Legislature Authorizes Bonds For Capital Projects Without A Public Vote

The Alaska State Constitution; Article 9 (Finance and Taxation); section 8 simply says that no state debt is authorized without a public vote on the issue.  See the exact language below:

§ 8. State Debt

No state debt shall be contracted unless authorized by law for capital improvements or unless authorized by law for housing loans for veterans, and ratified by a majority of the qualified voters of the State who vote on the question. The State may, as provided by law and without ratification, contract debt for the purpose of repelling invasion, suppressing insurrection, defending the State in war, meeting natural disasters, or redeeming indebtedness outstanding at the time this constitution becomes effective. [Amended 1982]

The public is clearly opposed to the legislature deviating from Article 9; Section 8 of the Alaska State Constitution.  See the questions asked and how Alaskans responded:

(Q)  If the state constitution clearly states a limit for capital project spending without a vote of the people, should the legislature be allowed to avoid this limit and public vote by authorizing bonding through quasi-state agencies or the Alaska Railroad?  (691 responses)

 

(A)   Yes:  10%                No:  71%                Don’t Know:  19%

 

(Q)  Are you aware that the 23rd Alaska State Legislature authorized the Alaska Housing Finance Corporation (AHFC) and the Alaska Student Loan Corporation to bond (go into debt) with the proceeds being spent for capital (SB 283) projects?

 

(A)    Yes:  9%                No:  78%                Don’t Know:  13%

 

(Q)  Should the Alaska Housing Finance Corporation (AHFC) and the Alaska Student Loan Corporation assume additional debt to fund capital projects for other agencies, non-profit organizations, or municipal governments?  (665 responses)

 

(A)    Yes:  9%                No:  72%                Don’t Know:  19%

Now see what the legislature has been doing, and how they are getting around the "intent" of our constitution.  Follow the hyperlink then click on journal pages to see what action was taken or how legislators voted. 

HB 235, Would authorize the Alaska Railroad to issue up to $76,000,000 in bonds (go into debt) to finance GAS PIPELINES!  Sponsored by Representative Bruce Weyhrauch of Juneau.  Referred to three committees in the House and died in the first one. 

 

HB 267, Authorizes the Alaska Railroad to issue up to $17 BILLION in bonds to pay for 70% of the construction cost of a NATURAL GAS PIPELINE!  Sponsored by Representatives KOHRING, Crawford, Holm, Foster, Gara, Wolf, and Lynn.  The annual debt service will be about $1.4 BILLION a year!  Referred to three committees in the House and one in the Senate.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page.

 

HB 401  Would create a vehicle for funding the Capital Budget to provide required project match with state grants.  Shifts revenue generated by the Alaska Housing Finance Corporation from the good of all citizens such as education, towards a benefit for a few.  Introduced by request of Governor Murkowski.  Referred to two committees and died in the first one. 

 

HB 556  This bill provides bonding authorization up to $20 million to finance the acquisition, development, improvement, and construction of port and related facilities for use of a private mining company located at an un-named location in Lynn Canal.  Prior to issuing bonds, AIDEA will be required to conduct a feasibility study, market and risk analysis of the project.  Introduced by the House State Affairs Committee chaired by Republican Representative Bruce Weyhrauch of Juneau.  Referred to two committees in the House and one in the Senate.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page.

 

SB 73, Increases loan limits of the Alaska Industrial Development and Export Authority .  Allows AIDEA to authorize bonds in excess of $20,000,000, with legislative approval.  Introduced by request of Governor Murkowski.  Referred to two committees in the Senate and one in the House.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page. 

 

SB 99, This special interest legislation would use public funds to construct a privately operated 1,200 bed state prison in Whittier.  Revenue bonds issued by the City of Whittier (without an authorizing vote of taxpayers) would be backed by a 20 year contract with the State of Alaska.  Sponsored by Senator Con Bunde of Anchorage.  Referred to two committees and died in the second one. 

 

SB 277   Allows the Alaska Student Loan Corporation, which is currently financially sound, to float bonds for up to $75 million, with the bond proceeds being made available to the legislature for capital project appropriations.  This “creative, Enron style financing method” is nothing more than a back door way to fund legislators "pet projects".   Introduced by request of Governor Murkowski.  Referred to two committees in the House and one in the Senate.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page. 

