Category Archives: news

Parnell appointed another non-resident board member, this one to the AGDC

Law dictates that those appointed to boards and commissions must be Alaska residents. However, Gov. Sean Parnell will not budge on a board appointment that appears to violate the law. In an email, Sharon Leighhow, the governor’s spokesperson, said that Parnell will not pull the name of California resident and former oil executive Dennis Mandell from the State Assessment Review Board, the board that assesses the trans-Alaska gas pipeline for tax purposes.

Leighhow said that Parnell also won’t pull another non-resident appointment to the board of the Alaska Gasline Development Corp. Richard Rabinow, appointed to AGDC’s board by Parnell in September, lives in Houston, Texas, not, as statue would dictate, in Alaska. Continue reading →

Murkowski writes letter to legislators urging them to scrutinize TransCanada’s role in pipeline

On Tuesday, former Gov. Frank Murkowski wrote a letter to legislators, urging them to dig more deeply into TransCanada’s role in the contracts that are being negotiated to build the large diameter natural gas pipeline, which is estimated to cost as much as $65 billion.

“I am prompted to write each of you to express my growing concern over a major uncertainty associated with Senate Bill 138 – that is, how much revenue will the State lose by turning over to TransCanada what would otherwise be the State’s interest in the gasline?” Murkowski wrote. (See the full letter below.)

The state is partnering with TransCanada to own an equity stake in the pipeline and, among other things, is guaranteeing the company a 12 percent return on equity, which as Murkowski points out, is more than “twice what the State could borrow by issuing revenue bonds or tax-exempt bonds.”

In turn, TransCanada is financing much of the state’s investment. The question remains, however, if that arrangement is in the best interest of the state.

“This is a major policy call that has taken place without Legislative scrutiny,” Murkowski wrote.

Murkowski is urging legislators to pass one part of the agreement which would align the state with the producers who have lease rights to the gas, but to wait to pass the other part which establishes the state’s relationship with TransCanada.

When Murkowski was governor, he was also in the process of negotiating a large diameter natural gas pipeline, which at the time received much criticism. Gov. Sarah Palin, however, won the race before the contract could be finished. During her administration, legislation was passed and another contract was negotiated with TransCanada. That contract is still legally binding, and explains why the state has not looked for partners outside of the company.

Read the full letter below:

I am prompted to write each of you to express my growing concern over a major uncertainty associated with Senate Bill 138 – that is, how much revenue will the State lose by turning over to TransCanada what would otherwise be the State’s interest in the gasline?

SB 138 contains two parts: the Heads of Agreement which I urge that you pass this session. This brings gas owners and the State in alignment as each party owns North Slope gas.

The second part is the MOU between the State and Trans Canada. Unlike the 2007 AGIA agreement, the new MOU would pay for TransCanada’s services with what otherwise would be the State’s equity interest in the gas line. The tariff to the State is fixed at 12%, which is inflation proofed. This tariff is more than twice what the State could borrow by issuing revenue bonds or tax-exempt bonds.

Reports have noted that the MOU is a very complex document. Some of the lawyers who have appeared at the committee hearings of jurisdiction acknowledge parts are difficult to comprehend, let alone explain. Any legislator who takes the time to try to digest the document would agree.

Some take comfort in their belief that the MOU is non-binding and the state can “take the off ramp at any time”. This can be unrealistic. Take a quick look back at 2007 when TC entered in to the first AGIA agreement with the state. So far the state has expended more than $300 million with more to come, and we have yet to get a full explanation of what the State received for its money. Commissioner of Revenue Rodell stated that with TC’s participation the cost to the state would be $300 million annually in lost revenue once the gas begins to flow. The argument favoring this approach is that the capital costs of the project would be in the billions and would come at a time (2015-2021) of declining State revenues. TC would get the State’s share of the gasline by fronting these costs.

Commissioner Rodell said that the cost of lost revenue was worth the financing that TC would provide.

Really? Why have we not seen a side by side comparison of the costs and rewards to the State of TC holding the State’s share of the pipeline with the costs and rewards to the State of the State holding the State’s share of the pipeline.

This is a major policy call that has taken place without Legislative scrutiny.

There are major costs to the State of doing this. The “loan” is risk free to TC because the State pays all of its costs, including depreciation for TC’s up front capital costs (Exhibit C Item 6) and an inflation proofed cost of money at a base rate of 5%. Moreover, TransCanada will simply use the State’s Take or Pay agreement to transport our gas as security for the obligation it undertakes to pay for the State’s share.

What is the State’s alternative? There has been no discussion in the Legislature about going to the investment market to determine whether revenue bonds or other financing is available that would not require the state to pay down its savings during the 8 to 10 years before revenue starts to flow and would not require the state to give up its equity interest in the gas line.

