Dear Neighbor,

The end of 2011 is only a few days away and the Legislature has begun to travel south for the 90-day legislative session in Juneau. This is a good time for me to reflect on the last year - a year full of challenges and triumphs and to think about next year. I am very hopeful for a productive session in 2012.

THE PAST
Oil and Gas Taxes

The last session was dominated by the governor's bill to give huge tax breaks for big oil corporations. Despite Several weeks of testimony by administration and industry, we still were not given the information necessary to make an informed and thoughtful decision. One thing was clear: the oil industry would receive more than $2-billion a year without any additional guarantees of more investment in Alaska. With that giveaway, Alaska would spend our $14 billion savings account within a few years. Projects like Susitna Dam Project, a small pipeline, roads, schools and property tax relief could all be sacrificed. The bill narrowly passed the house by two votes, is currently in the Senate and will be considered this year.

The Budget

Last year we were able to fund some of the major road improvements, school construction and parks. Nearly $400 million was spent in energy projects across the state, including natural gas studies, work on the Susitna Dam Project and the Eva Creek Wind Project which will begin to lower the cost of energy. The $13 billion budget will help to keep police on the streets (through community revenue sharing), keep property taxes low, educate young students and fund our local university system well into the future.

Coastal Zone Management

The year ended with a special session on the state coastal zone management plan (ACMP) which needed to be renewed this year. Being from the Interior, you may think that coastal zone management may not affect us, but as a state, we are deeply impacted by the failure to renew the plan. For example, if we want a deep water port on the North Slope, to compete with Russia and Canada, we will need a coastal management plan in place. With more coastline than the entire United States combined, Alaska is the only coastal state and one of only a handful without our own state policy. Without a coastal management plan of our own, we are handing our authority over to the federal government, and they will determine development, construction and mapping of our coastal regions.

Education

Funding for kids and classrooms was a contentious issue last year as well. In the past we have seen some gains in student achievement due to annual, modest increases in the per pupil allocation. The bipartisan Senate majority put one-time money into the budget last year, but we are in jeopardy once again of leaving children behind by inadequately funding public education for the coming year. This year the Governor failed to increase the budget to keep pace with inflation. Discussion on whether to give college students better access to financial aid also took front-stage, but is yet unresolved. Last year, for the first time in US history, student loan debt surpassed consumer debt. Education ought to be made a higher priority this session.

THE FUTURE

The Legislature approaches the session with almost 400 bills in the queue dealing with everything from timber forest fees to daylight savings time. Our future can be what we choose to make it. Whereas almost every other state is cutting billions of dollars -Washington state needs to cut $2 billion this year alone! - we put more than $17 billion into savings over the last four years. The last year was one of the largest exploration years in the history of the North Slope and employment remains at record levels, while other states still struggle with double digit unemployment.

Things can appear bleak during the winter with -32 weather and four hours of sunlight, but I am optimistic about the rich opportunities ahead. We are gaining sunlight and have much to be thankful for as a state. I am blessed to have the opportunity to represent my neighbors and constituents in Juneau.

Finally, the Legislative session officially begins at 11 am on Tuesday, January 17th, 2012. In the meantime, the Fairbanks office will move to Juneau and communications may be delayed until the office resumes operations early next year. Thank you for all of your great comments and warm wishes. Keep them coming.

Merry Christmas and Happy New Year!

Representative Scott Kawasaki
City of Fairbanks