7-13-16 Alaska’s Governor Prods For More ‘Revenue’; Legislature Balks

Just Received: Alaska Governor throws down the gauntlet; legislature won’t be intimidated (Read two sides below). The implications for oil and gas investment in a state of self-imposed chaos is significant for the future of an Alaska North Slope gas pipeline, as well as future O&G capital investments. Meanwhile, our readers know that 90% of Alaska’s operating budget and over a third of its economy rests on the shoulders of robust, confident, continuing and secure O&G industry investments. Unfortunately, Alaska has not shown itself to be a place where, “a deal is a deal”. -dh

See our Op-ed appearing today in the national, Master Resource Blog

Summarized from our more detailed post, “Alaska’s Crisis of Leadership“. No, Alaska doesn’t have a financial crisis, it has a spending problem and a crisis of leadership. -dh

Governor Walker Urges Legislators to Act Now on Fiscal Crisis

Alaska Governor Bill Walker. NGP File Photo by Dave Harbour

July 13, 2016 JUNEAU—The Walker-Mallott administration today released a six-page report of the dire consequences facing Alaskans as a result of the legislature’s failure to pass a sustainable fiscal plan.

In releasing the report, Governor Bill Walker said:

“I thank the 29^th Legislature for convening its fifth special legislative session to consider a truly historic Alaskan challenge. I have said many times: our new fiscal reality only constitutes a ‘crisis’ if we fail to act. Unfortunately, after a regular, extended, and special legislative session this year, 90 percent of our fiscal problem remains – with little optimism for reasonable compromise. It’s clear now: We have a serious fiscal crisis.

How we deal with this crisis will define us all – with no less than Alaska’s future hanging in the balance. I therefore expect, and all Alaskans should demand, compromise and affirmative action by this Legislature on a comprehensive solution to our massive budget deficit during this special legislative session. I do appreciate the Senate’s good work in passing SB 128 to restructure the permanent fund.

There are currently three fiscal plans in play. There’s the Governor’s New Sustainable Alaska Plan, which will continue to force government efficiency while maintaining most current state services. But there are also two alternate plans: The No Action Plan (NAP) and the SB128-Only (Permanent Fund Restructure) Plan.

Under either alternate plan, devastating cuts to state services are required. To view Alaska under either of these scenarios, click here: Alternate Plans.

The Alaska Legislature will choose one of these three plans during this fifth special legislative session. Failure to adopt the New Sustainable Alaska Plan will, by default, mean choosing the No Action Plan (NAP). If the Legislature were to only pass SB128, then the SB128-Only Plan goes forward. One way or another, one of these three plans will go into effect when the Legislature gavels out of the fifth special session.

I will ask every legislator and every candidate for the legislature to choose which of these three plans they support. Failure to choose a plan will constitute support for the No Action Plan (NAP). After Alaskans become familiar with the type of Alaska each of these three plans represents, voters will be much better informed about who should represent them in Juneau.”

KTVA Report:

Lawmakers say upcoming special session is a waste of time, money

By Liz Raines 7:28 PM July 8, 2016

Another special session starts Monday in Juneau and it will be historic. This is the Legislature’s fifth special session since last year — never before have lawmakers met so many times. But leadership on both sides of the aisle don’t expect to accomplish much.

“I don’t see anything that we need to do this session that we can’t do in January,” said minority leader Chris Tuck.

Gov. Bill Walker is trying to force lawmakers to adopt a long-term plan to address the state’s nearly $4 billion budget shortfall, which includes a restructuring of the permanent fund, by sending them back to Juneau. The Legislature has been vetting his proposal since January, but it died in the House last month. Now, House members say they’re even less likely to pass it, after Walker vetoed dividends down to $1,000 this year.

“I don’t think that we can do anything. I don’t think that the will is there of our body,” said Rep. Craig Johnson. As chair of the House Rules Committee, Johnson decides which bills get a vote. He says the governor’s permanent fund bill doesn’t have a chance.

“It will take a Herculean effort for somebody to get it out of my committee,” he said.

Johnson is working on another proposal to override Walker’s veto on dividends. ”I think there’ll be at least a movement to do an override on the permanent fund veto,” Johnson said. Read more….

About the Author: wpnorthern

Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska, a Commissioner Emeritus of NARUC, NARUC's Official Representative to IOGCC and Vice Chairman of NARUC's Gas Committee. He served as Gas Committee Chairman of the Western Conference of Public Service Commissioners. He also served as commissioner of the Anchorage Bicentennial Commission and the Anchorage Heritage Land Bank Commission. He earned a Bachelor of Arts Degree: English, at Colorado State University, a Master of Science Degree: Communications-Journalism at Murray State University and graduated from Utility Regulatory School for Commissioners at Michigan State University. He served as a Vice President for Communications and Public Affairs at Alaska Pacific University, taught bank marketing classes at the University of Alaska and was an English teacher at Los Alamos High School. Harbour served in ranks of Private - Captain during a 4-year assignment with the Army in Korea, Idaho, Georgia and Fort Meade and received the Meritorious Service Medal among other commendations. Harbour is also a past Chairman of the Alaska Council on Economic Education, the Alaska Oil & Gas Association Government Affairs Committee, the Anchorage Chamber of Commerce, the Export Council of Alaska and the Department of Commerce's District Export Council. He is a past President of the Alaska Press Club, American Bald Eagle Foundation, Consumer Energy Alliance-Alaska and Common Sense for Alaska. Harbour was instrumental in founding the American Bald Eagle Research Institute (UAS), the Alaska Support Industry Alliance, the Downtown Anchorage Business Partnership, and Arctic Power. He also served as CEO of several small Alaska organizations, including the Anchorage Parking Authority and Action Security, Inc. Harbour is also Chairman Emeritus of the Alaska Oil & Gas Congress. Harbour's wife, Nancy, is a professional, performing arts administrator and his three boys, Todd, Benjamin and William work in the fields of environmental management, energy marketing and medicine.