Other questions remain yet to be answered:

Why share pipeline ownership with a non-gas owning company when the producers have the capacity to, and very well may, construct the LNG line themselves?

Having repaid 90% of TC’s expense for its work in the pipeline, what is the justification for TC to obtain any portion of the state’s equity share?

Why the special treatment for this particular company? Why not simply pay TransCanada for its services like any other company that provides services to the state?

When I was in the banking business, one of the rules of the road for a lending officer, was if you were lending your own personal funds, would you risk making the loan? Knowing what you know, but more importantly, being concerned about what you don’t know, are key factors in making this call?

A prudent approach would be for the Legislature to advance passage of the HOA this session. Then between sessions develop alternate means of financing Alaska’s equity portion of the gas line, so that Alaska does not “expend-down” its savings in the 8 to 10 years before first gas flows and the state can retain its equity.

Best wishes for a successful session.

Sincerely,

Frank H. Murkowski

Contact Amanda Coyne at amandamcoyne@yahoo.com

Loose Lips: Lynn is not retiring, Joe Miller tries his luck with the left, unions spend on Petersen

— In my Sunday column in the Anchorage Daily News, I wrote that it had been rumored that my favorite Facebook poster Rep. Bob Lynn would be retiring after he got his bill on immigration and driver’s licenses passed. As you know who might say, au contraire mon cheri. Lynn isn’t going anywhere, he said on his Facebook page. On the subject of his retiring, he writes, “Despite maybe someone’s wishful thinking, Bob Lynn is definitely a candidate for re-election. I’ve worked hard to represent folks effectively and, quite frankly, I think I’ve done a very good job.” Lots of others in Lynn’s district, who have sent him to office since 2002, think so too.

— The Capital City Women’s Republican Club luncheons usually draw at least 50 or more people at their monthly luncheons. On Monday, the speaker was Lt. Gov. and U.S. Senate candidate Mead Treadwell. About 20 people showed, the worst turnout of the year. Officially, the low turnout was blamed on the rain. Unofficially, however, the women are said to be smarting from a press release Treadwell campaign released following the Lincoln Day Dinner last month, where he violated Ronald Reagan’s commandment not to criticize a fellow Republican.

— In Alaska, Joe Miller might be winning some friends by being the enemy of the enemy. But the beginnings of the odd alliance between him and Alaska’s left — who would love to see him win the primary to run against U.S. Sen. Mark Begich in the general—is lost on lower 48 media. While in D.C. for CPAC, Miller conducted an interview with a reporter from Salon. The gist: Miller repeatedly defends state’s rights and the reporter repeatedly asks if those rights extend to discriminating against people of color. It goes on. The way the interview wraps up says it all. “You know, I’m willing to engage in a dialogue, but we aren’t going to go into the moronic on this, OK?,” Miller says as a statement rather than a question. The piece is titled, “’Absolutely moronic’: Inside the mind of a Tea Party Senate candidate.”

— Carol Austerman, a Kodiak Borough Assemblywoman, has filed for the Kodiak House seat. Her father is incumbent Rep. Alan Austerman. Supposedly he’ll be retiring and supporting his daughter’s candidacy, all which brings back memories of…

— Former Gov. Frank Murkowski inserted himself in the gas pipeline debate today by sending a letter to legislators questioning how much revenue the state will lose by turning over to TransCanada what would otherwise be the state’s interest in the gasline. I’ll post the letter when I get it. (Got it. See here.)

— Gov. Sean Parnell is taking a beating for his appointment of a California former oil company executive to an Alaska board that sets the value of pipelines for tax purposes. Expect more to come. And expect Parnell, as is his wont, to remain silent on the subject.

— Unions are coming out strong for Pete Petersen for Anchorage Assembly against incumbent Anchorage Assemblyman Adam Trombley. Word is that the firefighters have organized an independent group that recently made a media buy of at least $27,000, another made a ~~$15,000~~ $19,000 media buy and there’s at least one more pro-Petersen group organizing. Trombley’s got his own tricks, however. Sen. Lisa Murkowski, the most popular politician in the state, is supposedly showing up at his fundraiser on Friday night in Anchorage.

— Sen. Hollis French had a constituent meeting on Saturday at the Spenard rec center. About 30 people showed to munch on pizza and talk politics. Here’s a snippet of one conversation French had with a constituent:

Constituent: I want you guys to change the time zone.

French: Sen Fairclough, a really good organized legislator tried it and it’s a lot more difficult than you expect.

Constituent: Well, if you guys can’t even do that, how in the heck are you guys going to ever pass a gasline bill that makes sense?

— Shout-out to Eagle River resident Cierra Mickens who advances to the next round of the NBC show The Voice.

