Special session and AMHS

Dear Neighbors,

We are getting ready for the third special session this year.  This one was partially expected, but there are a couple of additional items related to the Alaska Liquefied Natural Gas Project (AkLNG) that we will be considering as well.  We also have seen the DOT&PF proposal for the summer 2016 Alaska Marine Highway sailing schedule, which has raised many concerns.  These topics and more will be covered in this newsletter.

          
Oct. 15-17: AFN Convention in Anchorage. Visiting with old friends, enjoying vibrant performances, and hearing from Alaskans from across the state.

Special session number three

About a month ago, Gov. Walker called the legislature back into special session in Juneau to consider items related to the AkLNG.  I worked very hard with the Governor, Lt. Governor, Juneau delegation, Independent Democratic Coalition and other Coastal Legislators to resist efforts to hold this special session in Anchorage.  The session call letter identifies three specific topics:

1.       Legislation lifting the property tax holiday on natural gas containing properties (reserves tax).  This proposal was presented by the Governor as a way to make sure that gas producing partners stay at the table and continue to work with the State to move the gasline project forward. 

2.       Funding that will allow the Governor to buy out TransCanada’s interest in the AkLNG project.  The buyout is estimated to cost around $108 million.  The Alaska Gasline Development Corporation (AGDC) is the entity with oversight responsibility of the AkLNG project, and they currently have approximately $60 million that could be available for the purchase, so additional funding will be required.  This is a fairly complicated issue, but it can be distilled down to whether Alaska should take on a larger portion of the overall project, which will result in taking on additional risk.  From my perspective, Alaska was taking on a large amount of the risk, and until we get to full design of the project, TransCanada was accepting no risk, but would be guaranteed 7.1% interest on money they have invested so far.  That interest rate is quite high considering the State is bearing the risk for both parties in this early stage of the project.

3.       Additional funding for development of the AkLNG project to fund Alaska’s share in getting the project to the design phase.

AMHS Summer 2016 schedule concerns

A couple of weeks ago, the State of Alaska Department of Transportation and Public Facilities (DOT&PF) released a draft 2016 summer schedule. It is available for comment, and I encourage anyone who has concerns, uses the Ferry system, or is worried about the future of our Ferry system to check it out provide your feedback before November 3.

The schedule is only one part of the concern I have regarding developing a sustainable future for AMHS.  I have written opinion pieces for both the [Alaska Dispatch News] and [Juneau Empire], identifying what I believe is a positive strategy for moving AMHS forward.  This is a critical time for AMHS, and I am looking to the Governor, Lt. Governor and leadership at DOT&PF to be proactive in developing a solution to this difficult situation.

As part of this discussion, there will be a Senate Finance Transportation subcommittee meeting in Sitka on Friday, Oct. 23 from 12:00-2:00 PM.  This is supposed to be a teleconferenced meeting.  PLEASE CALL IN TO THIS MEETING TO EXPRESS YOUR SUPPORT OF AMHS AND CONCERNS ABOUT INADEQUATE FUNDING (844-586-9085).

Sept. 30, 2015: Juneau Fiscal Forum at Centennial Hall. Great attendance and a wealth of information. Special session will focus on the LNG Project, and the economic health of Alaska is a big part of that discussion.

Meetings Update

Fall is conference season in Alaska, and in addition to attending meetings of the Legislative Budget and Audit Committee and the Legislative Council, I have spent time gathering information and being involved in discussions important to Southeast Alaska and the rest of the state.  I attended the Alaska Federation of Natives convention, participated in the Juneau Fiscal Sustainability Forum, the Institute of the North Fiscal Sustainability forum, the Alaska Travel Industry Association annual meeting, a Rural Alaska Community Action Program (RurAlCAP) Board Meeting, and attempted to get to the Alaska Native Brotherhood/Sisterhood Grand Camp meeting (celebrating 100 years!!), but was weathered out of Wrangell.  Along the way, I continue to discuss the need for developing an overall strategy and implementing solutions to our current fiscal situation.  This is the most important issue facing our state today.  We have the ability to move our state forward, and not drive it into a recession, and I will be putting a lot of energy in to getting a constructive dialogue going to address our fiscal future.

Presenting at AFN with Sen. Stedman (left), Rep. Foster (right), and the Alaska Bush Caucus.

Heads up

1.       Senate Finance Transportation Subcommittee meeting in Sitka 12:00-2:00 PM (844-586-9085). Please call or attend to express your support of AMHS, a long-range plan, and importance of supporting AMHS not just for coastal communities, but all of Alaska.

2.       Alaska Housing Finance Corporation (AHFC) unveils new building monitor system (BMS) that tracks real-time energy use in a building, and is designed to save energy, along with building owners’ and managers’ time and money. AHFC is making the software open source and available at no cost here. Questions? Email or call Stacy Schubert, (907) 301-4556.

Shout out

Congratulations and thank you to the recipients of the Juneau Community Foundation Philanthropy Awards:

·         Julie and Peter Neyhart – Philanthropists of the Year
·         Elias, Toby, & Molly Minick (Tenth Street Trees) – Youth Philanthropists of the Year
·         Alaska Airlines – Business Philanthropist of the Year

With Regards,

Sam Kito III