Alaska’s legislators are back in session working on the state budget and trying to reach an agreement on the size of the Permanent Fund dividend. KHNS’ Mike Swasey checked in with state Senator Jesse Kiehl about the session so far.
Swasey – Let’s talk about, first of all, what’s happening with your new session?
Kiehl – The house has started intensive budget work. We’re in an interesting position where the price of oil is up for the moment, and so between that and the federal infrastructure bill and the last of the federal COVID money, it looks like we’ve got a little cash around this year. Frankly, that’s going to make it tough to make some of the hard decisions that will get Alaska to a long-term stable footing financially. Because relatively few legislators are willing to take tough votes when there’s a little cash around and they can dodge it for a year. But we’re still working on it, protecting the permanent fund, settling the PFD issue.
Swasey – Well, let’s talk about the PFD, so the person who is in charge of it has been fired. What happened?
Kiehl – The Permanent Fund Corporation invests the fund, they’ve got nothing to say about the PFD, except that the executive director was a very staunch voice in opposition to taking extra draws, more than you can sustain any year out of the fund, to pay for anything. And there is a great mystery as to exactly why she was fired. This is about really whether the board of the Permanent Fund Corporation acted as fiduciaries or whether there was some political or other motive involved.
Swasey – And the fund had been growing under Ms. Rodell, correct?
Kiehl – Hit or beat every investment benchmark. Yeah, you know, it remained one of the lowest-cost funds to manage in its type, had won some awards for being one of the best places to work in investing. If the board of directors have come out and said, “We identified six unhappy employees, and that’s why we fired the director.” We probably wouldn’t have a lot to say. But they just won’t give any reason at all.
And some of the reporters who’ve been digging have been finding meetings with the governor just before, one of the governor’s commissioners who is a trustee was traveling, they were at the same hotel when the meeting took place. There is some very, very concerning stuff and the legislature needs to dig until we get to the bottom of it if we’re going to protect the fund and keep it away from straight-up political use into the future.
And let’s just be real clear, right? Drawing 5% of the value of that fund is roughly two-thirds of Alaska’s income in any given year. It’s our financial future right there, the heart and soul of it.
Swasey – Now the governor, didn’t he just lose a lawsuit over firing an employee unjustly?
Kiehl – That was about a state attorney who was fired for political opinions. And I’m pleased to say that the federal judge found that was a violation of the First Amendment. And look, every governor makes changes in policy jobs, right? Your commissioners and deputy commissioners, your division directors; these people, quite appropriately, can be changed with the governor to reflect the governor’s agenda. But it is wildly inappropriate, frankly, to demand a political loyalty oath, which is what the governor did over every state employee who happens to not be in the union. This particular state lawyer said I’d like to keep my job but this loyalty oath thing is not all right, and she was fired.
Swasey – So there’s a trend of the governor taking these steps to silence people with political views that don’t necessarily align with his. Great. Okay, State Senator Jesse Kiehl, thanks so much for your time.
Kiehl – Hey, much appreciated Mike, take care.
State Senator Jesse Kiehl is a Juneau Democrat whose district includes Haines, Skagway, and Klukwan.