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Gov. Sean Parnell laid out an aggressive agenda on oil and gas issues in his State of the State address Wednesday evening.
But despite calls to work together on his agenda, the response was decidedly partisan.
There was loud applause when he commended the crew of the ferry Malaspina for its initiative in rescuing a battered and bleeding hiker near Haines and transporting him to safety.
“On behalf of a grateful state, we thank you,” he said.
But the applause was sketchier when Parnell said “We must act now” to reduce oil taxes.
If the state fails to offer better incentives to the oil producers, they’ll invest in places other than Alaska, he said.
If our policy is to “grab all the tax dollars we can,” the companies would send their investment dollars elsewhere in the global economy, he said.
“Alaska’s oil production decline will become Alaska’s decline,” he said.
Parnell got a broader response when he outlined a bold stand on pushing for natural gas development, saying by early this year he expects the oil companies that hold big natural gas reserves on the North Slope to “formally align” under the Alaska Gasline Inducement Act to build a large-diameter liquefied natural gas export line. He didn’t say how he’d compel companies that have resisted the state’s AGIA process to participate.
After the speech, other legislators questioned some of his strategies.
Rep. Beth Kerttula, a Juneau Democrat who leads the House Minority Caucus, questioned whether Parnell’s tax reductions would benefit the state or just the oil companies.
“We must get a fair return on our resources,” she said. “That fair return keeps Alaska among the wealthiest states,” she said, returning to one of the themes of Parnell’s address.
“Outside interests have had a long history of exploiting Alaska’s resources,” she said.
“Our state was founded to make sure Alaskans did get their fair share,” Kerttula said.
She outlined some goals of House Democrats, including increasing education funding and asking questions about Alaskan hire on the North Slope.
Parnell spoke of a number of his education initiatives, including some dramatic education improvements he said were caused by the Alaska Performance Scholarship program he advocated.
In addition, Parnell said his administration had built and renovated two rural schools, and would build five more to settle a long-running lawsuit over education funding fairness.
Members of the Senate Bipartisan Working Group, the coalition that elected Sen. Gary Stevens, R-Kodiak, Senate president, said its education goals would be different than Parnell’s.
There will likely be an effort in the Senate to increase the Base Student Allocation, the per-student amount that goes to school districts.
For the first time in several years, the 2011 Legislature did not increase it for this year, and Parnell’s budget proposes no increase next year either.
There was broad support for some other parts of Parnell’s agenda, including his “Choose Respect” initiative.
Parnell said members of coach John Blasco’s Thunder Mountain Falcons boys basketball team would be wearing “Choose Respect” T-shirts today as they warm up for their game against the Chugiak Mustangs.
It’s a message they sent before a game last year as well, he said, and thanked the team for its support.
“Thank you Falcons, for sending a powerful message on and off the court,” he said.
Parnell’s speech was also peppered with salutes to the state’s military, law enforcement, firefighters and other first responders.
And everyone came together for a thank you to the U.S. Coast Guard for the assistance the icebreaker Healy provided to Nome.
The back-story, he said before the standing ovation for the crew, was they’d been away from home for seven months when they were diverted back to Nome for several more weeks to assist that community.
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (21)
Add commentNO $2 billion giveaways!!!
Parnell has stated that his $2 billion/year giveaways to his oil buds will be his "top priority" this year.
We need Democrats and Republicans of conscience to hold his feet to the fire to see this doesn't happen. As Beth Kerttula alluded to, this appears to benefit the oil companies only and not Alaska.
Any consideration of ANY reduction in oil taxes/royalties paid by companies drilling the north slope MUST be contingent upon verifiable increases in throughput AND employment which at least equals the $2 billion dollars we are proposing to hand to the oil companies.
Otherwise, it simply goes into the oil companies pockets, and Alaska has $2 billion less per year in revenue. That's $20 billion per decade.
Parnell simply doesn't make sense with his argument.
We have the oil, they have the infrastructure and the pipeline. They won't abandon either "to drill elsewhere."
Leave ACES alone! It's working!
And it doesn't matter what the tax/royalty rates are, big oil will constantly try to have it lower. They will never reach a point where they will say, "That's a fair rate. We can live with that. That's what we'll pay."
In other news it doesn't surprise me our republican Governor offers no increases in education this year or next.
Where else they gonna go?
How many other places in the world offer the stability and profitability that Alaska does? That's an honest question - I don't know.
Yeah, North Dakota has oil, but with worldwide demand for oil continuing to rise, and many other oil fields in really difficult locations such as under a mile of ocean or in the Chukchi Sea, is there really any incentive for them to walk away from Alaska?
As the price of oil continues to rise, the oil companies will continue seek and extract it. That's how they make their money.
But the reality is that one day it will be gone. When will that happen, and what's the plan for our post-oil economy?
Is it collusion when...
So I guess we know how Parnell's meeting with the big three oil and gas company CEOs went last week. Just some quality time to get their stories straight for the upcoming legislative season.
comment
While I cannot entirely disagree with any of the comments thus far, there is a larger picture that has to be understood. First, HB110 is only a part of a process and that process has to lead to increased oil production. Second, if NS oil was so darn profitable then production wouldn't be declining given that the pipeline is already in place and a sunk cost. Third, the very oil companies that dominate the NS are rolling in cash, and they are investing that cash in oil exploration and development all over the globe but not in Alaska (despite all the great reasons to invest in Alaska oil cited in the preceding comments). These companies have a responsibility to maximize shareholder wealth, and there must be some reason why they don't see the picture in the same way that writers of these comments apparently do. Fourth, Alaska would have a better negotiating position if the growth in state and municipal government could stop and government could actually diminish in size and its need for cash.
