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Thursday, January 13, 2005 6TH EDITION
 

Governor's education funding proposal means budget cuts for Juneau schools
Governor Murkowksi is requesting an additional $126 million for education over the next two years.

However, Juneau School District Superintendent Peggy Cowan says the Governors' education funding proposal will still mean budget cuts for Juneau's School District.

Cowan says with the Governor's proposed funding for Juneau, the district will remain at status quo, with only a minimal increase in expenditures, as the district's costs continue increase.

She says, if the district gets the amount of money the Governor's proposing, they will decide where to make the necessary cuts after consulting with school site councils and unions.

Mostly likely, the cuts will be where they've been in the past; buses and specialist positions.

However, Cowan says there are aspects to the Governor's proposal that are appealing.

Including his acknowledgment of the burden that the Teachers Retirement System (TERS), and the Public Employees Retirement System (PERS), has on the state's educational system and the Governor's identification of early funding of school districts.

Juneau Access mentioned by Governor in State of State, says EIS approved
A development on Juneau Access was mentioned by the Governor during his address to lawmakers Wednesday night.

It was part of the Governor's proposal to issue bonds for the maintenance and construction of transportation and other  projects and was included in a list of his top priorities.

He also said that he was told that the EIS for Juneau Access was approved Tuesday.

We talked to Pat Kemp, the Preconstruction Engineer for the Southeast Region Office of the Department of Transportation and Public Facilities today who  said  the supplemental draft EIS was signed by the Federal Highway Administration.

He said  that means its approved to go out for public comment. The document is on its way to Washington, D. C. for publication in the federal register.

The DOT official said hearings should occur in mid to late February with public comment will close March 21st.

The draft EIS includes ten alternatives. The department's preferred alternative is the highway from Juneau to Skagway with a shuttle ferry system from the east side of Lynn Canal to Haines.

Among other projects on the Governor's list of priorities is the Knik Arm Crossing connecting Anchorage and Pt. Mackenzie, the road from King Cove to Cold Bay, and an extension of the Alaska Railroad in the Interior.

In his speech, the Governor  proposed that the debt on the bonds be paid with earnings from the Amerada Hess settlement principal.

Juneau Representative Bruce Weyhrauch says the funding of Juneau Access is important no matter what the source and said the state needs to move forward.

When asked about the possibilities of including a Second Channel Crossing on the Governor's list of priorities, Weyhrauch said it should be on the list and that he would certainly promote the project.

Permanent Fund chief provides background on Amerada Hess account
The Amerada Hess account is managed by the Alaska Permanent Fund.

Fund Executive Director Mike Burns, who was a guest on KINY's Capital Chat this morning, said the account contains funds from a settlement with oil companies in the early 1990's.

He says the oil industry was concerned that the monies would flow to the Permanent Fund and be used for dividends. the industry worried juries and judges could not be impartial in the case if they were receiving dividends.

In reaction, the Legislature directed that funds from the settlement would go into the Permanent Fund, but the income could never be used for dividends.

So Burns says the fund has continued to grow. It now amounts to $424 Million. Burns compared it to the economic or financial equivalent of a "self licking ice cream cone."

He thinks its a very creative use for this money that has no public purpose.

Tentative deal announced with IBU on operation of Fairweather 
Negotiators for the state and the largest maritime union have reached a tentative deal on the operation of the fast ferry Fairweather.

The agreement on a new three year contract with the Inlandboatmen's Union was reached earlier this week.

John Torgerson, a special assistant to Department of Transportation and Public Facilities Commissioner Mike Barton, says contract talks have continued with the IBU after the state declared an impasse in negotiations last month.

Terms of the tentative agreement are not being released, but negotiators said the state has entered into a letter of agreement with the IBU that allows winter operations of the Fairweather to continue, provided similar agreements can be reached with two other unions representing ferry workers.

Commissioner Barton announced in December that if an agreement is not reached by January 25, the state will cease operating the vessel.

Torgerson said the state is still seeking mediation with the Marine Engineers Beneficial Association and the Masters, Mates and Pilots, in hopes of finalizing a long-term agreement for the Fairweather.

Torgerson adds that the state and IBU still need to reach an agreement on the Lituya, the day boat that provides service between Metlakatla and Ketchikan.

Contract negotiations are ongoing, he said.

Change in oil taxation and TAPS purchase recommended by Governor
JUNEAU (AP) - Governor Murkowski wants more oil revenue collection and oil pipeline acquisition to be part of Alaska's future.

In his State of the State speech Wednesday night Murkowski unveiled a plan to collect more production taxes from North Slope crude oil and asked the Legislature to look into acquiring a portion of the trans-Alaska oil pipeline.

Murkowski says that beginning February first, the administration will increase its oil revenue collection by including six Prudhoe Bay satellite oil fields when figuring the North Slope's production tax. Combined, the six fields produce about 85-thousand barrels per day.

Murkowski also says the state should consider acquiring a portion of the trans-Alaska oil pipeline because of the excess capacity now in the line. Murkowski says ownership of the portion of the line that carries the state's royalty oil could reduce the cost of shipping oil through the pipeline.

After the speech, Democratic lawmakers said Murkowski had correctly identified the problems -- high oil tariffs and a tax structure that allows millions of barrels of oil to escape production tax. However, the Democrats say, the solutions are wrong or don't go far enough.

Federal judge clears the way for NPR-A drilling
ANCHORAGE (AP) - A federal judge has issued a decision that clears the way for oil drilling in the National Petroleum Reserve-Alaska.

Judge James Singleton Junior ruled this week against efforts by a coalition of environmental groups to increase wildlife protections in the northwest section of the NPR-A.

Singleton found that the environmental groups failed to make their case. They accuse the government -- which is leasing land for oil and gas drilling in the reserve -- of violating environmental and other laws.

