Governor Frank Murkowski
'06 Budget Unveiling

JEFF STASER: Governor, the first question is be sure to thank all the (indiscernible) for me. I want to thank all the Legislators and the staff from the state that are here, federal agencies as well. As a public policy forum this is where it starts, direction from the state and the feds ought to line up behind that as best we can.

Governor, what can you do as Governor to develop a long-term fiscal plan for the state of Alaska?

GOV. FRANK MURKOWSKI: Well, I can work with the Legislature to resolve that and looking forward to doing it. It's an obligation that we have.

I can go into all the detail you want, but as far as achieving it, you know what we did last time. I'll give you the 30 second version because some of you have forgot it or thought it was too complicated. We propose to take 5 percent of the value of the Permanent Fund, okay. And we're going to take half of the 5 percent and pay dividends which would have been more than we paid this year. Well, what does 5 percent equate to? Well, last year on about 26 billion it was about $1.4 billion, so we would have taken half of that, 700 million and put it for the dividend. And we're going to take 45 percent for education. And we're going to take 5 percent for the local communities.

Now what effect does that have on the dividend? Well, it depends on what the fund earns, but if the fund earns 9 percent and you take 5 percent you're still making 4 percent. And on a principal of 20 some billion dollars you're increasing that base every year. The House bought it. The Senate didn't.

MR. STASER: Governor, what are the chances of the state of Alaska being a financial partner in the building of a gas line?

GOV. MURKOWSKI: I think they're very good and I'm going to recommend it to the Legislature. (Applause)

MR. STASER: Here's a good one. And the reason I have to ask these questions, I'm federal.....

GOV. MURKOWSKI: I've been there.

MR. STASER: If economic development is resource development what is the long-term strategy for developing human resources through public education and quality of life infrastructure?

GOV. MURKOWSKI: Well, I mean that's in the eyes of the beholder. Obviously our education system is prerequisite in preparing our young people to achieve, if you will, the capabilities and challenges that are before them. And I think you have to have a partnership, and I think we have to address ANWR on our.....

And I'm going to wander into this and get in trouble, but you know, I watch what's going on a little bit in the education area and, you know, we have I think some duplication in higher education in our university system. And I'm sure that President Hamilton can respond to that, but this isn't the time or the place. I think if we're going to have science we have science and the best science and we it in one place, we don't have it all over the state. If we have mining we're going to have it in one place (indiscernible).

And I think we have to address where the resources are likely to be most developed. If it's oil and gas then can we have a high quality oil and gas engineering capability or do we duplicate it on different campuses. Mining, do we -- so that we can try and offer a higher degree of specialty and get more for their buck. On the other hand, everybody wants duplication whether it can be having it, you know, just down the street. So I think we have to come to grips with that's a job for the Board of Regents, but you know, education. And you know, we need role models in rural Alaska that can reach the kids like Ramey Brooks who's a musher. He can really relate because, you know, I talked to National Guard who are out there trying to recruit kids in rural Alaska, they can't pass the drug test. It's a real tragedy. I mean.....

MR. STASER: Governor, we have time for one more question. This is kind of a holy grail the membership of Commonwealth North. It combines several questions that are left. What can we as a state do in our commonwealth to develop the resources to the common benefit of all and execute the responsibilities of an owner state, what do you have planned and how can we help?

GOV. MURKOWSKI: Well, I think you're doing that in what Nelson Page and your group have submitted in the form of an effort to try and set up a trust similar to the Mental Health Trust so that we can begin to manage our lands more effectively and more efficiently. You know, one of the problems internally is just getting the bureaucracy moving to the understanding that we want to put our land in private hands just like the University, that's going to go. You know, it's 250,000 and we have land grant college with no land. You know what the fear is with some of the extreme environmentalists that the Board of Regents will develop the land. Can you imagine that?

If you go to the University of Washington, you go downtown Seattle and you look at the Olympic Plaza, that's all university land. There's hotels on it. There's banks on it. It generates revenue for maintenance.

Now you're not going to duplicate that in Alaska overnight, but you've got to set some kind of a ground rule. It's the right thing to do so we're doing it. So it's a combination of, you know, individuals who are committed. And Governor Hickel with his comments, okay, he's right. We are. And you know, people say well, you know, what's the role of government.

Well, the role of government is defined by the participation of the process, but government has got to have a role because government is the only one that can do certain things. And it's up to the public to make damn sure that government prioritizes it correctly and doesn't blow it, but this idea of.....

Do you know what Wyoming is doing now? Wyoming is an energy state, gas, coal, oil. (Indiscernible) picked up nearly $2 million. They're catching up. They're catching up with their education system, maintenance of the schools, maintenance of the highways, arterials, doing things that they've been unable to do.

We can't do that in our state because we've got a different system. Last year it was $27 billion. It was 29.6 today. How do we come to grips with that and satisfy the interests of all Alaskans with regard to the obligation of paying a fair and reasonable dividend? (Applause)

MR. STASER: Governor, in closing I'd like to remind you and your key staff and our guests that Commonwealth North has two ongoing studies, one in the area of health care and one, Commonwealth North the Next 25 years. We're encouraging folks in the community to join up. It's not too late to sponsor some of these studies and get involved from last year or in the succeeding years.

I think that it's time for us to take the spirit of Christmas to the next step and all go home and enjoy our Thanksgiving -- or our Christmas turkey. Governor.....

GOV. MURKOWSKI: Christmas ornament.

MR. STASER: Christmas ornament. I'd like to.....

GOV. MURKOWSKI: (Inaudible) for $40. (Applause)

MR. STASER: The ornament, I'd like -- they'll be right outside the door and they'll also be available at the reception which is where?

UNIDENTIFIED VOICE: at 4:30 at Diane's Restaurant.

MR. STASER: At Diane's Restaurant at 4:30.

UNIDENTIFIED VOICE: At Seventh Avenue right in the Atwood Building.

MR. STASER: In the Atwood Building Seventh Avenue. Governor, on behalf of all of us at Commonwealth North and all of our guests today thank you all very much for participating in this very important event.....

GOV. MURKOWSKI: Thank you very much.

(END OF PROCEEDINGS)