Alaska Legislature: What are lawmakers up to?

JUNEAU -- The 27th Alaska Legislature kicked off Tuesday and settled down to the usual business amid a moderate three-day snowstorm followed by freezing rain that had lawmakers slip-sliding up and down the hills that surround the state Capitol building.

But the streets weren't the only slippery slopes. Big issues like oil taxes and the proposed natural gas pipeline - perennial issues -- seemed poised to slide off the table as legislators looked toward the complexities involved in resolving problems in a short session.

Reporters roving the marble hallways focused on what is supposed to be the biggest issue of the session -- whether to overhaul the state's oil tax structure -- and quickly figured out that Senate leadership is more inclined to wait for the results of studies on the tax system. The first piece might be done as soon as February, said Rep. Mike Hawker during a meeting of the Legislative Budget and Audit Committee which he chairs. But Senate Finance Committee co-chair Sen. Bert Stedman said the final report isn't expected until June.

Although House leaders and Gov. Sean Parnell say a revamping of the tax structure known as ACES -- Alaska's Clear and Equitable Share -- is doable in the 90 days the Legislature will meet, senators appear more likely to wait for the results of the not-inexpensive consultants' work.

Pipedream lives on, for now

Likewise, the much-touted Alaska natural gas pipeline project -- the Alaska Gasline Inducement Act (AGIA), which created a state-subsidized project -- is not coming together as fast as had been projected. TransCanada Corp., a Calgary-based pipeline builder, is spearheading the effort, with a commitment from the state of up to $500 million in subsidies. But TransCanada officials say they don't think they will have agreements with potential gas shippers worked out as quickly as first thought, adding that there are "major issues" to be resolved. That's set the political tongues wagging that AGIA might be a goner and it might be time to move on to an in-state gas line.

Stedman, a Sitka Republican who is viewed as arguably the most powerful man in the Legislature because of his finance committee post, was the first to speak aloud the words "cut our losses," and that sent pundits scurrying for reaction. Late in the week, Stedman and others seemed content to let the AGIA process play out until the end of session -- scheduled for April 17 -- but perhaps not much beyond this summer. The state has reimbursed TransCanada about $37 million so far for pre-construction expenses, has another $100 million approved to go, and Parnell has requested another $160 million in his budget this year for AGIA.

Legislative leaders spent much of the week announcing their priorities, as did Parnell, whose political wish list came in the form of his State of the State address Wednesday. Virtually all of the governor's priorities and suggestions had been laid out in the weeks prior to session, mainly when he unveiled is 2012 budget proposal in December.

Parnell: 'I felt the warmth'

Parnell told reporters Thursday he was heartened by what he took as a warm reception from lawmakers, a welcoming he'd not felt in the past, especially since for a couple years he was looking at the room over the shoulder of former Gov. Sarah Palin. Parnell was lieutenant governor from 2007 to mid-2009, when Palin abruptly resigned and passed the governor's office off to him. Parnell was elected governor Nov. 2.

He reminded reporters he'd served in both the House and the Senate before he was elected lieutenant governor in 2006, so he knew an appreciative crowd of politicians when he saw one. "I think when I walked in the chambers, I felt that warmth and that reception and willingness to work together," Parnell said. And he pointed out to reporters gathered at the large conference table in this third-floor office that working together is a prime focus of his, especially when it comes to getting a budget passed.

Legislative leaders were noncommittal to much of Parnell's budget last week and said his spending plan already was over-budget by more than $100 million based on current revenue projections. That led to a discussion of the definition of "deficit spending." Parnell said that meant spending more than you have in the bank, and since Alaska has about $12 billion in budget reserve accounts, the phrase "deficit spending" was being misused. Others, however, continue to use it to describe a budget that is out of balance, since spending the state's savings is far from being approved.

So far, little discussion has occurred over what Parnell described as "the two big rocks in the road" -- some $500 million in "unfunded liabilities" for the state retirement system and a shortfall in Medicaid spending. Those are expected to emerge in coming weeks as lawmakers take apart the state budget and put it back together with an eye toward Parnell's budget proposal.

Stefani Marnon's still cooking up a storm

Perhaps the thing getting the most positive buzz around the capitol this past week was the fact that the Legislature's chef, Stefani Marnon, is still there and still cooking up fabulous food right in the heart of the policymaking mania. Lawmakers, staff and reporters don't need to go further than the second floor for breakfast or lunch. And her staff delivers, too. Marnon, insiders who follow this stuff will remember, used to cook at the mansion for Palin, but got laid off in 2007 in what the then-governor touted as a budget-cutting effort. But Marnon remained a state employee and soon moved to the legislative lounge.

