On Friday morning, Senator Natasha von Imhof and Representative Jennifer Johnston will discuss the State’s fiscal options in the next legislative session from their perspective on the House and Senate Finance Committees.
On Friday morning, David will walk the study group through the “Fiscal Summary,” which is compiled by the Legislative Finance Division, to learn where the current year (FY 20) budget and revenues settled after actions by the Legislature and Governor.
This briefing will help provide context for the study group’s November 8th meeting with Senator Natasha von Imhof and Representative Jennifer Johnston about their respective finance committee’s work next session.
Dan Britton, General Manager of the Interior Gas Utility Project will give us an update on their efforts to provide low cost natural gas to the Fairbanks North Star Borough.
“Alaska-based Qilak LNG Inc. (“Qilak LNG”), a Lloyds Energy company, announced today that a Heads of Agreement (HOA) has been entered into with ExxonMobil Alaska Production Inc. regarding the potential supply of natural gas from the Point Thomson field to Qilak LNG’s proposed Alaska North Slope liquefied natural gas (LNG) export project (Qilak LNG 1 Project). The HOA foresees ExxonMobil providing at least 560 million standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG 1 Project, based on the design concept of offshore liquefaction and loading, and icebreaking LNG carriers, to export 4 million tons per year (MTPA) of LNG over a 20-year term.
The Qilak LNG 1 Project would deliver on Alaska’s long-held goal of commercializing North Slope natural gas,” said former Alaska Lt. Governor Mead Treadwell, Chairman and CEO of Qilak LNG. “With this HOA and our recently completed pre-feasibility study, Qilak will now begin extensive feasibility efforts, including preliminary permitting, with a target of reaching Final Investment Decision (FID) by 2021.””
Join us for details and discussion of this important project.
Join a spirited discussion on whether the Permanent Fund should be constitutionally structured as an endowment and what it would mean to Alaska’s finances and dividend program going forward.
Debating the issue will be Ralph Townsend, director of UAA’s Institute of Social and Economic Research (ISER), and Gunnar Knapp, ISER’s former director. Adding to the intrigue, they will draw straws at the debate to determine which side of the issue they will argue! Scott Goldsmith, Professor Emeritus and former director at ISER, will moderate the discussion.
Plus, you will get to vote to decide the winning argument!
Background
The Permanent Fund was created by voters in 1976 and has matured over the past 43 years, growing much faster than expected. It is now a world-class fund, with investment opportunities that were not available during its formative years.
While the Fund is established in the Alaska Constitution, the annual draws are prescribed by two statutes. One statute uses earnings to calculate the annual dividend; another uses a Percent of Market Value formula to calculate an annual draw. This earnings-based approach is counter to how endowments are managed. Nearly all endowment funds utilize an annual payout calculation based on the market value of the fund.
A statutory POMV can work for as long as there are sufficient realized earnings each year. If an endowment is constitutionally created, a more stable, reliable source of revenue will be available.
The constitution needs to be amended to change the Permanent Fund into an endowment, which will require a two-thirds vote of the Legislature to place it on the ballot for a vote of the people.
Is it time for the Permanent Fund to become an endowment? That’s the question our speakers will help answer.
Cliff Groh, in collaboration with UAA’s Institute for Social and Economic Research, published a paper on the State’s Public Employee’s Retirement System and the Teacher’s Retirement System on how the State is managing these retirement systems and the options for funding future liabilities. Cliff will present his paper as we begin our understanding of PERS/TRS and best practices for managing the State’s debt and future obligations.
On Friday, Casey Sullivan, Government and Public Affairs Manager at Marathon Petroleum Company, will brief us on Marathon’s projects in Alaska and its plans for the future.
Marathon has made a number of acquisitions in Alaska including the site of the former Flint Hills refinery in Fairbanks, and the former Tesoro refinery in Nikiski after a the purchase of Andeavor which acquired the refinery in 2017. Marathon also took ownership of the former ConocoPhillips LNG plant in Nikiski when it purchased Andeavor.
Wednesday morning, Tom Harris, CEO of Kniknatnu, Inc., and former CEO of Alaska Village Initiatives, will continue our study group’s discussion about the State’s food policy as is relates to cultural and personal use of Alaska’s wildlife resources by rural and indigenous Alaskans. Tom will discuss policies other states have implemented with private landowners that have increased wildlife resources and positively impacted food security in those states.
This is part of a series of meetings we are hosting on the personal use of Alaska’s wildlife resources as we work toward developing public policy recommendations for enhancing food security for Alaskans.
On Friday, Nils Andreassen, Executive Director of the Alaska Municipal League, will give presentation about the role of the State’s school bond reimbursement program and its impact on the finances of local governments.
2019 Walter J. Hickel and William A. Egan Awards Gala
Honoring Admiral Thomas Barrett & John Sturgeon
The Dena’ina Center
October 2nd
6pm-9pm
Reception begins at 5:30pm
Business Attire
Commonwealth North continues our tradition of honoring outstanding Alaskans and policy-makers with The Walter J. Hickel Award for Distinguished Public Policy Leadership, and this year we introduce the William A. Egan Distinguished Alaskan Award. These honors go to policy influencers who have led and added clarity to public policy issues in Alaska and the Nation. This year, we will honor Admiral Thomas Barrett, President, Alyeska Pipeline Service Company, with the Hickel Award; and John Sturgeon with the Egan Award. John will be the first recipient of the Egan Award for his dedication to conservation, wildlife and resource development issues, and his historic U.S. Supreme Court journey to reestablish Alaska’s right to manage its own waterways.
The evening will include great food, drinks, entertainment, and a look back at their contributions to Alaska.
Former recipients of the Hickel Award include: Walter Hickel, Ted Stevens, Jay Hammond, Don Young, John Katz, Willie Hensley, Lisa Murkowski, Tony Knowles, Frank Murkowski and Jim Jansen.
If you would like to sponsor a table or be recognized as a contributor, contact Jim Egan at (907) 258-9524, or exec@commonwealthnorth.org.
