Our Great Concerns With Walker's Policies

AJOC by Tim Bradner  With about two weeks left on the clock, the 2015 session of the Legislature seems set to end with a big bang. A collision is shaping up between legislators and Gov. Bill Walker (NGP Photo) over the governor’s vision of a large state-led gas pipeline.

 

 

Notes from the road (Reference Bradner Commentary Above): We have little time to write while traveling (Today in L.A. on the way to Anchorage).  We do note that as the Alaska legislative session comes to an end our greatest concerns are:

  • Administration interference with Ak-LNG project by even talking about government involvement in a competing project; and
  • Administration support for a poorly thought out, government sponsored Interior Energy Project; and
  • Administration not using bully pulpit to support adequate spending cuts (i.e. the State Chamber calls them 'cosmetic') to create a sustainable government going forward…along with legislative proclivity to not cut spending due to last day 'trading' of special interest projects; and
  • Legislative initiative to create requirements for Regulatory Commission of Alaska to approve expensive, non-economically feasible alternative energy projects, subsidized by utility ratepayers (HB 78); and
  • In wake of low oil prices, lack of will to cut government spending, hostility of governor toward industry/legislature/Ak-LNG project, we anticipate the Governor working with certain constituencies to increase oil taxes within the next year or two.  Hoping this to be incorrect but fearing it isn't, we could foresee an "economic death spiral" wherein lack of spending discipline begets higher oil taxes, which begets lower oil industry capital spending, begetting lower production, which begets even lower state revenue, resulting in higher oil taxes, and so forth.  
  • Faced with such challenges, we believe Alaska's bright future can only unfold with leaders possessing wisdom, a spiritual connection with our creator and a commitment to become honest, effective communicators.

-dh