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Alaska: Final Piece of FY20 Budget Announced; One Third of State Deficit Eliminated, State Spending Reduced by $650 Million; Governor Will Not Veto Legislature’s Incomplete Dividend, Pledges Continued Fight for Full Statutory Formula Distribution in Next Special Session Posted & Edited By MARY KAUFFMAN – In a 10 minute address yesterday to Alaskans, Governor Michael J. Dunleavy announced his final decisions on the FY20 budget through the enactment and targeted veto of HB 2001, legislation sent to the Governor earlier this month that funded an incomplete dividend and restored previously vetoed funds.

The enactment of HB 2001, which includes approximately $156 million in budget restorations, brings to close a months-long discussion on the state budget, a billion-dollar-plus deficit, and the need to better align state revenues with state expenditures. As a result of the FY 20 budget, approximately one third of the state’s deficit has been eliminated through the reduction of $650 million in total state spending.

Dunleavy said, “Alaskans need to understand that we can no longer afford to spend at our current rates. We can no longer afford to deplete our savings and hope for higher revenues. We must begin making the long-term changes to put ourselves on a path to a more sustainable future, and we can no longer pretend the problem will fix itself. It will take difficult decisions to get us to a sustainable budget, and I am prepared to make those difficult decisions.” 

"Previous legislators and governors tried to address the fiscal imbalance by proposing taxes and cutting the PFD. My approach was going to be different – one that would try to balance spending with existing revenues," said Dunleavy.

The governor said after months of discussion and deliberation with Alaskans and the legislature, the legislature instituted a 2.9%, or $270 million, reduction to the state's overall budget. A good start at reductions, but still leaving a gap of well over $1 billon. Based upon the size of the deficit and our revenue picture, it became clear that more needed to be done through the use of a veto, reductions that are reflected in yesterday's budget.

Important steps are being made to address our deficit, to right size our government and to put Alaska on a more sustainable path. Governor Dunleavy said hrough the enactment of HB 2001, we have eliminated over 1/3 of the state's deficit through reduction of approximately $650 million in state spending. Reforms have been initiated to make services and programs, such as Medicaid, University of Alaska, and the Alaska Marine Highway System more efficient and more sustainable said the governor.

"The driver for these reductions continues to be Alaska's current fiscal outlook, requiring all of us to rethink the way we provide services, the way we prioritize limited state resources and the way we spend state dollars moving forward. While state savings will continue to be exhausted as we move into a multi-year step down, reducing our rate of spending must be a priority for all Alaskans. More must be done in the coming months, but we as Alaskans are resilient, and I honestly believe our future remains bright," said Governor Dunleavy.

Dunleavy said, "In the weeks since receiving the state's operating budget from the legislature, we have taken a serious look at restoring a number of programs and services Alaskans deem too important not to fund. As a result, you will see those restorations reflected in this budget."

Certain programs, programs valued got caught in a budget discussion that went on way too long said the governor. "The seriousness of the deficit, the need to begin making reforms and the length of our legislative session all contributed to the level of uncertainty we experienced the past several months. We have listened and we have learned from this past year's budget process."

Moving forward the governor said, starting this fall, the administration will be working diligently with Alaskans, state agencies, service providers, legislators and stakeholders on a budget for the coming year that attempts to meet the needs of Alaskans within the prescribed 90-day session so all Alaska will know what the budget is well in advance of the start of the new fiscal year. My hope is to unveil a budget in December that reflects the values of Alaskans, and that the legislature acts upon this budget within the 90-day legislative session outlined in statute, not the drawn out process that we experienced this year.

Overall, this year's budget limited 1/3 of the deficit, reduced state spending by 8% and began the difficult process of changing the way limited state resources are deployed." The discussion that occurred ultimately helped Alaskans understand the seriousness of our challenges, forced the conversation about priorities and, in the end, helped shape this year's budget."

Lastly, in his address yesterday he spoke on the very serious issue of the Permanent Fund distribution, something that he said has weighed on him and Alaskans greatly. Dunleavy said, "Unfortunately, this process was thrown into chaos the past several years when oil prices fell. Too many in the legislature now treat the PFD as a political football, arbitrarily setting its amount rather than following the statutory formula Alaskans know and trust. For 35-plus years, Alaskans could rely on the system we had in place, a process outlined in law and immune from politicians who wanted more for government spending."

"Now some politicians in Juneau are attempting a complete takeover of the PFD, converting it into revenue for government and denying Alaskans their full statutory PFD. While there are some in the legislature that support the full statutory formula, unfortunately, majorities in both houses do not," said Governor Dunleavy.

"In this year's budget, the legislature sent me a $1,600 appropriation for the PFD. Again, not following existing statutes that calculated the dividend for Alaskans of approximately $3,000. If I had the authority to add more money to the budget for a full PFD, I would. However, only the legislature, by Constitution, can appropriate these funds. The legislature has once again denied the people of Alaska the full statutory PFD," said Dunleavy.