— Shout-out to Eddie Ahyakak for winning season 2 of the reality show Ultimate Survival Alaska. According to a press released by the Arctic Slope Regional Corporation, of which Ahyakak is a board member, the teams raced across the backcountry, from Southeast Alaska to the Interior while living off the land. The show’s season finale had the remaining teams racing to the top of 4,100’ Augustine Volcano in southwestern Cook Inlet.

Contact Amanda Coyne at amandamcoyne@yahoo.com

Fish and Wildlife calls Izembek bird hunting ‘spectacular’ but won’t allow road that might harm them

Sen. Lisa Murkowski’s staff is highlighting the irony in a U.S. Fish and Wildlife profile of Izembek National Wildlife Refuge. Among other things, the profile says that Izembek’s hunting opportunities are “world famous.”

“Fall waterfowl hunting is spectacular,” in Izembek, the agency says.

The U.S. Fish and Wildlife Service is within the Interior Department, which recently denied citizens in the region a potentially life-saving, 11-mile gavel road connecting two villages which would go through the refuge. Among other things, Interior Secretary Sally Jewell cited concern for waterfowl in denying the road.

Murkowski staffer Robert Dillon said that this is just another example of Interior’s flawed logic. “We can’t build an 11-mile, one-lane, gravel road because it might disturb some birds – but if you want to go out and shoot them, by all means, it’s ‘spectacular,’” he said.

Murkowski has taken the lead in the fight to push the Interior Department to approve the road, has vowed to continue to do so.

“In addition to my role as mediator, and ambassador, and all that, I can also be a hell-raiser. And I am going to be a hell-raiser on this. I am going to channel my inner Ted Stevens, and we are going to get this road,” she told the state Legislature in an annual address last month.

She also suggested that the citizens in the area engage in civil disobedience to protest the denial of the road.

Contact Amanda Coyne at amandamcoyne@yahoo.com

Begich hits the Koch brothers in first campaign ad

With the help of at least a half a dozen Alaskans, Sen. Mark Begich takes aim at the conservative Koch brothers in his first television ad of the race. The ad takes issue with the Koch brothers, who have spent roughly $1 million attacking Begich for hurting the economy, while Koch Industries announced the shuttering of a North Pole refinery, a mainstay of Alaska’s Interior economy.

Using a montage of six Alaskans, the ad accuses the brothers of contaminating the drinking water and laying off workers.

“The Koch brothers, the billionaire Koch brothers. I do not believe it. They come into our town, fire a refinery, just running it into the ground, leaving a mess. A lot of Alaskans are losing jobs and I’m definitely concerned about the drinking water. I don’t go down to tell them what to do, I expect them not to come up to Alaska to tell us what to do,” say a mix of Alaskans in the ads.

In a statement, the Koch brothers funded political group Americans for Prosperity fired back at Begich. “It’s disappointing that Senator Begich’s first message to Alaskans is a Washington-style, negative attack ad that does nothing to address any of the real concerns voters have about his record,” Alaska AFP spokeswoman Heidi Gay said.

“Senator Begich already misled Alaskans about ObamaCare; now he keeps changing his answer about supporting a carbon tax. Although he has tried recently to distance himself from past support, even Politifact concluded he would be a ‘maybe’ on a carbon tax vote. He has given a different answer every time he has been asked about it.”

AFP has repeatedly claimed that Begich supports a carbon tax. Begich has repeatedly said that he doesn’t. Begich did however sign a 2010 letter written to Senate Majority leader Harry Reid that called for “making polluters pay through a price on greenhouse gas emissions,” in order to address climate change.

A carbon tax is one way to make polluters pay. There are other ways, however, as Begich has pointed out.

GOP candidate Dan Sullivan isn’t buying it. His campaign called Begich’s denial of such support an “election day conversion.”

None of the three GOP candidates–Sullivan, Mead Treadwell, or Joe Miller — have said anything about the closure of the refinery.

Contact Amanda Coyne at amandamcoyne@yahoo.com

Bob Williams’ campaign releases poll

A poll conducted for lieutenant governor candidate Bob Williams shows that although Hollis French, the other Democratic candidate for the seat, has a greater name recognition, French also has larger negatives than does Williams.

Williams, a teacher from Palmer, paid for the poll, which was conducted by EMC Research, a firm with offices in Washington state, California, Idaho and Oregon. It surveyed 400 likely primary voters from Feb. 4-7, and has a 4.9 percent margin of error.

It also shows that a majority of voters will not be voting for Gov. Sean Parnell and that his negatives are more than 40 percent. In the poll, only 25 percent knew who Democratic candidate Byron Mallott was.

Note: The poll did not mention independent candidate Bill Walker’s name, which makes the gubernatorial numbers suspect.

The narrative accompanying the numbers says that French has “limited appeal outside of the base,” and that Williams has “significant upside potential with a strong ability to appeal to voters across the board.”

