(SitNews) Juneau, Alaska - Tonight, Governor Michael J. Dunleavy outlined directly to Alaskans a series of commitments and priorities during his first State of the State address to a joint session of the Alaska Legislature in Juneau tonight.

In his address the Governor said, "Things will be different; things will be very different. Together we are tasked with righting the wrongs that have broken the trust of the Alaska People. And I’ll work with all my energy, dedication, and ability to do exactly what I promised you I would do."

Dunleavy said no more of the tired old approaches: “We’re going to declare war on criminals. We’re going to get our spending in line with our revenue.  We’re going to protect Alaskans’ PFDs. We’re going to grow our economy and put Alaskans to work. And we must restore public trust in government and elected officials.”

Dunleavy said he is Governor today because of the campaign promises he made to the people of Alaska on the issues most of us believe in. "I’m here to do exactly what I promised to do. What I told Alaskans I would do.”

PFD

Dunleavy said, "Alaskans’ PFDs should be paid in full using the law that has worked for decades, and the PFD should be protected in the Constitution, now and for the future."

In his address, Dunleavy mentioned that last week he unveiled two bills for the back-pay owed to Alaskans on their PFDs. Tonight he urged the legislature to act swiftly on those bills. He said, "Every penny of that PFD money due Alaskans is sitting in the Earnings Reserve Account, and is available for distribution."

"Let’s act now and put this issue behind us once and for all." said Dunleavy.

Budget

Next the Governor addressed the budget saying, "Alaskans believe our state budget process is a mess. There is simply no other way to describe it."

Dunleavy said it's a mess "because our government spending far exceeds the revenue we take in. Kicking the can down the road for years, wiping out billions from savings, and then taxing the PFD, all the while just hoping for another oil boom — it simply doesn’t work."

The days of creating a “wish list” budget, when anything and everything is just too important not to fund, and where politicians spend their time looking for ways for you to pay for it, Dunleavy said those days have got to be over. "We can no longer spend what we don’t have."

Dunleavy said his administration is preparing a budget that for the first time all Alaskans will be able to understand and trust. "No more games, no more shuffling numbers. Just an honest, straightforward look at where we are."

"While no one person is to blame, Dunleavy said, "Alaskans will quickly see that we’ve been spending wildly beyond our means for years. Our children and grandchildren deserve better."

In order to get a handle on the budget, Dunleavy said one of his first administrative orders was to centralize the budget-making functions of all departments under the Office of Management and Budget.

"My administration will be focused on the basic functions of government, while realigning programs and operations to eliminate duplication and prioritize each agency’s core mission," said Dunleavy.

"My first budget is going to be an honest budget, said Dunleavy. "As I promised the people, we must start from the standpoint that expenditures must equal revenue. We can’t go on forever using savings to plug the budget gap."

And to address the fiscal issues that have plagued Alaska for years, the Governor said we need a permanent fiscal plan, a plan that will put our state on solid footing for decades to come.

While not a new struggle for Alaska, the state struggled with this before when Alaska first became flush with oil money from Prudhoe Bay, and many were focused on spending as much as possible said Dunleavy.

However, the Governor said, there were some in the Legislature, even back then, who were concerned about where we were headed. At this point the Governor recognized Dick Randolph from Fairbanks. Randolph is a former teacher, an insurance agent and a retired legislator, who the Governor said in the 1970s and early 1980s had the foresight to understand that the People of Alaska, through constitutional amendments and the initative process, could help control government spending and develop a sustainable fiscal plan.

Governor Dunleavy said he will be introducing three constitutional amendments, which will be the foundation of a permanent fiscal plan.

• First, a spending limit and savings plan that will keep politicians from spending every penny we have, one that allows us to save excess revenue when possible for future Alaskans.
• Second, there should be no change to the PFD without a vote of the people.
• The third constitutional amendment will call for no change in taxes without a vote of the People.

Dunleavy said, "These three constitutional amendments will require that both the people of Alaska and their elected officials work closely together to secure our future. The People are the key to a permanent fiscal plan. Without the People’s support, any plan put in place by the Legislature will always be in doubt."

Investments & Jobs

Another key component in securing Alaska’s future are investments and jobs. Dunleavy said, "There’s no doubt our economy is struggling. There’s no doubt when people don’t have opportunities, hope fades."