The coalition also had asked Singleton to block a planned lease sale in the northwest NPR-A.

The judge allowed the sale to go forward this summer. But he prevented companies from proceeding with any exploratory drilling or other disruptive activity until the lawsuit was resolved.

Canadian oil firm announces $16 million plans
ANCHORAGE (AP) - Canadian oil firm Talisman Energy Incorporated has announced plans to spend 16 (m) million dollars to work toward drilling on the North Slope next year.

Spokesman David Mann says the company has leased exploratory acreage in the National Petroleum Reserve-Alaska and elsewhere on the Slope.

Mann says the company will concentrate on seismic testing this year to determine the best drilling spots.

Talisman's subsidiary Fortuna Exploration partnered with French oil company Total last winter on an exploratory well in the reserve.

Wainwright troops deployed to Persian Gulf
FAIRBANKS (AP) - More than 100 soldiers at Fort Wainwright have been deployed to the Persian Gulf.

The troops left yesterday to join about 250 soldiers who were recently deployed. More soldiers are expected to follow later this week.

Military officials say in total a battalion of about 500 soldiers from Fort Wainwright are headed to Iraq or Kuwait.

It is by far the biggest deployment from the base since the wars in Iraq and Afghanistan began.

All the soldiers headed over are members of the 4th Battalion, 123rd Aviation Regiment -- also known as the Desert Knights.

Wainwright says the troops will serve as helicopter pilots, mechanics and support personnel.

New threats appear with power back on in Kaktovik
ANCHORAGE (AP) - About 90 percent of homes in Kaktovik have power today. But the village's problems are not over.

Officials say broken pipes and flooding are replacing the problem of freezing cold now that the village's power has mostly been restored.

The village of about 300 people lost power Sunday after a blizzard hit Kaktovik. The power was restored to most homes late Tuesday and Wednesday.

North Slope Borough officials say there is one bright spot. The village's sewer plant got through the storm unscathed.

Until the problem of broken pipes can be fixed, the village will have to go back to using honey buckets for toilets and plastic trash cans for drinking and washing.

Cargo planes yesterday delivered sewer and water technicians, as well as desperately-needed supplies, to the village. 

Lawyer says client was in paranoid state
ANCHORAGE (AP) - A trial is under way in Anchorage for a man charged with burglary, assault, criminal mischief and cruelty to animals.

Twenty-year-old Tommie Earl Smith is accused of forcing his way into a woman's home and killing her dog by stabbing the dog during a two-hour standoff with police.

Gale Keppler, the woman in the home, was able to escape.

Smith's attorney says his client was in such a paranoid state on February 27th that he could not have intended for bad things to happen.

Closing arguments were held yesterday in Superior Court.

Judge Philip Volland is expected to return a verdict today.

Audit says suicide council should continue through 2009
FAIRBANKS (AP) - An audit performed for the Legislature says a suicide prevention council should continue its work through 2009.

The Statewide Suicide Prevention Council started its work in 2001 and is scheduled to end at the end of June.

The Division of Legislative Audit says the council has taken up important efforts, such as drafting a statewide suicide prevention plan.

Alaska's suicide rate consistently ranks as one of the highest in the nation. In 2004, there were more than 150 documented suicides in the state -- the highest tally ever.

Anchorage recycling program not working out
ANCHORAGE (AP) - A recycling program being tried in west Anchorage is not working out.

The curbside recycling program was begun 18 months ago. But it will end late this month because the firm that runs it is not getting enough money out of it.

Waste Management of Alaska is running the program. The program picks up recyclable paper, cardboard and newsprint twice a month from curbs in several west Anchorage neighborhoods.

But Kirk Duncan of Waste Management says there are not enough people recycling. He says the company has about one-thousand customers paying five dollars a month for the service. To make money, Duncan says the company would need to triple that number of recycling customers.


Alaska Air announces change in Nome flight
ANCHORAGE (AP) - There are some changes ahead in Alaska Airlines routes.

The airline has traditionally flown from Anchorage to Kotzebue to Nome.

Under a revised plan that starts in May, the airline will route one of the three daily flights to Nome first.

Senior vice president Bill MacKay says the new routing will operate year-round.

Williams takes over for Logsdon
ANCHORAGE (AP) - The new chief economist for the Alaska Department of Revenue began the job week.

Michael Williams takes over for Chuck Logsdon, the department's long-time chief petroleum economist who retired in October.

Williams -- who relocated to Alaska from the Los Angeles area -- most recently operated his own energy and economics company, focusing on technological innovation and sustainability of metropolitan regions.

He earned a doctorate from the University of Colorado and wrote his thesis on Alaska natural gas development.

Fishermen working to buy Kenai seafood plant
KENAI (AP) - Some commercial fishermen are working out a deal to buy the former Dragnet Fisheries seafood plant in Kenai and turn it into a producer of high quality seafood products.

Dragnet shut its doors in 2000 after the owners went bankrupt. It now sits vacant.

Jack Brown, business development manager for the Kenai Peninsula Borough, says the possible purchase is a welcome venture at a time the domestic demand for wild fish is increasing.

Brown says negotiations to purchase the cannery are not complete, so involved parties are not yet ready to release information.

Crimson Bears beat Palmer, Lady Crimson Bears lose in overtime
The Juneau Douglas High School men's basketball team won the first game of its road trip in Palmer last night.

The Crimson Bears preyed on the Moose 74 to 37.

The Bears start play in the Alaska Airlines Eagle Classic tonight with a game against West. Tip off is at eight on KINY.

The Lady Crimson Bears lost to Service in overtime last night 55 to 53.

They start play in the Lady T-Bird Classic at East Anchorage High School today with a 6 p.m. contest against North Pole.

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