Williams is a political neophyte. However, he surprised many by reporting having raised more than $63,000 in his last report.

Here are some key numbers from the poll.

54 percent will not vote for Parnell. 16 percent will “definitely” vote for him, and 26 will “probably” vote for him.
40 percent have a negative view of Parnell.
Mallott only has a 25 percent name ID.
French has a 54 percent name ID.
22 percent have a negative view of French.
Williams only has a 10 percent name ID.

Among those who have heard of him in Anchorage, Williams’ favorability ratings is 12 points higher than French’s.

Contact Amanda Coyne at amandamcoyne@yahoo.com

The week in Alaska politics: Minnery gags, Dyson researches, and we’re all addicted to Koch

Abortion bills. Immigration and drivers’ licenses. School choice. Guns on campuses. Dismantling collective bargaining. Changing the way the state chooses those judges who get in the way of restricting abortion — and we’re only halfway through the legislative session.

I spoke with onward Christian soldier Jim Minnery about what’s looking like the most conservative Legislature in forever. He didn’t agree with me about the conservative part. Even Rep. Tammy Wilson, the conservative from North Pole, has the temerity to want family planning money that would help limit abortions in her abortion bill. “I can’t wait for her primary,” he said. It makes Minnery and his people “gag” that they are having such a hard time passing a “clean” abortion bill.

What is it about women’s reproduction that brings on that gag reflex? And what is it about the subject of birth control that makes Republicans who speak about it sound — well, just a little nuts?

Case in point: Sen. Fred Dyson gave a speech on the Senate floor about the intense research he’d conducted on the “exotic” and “amazing variety” of affordable condoms. Heck, he all but said, even a single mom in Quinhagak could just go ahead and get them chartered in by Alaska Airlines. His speech made local columnist Shannyn Moore gag or, more specifically, become an “involuntary bulimic.”

Nationally, Republicans have been so worried about how they discuss these issues that they’ve held seminars and written long memos to candidates on the subject. With all due respect to Fred Dyson, of whom I’m a fan: You really need to read the memo.

Another thing they get a little nutty about: immigrants and the DMV. After years of hard work, 81-year-old Rep. Bob Lynn finally saw the passage through both chambers of HB 1, which limits the time a non-citizen with a temporary visa can have a driver’s license before getting it renewed. It’s his “retirement bill,” he’s told people. Bon voyage, Sen. Hollis French might say.

Lynn can always volunteer to work at the DMV, where the workload will increase because of the bill.

Speaking of the DMV: A bill introduced by Sen. Cathy Giessel gives private businesses that process some of the DMV’s work a 15 percent cut of all taxpayer proceeds, on top of what they’re already charging people for the concierge-level services they provide. The bill would cost the state $1.9 million but because taxpayer wealth is getting spread to the private sector, it’s got conservative bona fides.

Energy Council is this week. Every year a handful of legislators travel to D.C. to learn more about the oil and gas industry. Among them this year: Reps. Mia Costello, Scott Kawasaki, Benny Nageak, Eric Feige, Dan Saddler and Pete Higgins. Senators include Bert Stedman and Johnny Ellis.

It’s no doubt beneficial for our public officials to get out and about. But if they need an education in oil and gas issues, there’s always the natural gas pipeline to dig into, one of the biggest, most complex pieces of legislation ever to come before the body.

What’s in it? Nobody seems to know. Those who should be studying it are in D.C. learning about energy issues.

What we do know is that labor unions are unhappy with talk of stripping some friendly language out of the bill, and are threatening to withhold support of the oil tax bill passed last session. We also know that the referendum to repeal the tax is on the primary ballot, with the not-so-friendly company of marijuana, the minimum wage and an initiative to kill extra dead the Pebble mine. But if the Legislature finds that it needs an extra few days in addition to its allotted 90, marijuana and the minimum wage move to the general ballot.

More election news: Rumor has it that Walter Featherly, the Anchorage lawyer with the Dickensian name, is preparing to run against Rep. Mike Hawker, who’s had some bad press lately for his role in the Anchorage Legislative Information Office fiasco. Featherly, managing partner for Patton Boggs’ Anchorage office, got his law degree from Harvard, and is Alaska’s honorary consul to the Republic of Croatia. (Not to be confused with Crimea.)

On Friday, state Rep. Bill Stoltze announced at the Palmer Senior Center that he was running for the state Senate in the newly created Valley District. I’ve heard he’s uncomfortable with me saying that the seat is his for the taking. So instead, I’ll say that Stoltze has a very good chance of winning that seat.

As to the U.S. Senate race — a little slower and fewer fireworks than many, including myself, projected. So far most of the buzz has centered around the Koch brothers attacking Sen. Mark Begich for hurting the economy, while in turn Begich and the DSCC are pointing out that the brothers are hurting Alaska’s economy by shutting down the refinery in Flint Hills.