While the rest of the country’s economy has been booming for years, Alaska remains mired in recession with the worst unemployment rate in the nation. Dunleavy said, "Let that sink in for a moment. I will be a relentless advocate for turning this around. I’ve said that we’re going to make Alaska “open for business” – and that’s exactly what we’re going to do."

The Governor said since Prudhoe Bay came online, the state has become more narrowly focused on oil and government programs as the basis for our economy, while neglecting other opportunities that could create more jobs and wealth for our state.

For Alaska to fully realize our potential, including our location on the globe, our vast resources, and unbridled quality of life, we must look to other industries and investments to come to Alaska said the Governor.

Governor Dunleavy said his administration has put together a team that will market Alaska to the world. It’s a team of experts with backgrounds in finance, marketing, and research that will inform investors, industries, and individuals that Alaska is open for business and we want new business here.

• Our location on the globe is a distinct advantage.
• The third-busiest cargo hub in the world is also an advantage to doing business here in Alaska.
  
• Our proximity to Asia and Europe is an advantage.
• Our quality of life is a distinct advantage as well.

"Alaska doesn’t have to be just a resource state. We have so much more to offer. It is my goal to be able to report to you in the near future about all of the new industries coming to Alaska, because of these efforts," said Dunleavy.

For those who have little hope that Alaska can diversify its economy, the Governor mentionedtwo small Alaska companies that," through good old-fashioned capitalism and entrepreneurship, created thriving businesses right here in our state."

One of these businesses, Triverus, is located in Palmer and owned by Hans Vogel. His company was awarded a contract by the Department of Defense for a machine that cleans the decks of the entire U.S. aircraft carrier fleet. These machines are designed, engineered, and manufactured right here in Alaska and shipped all over the world.  He does this with no tax credits or subsidies from the state.

"I repeat — no tax credits and no subsidies from the state government," said Dunleavy.

Another company mentioned by the Governor that is thrivingin Alaska is Bambino’s Baby Food, owned by Zoi Maroudas. She noticed customers were not happy with the quality of baby food available. She started the company in Alaska and now employs 25 Alaskans.  By the end of this month, she plans to begin exporting to Asia.

Safety

"While all of these initiatives I’ve presented so far are critical to securing Alaska’s future, in the end, our primary responsibility and the most important thing a government can do is keep its citizens safem" said Dunleavy.

Crime is out of control and when it comes to sexual assault, Alaska stands alone.  Our sexual assault rate is the highest in the nation, said Dunleavy.

"To put this in perspective, New York City has a sexual assault rate of 28 incidences per 100,000 people. Compare this to Anchorage, which has 132 sexual assaults per 100,000 people.  That’s almost five times that of New York City. Let that sink in." said the Governor.

Dunleavy said, "This is an outrage. Plain and simple. The women and children of Alaska, must be made safe, and we have an obligation, all of us in this room, to do everything we possibly can to stop this scourge in Alaska. We can no longer stand by and allow this to be the reality that faces Alaskans every day."

In addition to sexual assault, Alaska's murder rate is horrific said the Governor.

"Therefore, we will expend the necessary resources for additional State Troopers, provide more local control, and more prosecutors. We will ensure that our courts will remain open five full days a week in order to hear cases. We will provide the focus and the resources necessary to combat the scourge of opiates and other illicit drugs driving up our crime rates and ruining lives," said Dunleavy.

Dunleavy said, "We will repeal and replace SB 91.  A series of bills and initiatives to be introduced tomorrow will not only roll back SB91, but will help Alaska turn the corner to a safer tomorrow.

The Governor asked the legislators to make public safety a priority and move forward with due diligence on reviewing and considering this public safety package.

"To law-abiding Alaskans, I say this to you: I care if your house is burglarized. I care if your car is stolen. And I care if your loved ones are threatened," said Dunleavy.

The Governor said, "But to the criminals, and to the rapists and molesters who see women and children as nothing more than opportunities, I say this to you: We will do everything in our power to stop you, apprehend you, and put you in prison for a very long time."

"For those Alaskans who have made a mistake and have gotten involved with opiates or other drugs and want help, we are a compassionate people as well. Therefore, as part of our public safety approach we will provide ways for you to break this habit and get back into society and be productive individuals," said the Governor.

"But let me be perfectly clear. If you are a criminal, this is going to be a very dangerous place for you, starting now. I strongly suggest you get out while you can. No more coddling, no more excuses.  Your days are over.," said Dunleavy.

