Broken promises nothing new in politics

November 6, 2005

Valley Voices\Myrl Thompson

Wasn't it back in 1999 when Alaskans sent a loud message to the Legislature when 83.7 percent of voters said, hands off the permanent fund? Have you ever heard a politician promise to protect the permanent fund after that vote? If you live in the Valley, then you have heard plenty of those promises.

Last legislative session in Juneau, our Valley delegation had a genuine chance to practice what they preached. But when the $424 million Amerada Hess account got severed away from the permanent fund, not one of the Valley's representatives raised a finger. On the contrary, in the end, they voted in a block with the rest of the majority to commandeer those permanent fund earnings.

Amerada Hess was a sub-fund of the permanent fund that started out as a settlement with various oil companies. In testimony in various committees in Juneau, Alaska Permanent Fund Corporation Executive Director Mike Burns called the Amerada Hess Fund &#8220a self- licking ice cream cone.” He also admitted that the sub-fund has grown faster than the other funds because we haven't touched it.

Burns broke down the Hess fund like this: $194 million came from the various original settlements, $77 million came from inflation-proofing and $153 million came from earnings. Amerada Hess had grown from the original $194 million to $424 million in just 10 years.

To be fair, the idea to snatch and spend the fund was Murkowski's, as were the bills themselves. The majority party just marshaled the troops and made it happen.

The whole scene reminded me of Huckleberry Finn when he said, &#8220Hain't we got all the fools in town on our side? And hain't that a big enough majority in any town?”

Now, in all fairness, a few Republicans did have some concerns about spending permanent fund earnings. Mike Kelly of Fairbanks did state worries in House Finance. Nancy Dahlstrom had definite problems with the raid. Vic Kohring and Mark Neuman, early on, voted against plundering the fund.

But when the final vote came at the end of the special session and after a few closed-door meetings beforehand, only Nancy Dahlstrom kept her promise to her constituents. The two Valley senators, Lyda Green and Charlie Huggins, went for the gold faster than Olympic sprinters and should not escape notice.

If you ask any of the Valley delegation, they will justify their actions with the official party spin. They will confidently inform you that the Amerada Hess account cannot be used for dividends and, therefore, was legal to take. The Legislature itself made the rule that the money cannot be used for dividends.

However, a ruling last year by the Legislative Affairs Agency said the rule could be repealed by the Legislature and then there would be no distinction between Amerada Hess money and the permanent fund. In testimony later in the session, Mike Burnhart from the Department of Law admitted that the Amerada Hess fund could indeed be used legally for permanent fund deposits.

What the Valley delegation probably won't tell you is that the money didn't have to be touched at all. It could have kept growing by more than $30 million a year and even more in the future.

They won't tell you that they didn't really need that money but that it will be used to add to a record spending package that starts during the coming election year. Our delegation also won't mention that they again dodged any attempt at a long-range fiscal plan, but instead spent like drunken sailors.

One might ask why? As one woman connected with the governor put it, &#8220What's the use of having a fund if you can't spend it?”

Budget Director, Cheryl Frasca put it plainly: &#8220Amerada Hess money for capital projects means the funds will serve a public purpose instead of just growing.”

If spending the fund to serve a public purpose is what the administration is after, how about spending the $424 million to fund the longevity bonus. That much money would have funded our elders for the remainder of their lives, not to mention keeping a promise to them. Now the money will go to some of the governor's pet road and special projects.

We all know that the 1999 vote was long enough ago for politicians to acquire political amnesia. There is no shortage of bad deals or horrible bills in Juneau. Just add the Amerada Hess caper to some of the others like soft money, ethics and the medical liability cap.

If you wonder how these things get through the House, Senate and governor's office, I'll leave you with what Mark Twain said about politics in his autobiography: &#8220To lodge all power in one party and keep it there is to insure bad government and the sure gradual deterioration of public morals.”

As usual, he hit the bulls-eye dead center.

Myrl Thompson is a Wasilla resident, citizen lobbyist and former independent candidate for the Legislature. His Valley Voices column appears every four weeks.