From here, the smart money is on Begich to win this one, if nothing else because of the DSCC’s line that the GOP is “addicted to Koch.” It’s maybe even clever enough to cloud the fact that Begich’s PAC accepted Koch money in 2010, a fact that GOP Senate candidate Mead Treadwell was happy to share with us.

And what’s the Honorable Joe Miller been up to, you ask? For one, he was recently introduced as the “Honorable Joe Miller,” at a tea party conference in Arizona, along with Sen. Ted Cruz and Herman Cain, neither of whom got the “honorable” title.

Contact Amanda Coyne at amandamcoyne@yahoo.com

This piece first appeared in the Anchorage Daily News

Rep. Bill Stoltze announces he’s running for state Senate

Co-Chair of House Finance Bill Stoltze announced on Friday to a crowd of about 200 at the Senior Center in Palmer that he’s running for state Senate. The seat is a newly created one that will take part of Sen. Fred Dyson’s Eagle River district and join it to the Valley. Much of it will encompass Chugiak, where Stoltze lives and has represented since 2002.

Candidates for the seat so far include Edna DeVries, the former state legislator and current Palmer City Council member, and current Palmer Mayor Delena Johnson, who filed to run in mid-December and for whom Stoltze actively campaigned in her last mayor’s race. Stoltze, a tireless campaigner, is favored in the race.

Stoltze will miss the House, he said, which is more egalitarian than the Senate. However, he’s looking to switch chambers because it’s the best thing for the Valley, he said, which deserves the “best possible representation.”

It’s unknown who will run for Stoltze’s House seat.

The move will change the dynamics of the House leadership. There was a possibility that Stoltze would angle to be the Speaker next session, a position that’s chosen by the majority caucus. Now it looks like Rep. Craig Johnson will emerge as one of the front runners for Speaker if he wants it. Some speculate that Rep. Mike Hawker will try to get one of the co-chairmanships of the Finance Committee, replacing Stoltze.

Contact Amanda Coyne at amandamcoyne@yahoo.com

GOP Senate candidate Treadwell responds to GOP ‘addicted to Koch’ campaign

UPDATED: As promised, below is a comment from GOP Senate candidate Mead Treadwell’s campaign on the new Democratic Senatorial Campaign Committee campaign, “GOP addicted to Koch.” The campaign is drawing attention to the fact that the Koch brothers recently closed an Alaska refinery because of costs while spending $600,000 so far on ads attacking Sen. Mark Begich. The refinery was a mainstay in Interior Alaska’s economy, and took with it at least 80 jobs.

The DSCC is pressing the Senate GOP challengers for a response. Dan Sullivan’s campaign has declined comment. No word yet from Joe Miller. Treadwell’s campaign pointed out that Begich seemed cavalier about the closure when it was announced. Further, Begich’s Great Land PAC took $5000 from the Koch brothers in 2010. Here’s what his spokesperson had to say:

“Yet again Mark Begich is showing Alaskans they cannot trust what he says. In 2010, his Great Land PAC took a $5,000 donation from Koch Industries. Not only does Begich take Koch money, Begich simply dismissed the news of the Flint Hills Refinery closing as ‘ the private sector making a decision.’ From Obamacare to hypocritical attacks to failed campaign promises, it is clear that Alaskans cannot trust Mark Begich.” Fred Brown, campaign spokesman.

Ouch.
Continue reading →

National Democratic campaign starring Alaska: ‘Republicans addicted to Koch’

Senate Majority Leader Harry Reid isn’t known for his quick quips. But a line that he used on the Senate floor as he was railing against Senate Republicans will provide the theme around a Democratic Senatorial Campaign Committee campaign, a campaign in which Alaska plays a starring roll.

The line: “The GOP is addicted to Koch,” is sure to be something Alaskans will hear over and over again as the DSCC uses Internet ads and videos, as well as social media to tie Republicans to politically active billionaire brothers.

The DSCC says that so far, the Koch brothers have spent $30 million in trying to influence the upcoming races, and more than $600,000 attacking Alaska U.S. Sen. Mark Begich.

The brothers also recently shut down a refinery in North Pole Alaska that it owned and laid off 80 workers because the refinery was too expensive to run, Koch Industries announced last month.

The Koch brothers bought Flint Hills from Williams in 2004 for $290 million. According to an SEC filing, it said that it planned to spend $100 million on it to offer “cleaner-burning fuels to Alaska communities and consumers.” Because it’s a private company, it hasn’t had to report how much of that it ended up spending.

What is known is that since its purchase, a plume of the industrial chemical sulfolane has spread and continues to do so. It’s now 3 miles long and 2.5 miles wide and has left 300 households and businesses with tainted water and depleted property values. In addition to the layoffs, the closure effects other entities. The Alaska Railroad also relied heavily on the refinery and is now considering layoffs.