 

SB 279 Would create a vehicle for funding the Capital Budget to provide required project match with about $200 Million in public funds.  Shifts revenue generated by the Alaska Housing Finance Corporation, University of Alaska and other sources from the good of all citizens such as education, towards a benefit for a select few.  Introduced by request of Governor Murkowski.  Referred to two committees in the House and one in the Senate.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page.  

 

SB 283  Capital budget for fiscal year 2005.  Total cost to taxpayers:  $1,632,206,808. (1.6 BILLION DOLLARS!) Sponsored by Senators HOFFMAN, Therriault, Green, Ben Stevens, Elton, Ellis and cross sponsored by Representatives Morgan, Croft, Chenault, Seaton, and Ogg.  This bill forced the Alaska Student Loan Corporation to sell bonds (go into debt) with the proceeds going to the legislature as a funding source for capital projects which is contrary to the intent language in Article 9, section 8 of the Alaska State Constitution.  To follow the money trail, see section 3 (funding source) and where it went in section 2.  Only referred to ONE committee in both the Senate and House.  PASSED the legislature, and signed into law!  See how your legislator voted by going to the Watchdog page.    

 

SB 381  Would authorize the Alaska Industrial Development and Export Authority (AIDEA, the Anchorage fish plant, MarkAir hanger, etc., etc., folks) to issue bonds up to $101,000,000 that would finance acquisition, design, construction, inventory, and operation of facilities to provide natural gas, propane air, or manufactured gas public utility service to the unified municipalities of Juneau and Sitka, the boroughs of  Fairbanks North Star, Haines, Ketchikan Gateway, Kodiak Island, and Yakutat, the cities of Angoon, Cordova, Craig, Kake, Klawock, Petersburg, Skagway, Seward, Valdez, and Wrangell, and the communities of Klukwan and Metlakatla.  Once again, bonding for capital projects without voter approval.  Sponsored by the Senate State Affairs Committee, Chaired by Republican Senator Gary Stevens of Kodiak.  Referred to two committees, but died in the first one.

 

SB 384  Would allow a natural gas pipeline to be financed by the Alaska Railroad for the transportation of natural gas recovered from the North Slope of Alaska with a terminus in Cook Inlet.  This is special interest legislation favoring the oil and gas producers with the people of Alaska financially responsible.   Sponsored by the Senate Transportation Committee which is Chaired by Republican Senator John Cowdery of Anchorage and Vice-Chair Republican Senator Tom Wagoner of Kenai.  Referred to two committees and died in the first one.

 

SB 394  This is the senate version of HB 556 which authorized $20 million in bonding to finance the acquisition, development, improvement, and construction of a port and related facilities located on Lynn Canal in Southeast Alaska. Sponsored by the Senate Rules Committee chaired by Republican Senator John Cowdery of Anchorage.  Referred to two committees and died in the second one.

 

SB 2011  Authorizes the Alaska Railroad to issue BONDS for constructing a natural gas pipeline from the north slope to southern markets.  Estimated cost: $18 to $20 BILLION dollars!  Sponsored by the Senate Transportation Committee chaired by Republican Senator John Cowdery of Anchorage.  Referred to two committees, but died in the first one.

 

SB 2012  This bill would authorize the state Department of Corrections to pay for building a prison in Whittier with no limit on construction cost, and no competitive bid process.  The state would then hand over the keys (at no cost) to Texas based Cornell Industries, and pay them twice the current daily amount for housing prisoners.  This "good deal" for Cornell Industries, Neeser Construction, VECO, et all was sponsored by the Senate Transportation Committee, chaired by Republican Senator John Cowdery of Anchorage.  Referred to two committees, but died in the first one.  Total cost over life of contract: $1 BILLION plus!

Votes for these and other major bills that passed either the House or Senate are recorded on the Watchdog page for all to see. 

Why do candidates often say one thing to get elected and then vote the opposite when in Juneau?  A lot of this mystery can be solved by visiting the APOC web site.  The Alaska Public Offices Commission post campaign finance records for each legislator that shows where the money comes from.  When comparing survey results, voting records, and campaign finance, with legislation passed (or not passed), a vivid picture of the incumbent emerges for all to see.   

Incumbent legislators that went against the public's wishes will soon be asking for your vote.  The decision to retain them is entirely up to YOU!  Make an informed choice and do what's right for Alaska's future at each election!  A list of all legislators sorted by community and election schedules has been provided for Alaska Voters convenience.    

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