Gatto letter shutters lobbyist

May 10, 2005

DARRELL L. BREESE/Frontiersman reporter

WASILLA - One day after the Alaska Legislature sent a bill to the governor that would give lobbying group Arctic Power $1.2 million, Palmer Rep. Carl Gatto wrote a letter to the editors of Alaska's newspapers that criticized the group's use of funds in its Anchorage office.

Two days later, Arctic Power's board of directors cut its Anchorage staff and established an oversight committee to increase accountability.

Arctic Power lobbies for drilling in the Arctic National Wildlife Refuge. Gatto's letter took issue with the organization's monthly expenditures and salaries in its Anchorage office.

Prior to the written protest, Arctic Power budgeted $31,500 a month for its Anchorage office, including office rental and salaries for three staff members. A large part of that money went to pay the $7,500 monthly salary of Executive Director Kevin Hand.

Other members of the Legislature and the governor joined Gatto in pressuring the lobbying organization for a clear accounting of how state money was being spent, leading the group's executive committee to make cuts to its Anchorage operation.

Staff positions were eliminated, leaving just one employee in the Anchorage office, and the organization shifted its focus to make a more concentrated effort lobbying Congress in Washington to open ANWR to oil and gas development.

Gatto, R-District 13, said he was pleased with the quick response and support of his criticism, and took a moment to clarify his position.

"First let me make it clear that I fully support opening ANWR for development," Gatto said.

"My intention was not an effort to keep the area closed to oil and gas development. I was simply concerned that state money was not being spent as wisely as it should be by Arctic Power. It appeared unusually close to the writing of the letter calling attention to Arctic Power's spending that they took action."

Rep. Vic Kohring, R-District 14, the original sponsor of the bill, also was pleased with the changes Arctic Power made in its Anchorage office.

"I see it as a move to consolidate their resources in D.C." Kohring said. "It is great that they have taken action by tightening their belts and figuring out how to get the job done with less money. This is a crucial time in history for ANWR and it is key that they have the resources necessary to convince congressmen to vote in favor of opening ANWR."

Gatto continued, saying that the closing of the Anchorage office was a step in the right direction, but there is still a lack of accountability with how Arctic Power is spending the state's money. He said he fears the unchecked spending will continue in Washington, D.C.

"How much is a lobbyist worth and do we need more than one?" Gatto said. "Can we really say that a person working as an aide in D.C. is worth $120,000 a year?"

Gatto concluded by saying that the closing of the Anchorage office was a step in the right direction, but that the state needed to be more watchful.

"We've been sloppy over the years in calling for accountability in how state money is being spent," he said.

"As the state budget tightens we need to have a better accounting from groups like Arctic Power."

Darrell Breese may be reached at 352-2267 or at darrell.breese@

frontiersman.com.