Flint Hills knew that sulfolane pollution existed in the groundwater beneath site of the refinery, and as early as 2004, the state warned the company about the spread. It repeatedly ignored the warnings.

The DSCC is planning on using all of this information in its national campaign.

Closer to home, it’s pushing the GOP candidates — Joe Miller, Mead Treadwell, and Dan Sullivan – to address the issue.

“Dan Sullivan and Mead Treadwell’s refusal to criticize the Koch Brothers’ actions prove that they could care less about the Alaskans the Kochs fired or the families they hurt, and the fact that Sullivan and Treadwell’s silence comes while willfully accepting the Koch’s limitless campaign cash is a slap in the face to all Alaskans,” said Justin Barasky, a spokesman at the DSCC.

I’ve got an email out to the campaigns asking for a response. I’ll post as I get them.

Contact Amanda Coyne at amandamcoyne@yahoo.com

Loose lips: The Mia Costello will squeeze the sneer right out of you edition

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Energy Council is this week. Every year a hand full of legislators travels to D.C. to learn more about the oil and gas industry. While there, legislators also visit members of Congress to educate and lobby for Alaska issues. Among those wandering the Capitol halls this year — talking about lands locked up in the National Petroleum Reserve, opening ANWR, and offshore revenue sharing — are Reps. Mia Costello, Benny Nageak, Eric Feige, Dan Saddler and Pete Higgins. Senators include Bert Stedman and Johnny Ellis.
Full disclosure: I had planned to have a little fun with Energy Council and write about how if it met in Aleknagik, say, it wouldn’t be nearly as popular. But then I talked to Mia Costello, and if there’s one person in the world that can squeeze the sneer and snark right out of me, it’s she. Lesson? Don’t call Mia Costello when you’re writing a column that’s supposed to cater to the worst of of our impulses.
Sandy Parnell’s uncle passed away in Nebraska. Gov. Parnell and the First Lady are out of state attending the funeral.
What else can’t I have fun with? Alma Upickson, the North Slope Borough’s most recent government affairs director, was terminated this week. Rumor has it that she got sideways with the borough’s Chief Administrative Officer Jake Adams. Upickson is just the latest of many who have gotten fired from the North Slope Borough, which is said to be a mess that’s really messing with people’s lives. There’s nothing fun about that.
And again something serious: Ten Alaskans who donate thru Pick. Click. Give will be chosen to win a cash prize equal to the 2014 PFD thanks to a donation by ExxonMobil. There’s still time to give.
Here’s one: Rumor has it that Rep. Bob Lynn, who’s 81 years old, told folks that he would retire upon passage of HB 1, which limits the time a non-citizen with a temporary visa can have a driver’s license before having to get it renewed. On the face of it, it sounds pretty innocuous, but I’m nervous. There’s something that gets conservatives too excited about the words “driver’s license” and “immigrants” in the same sentence. In any case, it was so important to Lynn that he’s been hanging around to see it pass. We’ll see if he is serious about retirement. Hopefully, whatever he does, he’ll continue writing his Facebook posts, which are fascinating. I’m being serious here.
APOC requested a $75,000 increment and actually got a $100,000 decrement reducing the commission’s budget to $175,000 less than they were hoping.
Speaking of APOC: the organization’s staff said that even though Democratic gubernatorial candidate Byron Mallott lives in Juneau and his campaign headquarters is in Juneau, he can’t solicit or receive money from Juneau residents during the session. To put it another way, for at least three months, Juneau residents are denied their constitutional right to express free speech by giving to a candidate of their choice. It gets worse: Incumbent legislators aren’t allowed to raise money at all during session. Paging the ACLU?
Another subcommittee said no to a request from the Alaska Gasline Development Corp. for about ~~$670,000~~ $620,000 for employee performance bonuses and incentives. There might have been a mix up in the request, however. Or maybe the AGDC guys read the Wall Street Journal and are familiar with executive bonus compensation? Okay. That’s a little snarky.

Contact Amanda Coyne at amandamcoyne@yahoo.com

House Speaker Chenault punches back again at Begich and Dems

If he was going for impact, he succeeded. Sen. Mark Begich’s annual remarks to the Legislature on Monday are still rebounding through the Capitol building. On Wednesday, Alaska Speaker of the House Mike Chenault sent out yet another press release about those remarks. Specifically, he responded to charges by the Alaska Democratic Party, which was responding to a Monday press release issued by Chenault.

To recap: Begich made remarks. Chenault responded. The Dems responded to Chenault. Chenault responded to them.

