Parnell talks oil, other issues

WASILLA — In a wide-ranging discussion Friday, Gov. Sean Parnell talked about education, transportation and even said a few words about ferries.

But he got up out of his seat and had the most to say about oil taxes, striking back at critics who have accused him of giving billions away to oil companies.

“If somebody uses this number $2 billion again they’re either misinformed or they’re lying,” Parnell said as he wrote on a white board in the Frontiersman conference room Friday during an afternoon meeting with newspaper employees and community members. “The revenue difference in this new proposal for next year is $800 million if we have current oil estimates. Now if oil goes down to 90 bucks we’ll be better off.”

That’s because, Parnell said, his plan is to do away with tax credits the state pays to oil companies regardless of the price on oil.

Terry Snyder, a local blogger and radio host, asked if Parnell would keep the industry’s feet to the fire on hiring Alaskans.

Parnell said he would and he already does, recounting a story about finding himself on a plane next to a human resources person from an oilfield contractor. They got to chatting about local hire, the HR man not knowing who Parnell was until the end when the governor gave him his business card.

“We appreciate your efforts on Alaska hire and we’d like to see improvement,” Parnell recalled saying.

As for more local issues; asked about the M/V Susitna fast ferry and whether there was a place for it in the state’s Alaska Marine Highway System fleet, Parnell said he understood there wasn’t a place for it but that he’d be happy to talk to Department of Transportation Commissioner Pat Kemp about it.

He said he’s a fan of infrastructure in general, such as the Mat-Su Borough’s port.

“We’ve been pouring money in the port, the railroad extension,” he said. “I’ve always been supportive of that kind of infrastructure for the Mat-Su Borough. But I also think it’s up to the borough and the residents to market it and utilize it.”

As for transportation, Parnell said he thinks that a Knik Arm bridge will eventually be built. He said he put $10 million in his budget for a reserve fund that failed to pass the Legislature last year. That’s not the full amount needed, but said the fund can be ramped up over time.

“I think infrastructure adds value to our communities,” he said. “I recognize there’s some dissent, too.”

Cindy Bettine, a former Mat-Su Borough Assemblywoman and longtime local business owner, said that in her community of Big Lake the dissent is coming from people worried that the bridge will show up without enough work done on the Mat-Su end to improve roads that will bear the brunt of that increased traffic.

“There isn’t any long-term reliable funding for surface transportation,” she said.

Would the governor support an endowment fund to spin off money for transportation projects?

Parnell said he would not. And, actually, he said he thinks transportation is relatively reliable in that there’s usually a predictable stream of funding set aside.

“I actually think it means less money for transportation,” he said of the notion of an endowment fund.

Parnell said it would have to be massive to spin off sizable chunks when working with interest rates of 4 percent or 5 percent per year. And it would end up functioning like a cap, with legislators reluctant to spend more than that interest payment.

“My sense is that a fund like that would tie up a lot of cash and set up a cap that is artificially low,” he said.

On the education front, he said that he would like to see increases to contributions to local school districts tied to specific projects or improvements.

“I think you can look at our budgets and see increases every year that I’ve been in office,” he said. “And you can also find people who will say it’s not enough.”

Contact reporter Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.