January 28, 2015

Dear Neighbors,

We just completed our first week of session and the state of the budget is bleak. Governor Walker introduced his new budget last Thursday during his State of the Budget Address and I have diligently reviewed it over the past few days.

Here are the bare-bone facts:

• $13.0 billion total budget

• $3.7 billion from the federal government

• $2.2 billion in revenue (90% from oil)

• $3.3 billion from our savings account

• 5-8% reduction in all agency operations

• $150 million capital budget, down by $445 million

• At current oil prices, our savings are gone by 2019

Discussing the current budget with Representative Les Gara.

As you can see, Alaska is facing some tough decisions due to our oil taxes and lower production. As a new member of the House Finance Committee, we will make these tough decisions and set our fiscal future in order – because we must. It won’t be easy, but your advice and comments will guide me over the next few months.

Your 2015 Legislative Staff

I am glad to have Riley Leonard back for his third legislative session. Riley was my intern in 2013 and has served as my Chief of Staff since the 2014 session. He will be my Finance Committee aide and lead on the operating budget for my office. In his free time, Riley enjoys canoeing and camping, soccer, cooking and watching the West Wing.

Back row left to right:
Amanda Frank, Kevin Prestegard and Riley Leonard.
Front row Lt. Governor Byron Mallott and
Myself at the ceremonial Oath Signing.

Amanda Frank is here for her first legislative session. Amanda was born in Fairbanks and raised in the district. She knows the ins and outs of Fairbanks and is excited to learn the legislative process and represent Interior Alaska. Amanda will provide communications support and constituent outreach for my office. In her free time, she tutors math and builds Legos with her nephew.

We have a new member to our team in the capital - Kevin Prestegard. Kevin is an intern from the University of Alaska Anchorage and brings a state-wide perspective to an otherwise Fairbanks-centric office. Just from these first few weeks, I can see that we made the right choice in choosing Kevin. He is also a very avid Star Wars fan and even owns a storm trooper outfit – supporting my belief that we have the nerdiest and coolest office in Juneau.

Gas Price Gouging

As a long time Alaskan, I have seen the price of oil and gas fluctuate and directly impact the people of this great state. While our neighbors in the Lower 48 benefit from the decrease in the price of oil, leading to lower costs for heating and gas, we have been slow to follow that trend. We are trying to bring fair valued energy prices to Alaskans.

My “Price Gouging Bill,” House Bill 37, would do this - allowing us to benefit from lower oil prices even when the state isn’t taking in high oil revenue. Please contact your representative and tell them you would like to bill to be heard today.

As always, please feel free to contact me if there’s any way I can be of service to you, your family or your friends.

Working Hard for Fairbanks Families,

Representative Scott Kawasaki
Alaska State Representative
City of Fairbanks