6-30-16 Criticism of Governor Grows

Alaska  Governor Bill Walker has continued to accrue ill will reflecting a lack of confidence in his leadership.  In recent posts, readers will note:

• The governor has called for yet another special session of the Legislature to consider matters lawmakers rejected in the recently adjourned special session.  (What do they call it when one continues doing the same thing while expecting a different result?)
• The governor has insisted that the people and legislature give more “revenue” to government before significantly cutting personnel or agency operations.
• When the legislature adjourned the last special session urging the governor to join them in more significantly cutting personnel and agency operations before considering new “revenue”, he responded by cutting the permanent fund dividend amount and delaying industry tax credit payment obligations, which didn’t built up his support base or enhance Alaska’s investment climate reputation.  We would have approved of the Permanent Fund action if that action had been accompanied by dramatic cuts of government agency authorized positions, operating budgets and programs (The Permanent Fund dividend is not a needs based welfare program.  Just as dividends were created to equally benefit every citizen, so should any reduction in the dividend apply equally to every citizen).   In short, we see insufficient effort to “right size” or “make sustainable” the annual operating budget.  Instead, we see effort to keep government “whole” at the expense of others.
• He has signaled an interest in somehow arranging for state control over an as-yet economically infeasible gas pipeline when the state’s largest investors believe that a more cautious approach is justified in light of current world economics and energy price projections.  This, after his effort to have state government exert control over a brand new gas distribution facility for Fairbanks.  (A new phrase comes to mind.  No, not, “North To Alaska”.  Instead, “Alaska, Venezuela North”.  We believe that the administration’s movement toward socializing/nationalizing the state’s energy industry could be a major, as yet unaddressed consideration for the nation’s credit rating agencies that have been issuing negative economic outlooks and downgrading Alaskan creditworthiness for several years.).

Below are other viewpoints covering the current status of Alaska’s fiscal crisis and its, to date unsuccessful, effort to develop a sustainable fiscal policy.  -dh