"With SB 91, we broke the People’s trust and now is the time to restore it. By doing the right things, we can fix what is broken and restore the trust that was lost," said Dunleavy.

"I’m here to serve the People of Alaska. I’m here to work with you, the Legislature. I’m here because, like all of you, I believe in this great state. I’m here tonight because Alaskans want to chart a different course.  I’ve made promises that I intend to keep," said the Governor.

"We’re all part of the greatest experiment in self-government in the history of the world: A government by the People, for the People and of the People. As for me, that in part means this: That all the special interests, all the political insiders, all those used to manipulating government and policy for their own benefit - this is just not your time," said the Governor in conclusion of his 2019 State of the State speech.

Alaska House Majority Coaliation's Response to Governor's Address

“The vision for Alaska that Governor Dunleavy outlined tonight prompts a lot of questions about the impacts to all Alaskans. Huge cuts to essential services, on top of the extensive cuts already made in recent years, are concerning. I need more information to judge these proposals and look forward to hearing from administration officials in the coming days,” said House Speaker Pro Tempore Rep. Neal Foster (D-Nome).

“I agree that we can’t evaluate the budget proposal outlined tonight by Governor Dunleavy until we get the actual numbers, which are due in three weeks. Lawmakers need to see the actual budget proposal and the exact level and scope of cuts so they can judge for themselves whether they can support it or not,” said Rep. Edgmon (D-Dillingham).

“What I heard tonight from Governor Dunleavy was that we share a commitment to safer communities and better schools. We just disagree on how to make it happen. I am committed to protecting our investments in education and public safety. I don’t want to see those core functions of government be further eroded by unsustainable budget cuts brought on by the falling price of oil. As Alaskans, we have some monumental challenges facing us, but we can overcome those challenges through hard work and a commitment to always doing what’s best for the people of Alaska,” said Rep. Chris Tuck (D-Anchorage).

Senate Democratic Leader's Response to State of the State Address:

Senate Democratic Leader Tom Begich (D-Anchorage) in a prepared statement said, "I am encouraged that Governor Dunleavy promised a permanent fiscal plan, promised to protect the PFD in the Constitution, promised to make our communities safe, and opposed subsidies and tax credits. I look forward to a budget proposal from the Governor that fulfills his promises.

"For our state to truly address crime, support a strong education system, maintain the health of our citizens, and create hope and opportunity, we need a budget that meets our constitutional obligations. I hope his does," said Senator Begich.

Additional: View Photographs

Alaska Governor Dunleavy honored and recognized nine special guests during his first State of the State Address – each telling a unique story of the challenges and opportunities facing Alaskans.   

Scotty and Aaliyah Barr of Kotzebue are the father and sister of 10-year-old Kotzebue girl Ashley Johnson-Barr, who was tragically murdered in September 2018. 

Edie and Ben Grunwald of Palmer are the parents of Palmer teen David Grunwald, who went missing on November 13, 2016 and was found murdered on December 2, 2016. Edie is a retired U.S. Air Force Colonel. Ben is retired U.S. Air Force and a professional flight engineer.

When the 7.0 magnitude earthquake struck on November 30, 2018,Tor Petersen and Kayana Marquiss of Anchorage – both special education students at Wendler Middle School – found themselves like many other Alaskan students. Through training and a ‘service over self’ mentality, these students exemplified the Alaskan spirit during times of difficulty.

Representative Dick Randolph of Fairbanks is a business owner and former State Legislator from Fairbanks. Randolph served as an Alaska State Representative from 1970-82 and is well-known for his passionate work to repeal the state income tax in 1980 and his staunch work in defense of the Permanent Fund Dividend.

 Zoi Maroudas of Anchorage is the founder and CEO of award-winning Bambino’s Baby Food, an Anchorage-based foods producer for infants and children primarily sourced from Alaska lands and oceans, including salmon, halibut and vegetables. 

Hans Vogel of Palmer is the President and CEO of Triverus Cleaning & Environmental Solutions, a Palmer-based manufacturing company that has developed state-of-the-art, hard surface cleaning equipment used by the United States Navy to clear and restore flight deck surfaces on aircraft carriers. 

Source of News:

Office of Gov. Mike Dunleavy
www.gov.alaska.gov

Alaska House Majority Coalition
www.akleg.gov

Senate Deemocrats
www.akleg.gov

 

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