By DAN FAGAN
A an epic showdown is brewing in Alaska between two powerful forces. But it’s not the traditional Republican versus Democrat battle we’re used to.
The question many are asking is this: How can a state where President Donald Trump carried by double digit percentage margins, and Republicans outnumber Democrats in the legislature, face the real danger of taking a sharp turn to the left?
Anchorage Republicans State Sen. Cathy Giessel and Rep. Chuck Kopp, are among several GOP members joining with Democrats to battle Republican Gov. Mike Dunleavy.
So many GOP legislators working arm in arm with Democrats means conservative Republican legislators have little to no power.
But that’s not the case with Dunleavy. The governor is uniquely positioned to take on the Legislature. He’s backed by Trump, a majority of Alaskans, and the ever-growing national MAGA movement. And Dunleavy seemingly has a veto proof veto pen to use against some the more left-leaning policies pushed by the Democrat-controlled Legislature.
If Dunleavy, who earned the nickname “Big Mike,” stands strong, there may be little legislators can do to advance their agenda.
The two sides clearly have very different visions for the future of Alaska. When Trump signed a historic comprehensive executive order designed to open up Alaska to resource development, Sen. Giessel accused the president of turning the state into a colony.
“We aren’t a colony to be pillaged,” she said.
She warned Trump’s executive order could “…jeopardize our lands and waters.”
In Giessel’s latest newsletter, she also predicted personal income taxes are in the future for Alaskans.
Giessel, along with Kopp, are two of the legislators pushing hard to bring back a pension retirement system for state workers. Even though the old pension plan was dropped 20 years ago, the state is still several billion behind in pension obligations. If the plan had not been abandoned, the debt would be considerably higher. Bringing it back will surely begin to sink the state deeper into debt when it comes to pension obligations.
Neither Giessel, Kopp, nor any advocate of bringing back state pensions will say what the fiscal note of such an expensive plan would be.
Giessel pushing for new state income taxes while bringing back costly pensions for state workers could be a tough sell.
Dunleavy is expected to veto a pension plan and Giessel’s call for income taxes.
Dunleavy may now also have to use his veto pen to block new oil taxes. Yet another Republican, Sen. Rob Yundt, proposed a close to 10% tax on Hilcorp. Yundt’s tax is almost identical to the one proposed by serial oil taxer and Democrat Bill Wielechowski last year.
Yundt, who represents a conservative Mat-Su Valley district, campaigned against new taxes. Critics say the Yundt Tax comes at a bad time. Dunleavy and Trump are trying to woo new investment to Alaska from oil and gas companies. And there is new momentum when it comes to building a gas pipeline with Trump in office.
Another showdown issue between the Democrat controlled Legislature and Dunleavy comes with education spending. Alaska is dead last in the nation when it comes to test scores. Yet the $2.7 billion spent on K-12 education in the state ranks in the top five in the nation per capita.
Dunleavy is open to more education spending, but he wants accountability measures added. The Legislature’s majority, supported heavily by the very powerful teacher’s union, oppose any accountability. They want to double down on more spending.
Since 2003, Alaska has more than doubled its per-student spending. That’s twice as high as the inflation rate. This session, legislators proposed a 43% increase in education spending over three years.
The battle lines are clearly drawn. A Democrat controlled Legislature with big plans to grow state government with new taxes, generous benefits for state employees, and an adversarial approach to Trump, versus Gov. Dunleavy’s hope to grow resource development and the private sector economy.
Some argue Dunleavy is a lame duck with only two years left in his second term. But he could end up being one of the state’s most consequential governors in Alaska’s short history. Big Mike seemingly is the only person able to stop the Democrat-controlled Legislature and its plan to pass state policies mirroring California, New York, Oregon, and Washington.
Dan Fagan hosts a morning drive radio show on KVNT on 1020 AM 92.5 FM and 104.5 FM. It’s streamed live on 1020KVNT.com