I think its clear that we
I think its clear that we certainly need a new Governor.
Sean Parnell does the bidding for the oil companies, this will not change. How many times now has he tried to block our voice?
Alaskans need to watch all our reps very closely now who is out working for the interests of the 1% as opposed to the rest of us? These people need to be voted out of office.
Also rather than paving a road to resources for the oil, gas, and mining industry, we should be looking for ways to invest these dollars in Alaskans that offer "new" and diverse job growth areas for their communities,
NOT the destructive timber and mining jobs!
"Choose Respect"
Seems like such a just, righteous slogan. Who wouldn't support a campaign against sexual assault and domestic violence? I certainly do.
So how come I keep getting the feeling that Parnell is using this as a cheap political prop? Something Karl Rove sketched up for him? There's something about this guy that's greasy - I just don't trust him. And I wish I could.
You're just now
coming to that conclusion Latitude58. You're not as perceptive as you portend. I was suspicious of him when I saw him smile, then I heard him speak. That applies equally to Parnell, and Rove.
Beth is right....
To say we need to look into hiring on the North Slope. Sure, all the oil and mining companies come in on the promise of "good jobs for locals" - but almost every miner I've met is someone from out of state, who already worked for the company, and moved here for the job. Sure, they are "local" after the fact, IF they stay past the life of the job......but it's disingenuous, they don't hire that many people who already live here.
local hire on the slope
and when they do hire locally, the lower 48 employee's treat Alaskans like dirt, especially if you are Alaskan Native or any other minority.
How many qualified heavy
How many qualified heavy equipment / underground miners do you think we have in this town? I know for a fact the Kensington people went after local hires right out of the gate, but we just don't have a big pool of people with that kind of training here. Now that we've got more education opportunities here, I'm sure we'll see more locals hired at the mines.
Providing a "work schedule"
Providing a "work schedule" compatible with what is in AGIA isn`t the same as all the cartel members signing on to AGIA in blood, like Exxon did. Anything short of that is more disingenuous smoke-and-mirrors and is designed to get that two billion a year from Alaskans. If we did give in, Uncle Sam would cut the value of Alaska`s "investment" by taking half of the two-billion state tax reduction away from the companies in federal taxes, as their "profit" kept them in the highest "bracket". Like I said..sign onto AGIA in blood, like Exxon did, or it means zippo. The value of that two billion diminishes by half like a new car driven off the lot. The feds would take a billion of that "2" billion every year!, the five or so companies would split the other billion. That doesn`t sound like it will buy much for Alaska on faith of ANY kind. Alaskans have already invested 3 1/2 billion according to Senator Kertula since ACES was put into place. We can`t afford to keep giving and giving (ELF< PPT etc) while each time we give, the decline in oil production CONTINUES!. Like I said, they need to sign in blood this time. "Trust, but Verify."-President Ronald Reagan. Alaskans can be no less "vigilant" with it`s finite natural resources than Reagan was with the safety of America. This is a strategic economic business partnership decision. Exxon wouldn`t give away two billion a year in profits for nothing without a contract of some kind. They have armies of high paid attorneys. Alaska cannot be that foolish in any kind of business relationship either. Our state constitution demands it. It`s not D or R, or liberal or conservative; it`s called due diligence, and it`s called for in our constitution.Just how I see it.
Alaskans have been let down
Alaskans have been let down by this Governor and by many of our legislators. Why? Because our state has just been listed as No. 1 in the Nation for Toxic Chemical Releases.
Just think of how this changes the perception of Alaska.
This is the reward Alaskans get for trusting their Representatives and Governor to do right by our state and Alaskans - but we have been let down.
Our Governor and many of our reps have laid the ground-work for the mining industry, the oil and gas industry to come in here, get rich, and pollute our environment. They have also worked very hard at blocking the voice of concerned Alaskans.
This is NOT how the Great State of Alaska should be run, and this will be the legacy of Sean Parnell and his administration
I will agree w/aspert. Our
I will agree w/aspert. Our state leaders, agencies have been entrusted by the public to be good stewards of our Natural Resources and they are failing at this - todays pressures on our fish, wildlife and their habitats are exacerbated by climate change - we need all hands on deck so that we can maintain healthy ecosystems for our future generations.
This is their right.
Lets see a new strategy emerge from this legislative session one that will show all Alaskans that our leaders can be good stewards of our Natural environment.
Parnell can start
with appointing people who are actually qualified for Commissioner and Director level appointments.
2014
Unfortunately we are stuck with Parnell and his big oil buddies until 2014, almost 3 full years. Barring a recall or his resignation, which isn't likely. But that doesnt mean we have to let him get away with pillaging Alaska or its resources. Everyone needs to contact their state senators and representatives and let them know your feelings. Maybe we can stave off any future damage.
Sad
Parnell won the election by a wide margin. so shame on us.
wolfmagic2012
That assumes Parnell is actually qualified to make that decision on behalf of Alaskans in the first place. That's a big stretch from my view.
It's painfully obvious...
WHERE Parnell gets his marching orders, and it isn't the Alaskan electorate. Unfortunately for us he's not alone---It won't be long before the Senate Bipartisan Working Group is history, and Parnell's tax giveaway a reality.
North slope and mining
I have lived here more than 30 years and worked on the Slope for a while in the 70's. Had 10 years experience in mining...5 years at Greens Creek. Laid off for missing the boat. The last ten years I have a stellar record of work attendance and being on time for work. However, even though I am very experienced and a local who has applied for both the Kensington and Greens Creek jobs...I have received no response. Maybe because I am 62 years old.
Boo Hoo, Alaskan Style
Keep crying. Someone MIGHT care.