Comparing Knowles-Murkowski record on jobs, economy

Spectrum, by Ed Britten

How, exactly, has Alaska's economy worsened since Frank Murkowski was elected governor?

It's a fair question since Deputy Commissioner of Labor Ed Fisher used this forum (Frontiersman, Sept. 7) to assert that Gov. Murkowski inherited an economy "in trouble" and that Alaska's economy has improved since he took office.

Lately, we Alaskans have been bombarded by television and radio ads that seek to distort Gov. Knowles' record from every angle imaginable.

Alaskans should be insulted by these ads. It's time to begin setting the record straight by using real facts. Deputy Commissioner Fisher's comments are just one more attempt to discredit our former governor. Is it coincidental that Fisher and the spurious campaign attack ads use many of the same claims?

One cannot sit idly by while the Murkowski administration gathers an odd assemblage of misleading statements and stitches them together in a haphazard manner to create a patchwork coverup of the truth. An old adage says: You're entitled to your own opinions; you're not entitled to your own facts.

By the time Gov. Knowles completed his second term in late 2002, Alaska had experienced eight more years of uninterrupted growth, added more than 30,000 new jobs and twice recorded Alaska's lowest unemployment rate in two decades.

Alaska oil jobs surged under Knowles. In 2001, Alaska oil employment soared to its highest level in a decade, exceeding expectations of state economists.

Development at two new oil fields, Alpine and Northstar, triggered the upswing. This ensured busy winters for Fairbanks workers and the module fabrication industry in Anchorage. This marked another good year for the oil industry, which recorded its second straight year of growth, adding another 1,000 jobs in 2001 after contributing 900 more jobs to the state's economy in 2000.

The Knowles administration revitalized Alaska's oil patch with areawide lease sales and legislation that led to development at Alpine, Tarn, West Sak, Northstar, Liberty, NPR-A and other fields. North Slope production stabilized in 2001 for the first time in a decade.

Gov. Murkowski -- now presiding over record-high oil prices -- has been unable to get any new oil fields open. As the Alaska Department of Labor reports, "The oil industry job count fell again in 2003 . . . spending on both exploration and development was down . . . the industry appears to be in a holding pattern."

Mr. Fisher also failed to mention the construction industry -- a leading growth industry under Knowles. In 2001, Alaska led all 50 states in growth of residential permits. The 2002 construction season paid $807 million in wages and put 18,000 Alaskans to work during the peak summer months.

Mr. Fisher also forgot metal mining, which added hundreds of new jobs during the Knowles administration. This was due in part to Knowles' streamlined permitting procedures and development incentives that helped push Alaska's mining industry to $1 billion in value for the first time ever in 1996.

Alaska saw more jobs under Knowles and larger paychecks. From 1994 to 2002, real disposable income grew by $5.5 million -- seventh highest in the country. When Knowles took office, a family of four had a median income of $56,000. By the time Knowles left office, Alaska families were earning almost $70,000 annually, ranking Alaska fifth nationally.

Not only did jobs and wages grow under Knowles, so did local hire. Only 76 percent of Alaska's jobs were held by residents when Knowles became governor. That number grew to more than 83 percent by the time Knowles left office at the end of 2002. Under pressure from Knowles, BP and ARCO agreed to build most of their oil-processing facilities in Alaska, giving huge contracts to Alaska businesses and Alaska workers.

Does this sound like an economy in trouble? No way!

Here's an economy in trouble: After Murkowski's first year in office, the Department of Labor showed that employment growth declined .5 percent, making Alaska one of nine states with a drop in employment growth during 2003 and down from the levels of the previous three years. And 2004 is on track to repeat this downward trend, with employment growth through July down another .3 percent from 2003 levels.

There's no question that the economy improved during the eight years of the Knowles administration. For a variety of reasons, the current administration is simply trying to convince Alaskans otherwise by distorting Knowles' record and throwing around inaccurate and unsupportable numbers.

Eric Britten is an Anchorage businessman. He was chairman of the Anchorage Chamber of Commerce board of directors during the Knowles administration.