Community Needs

Dear Neighbors,

With the summer well upon us, I hope everyone is able to stay dry, warm and safe! I have been traveling around the district listening to and hearing from everyone as I go. I spent some time in Skagway hosting a constituent meeting and speaking before the Skagway Assembly. I also had an opportunity to host a constituent meeting here in Juneau with Senator Egan. I traveled to Gustavus for their Centennial Celebration and toured the Falls Creek Hydro facility and the Gustavus Disposal and Recycling Center.

In Juneau, I toured the downtown fire station with Fire Chief Etheridge and viewed the facilities that house the fire fighters that serve our community. It was great to learn about vehicle upgrades and important issues facing our fire department as the business of fighting fires becomes even more technologically advanced.

Next week, I will be touring the Juneau Police Station and will talk with Police Chief Johnson about public safety needs of the community. I will also be touring the Juneau water and wastewater facilities with the CBJ public works director. I am excited to have a chance to spend some time visiting some of the important support facilities in Juneau.

I believe it is critically important to have an understanding of the support infrastructure in our communities so we can focus on maintaining healthy and safe communities for ourselves and our families.

Dave & Judy Wackerbarth (relatives of the original settlers to the area) and Dave & JoAnne Lesh (owners of Gustavus Inn) during Sam’s visit to Gustavus for the Centennial celebration.

Sam and Dennis Egan at the constituent meeting at JDHS Commons. Thank you to all the wonderful constituents who braved the torrential downpour!

YES ON BALLOT MEASURE 1

Having recently become a member of the Alaska State Legislature, my oath of office is still fresh in my mind, especially the phrase "I do solemnly swear that I will support and defend the Constitution of the United States and the Constitution of the State of Alaska …" As a representative, I take my duty to uphold the constitution of Alaska very seriously, including the responsibility to maximize our resources for the benefit of Alaska’s citizens. When a majority of state revenue comes from oil and gas taxes, oil and gas decisions impact the life of every single Alaskan, and each oil and gas vote must be made with the state’s fiscal future firmly in mind.

The changes made by SB 21 fail to meet that standard. The prior tax structure (ACES) did have high tax rates, but only taxed net profits. Until an oil company made a profit, they paid no tax, and the company was even able to get rebates through tax credits for investments made in Alaska. ACES allowed for a healthy profit on one oil field and reinvestment in a new development, and still allowed an oil company to pay little to nothing in taxes. In 6 years, the state raised $25 billion in net profit taxes, after all credits were paid. The Legislature was able to pay back over $5 billion of what was borrowed from the state savings account, and added an additional $10 billion to savings. We were able to maintain a healthy state construction budget, building Alaska with the kind of jobs that mostly went to Alaskans, and we weathered the national recession much better than many other state. The up-front credit support attracted many smaller oil companies to invest in Alaska, creating good paying jobs for Alaskans.

SB 21 takes away the state’s ability to share in windfall profits when oil prices rise. I believe it is inevitable that oil prices will begin to rise again, as they have in the not so distant past. When that occurs, Alaska will not be able to share in the revenues that will bring oil companies significant profits. Our state experts seem to underestimate the tax impact if oil prices increase to levels like we saw in 2008. In addition, the SB 21 tax credit structure does not require reinvestment in Alaska, therefore, we are likely to see a loss of good paying jobs in Alaska if SB 21 is allowed to remain the law of the land. SB 21 also provides a very broad definition of “new oil” that leaves a significant amount of discretion to commissioners and takes the state backwards by including fields that are already in production. In addition, once a field is classified as new oil, it keeps that classification forever, so the tax rate paid on those fields will always be about half the tax rate on other fields, no matter how well established it becomes. The SB 21 provisions provide no promises or guarantees of new investment or production in Alaska. Even the Governor’s experts are not predicting an increase in production over the next ten years.

Maintaining the tax structure in SB 21 will mean less revenue to the State of Alaska and will result in continued budget pressure on education, infrastructure and public safety, hampering the state’s ability to provide these necessary and important services to Alaskans. I ask that you join me in voting yes on Proposition 1 to repeal SB 21 so we have a better starting place as we work with the oil industry to establish a fair and equitable tax structure that supports essential state services.

Sam stands with Alaska Service Corps- Summer Youth Crew -Russell King (Crew Leader- holding the sign), Avery Chiklak, Jerry Philip. Cody Kokrine. Kayla Williams and Jennifer Joe (Crew Leader- holding the sign). The Alaska Service Corps- Youth Program recruits young Alaskans (aged 17-20 years old) to gain valuable hands-on work experience, by completing community service projects on public lands in Alaska. Projects include eradicating invasive weeds, improving recreational trails and cabins, improving important salmon habitat, and improving public safety.

