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Wednesday,  January 14, 2004   4TH  EDITION
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Murkowski proposes permanent fund task force and special session
Governor Murkowski is looking to the Alaska Permanent Fund to close a hole in the state budget. But Murkowski says the issue will be settled by voters during November's General Election.

During his annual State of the State and Budget Address to the Legislature last night, Murkowski announced plans to form a panel that will recommend whether to use permanent fund money to fund state government.

No one's talking about ending the dividend program, but the governor wants the 55-member panel to make a recommendation on whether to use a portion of the money for state government.  The panel plans to meet at the University of Alaska, Fairbanks February 10th to the 12th.

Murkowski says he will take recommendations from the panel to seek legislative approval of a measure asking voters for permission to use funds for government.

Lawmakers are expected to take up the issue in a special session planned for March First.

Michael Burns will chair the panel. He's one of seven members named by the Governor who will, in turn, pick 44 other members. Four will be lawmakers representing both majority and minority views.

Burns told reporters during a press conference in Juneau  this morning that their biggest challenge is probably presenting fairness and balance to the people of Alaska.

He thinks picking the other delegates will be their ultimate challenge in order to get a true reflection of Alaska.   He added that will be the only action taken by the group that won't be totally open to the press and the public. He says those decisions will be done in executive session in order to obtain a fair balance.

Burns hopes their selections will be announced by next week.

The honorary chair is retired Judge Tom Stewart of Juneau who served as secretary to Alaska's constitutional convention.

Capital Planning Committee named by Botelho
One of the 16 members of Juneau Mayor Bruce Botelho's Capital Planning Committee is an Anchorage lawmaker who is the sponsor of legislation to build a new capitol building in the state, but not necessarily here.

"Build it and they will come," is the theme of Representative Norm Rokeberg's House Bill 60.

It calls for communities to submit plans and then leasing a facility to the state for a dollar a year with the state picking up operation and maintenance costs.

Botelho rejects the approach outlined in the legislation.

The mayor expects the committee to have a report to the Governor by late summer so he can consider it in his budget planning.

He thinks the most likely financing method will be in the form of revenue bonds issued by the city. To retire that debt, he says a long term lease would be needed with the state

Other lawmakers on the panel are Kodiak Senator Gary Stevens, Senator Hollis French of Anchorage, Fairbanks Representative David Guttenberg.

Local officials include Assembly members Jeanne Johnson and Merrill Sanford and Planning Commission member Marshal Kendziorek.

Other members are Alaska Committee President Win Gruening, Legislative Affairs Agency Executive Director Pam Varney, Sharon Kelly, president of the Alaska State Employees Federal Credit Union, Alaska Municipal League Executive Director Kevin Ritchie, CBJ Architect Sarah Lewis, Consultant Carlton Smith, realtor John Williams and Phil Smith of the National Marine Fisheries Service.

Botelho is also serving on the committee.

The committee conducts a meeting from 3 to 5 Thursday afternoon in Assembly Chambers at City Hall.

Lynn's vote on bonus override results in sanctions
State Representative Bob Lynn will be sanctioned by the GOP majority for backing the Democrats move earlier this week to restore the senior citizen longevity bonus program.

House Majority Leader John Coghill said today after a closed-door caucus that Lynn would lose his committee chairmanships but will be allowed to remain in the caucus.

Lynn is chair of the House Veterans and Military Affairs Committee and vice-chair of the House Labor and Commerce Committee.

On Monday, Lynn angered fellow Republicans by voting with Democrats in a failed attempt to enter into a veto override session.

Democrats wanted to reverse Governor Murkowski's veto last session of 45 (m) million in funding for the program.

The senior citizen Longevity Bonus program provided eligible seniors with up to two hundred and 50 dollars per month.

Coghill says majority members agree early on to back leadership on procedural and budget votes.

He says they are free to vote their conscience on other matters.

Coghill says Lynn told Republicans before the vote that he would back the Democrats veto override move.

Cocaine seized on state ferry leads to arrest in Juneau
A Juneau man has been charged in a drug bust involving cocaine.

The Petersburg Police Department contacted a passenger onboard the state ferry Malaspina Sunday and seized approximately one pound of cocaine, which was destined for Juneau.

Investigators delivered the cocaine to the intended recipient the next day and served a warrant on a North Douglas Highway residence.