Note: For Chenault to respond at all is surprising and uncharacteristic. He’s a Republican, but his job demands that he be a bridge builder, and mostly he succeeds. That he did so either means that Begich and the Dems got under his skin or that he truly believes that Begich was out of line in his remarks. Or perhaps it’s a bit of both.

In any case, most of the heat in the debate surrounds education funding. Begich, weighing in on a state issue, scolded lawmakers over education funding and came out against a resolution that would let the public vote on changing the constitution to allow for public money to go to private institutions. It’s debatable if he over played his hand during those remarks, but coming down hard against school choice is smart. For one, it’ll help win the support of the NEA. Secondly, if the issue makes it on the general election ballot, it’ll bring out the Christian conservatives, who likely won’t support Begich.

Begich declined, however, to weigh in on another state matter: whether or not he supports repeal of an oil tax break passed last legislative session. In an election year, it’s a tough one for him. Support to repeal the oil tax bill has turned into a Democratic litmus test, much like support to repeal ObamaCare has turned into a litmus test for Republicans. However, he risks alienating Alaska business and big oil industry if he comes out for repeal.

On Monday, Chenault took issue with Begich’s remarks that the state needed to increase education funding, saying that he “wished to correct the record and call for clarity and results for Alaska, instead of more Beltway-style speeches.”

He also made reference to the upcoming race. “We need a senator that stands up for us, not one who only says he will, then votes with his party against Alaskans,” he said.

On Tuesday the Dems responded, accusing Chenault of engaging in “tired and misleading” attacks. “Any observer of Begich’s speech heard eye opening comments from Democratic and Republican members of the legislature recognizing Mark Begich as a fighter for Alaska,” Chair of Alaska’s Democratic Party Mike Wenstrup said.

The release also called Chenault’s “campaign-style press release” using his official state email “questionable.”

For his part, Chenault said that the Democratic response was “typical” of the Democratic Party. “Alaskans are tired of character attacks. And that’s what your press release is,” he said. “The fact is, Sen. Begich spoke before he knew the truth about education funding, and wouldn’t commit on oil taxes… public education funds, the dollars out the door to teach our kids, has never been higher.”

Read the Democratic press release as well as Chenault’s response in full below:

From the Democrats:

House Speaker Mike Chenault should have slept on his questionable decision to send a campaign-style press release from his official state office and akleg.gov email address slinging political attacks promoted by national Republican groups at U.S. Senator Mark Begich.

“We need a senator that stands up for us, not one who only says he will, then votes with his party against Alaskans,”Speaker Chenault said through his official legislative office, channeling tired attacks used by U.S. Senate candidates Mead Treadwell, Dan Sullivan and Joe Miller.

Chenault’s comments attacking Mark Begich drew praise from the Washington, D.C. National Republican Senatorial Committee, but ignored the content of Begich’s speech about successful efforts to expand mining oil and gas development in Alaska, protect the F-16’s at Eielson, save Alaska post offices and expand care for Alaska’s veterans.

Chenault’s colleagues, including Republican Senators John Coghill and Anna Fairclough, praised Begich after listening to his speech. Coghill specifically offered praise for Begich’s successful fight to retain F-16 fighters at Eielson Air Force Base in Fairbanks.

“If Mike Chenault had listened to Mark Begich’s speech he would have heard Begich’s record of accomplishment which puts Chenault’s tired and misleading political attacks to bed. Any observer of Begich’s speech heard eye opening comments from Democratic and Republican members of the legislature recognizing Mark Begich as a fighter for Alaska,” said Mike Wenstrup, Chair of the Alaska Democratic Party.

From House Speaker Mike Chenault:

“Here’s what I have to say to the Democratic Party: typical. Alaskans are tired of character attacks. And that’s what your press release is.

“You’ll notice they didn’t attack my facts. Facts matter. The truth matters. Especially when we as legislators have to make financial and policy decisions based on some of the choices our federal delegation makes.

“The fact is, Sen. Begich spoke before he knew the truth about education funding, and wouldn’t commit on oil taxes. The fact is, our Caucus and the governor have a strong record on education funding and have made a choice on oil taxes that we believe will lead to a boost to our bottom line and Alaskans’ bottom lines through jobs and opportunity.

“I’ll talk about our K-12 funding record every day, and won’t hesitate to correct the record when someone, regardless of what office or political viewpoint they hold, tries to mislead or misinform the public. The truth is, we’ve outpaced inflation – more than doubling it, fully-funding the foundation formula and then providing even more targeted funding for maintenance, retirement, transportation, and energy costs. Our funding lets districts better utilize the existing base student allocation. Flat funding is a myth. Unfortunately, it’s an easy sound byte that has stuck in people’s minds. The truth is completely different: public education funds, the dollars out the door to teach our kids, has never been higher.