VOTER REGISTRATION DEADLINE

Sunday, July 20 is the deadline to register to vote or update your registration for the August 19 primary election. Your vote is your voice. Exercising your right to vote is a fundamental civic responsibility and a hard fought liberty. Please share this e-mail with friends and family to encourage voter registration THIS WEEK. If you need to register or update your address or party affiliation before the primary, this is the week to do it!

Registration or change of address can be completed online. Follow this link to register or update your voter registration.

Division of Election offices in Juneau will be open this week Monday through Friday from 8 a.m. to 5 p.m., and this weekend on Saturday, July 19, from 10 a.m. to 4 p.m. and on Sunday, July 20, from 12 p.m. to 4 p.m. Voter registration is also available at DMV offices, many public libraries and at Municipal Clerks’ offices.

Voting early or absentee is a convenient and great way to ensure your vote is counted. You can vote early in-person – find locations here. You can even vote by mail or electronic transmission.

Don’t wait, get registered to vote or order your absentee ballot today!

Sam viewing the process of removing the lead, zinc, and bulk concentrates from the mine tailings at Greens Creek Mine. Greens Creek is an important part of Juneau’s economy and an example of responsible mining.

DRAFT SOUTHEAST TRANSPORTATION PLAN RELEASED

The Department of Transportation and Public Facilities has released a draft transportation plan for the region and will be holding meetings soon to present it to the public and gather comments. There is not a public meeting schedule yet, but the document can be viewed on the web at: http://dot.alaska.gov/sereg/projects/satp/index.shtml.

Sam participating in a ceremony to remember fallen Alaskan soldiers with Tom von Kaenel. After bicycling across America from Florida to Juneau, Tom wrapped up his tour with a ceremony in the Capitol to recognize Alaskans who died in Iraq and Afghanistan. An Army veteran, Tom bicycled 5800 miles from KeyWest here to Juneau, self-supported, to remember and recognize the fallen. You can learn more about him from this KTOO story or at his website: http://sea2sea.org/.

Sam with Senator Dennis Egan and local law enforcement at the signing of SB 116.

AMHS WINTER SCHEDULE

The Department of Transportation and Public Facilities released the winter 2014-2015 Alaska Marine Highway schedule. The schedule can be viewed at: www.ferryalaska.com.

Sam attending the Empty Chair exhibition at the City Museum commemorating his family’s experience being interned as Japanese Americans during World War II.

Gabi Kito (Sam’s daughter) describing the draping of cranes for the unveiling of the Empty Chair Project. The empty chair is a bronze representation of the empty chair at the 1942 Juneau High School graduation ceremony that valedictorian John Tanaka was unable to attend due to having been removed from his home and placed in an internment camp.

RENEWABLE ENERGY GRANT FUND

The Alaska Energy Authority (AEA) released a request for applications for the Renewable Energy Grant Fund. Applications must be received by AEA by 5 p.m. on Sept. 22, 2014.

The Renewable Energy Grant Fund was created in 2008 by the Alaska State Legislature to provide funding for renewable energy projects that can provide economic benefit and local energy sources to Alaska communities. The Legislature authorized AEA to manage the application process, project evaluations and recommendations, completion of grant agreements and disbursement of funds to grantees.

In 2013, 86 applications were received and nearly $23 million was awarded to 28 projects. Prior to that, $227.5 million had been provided to 251 projects statewide. Projects include wind, hydro, biomass, solar, transmission and integration to existing fossil-fueled units.

Additional information about the application process can be found online at AkEnergyAuthority.org or by calling the Alaska Energy Authority at 1-888-300-8534 or 771-3044.

BIDS SOLICTED FOR GLACIER BAY LODGE OPERATIONS

The National Park Service is soliciting concessioner proposals for the operation of the Glacier Bay lodge. The services required to be provided are:

1. Lodging: Glacier Bay Lodge

2. Day Tour Boat Service: regularly scheduled day boat tour of Glacier Bay

3. Camper Drop-Off Service from Day Boat Tour: daily drop-off and pick-up of campers and kayaks

4. Food and Beverage: Glacier Bay Lodge and Day Boat Tour

5. Retail: Lodge gift and sundry shop and day boat tour gift and sundry sales

6. Ground Transportation: round trip service between Gustavus and Bartlett Cove

7. Fuel: sale of marine gasoline and diesel fuel, camper stove fuel and common marine oils

8. Other Required Services: baggage storage, internet service, public showers and laundry.

A one-day site visit is scheduled for Wednesday, July 30, 2014. If you would like to participate in this site visit, you must RSVP no later than Monday, July 21. Additional information, including how to register for the site visit and how to submit a proposal, can be found online at the National Park Service website.

The Capitol Building is in the middle of a major renovation, but we are still open for business. Pardon the mess and please come by to visit with me or my staff about any issues, concerns or comments you may have.

Sincerely,

Sam Kito III