shameful and we should stand together to make sure it never happens again,” said Paul.

New federal rule charges higher fees to home buyers with better credit

By CASEY HARPER | THE CENTER SQUARE

A new federal rule that would charge higher fees to home buyers with good credit to help subsidize those with poor credit goes into effect Monday.

The Federal Housing Finance Agency announced in January it would increase Loan-Level Price Adjustment fees for mortgage borrowers with higher credit scores to help keep fees lower for those with worse credit.

Director Sandra Thompson of FHFA said the plan will “advance their mission of facilitating equitable and sustainable access to homeownership.”​​

The loan-level price adjustment is a fee assessed after bankers evaluate the risk of lending them money. The FHFA rule could cost those with better credit scores thousands of dollars on their loans, effectively punishing them for paying their bills.

Critics argue the rule shifts risk costs onto borrowers with better credit and will leave taxpayers on the hook if the plan leads to major economic issues. 

The rule has sparked a wide array of controversy, especially as critics point out Freddie Mae and Freddie Mac engaged in similar policies in their role in the 2008 financial crisis. That crisis put billions of dollars in financial burden on taxpayers via government bailouts.

Critics called the rule a “bailout” for those with poor credit, comparing it to student loan forgiveness.

“Rather than saddle those with scores 680 or lower with more debt, it’s far better to encourage them to re-establish credit,” Joel Griffith, an economic expert at the Heritage Foundation, told The Center Square. “Most people find themselves financially strapped at some point. A few years of consistent timely payments and debt paydown can help someone even emerging from bankruptcy attain scores at 680 or worse with a near 0% loan from FHA.”

Griffith also said the plan would drive up home prices, especially for starter homes, which are already experiencing the highest housing inflation.

Other critics argue this is part of a pattern in the Biden administration of using regulations to take from some and give to others.

“This mortgage rule is part of a pattern of Biden administration policies that force responsible consumers to subsidize irresponsible ones – from blanket student loan forgiveness that disregards those who already paid to the CFPB’s price controls on credit card late fees that would force those cardholders who pay on time to pay more,” John Berlau, director of Finance Policy for the Competitive Enterprise Institute, told The Center Square.

In response, U.S. Rep. Andy Biggs, R-Ariz., introduced the the Responsible Borrowers Protection Act last week. Biggs’ measure would block the rule from going into effect, but will almost certainly not be passed before Monday if at all.

“The FHFA – led by a President Biden appointed director – is punishing financially responsible mortgage borrowers,” said Biggs, who has more than 30 lawmakers backing his bill. “Their agenda of equity over equality defies common sense and will endanger the stability of the housing market.”

Casey Harper is a Senior Reporter for the Washington, D.C. Bureau. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, and USA Today.

Corrections officer charged with bringing meth into state prison

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Alaska State Troopers on Thursday arrested a corrections officer at Spring Creek Correctional Center for bringing 48.7 grams of suspected methamphetamine and 87 Buprenorphine strips to an inmate in the facility. Both are controlled substances.

Steven Manuel, 44, a Seward resident, was arrested without incident and remanded to the Seward Jail on charges of promoting contraband in the first degree, misconduct involving a controlled substance in the third degree, and in the fourth degree.

According to the Troopers’ dispatch report, more charges may be filed.

Border security: Biden administration to expand entry to U.S. ahead of Title 42 expiring

By BETH BLANKLEY | THE CENTER SQUARE

The Department of Homeland Security and Department of State announced unprecedented policies to expand entry to the United States while also claiming the border is closed ahead of the public health authority Title 42 ending on May 11.

The new policies, they said, will “further reduce unlawful migration across the Western Hemisphere, significantly expand lawful pathways for protection, and facilitate the safe, orderly, and humane processing of migrants.”

The Title 42 public health order is set to expire 11:59 PM EST on May 11. Implemented under former President Donald Trump, Title 42 allowed border agents to immediately expel foreign nationals during the COVID-19 pandemic. Lifting the order “does not mean the border is open,” the statement says.

When Title 42 is lifted, it claims federal agents “will return to using Title 8 immigration authorities to expeditiously process and remove individuals who arrive at the U.S. border unlawfully.”

The announcement claims Title 8 authority violations “carry steep consequences for unlawful entry, including at least a five-year ban on reentry and potential criminal prosecution for repeated attempts to enter unlawfully,” even though over a million people with deportation orders haven’t been deported because of new policies instituted by DHS Secretary Alejandro Mayorkas.

While the statement claims “the border is not open,” the new policies are being implemented in coordination with the governments of Mexico, Canada, Spain, Colombia and Guatemala to expand entry to the United States “through a combination of expanded lawful pathways.”

One “legal pathway” includes expanding access to the CBPOne App. Foreign nationals from Central and Northern Mexico can schedule an appointment using the app to present themselves at a port of entry to be processed by Border Patrol with the expectation of being released into the U.S. “CBPOne will make additional appointments available, and the use of this tool will enable safe, orderly, and humane processing,” according to the policy.

Another includes a new family reunification parole process for citizens of El Salvador, Guatemala, Honduras and Colombia to enter the U.S, as well as for Cubans and Haitians. “Vetted individuals with already approved family-based petitions” will be released into the U.S. through this new system, which may conflict with an order given by a federal judge in Florida, who ruled against Mayorkas’ parole policy.

Another includes doubling the number of refugees allowed entry into the U.S. from the western hemisphere – “welcoming thousands of additional refugees per month” – through processing efficiencies and increasing resources and staffing to the U.S. Refugee Admissions Program.

The U.S. will continue to accept up to 30,000 individuals per month from Venezuela, Nicaragua, Cuba and Haiti, or 120,000 total, through its expanded parole policy.

To facilitate “access to lawful pathways” to foreign nationals to enter the U.S. bypassing immigration laws established by Congress, the federal government is opening regional processing centers for the first time in U.S. history outside of the United States.

The first processing centers will be opened in Colombia and Guatemala. Citizens of these countries can make an appointment on their phone to meet with an immigration specialist to help them be processed before they ever arrive to the U.S.

DHS is also dedicating $15 million to its Case Management Pilot Program to provide voluntary case management and other services to noncitizens to increase compliance with court dates and accelerate processing times to help them stay in the U.S.

The agencies also announced they were implementing enforcement measures, but since DHS has repeatedly been sued over the past three years for failing to enforce existing federal law, critics question the credibility of the claim.

Critics also argue the agencies are likely to be sued because the policies appear to directly conflict with laws established by Congress.