Juneau Daily News Online

Thursday, January 13, 2000  ©  Alaska Juneau Communications - KINY Radio News

Governor delivers State of the State/Budget Address   Calls FY2001 the "Children's Budget" Governor Tony Knowles addressed a wide range of issues in his combined State of the State and Budget address last night (right). The state's chief executive defended his proposed budget for next fiscal year that increases spending by about $100 million. He referred to the majority's goal to cut another $30 million by calling it a blind allegiance to an arbitrary number while ignoring the balance of the budget gap and the state's vital needs. Senate Finance Co-Chair John Torgerson said considering the state's projected budget gap, spending increases are not called for. He said he expected the Governor to demonstrate leadership and suggest reductions instead. Governor Knowles drew chuckles from all around last night when he called on lawmakers to renew attempts to work out a long term fiscal plan this session. He suggested that the executive and legislative branches of state government were able to unite Alaskans last fall when voters rejected the fiscal plan calling for the use of Permanent Fund earnings with a plurality of 84 percent. In the Republican response, Senate President Drue Pearce said the message they think they heard from voters was that the majority is on track by pursuing additional budget cuts. (In photo at  left, Gov. Tony Knowles and Lt. Gov. Fran Ulmer greet Alaskans highlighted in the 2000 State of the State Address) Read the entire text of the Governor's speech here.

FTC pressured for merger decision
BP-Amoco and Arco are putting pressure on the Federal Trade Commission to make a decision on their merger. The companies today proposed triggering a federal law to speed up the agency's review of the proposed takeover. Under federal antitrust law, the FTC must make a decision within 20 days after it receives all requested paperwork from the companies. Company officials will meet tomorrow with FTC officials. But, in a news release, the companies say they are ready to go to court to resolve the issue. BP Official Ronnie Chappell acknowledges the FTC has anti-trust concerns about the merger but said it does not share those concerns. A review by the agency's staff raised red flags about consolidation of oil production on Alaska's North Slope and the impact it could have on the pricing of gasoline on the West Coast.

Knowles also urges speedy resolution
Governor Knowles talked about what he called the devastating effect of the long drawn out FTC decision making process on the BP/Arco merger during his address to the Legislature last night. He called on lawmakers to take quick action. The Joint House and Senate Merger Committee plans hearings next Tuesday and Wednesday. The legislature's legal experts and economists will make their presentations on Tuesday with company officials responding to those findings the next day with a decision coming soon afterwards, according to House Speaker Brian Porter. When asked how the Legislature's support would help at this point, B-P official Ronnie Chappell said the support of the acquisition by Alaskans is important and carries weight in the nation's capital and elsewhere.

Kerttula still doesn't like merger deal
Juneau Representative Beth Kerttula (left), who serves on the special legislative committee, doesn't believe the state should okay the deal. She told reporters this morning that there are too many questions and too many problems in Alaska for the future. Kerttula called it a classic anti-trust case. Governor Knowles commented on the latest development on the proposed oil company merger during a press conference late this morning. He said this development forces action to be taken. When asked if the state has a role if B-P Amoco decides to pursue the matter in court, he said the state could intervene or simply walk away.

Governor seeks bond package for schools
Governor Knowles is calling for a $900-million bond package to finance school construction and repair. and transportation projects. The school bonds amounting to $550-million would be used mostly for rural school construction, which Knowles hopes will settle a lawsuit accusing the state of providing inferior schools in the Bush. The bond would be partly backed by the money the state gets from the national tobacco settlement. So they wouldn't have to go to a vote of the people like a similar proposal floated by a leader of the Legislature's Republican majority. The transportation bonds amounting to $350-million would be paid by an increase in federal transportation money, and they would require a vote. He plans a speech later this month to detail new transportation projects, including a decision on whether to build a road linking Juneau to the rest of the state's road system.

House "disappointed" with Knowles bonding proposal
The House Finance plan for bonding school construction and repair would require voter approval and, in that regard, Committee Co-Chair Eldon Mulder (right) said he was disappointed with the Governor's plan. He's also disappointed that it doesn't address the university's deferred maintenance needs or American with Disabilities Act improvements . Mulder said the Governor's transportation bond plan overlooks ports and harbors.

Schools top Minority agenda
Minority Democrats in the Legislature outlined their goals for this session during a press conference this morning. Senate Minority Leader Johnny Ellis told reporters the number one priority was improving public education followed by school construction and deferred maintenance. Other top priorities include resolving subsistence; working toward a balanced budget; improving child care and protection; adequate funding of safe water and sanitation projects and power cost equalization; protecting Alaskan's privacy; developing an Alaskan "dot com" economy; building the gas pipeline, empowering the University of Alaska to develop the state's potential; healing the urban-rural divide; and rebuilding public trust through an open public process. Senator Ellis called the minority's list an alternative to the republican's vision of the future.

CBJ faces 8% across the board budget cut
The School District and all departments of the City and Borough of Juneau are facing a proposed 8 percent reduction in funding. City Manager Dave Palmer met with the Finance Committee last evening to get direction as to where and how the Assembly might want to cut the city's budget. The committee is projecting a $3.8-million deficit for fiscal year 2001 and a $4.3-million dollar shortfall for fiscal year 2002 according to Chair Dwight Perkins (left). Perkins says the 8 percent across the board reduction will get the city closer to a balanced budget. He says such a reduction will help assuming its coupled with a reduction of services and some potential layoffs. Perkins says the Airport Board is considering a strategy to reduce its budget. Board members want to reduce its contribution to Capital City Fire and Rescue by about $200,000 which would result in three layoffs. The Finance Committee will be making it's final decisions in April and May for consideration by the full Assembly. The final budget for FY2001 has to be completed by June 15.

Herring fishery scrapped
State fish and game officials say they've decided to cancel the Kah Shakes-Cat Island sac roe fishery for 2000. Commercial fisheries officials blame low herring spawning last year. The herring fishery requires a bio mass of at least six-thousand tons and fisheries experts detected only 46-hundred tons. Area management biologist Phil Doherty says the herring bio mass may not have declined. Doherty says some of the fish may have moved near Annette Island, outside state jurisdiction. Waters within three-thousand feet of Annette Island are reserved for the Metlakatla Indian Community. (In photo at right, a Southeast Alaska commercial herring fishing boat draws in its net)

Group to scrutinize Twin Lakes
A meeting of the Twin Lakes Project is scheduled for this evening. The Mountainside Estates Neighborhood Association and local attorney Bruce Weyhrauch are the organizers. Weyhrauch says the purpose is to examine problems with the lakes. He says the north lake is filling in and the same thing will happen eventually to the south lake. Residents of the area and representatives of the city, state and private business are scheduled to attend to discuss solutions. The meeting begins at 5 p.m. in the Downtown Library Conference Room.

Theatre production going on the road
Juneau's Perseverance Theatre is about to put a $20,000 grant from the National Endowment for the Arts to work. Peter Dubois (left), the theatre's Artistic Director, was among the guests on KINY's Capital Chat this morning. He said the grant will be used toward a state wide tour of the Pulitzer Prize winning production "How I Learned to Drive". The play was written at the Juneau theater by Paula Vogel in 1997. It will be performed in Anchorage January 20 to the 23 and in Fairbanks from January 28 to February 6. It's first stop is the Juneau Douglas High School Auditorium this Friday and Saturday nights at 8:00. Tickets are $22 for adults and $18 for students and seniors and are available at local bookstores.

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