Greg O. Brown, age 20 of Juneau, was arrested for misconduct involving a controlled substance in the third degree.

In addition to the cocaine, investigators seized a .45 caliber pistol and other evidence.

Draft EIS on Kensington due out later this month, according to mine official
The developers of the Kensington Mine near Juneau says the permitting process continue to move forward.

Coeur Alaska Project Manager Rich Richins says they received an indication this week a draft Environmental Impact Statement will be issued January 23rd.

He says the Forest Service has scheduled public hearings for next month.

The mine is projected to create 325 construction jobs and about 225 full-time permanent jobs.

Richins says a final decision on whether to begin construction this spring will be made after the permit process is complete.

BP's environmental record blasted by top state DEC official
Alaska's top pollution regulator says oil company B-P has failed to meet its environmental responsibilities.

Ernesta Ballard, commissioner of the state Department of Environmental Conservation, has told the U-S Environmental Protection Agency that B-P needs heightened scrutiny.

Ballard cited two mishandled North Slope spills. She argued that B-P has not fully abided by an agreement after it pleaded guilty in 1999 to a criminal pollution violation.

That agreement required B-P to develop an environmental management system to track and immediately report spills, and cooperate better with state regulators.

Ballard says B-P failed to promptly report a spill last year. And she says the company quickly and illegally pumped spilled liquids underground in February 2001, without getting permission from state regulators.

B-P is Alaska's number two oil producer. The company runs most of the North Slope oil fields.

Big cuts in store for Anchorage school district
The Anchorage school district is facing a budget deficit of historic proportions.

Anchorage School Superintendent Carol Comeau is proposing budget cuts that include slicing 332 staff positions, eliminating funding for community schools and increasing fees all to make up for a $26.2 million deficit in the 2004-05 school year budget.

About half the staff reductions are teaching positions. The cuts are the largest proposed for an Anchorage school budget since oil prices crashed in the mid-1980s, she said.

The deficit is largely the result of an increase in negotiated salaries, an increase in the amount of money the district must contribute to employee retirement systems and an expected $15.4 million increase for inflation, rate increases and programs designed to meet state and federal mandates.

Also, revenue from the state has declined by $3.7 million, enrollment is expected to drop by 164 students and some costs are associated with opening the new South Anchorage High School.

Comeau said the cuts she is suggesting will "significantly impact" education.

Her recommended staff reductions include laying off 54 middle school teachers and half of the district's 81 kindergarten aides.

Comeau has also suggested laying off an additional 102.5 teaching positions, which means an average increase of 1.5 students per class at every grade level, with the exception of special education classes.

Tax increases on table in Sitka
The Sitka Assembly has voted to increase the sales tax cap rate by two-thousand dollars.

It also voted to raise the property tax millage rate by one mill at their regular meeting last night.

The sales tax proposal did not receive a second vote because the Assembly ran out of time. It also needs a third reading.

A new millage rate would have to be approved by voters.

Assembly member Thor Christiansen says a sales tax cap increase is the least regressive. The current rate of one-thousand dollars was set in 1967.

Assembly member Marko Dapcevich urged the Assembly to keep the cap at one-thousand dollars. He says the city does not need the additional revenue.

Airport seeks trailer unit to ease overcrowded terminal
The Airport Board of Directors meets this evening and dwindling space in the terminal tops the agenda.

Patty deLaBruere of the Airport Manager's Office says a budget request is up for action. Staff is seeking a $20,000 increase in this year's budget for the purchase of a mobile trailer unit.

She says it would be used to house the contract weather office. The office is currently in the terminal, but federal inspection services which includes Customs has to expand. In conjunction with the need to relocate airport security to accommodate baggage screening, deLaBruere says they are completely out of space in the terminal.

An informational item up for discussion deals with the water and sewer expansion program. Some draft regulation language will be presented for the board's review. deLaBruere says no action on that matter is planned at this evening's meeting.

The meeting begins at 7 p.m. in the Aurora Room at the airport.

Price set for snow crab
Bering Sea snow crab fishermen say they have agreed with processors on a price and will drop pots as scheduled at noon Thursday. Fishermen voted Monday to accept a price of two dollars and five cents per pound, the second-highest price in the fishery's history.

 

 

 

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