Dear Neighbors

I hate writing letters two days in a row. But important things have happened two days in a row.

I thought you’d like a rundown of the Governor’s veto decisions. First, let me say that I saw unjustified pork in some of the projects, and thought the budget was too big, so I voted against it. I voted against a $3.2 billion budget, because we have priority services and a need for savings. On the other hand, I can’t fault many of those who voted for the budget. It included some important energy projects to reduce energy costs – projects I defended publicly. It included home energy efficiency upgrade funds (which I voted for as an amendment), and some other priorities I helped get in the budget. So I’d say this: The budget, in my mind, was too big. I agree with the Governor there.  But I would have chosen different projects to veto.

Senator Ellis’s Office and I also met yesterday with the Alaska Housing Finance Corporation to encourage them to build mixed income housing in eastern downtown Anchorage. This would make downtown more vibrant, and help solve the housing crisis that many face.  I’ll address that further near the end of this letter.

The Budget’s Good, Bad and Ugly…. And Not Ugly

At the outset, I’ll note something that’s been in the press, which I haven’t analyzed – and that others are looking at.  Some say (I won’t take a position until I fully analyze the budget) that disproportionate vetoes were targeted against those senators who stopped $8 billion in what I’ve said was unjustified oil company tax breaks over the next five years, and written in a manner that would not likely increase production.  I and others offered better ways to increase production, for a fraction of the loss in state revenue, which included tax breaks that companies would not get unless they invested in more production.  The Governor’s bill just reduced tax rates without a requirement that companies reinvest those tax reductions in Alaska.   Here’s a newsletter I wrote on that issue a while back, as that will be a top issue as next session starts in January.  

It would be irresponsible for me to make an allegation without analyzing the facts.  Others have.  Channel 2 (KTUU) is running a story on whether any of the budget vetoes were aimed at those who opposed his oil tax rollback.  The story might shed some light on the issue.  Channel 2 news runs at 5am, 6pm and 10pm, or can be found at KTUU.com.

Now – the budget.  First, here and here are the two Anchorage Daily news articles on the governor’s vetoes – they are very informative.  

Here are some projects I thought you’d want to know about.

Glen Alps Parking: Thanks to all who wrote the governor to call for him not to veto funds we put in the budget to resolve the Glen Alps parking lot crisis. By next summer there will be an extra 50 to 60 parking spaces, so people can again have access to this most popular jump off point for Chugach State Park hiking, biking, and viewing.  This is an area that 130,000 Alaskans use every year, and that has full parking lots on sunny days in the summer, even before most of us get off of work.  I believe in public access to our public lands. I thank the Governor for listening. 

School Projects: The Governor also left intact all the school projects we funded in our district – for computers, teaching whiteboards, and supplies at Inlet View Elementary, Fairview Elementary, Government Hill Elementary, Chugach Optional School, Central Middle School, AVAIL, Denali Montessori, Winterberry Charter School, and Rogers Park Elementary.  Again, thanks to all who wrote the Governor, and to the Governor for listening.  On the other hand, he vetoed major school needs in western Alaska, where some schools are crumbling.

Vetoes That Prevent Us from Reducing the Cost of Energy: The Governor vetoed a number of needed energy projects in a state where consumers are paying too much in energy costs.  These included projects that would have lowered or dulled increases in costs in Southcentral Alaska.  For example, it included a vetoed, but needed natural gas transmission line to Homer, which today fuels itself on expensive diesel.   And reducing funding for the renewable energy grant fund and exploration of geothermal energy at Mt. Spurr is not great policy. We need to diversify our energy base, and reduce consumer energy costs.

The “Pork of Anchorage”: I have taken the position that the Port of Anchorage, as long as it doesn’t have a cost-efficient expansion plan, should not receive large amounts of money.  The governor did half of what I thought was needed here.  That project is now $800 million higher in cost than initially proposed in 2003. I proposed to reduce their $37.5 million appropriation to $20 million to send a message that the state money spigot was going to close if they didn’t come up with a cost-efficient project, while letting them move ahead with some work this summer.  The Governor left that funding at $30 million – which was part of the veto I suggested, but a bigger veto would have allowed more funding for needed energy projects.

Scotty Gomez Ice Rinks:  The Scotty Gomez Foundation offered to pay half the cost of needed ice rinks near Mulcahy Stadium, if the state would match the other half.  That was vetoed.  Thanks to one of Anchorage’s NHL stars, Scotty Gomez, for trying to make Anchorage a better place.

Responsible Operating Budget Decisions: Finally, the Governor left the operating budget intact.  That included a less than 4% increase over last year.  We inserted and fought for funds for Pre-K education (but we’re one of 10 states that don’t offer statewide voluntary Pre-K. This harms student achievement; and ultimately harms college and high school graduation rates, employment and jail numbers).

We inserted funds for the Center for Energy and Power at UAF, which studies alternative energy sources for Alaska, creates jobs, and attracts federal and private research funds. 

And the Governor left in funds to get alcoholism and drug treatment services for families about to lose their children to foster care.  Currently, there are waiting lists of up to a year for these services. When a parent is willing to go into treatment, leaving children in foster care for a year while the parent sits on a treatment waiting list is cruel, costs the state money (by requiring us to pay foster parents) and is bad for children.  Now, if a parent gets in quickly, and successfully completes a rehab program, all are benefitted.  I thank the governor for leaving those funds we fought for in the budget.

Well, that’s the rundown.

Needed Mixed Income Housing and the Low Income Housing Shortage

Today thousands of Alaskan’s can’t qualify for affordable housing programs, because they are underfunded.  And, today, the largest population of homeless people is children.  The answer isn’t just more low income housing, though.  Federal funds exist to build mixed housing where low income families and middle income families live together.  One such project is being built at Loussac Manor on C Street north of Fireweed Lane.  Mixing people of different backgrounds and income levels is a proven way to help low income families break the cycle of poverty.

Senator Ellis’s staff, the Anchorage Downtown Partnership, and I met with management at the Alaska Housing Finance Corporation, to see if we could build more mixed income housing in Anchorage and statewide.  Particularly, I’d like to see the underdeveloped parts of eastern second, third and fourth avenues in downtown sited for mixed income housing.  That’s good for families.  And when you have more people living downtown, you have more stores, more restaurants, and a more vibrant city.  We’ll see if we can succeed at expanding the mixed income housing concept, and also improve downtown Anchorage at the same time.  I plan on having periodic meetings to see if this can be accomplished.

OK.  No more newsletters for a while. Don’t hesitate to call or email if there is anything we can help with.