"Many have asked me to veto this incomplete $1,600 dividend passed by the legislature this year. Others have asked me to accept this partial dividend and to continue our fight for a full PFD. And while this decision was not easy, it's not easy at all, I decided that I will not veto this incomplete dividend. I and many others view this as a partial payment, not a full PFD, and we will continue to fight for a complete statutory dividend going into this fall," said Dunleavy.

In his announcement, Governor Dunleavy made clear he would not veto the Legislature’s incomplete dividend, calling it a difficult decision based on three parts:

First, a veto today would have resulted in a zero dividend in October, leaving approximately 660,000 eligible Alaskans who expect the PFD with absolutely nothing, zero, not a dime. Over $900 million would have been taken out of the economy if I veto the PFD, hurting Alaskans businesses and exacerbating our recession.

A veto would have been a win for those wanting to eliminate the PFD in its entirety. The governor said he is not about to give them that win. "Quite the contrary, I'll continue to fight and I will not let up for Alaskans until they receive what they are due."

Second, by funding an incomplete dividend, the legislature understands that their job is not finished. Many in the legislature know that this incomplete dividend must be fixed as soon as possible. The governor said he has begun the conversations with legislators to map out a path to appropriate the funds remaining for the full PFD. - More...
Tuesday PM - August 20, 2019

Alaska: Group Proposes Ballot Measure to Restore Alaska's Fair Share of Oil Production Revenues Posted & Edited By MARY KAUFFMAN – On Friday, August 16, a group of Alaskans came together to submit an initiative application to the Alaska Division of Elections for the Fair Share Act to be added to the 2020 ballot. If placed on the 2020 ballot and approved by voters, the Fair Share Act will increase Alaskans’ share of production revenues from the sale of Alaska's oil.

“Alaskans should receive their fair share from the sale of our oil,” states Robin Brena, one of the initiative committee members and the former Chair of Governor Walker’s Transition Subcommittee on Oil and Gas. “We are currently giving away $1-$2 billion per year in tax breaks for oil produced from our largest and most profitable fields. Alaskans need to get a better deal for our oil from these fields.”

Specifically, the Fair Share Act would:

• Only apply to the largest and most profitable oil fields;
• Increase Alaskans’ share of our production revenues by $1 billion per year;
• Require producer filings based on the revenues and costs for each field to be public; and
• Permit commonsense solutions for funding essential services, capital projects, and our PFDs.

“We should not be giving away tax breaks and credits when we are unable to fund essential services such as education, universities, senior services, public safety, rural electrical equalization, and the ferry system,” said Jane Angvik, one of the initiative committee members and a member of Alaska Women’s Hall of Fame for her long history of public service to Alaska. “I’m proud the Fair Share Act will begin the conversation with Alaskans toward finding more balanced and commonsense solutions that permit us to invest in the future of Alaska,” said Angvik. - More...
Tuesday PM - August 20, 2019

Alaska: 'Recall Dunleavy' Signatures Still Being Collected Until Sept. 2nd; Application Still to Be Filed – As of August 15th, the Recall Dunleavy movement has collected 29,577 signatures and the group plans collecting signatures through the end of the State Fair on September 2, 2019. More signatures are being collected in order to compensate for any signatures that may be disqualified such as signatures by non-registered voters or non-residents. The campaign launched on August 1, 2019. This first round of signatures are required to file with an application of recall with the Alaska Division of Elections.

“The Recall Dunleavy events in the Fairbanks area over the second week of the recall effort turned in incredible numbers. More than 5,000 (over 8% of the registered voters in the FNSB) from all political parties signed our petitions. Since our initial kickoff event, multiple other events have been held in the borough, each equally impressive in turnout and enthusiasm. None of our success would be possible without all our dedicated volunteers, as well as you ALASKANS. From the Fairbanks Recall Dunleavy effort, I thank every single one of you,” said Aaron Welterlen, lead Fairbanks volunteer organizer for Recall Dunleavy.

“Recall Dunleavy’s success is rooted in Alaskans standing up for their families, friends, community members, and the future of our state,” said Meda DeWitt, Chair of Recall Dunleavy. "The sentiment that echoes throughout the state and can be understood through the words of an anonymous Anchorage teacher: “I’ve never seen or experienced anything like this. This Recall has given me hope, and I plan to stay in Alaska longer because of it. I am glad that Alaskans are standing up for their state and against this administration.”