“I’ve got broad shoulders; I’ve been called worse before. But you better be prepared to defend your facts and figures with me. If Sen. Begich has a problem with my comments or if my facts are wrong, I encourage him to call me personally. I’m not campaigning for or against anyone, despite what the Democratic Party has stated. I’m correcting the record. The Democratic Party shouldn’t have an issue with a sitting legislator defending himself when someone misleads people on his or his colleague’s record, period.”

Contact Amanda Coyne at amandamcoyne@yahoo.com

Quote of the day: BP gets battered again, this time in Russia

From SeekingAlpha.com:

It seems like one issue after another for BP (BP). Ever since the Gulf oil spill disaster, the company has had uncertainty in payout looming over their heads, with another setback coming recently. Now, the conflict between Russia and Ukraine could prove to be another headwind for BP. BP owns 19.75% of Russian state oil company Rosneft (OTC:OCRNL), which is worth about $65 billion overall. With the Western world still uncertain how to approach the Russia-Ukraine conflict, there is a possibility that economic sanctions would be imposed on Russia, potentially harming Rosneft’s business, and consequently BP. In fact, a recent dip in Rosneft’s share price caused a loss of nearly $1B for BP overnight

Fat Taco Tuesday at Mead Treadwell’s office

About 30 or so people made their way to GOP Senate candidate Lt. Gov. Mead Treadwell’s campaign office in Anchorage to celebrate fat Tuesday. The food, much like the people who showed, was interesting. Tacos, baklava, cornbread, and Girl Scout Thin Mints. Like the crowd, none of it should have mixed, but it did.

Ramona Specking who manages a hotel and speaks French, German and conversational Spanish was there. Irene Green who runs an international bed and breakfast who speaks those three plus Dutch and Italian had with her an Italian national who biked part of the Iditarod trail. Lars Gleitsmann, a geologist and an airplane pilot was there and spoke authoritatively about Pebble Mine, Tito’s Yugoslavia and Agenda 21. Retired Marine Col. Catkin Burton talked to a woman who is making organic baby food. A smattering of fiercely loyal men who look like they just graduated from Andover stood with crossed arms.

Treadwell isn’t the most inspiring speaker. And to call him quick tempered might be an understatement. So it’s hard to remember, if you ever knew at all, that he surrounds himself with interesting people, people of colors and accents and languages and ideas. Treadwell is billing himself as a socially conservative Republican, but his main followers, his base, are with him less it seems because of his ideology than because they know him, many of them since he came to the state in his 20s.

Treadwell spoke briefly shortly after I arrived. As is his wont, he dug at his main GOP challenger former DNR Commissioner Dan Sullivan, who that night was at a fundraiser in D.C. ‘I’d rather be here in Alaska,” he said. He promised the crowd that he would continue to run an “aggressive” campaign that will take him across the state to work hard for them and to raise money, something at which he’s not been great.

Let’s be honest: compared to Sullivan, he’s been pretty lousy at it. Then again, most money for a federal race for any candidate comes from Outside, and the thing that Treadwell has going for him doesn’t translate in a stump speech at a fundraiser in Oklahoma, or Nebraska, where men in suits want to bet on someone who smells and talks like a winner. For them, Sullivan — the Marine with a Harvard law degree, the former assistant secretary of state who looks like he just walked out of central casting — is their guy.

To understand what Treadwell brings to the race, you’d have to be at his side at a coffee house in Wasilla, say or talking about fishing in Seward, or about the Arctic in Barrow, or eating tacos and baklava at his campaign headquarters in Midtown Anchorage.

Treadwell said that he has no intentions of dropping out before the primary, and that he’s “in it to win it.” If he is able to hang in there, it won’t be because of the way that he’s tried to out Tea Party Joe Miller, or his constant swipes at Dan Sullivan. In fact, it’ll likely be in spite of those things.

It’ll be because he grew up in this state. “I know him,” Irene Green said. “He’s my friend.”

Contact Amanda Coyne at amandamcoyne@yahoo.com

Mallott: ‘Alaska’s judiciary is under attack’

Below is a statement from Democratic gubernatorial candidate Byron Mallott in reaction to House Judiciary Committee action of HJR 33 to change the composition of the Alaska Judicial Council.

“Alaska’s judiciary is under attack and Alaskans need to rally to its defense. Our judiciary is universally regarded as one of the finest in the nation. That is because of the selection process our founders established in the state constitution—that the governor appoint a judge from among candidates recommended by a seven member panel that consists of three lawyers, three lay citizens and the chief justice of the Alaska Supreme Court. Now some politicians want to fundamentally alter the make-up of the judicial council to reshape the judiciary into an ideological rubber stamp of government actions. They also seek to impose insurmountable barriers to lawsuits filed by citizens against corporate interests. We cannot allow them to take away the judiciary’s independence or weaken its power to protect the public.”

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