Story last updated at 10/30/2008 - 1:45 pm
Mike Chenault: Alaska House District 34: Legislature must show fiscal restraint
Age: 51
Occupation: Construction
Family: Wife, Tanna; children, Elisha, Shanda, Miranda, Brandon and daughter-in-law Brittany
Education: Kenai Peninsula Borough School District
Organizations and special interests: Moose, Elks, community activities, Kenai, Nikiski and Soldotna chambers
Previously held elected office and experience: Kenai Peninsula Borough School Board; Legislature 2001-08, NCSL, Energy Council, CSG, House Leadership, Finance co-chair, 4 years
Ways for voters to contact you: Legislative office, 145 Main Street Loop 223, Kenai, 283-7223
1. How should Alaska position itself to ride out, or perhaps benefit from, the stark financial realities of the current economic crises, and what steps do you think the Legislature should take to help protect constituents?
The administration and the legislature need to show fiscal restraint. The state will have to evaluate the state's, municipalities' and school districts' retirement systems to determine the effects of the current economic crisis. An analysis of the Permanent Fund and the side effects on the Fund due to the economic decline should also be considered.
Fortunately, Alaska is better prepared to weather out the storm than other states. We have been able to save over $5 billion over the past two years and we need to add to those savings should future surpluses be realized.
However, our retirement systems may need to be funded at a higher level than anticipated so that local entities are not forced to raise revenues to provide for those increases. We need to save whenever and wherever possible to provide for services our constituents need should we face revenue shortfalls in the future.
2. Alaska is a resource state, but relatively little in the way of processing infrastructure has been built here that would allow Alaska to add value to those raw materials. What can and should the state do to change that?
The state needs to encourage value added secondary processing in all our all resource development.
This may mean providing tax credits to encourage new industries; ensure that the state can provide a reliable, trained work force; provide a reliable transportation infrastructure; possible low interest loan programs to encourage the development of new businesses; and with Alaska's proximity to the Pacific Rim, we need to seek markets in the Far East that will use our value added products.
3. Surpluses from high oil prices have allowed the Legislature to increase funding to schools. What is your opinion of the current level of education funding and why?
The current level and the formula adopted by the Legislature to phase in additional special needs and area cost differentials over the next two years is a huge jump in funding levels over past years.
The increases for the area cost differential have provided our district the equity it has been sorely lacking since the adoption of the foundation formula in SB 36. We still need to address whether adequate base funding is being provided and whether we are spending education dollars wisely.
The surplus may not be as great as originally expected due to the drop in oil prices. It is important that we continue to save revenues where we can and closely review all new programs before spending additional funds.
4. What are you prepared to do to advance alternative energy efforts in Alaska, should you be elected?
Projects such as the Susitna Dam project, geothermal, wind and tidal power should all be considered. Should any of these projects prove to be cost effective and provide enough power to resolve our energy needs, then it is highly probable the Legislature should consider one time funding for a large portion of the project costs.
I am proud of the fact the Legislature established weatherization programs to assist homeowners with making their homes more energy efficient. An in state gas line should also be brought into play and soon. I am committed to bringing the Healy Clean Coal Plant on line which would substantially reduce the cost of power in the Fairbanks area and relieve electrical needs throughout the Railbelt.
The Legislature has established an alternative energy fund, that I supported, which will encourage viable energy projects. That fund is supposed to be replenished over the next four years.
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