Juneau Daily News Online

Thursday,  January 17, 2002

Fiscal Policy Caucus leader comments on Governor's plan outlined in State of State
A co-chair of the bi-partisan Fiscal Policy Caucus in the Legislature agrees with the Governor's call for taxes, but Juneau Representative Bill Hudson doesn't feel Knowles went far enough.

The Governor asked the Legislature during his State of the State Address last night for an income tax, a hike in the alcohol tax and a cruise ship head tax to help balance the state's books.

But Knowles put the use of Permanent Fund earnings off limits until its approved by Alaska voters and tax measures are in place first. Hudson says he disagrees with the Governor in that respect. And Knowles mentioned nothing about capping permanent fund dividends, which Hudson supports.

Hudson's fellow majority Republicans are calling for additional budget cuts, but he doesn't feel there's a lot left to be cut that will not cause harm.

Deal on payment of back taxes by pull tab operators in the works
A tentative agreement has been reached between the City and Borough of Juneau and two of the three pull tab vendors fighting payment of delinquent sales tax.

Last Chance Co-op and Multiple Charities are taking the agreement back to their respective boards for ratification, according to Finance Director Craig Duncan, who says the city should know by next week if the agreement will fly.

City officials have been in talks with Last Chance Co-op and Multiple Charities for the past few months. ANB Camp 2, Incorporated, is not part of the tentative agreement, but that could change. Duncan says officials of the organization have told him that they're watching the settlement of the other two vendors and once the settlement has been signed, they've indicated they'll come in and negotiate.

The operators, representing over a dozen individual charities, owe over $500,000 in back taxes, according to Duncan, who says its hard to say how much the city will eventually recoup.

Last year, the operators appealed a city decision that the sales tax passed by voters in 1996 would apply to pull tabs. The vendors argued that the tax applies only to net receipts. In February, a court ruling directed the operators to pay the one percent sales tax on gross receipts. The operators represent over dozen individual charities.

CBJ budget work starts with a million dollar shortfall
Preliminary projections show a budget gap of about a million dollars for the City and Borough of Juneau in fiscal year's 03 -04.

Finance Director Craig Duncan briefed the Assembly last night as the next bi-annual budget process gets underway.

The city's general operation budget will run about $50 million a year or about 1$00 million for the two year budget cycle. The one million dollar shortfall represents about one percent of that total.

Duncan says the budget is actually looking good compared to two years ago when the city faced reductions in state revenues. However, he says the city has seen a 100 percent increase in general liability insurance and about a 60 percent increase in building insurance. They've already been figured into the million dollar shortfall.

Revenue projections are next on the committee's list, before budget discussions begin in earnest in March.

NTSB to visit Skagway Air crash site Friday
An investigative team from the National Transportation Safety Board plans to travel to the scene of the Skagway Air crash near Haines tomorrow. The accident killed Pilot Joel Mathis. His body was recovered yesterday. The crash site is about 300 feet up a mountainside three miles east of Haines.

NTSB Investigator Scott Erickson says he was waiting for an assessment from the recovery team on the chances of getting there first before making plans to travel to the site. He says they plan to meet members of the Skagway Mountain Rescue Team in Haines late tomorrow before going to the scene.

The plane took off at 8:15 Tuesday morning for the short flight between Skagway and Haines. A signal from the distress beacon was picked up seven minutes later.

Carnival ups ante in bid for Princess
Carnival has sweetened its takeover bid for Princess Cruises. Carnival is now offering five (b) billion dollars,  up from four and a half billion.

Princess is already planning a merger with Royal Caribbean Cruises and has rejected Carnival's hostile bid. But Princess officials say they will study Carnival's new bid.

Miami-based Carnival is the world's biggest cruise ship operator. The proposed merger of Princess and Royal Caribbean would create a six  billion dollar company that would eclipse Carnival as the market leader.

Princess shareholders are scheduled to meet February 14th to consider the merger with Royal Caribbean. Carnival is asking Princess to call off that shareholders' meeting.

Bush visits Teamsters to push for energy plan and ANWR
President Bush says his energy plan is a jobs plan, and he's enlisting the help of unions as he seeks a Senate vote.

During a visit to Teamsters headquarters in Washington, the president said his plan will not only make America less dependent on foreign oil, it'll be good for the economy.

Teamster lobbying was a key factor in last year's House passage of the Bush plan which included a provision to open the Arctic National Wildlife Refuge to drilling . In the Senate, dominated by Democrats, a vote has yet to be scheduled.

The union visit is part of the build-up to Bush's State of the Union speech. Bush argues America urgently needs more domestic sources of energy.

But environmentalists say Bush is giving short-shrift to conservation, and his plan to allow drilling in ANWR endangers a natural treasure.

Governor Knowles touched on the issue during his State of the State Address last night. He said the state must keep up the full court press on Alaska's congressional delegation, the national administration and the forceful coalition of business and labor to open ANWR this year.

State flag song bill passes first hurdle
A bill to officially add a verse to Alaska's state song is headed for a vote on the House floor.

Sponsored by Aniak Representative Carl Morgan, House Bill 285 would add the verse which honors the contributions of Alaska Natives.

The House State Affairs Committee held the first, and only hearing on the measure this morning. It enjoys support from 25 co-sponsors, so it is sure to pass the house.

During committee deliberations, Fairbanks Representative Hugh Fate said he likes the verse, although he's aware that some people oppose it. Kodiak Representative Gary Stevens said there's no reason to believe the verse is divisive.

The first verse was composed as a poem by Marie Drake. The second verse was written in 1956 by Carol Berry Davis of Juneau. Her daughter, Connie Davis, told the committee that when her mother was approached to add a second verse to the state song, she believed its was important to do so and that Drake would have approved. The music was composed by Eleanor Dusenberry of Fort Chilkat.

Adding the verse was one of the recommendations of the Governor's Commission on Tolerance in a report issued last year.

Meanwhile, an exhibit on the 75th anniversary of Alaska's flag opens this evening at the Alaska State Museum in Juneau.

Second heliport hearing tonight
The final public hearing on the City's Alternative Heliport Study is set for tonight The hearing is sponsored by the Assembly's Planning and Policy Committee.

Committee Chair Dale Anderson says he's was pleased with the first hearing and is hoping for additional positive testimony this evening. His goal is to come up with a plan that the community can unite behind.

The study's top recommendation south of town is Dupont. The top location north of town is an area beyond Montana Creek.

Tonight's hearing starts at 7 in the Assembly Chambers

Small spill closes pipeline terminal
All operations at Alyeska Pipeline's Valdez Marine Terminal were shut down yesterday morning after a light sheen was discovered inside the boom at Berth Four. Alyeska official Mike Heatwole says the tank vessel SeaRiver Baytown was in the later stages of loading operations at the berth when the sheen was detected at about ten-30 a-m.

Black cod fishery closed in B-C
The black cod fishery off British Columbia is closing due to a massive drop in fish numbers. Canadian Fisheries Department officials say the fishery will close tomorrow until further notice

A scientific review committee will look at the latest data on black cod numbers later this month. Fishermen are hoping the panel's findings will lead to a reopening of the fishery, with lower quotas.

In a fall survey, the catch rate plummeted 80 percent in British Columbia's northern waters and 50 percent in the south. As of end of the December, the commercial fleet targeting sable fish had caught 30 percent of its 33-hundred metric ton quota.

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