Of this reported number, a little over 900 signatures were collected in Ketchikan. - More...
Tuesday PM - August 20, 2019

Alaska for Greenland? The US considered
it  after WW II
By DAVE KIFFER
Aerial view of Prudhoe Bay
The US once proposed trading a section of the northern Alaskan coast for areas in Greenland that the military considered necessary. The Alaska area that would have been traded included Barrow and Prudhoe Bay.
Creative Commons
wikipedia.org/

Alaska: Alaska for Greenland? The US considered it  after WW II By DAVE KIFFER - Even 80 years after the United States purchased Alaska from Russia it still wasn't sure what to do with The Last Frontier.

The cost of maintaining its "territorial colony" in the north was high and many in the Federal Government considered it unlikely that Alaska would ever be able to economically support itself, let alone get enough population to support statehood in the vast territory.
 
In 1938, members of the Roosevelt administration pondered making a part of Alaska - Sitka and Baranof Island - a homeland for Jewish refugees from Europe. The plan, first proposed by Interior Secretary Harold Ickes, was studied and then considered for a couple of years, but never approved, primarily because of opposition from Jewish organizations in the United States.  The proposed Alaskan colony was the basis for Michael Chabon's 2007 novel "The Yiddish Policeman's Ball" which imagined what would have happened had a large number of Jewish refugees immigrated to Alaska.

 Then, when the Cold War began to heat up shortly after WW II, the Truman administration looked at bolstering North America against a perceived threat from the Soviet Union. Some people in the United States saw the vast island of Greenland as a bulwark against the "Red Menace."
 
Initially in the 40s, according to a 1991 story in the Copenhagen newspaper Jyllands-Posten, the US proposed trading a section of the northern Alaskan coast for areas in Greenland that the military considered necessary. The area that would have been traded included Barrow and Prudhoe Bay. Although some in the administration believed there were potential oil reserves in the area, some just the saw area as an ungovernable Arctic wasteland.

Part of the negotiations were over who would "own" any oil found in the region. According to the Danish newspaper, Denmark would have owned the oil, but would have been required to sell it to the United States.
 
Fortunately, the "oil reserve" faction won out and was rewarded when the largest oil field in North America was discovered at Prudhoe Bay 20 years later. (1967)

But back in 1946, the US government was still interested in Greenland - which has been a part of Denmark since 1814 and is semi-autonomous under the Denmark monarchy. After the land swap went nowhere, the US proposed buying parts of Greenland for $100 million in gold bullion, according to documents in the National Archives accessed by Jyllands-Posten. - More...
Tuesday PM - August 20, 2019

Southeast Alaska: Alaskan pardons are rare; Gov. Knowles once pardoned a man over a racial attack in Wartime Wrangell By DAVE KIFFER - Gubernatorial pardons are a very rare thing in Alaska. In fact, there hasn't been one since the early 2000s and there have been barely 100 pardons issues in Alaska's 60 years of statehood.

In fact, for most of the past decade, prisoners and those convicted of felonies were not even allowed to petition the Governor for clemency, but that situation was changed in 2018.

Still, ever since Alaska's first Governor, Bill Egan, issued more than 60 pardons in his three terms, clemency has been a rare thing in Alaska. The most recently high profile pardon was issued in 1997 by Gov. Tony Knowles and it involved a killing in Wrangell at the end of World War II that was race related.

James Willis was a Coast Guard engineer who was serving on the USS Sellstrom, a Navy destroyer escort that was operating in Alaska at the time. In October of 1945, the ship was docked in Wrangell and a local dance hall was having an end of the war celebration.

According to eyewitness accounts quoted by the Governor's office, Willis - an African-American - was dancing with a woman who was either white or Native American. There was a scuffle at the dance and Willis returned to the ship. But the trouble followed him back aboard.

According to an affidavit from fellow sailor Norman Smook of Wantagh, New York, an Oklahoma sailor named Leonard Supernaw was most offended by Willis' actions. Smook said Supernaw chased Willis through the ship, caught him and began beating him.

"Supernaw was pounding Willis with his fists and savagely beating him," Smook wrote. "Willis was no match for Supernaw. I feared for Willis' life."

Smook said that Willis broke free from Supernaw and grabbed a knife from his locker. When Supernaw came at Willis again, Willis stabbed him.

When Supernaw died, a riot broke out on the ship and Willis and three other black crewmembers were taken from the ship and put in the Wrangell jail for their protection. Willis' clemency attorney Raymond Zuppa told the Empire than an officer, according to one affidavit, had to pull his pistol to keep several crew members from firing the Sellstrom's main gun at the jail.

"They almost fired on an American port,'' Zuppa said. "I think that's extraordinary."

Eventually the four black sailors were transferred to the federal jail in Ketchikan. - More...
Tuesday PM - August 20, 2019

Political Cartoon: Trump wants Greenland
By Dave Granlund ©2019, PoliticalCartoons.com
Distributed to paid subscribers for publication by Cagle Cartoons, Inc.