6-19-16 Alaska's Governor Calls 5th Special Session

6-19-16 Alaska’s Governor Calls 5th Special Session

Bill Walker, Governor of Alaska. NGP file photo by Dave Harbour.

Commentary:

This afternoon, Alaska Governor Bill Walker called for a 5th Special Legislative Session to deal with the State’s fiscal crisis: Here is the proclamation. /// See his video press conference here.

We believe Walker may also be creating for himself a political crisis, for several reasons:

The proclamation puts back on the table all of the most controversial issues rejected during earlier sessions: Use of the state’s permanent fund earnings for government operations and a broad array of personal, sales and corporate tax measures.
Earlier legislative sessions considered the matters included in this call of the legislature and rejected their adoption … at least until more serious efforts are made to cut government operating budgets.
The general public and many of their Legislative representatives perceive that private companies and employees are reducing operations, laying off employees and even leaving the state…while, state agency budgets are pretty much protected.

We believe that resolution of Alaska’s $4 billion annual budget shortfall boils down to a battle of wills between private and public sectors.

That is, will the governor be able to scrape together enough money — to keep the bureaucracy whole — by tapping the Permanent Fund earnings and creating new and increased tax burdens on the private sector?

Or, does the private sector have enough juice with the Legislature to insist on significant agency operating budget cuts before the wealth producers are asked to absorb new and/or increased taxes?

Or, do the two sides have the political will and capability to create any workable solution?

Here you have a state 90% dependent on oil. You have a Governor and several legislators who last year proposed a gas reserves tax on oil industry investors. This … at a time when oil companies are likely losing money, in this low price environment, on every barrel they produce!

You also have a state in which democrats voted to support a socialist candidate for President while some politicians are supporting bureaucratic ownership of natural gas transportation and distribution facilities.

Alaska’s savings accounts grow smaller as this crisis unfolds. Private citizens continue to lose their jobs and the credit rating agencies continue to downgrade the state due to inability of its leaders to resolve tax and spend issues.

Does the governor have just a fiscal crisis on his hands?

Hopefully.

But on review of these other factors he’ll be lucky to not be instigating a big political crisis for himself by calling another legislative session to consider the very same issues rejected just a few days ago during the previous legislative session.

-dh

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.