On opening day last week, the menu included a breakfast casserole of ham, eggs and cheese bread, and lunch was a chicken breast on orzo salad, along with her signature soups and salads. Salmon over black beans was making the rounds of offices on Friday and more than a few people were holding out for the salad with strips of prime beef.\

Lawmakers and lobbyists are well fed, for sure. On Wednesday, just before the governor's speech, Juneau hosted a community reception at Centennial Hall to welcome lawmakers to town -- some say it's also aimed at staving off any effort to move the Capitol by plying them with great food and gifts. Hundreds attended that event, table after table holding the best of gourmet catering: prosciutto-wrapped asparagus, myriad kinds of smoked fish, special meatballs, all sorts of tasty finger foods.
Afterward, lawmakers trudged back up the hill through about six inches of new snow -- carrying "welcome bags" full of goodies -- to listen to Parnell's State of the State speech. The goodies included a coffee-table book by artist Rie Munoz. Her daughter-in-law, Cathy, is a state representative from Juneau.

Other receptions, including one at the Governor's Mansion, kept lawmakers and lobbyists away from one of their favorite haunts -- the bar at the Baranof Hotel. That place was pretty quiet early in the week. One longtime observer said there was just too much free food and drink available elsewhere for lawmakers to take advantage of the Barnaof's bar. But by Thursday night, legislators, aides, lobbyists and others in town for the first week of the session did pack the Baranof's Bubble Room for a reception.

Hawker and Doogan battle on

Two people happy to be back in Juneau are Reps. Mike Doogan and Mike Hawker. Both are battling serious illnesses -- Hawker an aggressive form of prostate cancer and Doogan a benign but difficult-to-remove brain tumor. The two met up at a joint meeting of the Legislative Budget and Audit Committee, which Hawker chairs, and the House Finance Committee, which Doogan is on. They bantered back and forth as one cancer survivor to another, and on Friday Doogan spoke on the House floor about his illness, wanting to make sure his fellow lawmakers knew he wasn't ignoring them if he didn't answer; he just might not be able to hear them so well, especially if they are on his right side.

Hawker has been in the Legislature since 2002 and Doogan since 2006. Still, Doogan has a bit more of a history in the Capitol than Hawker. A framed copy of the June 27, 1974, edition of the Anchorage Times hangs in a fourth-floor hallway. Coverage of the passing of the late U.S. Sen. Ernest Gruening includes a front-page byline: "Mike Doogan, Times City Editor." Doogan was perhaps better known as a curmudgeonly columnist for the Anchorage Daily News.

What's happening this week?

This week holds more in the way of "overviews," where committee hearings are basic primers in the budgets and programs of most state agencies. Also on tap Monday is a presentation of the 2010 Alaska Victimization Survey by the University of Alaska Anchorage. It's the first report of its kind in Alaska and was requested by the Legislature in 2009 after lawmakers were surprised to find no one had done a "victimization" report. This study looks beyond incidents of sexual assault and domestic violence that are reported to police and surveys women by phone to uncover the extent of the problem that goes unreported, according to a press release.

Some committees will take up bills, including the first of the measures to make sure voter intent gets paramount consideration in write-in campaigns.

Also on Monday, new Department of Natural Resources Commissioner Dan Sullivan is scheduled to brief the Senate Resources Committee on his agency. He took over from Tom Irwin in December as part of a Parnell shakeup of his cabinet. Sullivan had been the state Attorney General and many see his new assignment as a move to resolve some sticky resource development issues such as the holdup of development of the Point Thomson oil and gas field operated by Exxon Mobil Corp. that is stalled in litigation.

A legislative session wouldn't be complete without the speculation of what it all means in terms of capitol denizens' favorite topic: politics and campaigns. And Sullivan is certainly at the center of speculation. He is one of many Republicans already being whispered about as a leading contender to take on U.S. Sen. Mark Begich, a Democrat, in 2014. Yes, it's years away, but other names on the tips of wagging tongues include the other Dan Sullivan, Anchorage mayor, newly elected Lt. Gov. Mead Treadwell and even Parnell himself.

And with that parting thought, let's see how this coming week plays out. Much of it can be watched from the comfort of your office or armchair on KTOO's "Gavel to Gavel" live coverage.

Contact Patti Epler at patti(at)alaskadispatch.com.

Update: This story has been corrected to reflect that the "Gavel to Gavel" live coverage is provided by KTOO, not the state.