30.0°

First, let me say it has been an honor and a privilege to serve as your representative for the past eight years. I have placed the Peninsula's priorities first and hopefully have made a positive impact during my legislative service.

There are a number of issues I want to address during the upcoming session.

First and foremost, the education of our youth is paramount. I have led the fight to ensure the Peninsula has received our fair share of education funding. The Legislature has adopted changes in the foundation formula and we are beginning to see the fruits of those changes. Special needs and the area cost differential are being increased which especially benefits Peninsula schools.

However, we also need to evaluate our statewide educational systems to determine if the additional funding is working. We need to become more open to suggestions from our educators with regard to student needs. Not every graduate is going to college. Opportunities in other fields, especially through vocational education, need to be available, either through our school systems or in training centers.

I have diligently worked toward an in-state gas line. I wholeheartedly support the efforts made by ANGDA toward making this a reality. I will continue to work with them and support their funding requests so that we have a reliable, affordable source of future energy.

The Legislature also needs to encourage value added industries that may benefit from an in-state line. The state needs to show secondary industries that we are open for business. A well trained work force, low interest loans, improvements in our transportation system, and a favorable tax climate needs to be part of a package to encourage new industries which will result in jobs and revenues for our residents.

Alaska sits in a favorable position in the Pacific Rim. The U.S. and China combined accounted for more than 30 percent of gross domestic product (GDP) worldwide last year. Bilateral trade volume between the two countries stood at $387 billion, dwarfing the $208 billion between America and Japan. We need to take advantage of our location in regards to these markets. As a resource state, the possibilities are endless.

I have supported energy projects such as the Fire Island Wind Farm, the Susitna hydro project, and other alternative energy sources. We need to be cautious on funding for alternative energy projects though. The Legislature needs to evaluate all proposals and select those that have funds to continue operations and not be a continual drain on state revenues. A shotgun approach to these energy projects will eventually be a waste of state funds.

I look forward to the energy plan that the Alaska Energy Authority is preparing for review next session. A resolution to the Healy Clean Coal facility conflict will also benefit the state, particularly in the Fairbanks area where the current cost of electricity is over 22 cents per kilowatt hour. Bringing this facility on line will reduce electrical costs by approximately 10 cents an hour. I will continue working toward resolving this if mediation or legal action fails.

One program that I supported is the weatherization program through the Alaska Housing Authority. AHFC now has three programs to help Alaskans reduce energy bills on their homes. The objective of these programs is to make a home more energy efficient. These three programs have different guidelines but most homeowners will fit into one of these three categories.

Although financial instability in the world may make a long term fiscal policy less valuable, it is wise to have a plan. Eventually markets will stabilize; we will recover and become stronger for it. At whatever price oil happens to be, we have to live within our means and save as much as practicable while investing in Alaska's infrastructure to be prepared for future economic development. A long term fiscal plan for the state was adopted last session and hopefully will be a tool for future legislatures to follow.

Alaska is in an enviable position as compared to other states. We have surplus revenues, over $30 billion in the Permanent Fund, over $8 billion in savings accounts and endless potential to develop new and different resources. But, we need to keep controls on our state operating budget and not let it grow out of control. Our revenue streams will not last forever.

Again, it has been an honor serving you. I would appreciate your vote on November 4th.