(SitNews) Juneau, Alaska - Governor Sean Parnell (R) announced yesterday that Revenue Commissioner Bryan Butcher has resigned his position to become the CEO and executive director of Alaska Housing Finance Corporation (AHFC). Dan Fauske, who currently heads AHFC, has taken the position of president and executive director of the Alaska Gasline Development Corporation (AGDC).

“Under Commissioner Butcher’s outstanding leadership, the More Alaska Production Act became a reality, Alaska achieved and maintained a AAA+ credit rating, and Revenue put in place a more reasoned and accurate long-term oil production forecast,” Governor Parnell said. “I look forward to working with Bryan in his new role as he takes the helm of one of the most important state agencies.”

Butcher has led the Alaska Department of Revenue since November 2010. Prior to his work at Revenue, Butcher worked as the director of governmental relations and public affairs at AHFC. He also worked as a finance aide for the Alaska House and Senate Finance Committees for 12 years.

The Alaska Democratic Party says Butcher was lead spokesperson for the Parnell/Treadwell oil giveaway and a leader in the transition to state deficits. quoting a news release from Zack Fields, Communications Director Alaska Democratic Party, Butcher became Revenue Commissioner in 2010 and has overseen a transition from a multibillion dollar state budget surpluses to a $667 million deficit while state operating spending grew approximately 20%.  For the first time in years, Alaska is in massive deficit spending as a direct result of the Oil Giveaway for which Butcher was a lead spokesperson. 

"Bryan Butcher was the salesman peddling an Oil Giveaway that even Republicans called ‘half-baked.’  Alaskans should be very concerned about his ability to manage the Alaska Housing Finance Corporation,” said Mike Wenstrup, Chair of the Alaska Democratic Party.

The Alaska Democratic Party says when Butcher became Revenue Commissioner, Alaska’s Clear and Equitable Share (ACES) governed oil revenue.  ACES had filled a budget hole left by its predecessors, Economic Limit Factor (ELF) and Petroleum Production Tax (PPT).  However according to the Alaska Democratic Party, Butcher was a lead spokesman for repealing ACES in favor of the Oil Giveaway.  In 2012, he refused to give information about budgetary impacts of the then-proposed giveaway, leading Senator Lesil McGuire to call the plan “half-baked.”  By 2013, a partisan gerrymander had changed the composition of the State Senate, adding a Conoco Phillips employee who would cast the deciding vote for the Oil Giveaway.  As a result, Butcher is leaving the Department of Revenue with a state budget deficit of $667 million, which will grow as the Oil Giveaway continues to erode the state’s revenue stream says the Alaska Democratic Party.

During the time that the bipartisan-sponsored ACES was in place, the state saved more than $15 billion dollars, consistently running budget surpluses says the Alaska Democratic Party.  Repealing ACES in favor of the Oil Giveaway was the Parnell/Treadwell Administration’s top priority, which only passed after Republicans gained control of all branches of government in Juneau. They say now Alaska suffers the consequences of giving away some $1 billion per year in oil revenue with no guarantees of increased production or new jobs or Alaska hire.  The Department of Revenue projects that the Oil Giveaway will cost Alaskans some $1 billion annually, equivalent to nearly 15% of the state’s general fund budget.  By comparison, the state spends less than $1 billion per year on public education or on the University of Alaska system.  Balancing the state’s budget after passage of SB 21 will require draconian education cuts or massive withdrawals from the state’s savings account says the Alaska Democratic Party.

According to a news release from the Governor's office, Angela Rodell will serve as acting commissioner for the Department of Revenue. Rodell has served as deputy commissioner for Treasury since 2011, responsible for the oversight of more than $24 billion of state funds and more than $20 billion of retirement assets.

Fauske has served as the head of AHFC for 18 years. He was instrumental in the development of an asset transfer plan between AHFC and the state which substantially improved the corporation’s credit rating by Moody’s and Standard and Poor’s. AHFC has issued more than $7.5 billion in housing bonds and has contributed $1.9 billion back to the State of Alaska through cash transfers, capital projects, and debt service payments.

“AHFC and Alaska have been well served thanks to Dan’s extraordinary management qualities,” Governor Parnell said. “I thank him for his many years of service to AHFC and have no doubt Dan will lead AGDC to a prosperous path as we bring Alaska’s gas to Alaskans and markets beyond.”

Edited by Mary Kauffman, SitNews

Source of News: 

Office of Gov. Sean Parnell
www.gov.state.ak.us

Alaska Democratic Party
www.alaskademocrats.org/‎

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