By Tom Morphet
U.S. Sen. Ted Stevens brought a surprising message to Haines Borough
leaders hoping his visit here would advance federal funding of local projects: Expect less
federal support as state oil revenues rise.
With the value of oil increasing, the state’s income from crude
has risen from $2.8 billion in 2005 to $5 billion last year and $12 billion this year,
Stevens said during a talk at the American Bald Eagle Foundation Saturday.
"During a period of years in the past, (Alaskans) have gone to the
federal government and gotten all kinds of assistance in what we call earmarks…
We’re in a different position now. We’re in a position where the rest of the
states and the federal government envy us. We have a budget surplus. We don’t have
any state debt. We have a situation that, as we go forward, the federal government
won’t be assisting us very much, and if they do, they’ll require we have
matching funds for whatever they decide to do in the state."
Stevens acknowledged that Haines’ infrastructure needs help.
"But (money for) that is going to come from two sources: One is going to be an
increased number of people who have jobs and will be paying into the state, and the (other
is) the state is going to have to start a sharing program to get the money out to the
municipalities that have a problem."
Stevens, 84, is seeking re-election in November to the Senate seat he
has held since 1968. He has been investigated in a federal probe of Alaskan politicians
with ties to convicted oilfield supply company VECO and faces a slate of opponents from
within his party, as well as Democrat Mark Begich, mayor of Anchorage. He last visited
Haines in 1989.
Stevens said soaring fuel prices nationwide were quickly eroding public
resistance to oil drilling in the Arctic National Wildlife Refuge. New drilling could
increase the flow of oil through the trans-Alaska pipeline to three million barrels a day,
up from 700,000 barrels per day currently, and equivalent to Iraqi production, he said.
Alaska is a "storehouse of energy" ranging from large coal
and oil sources to potential for tidal and geothermal power, Stevens said. Unlike other
states, Alaska has the up-front money to develop renewable and alternative fuel sources to
ensure a sustained quality of life here, he said.
"We’re the only state in the union that has the money
up-front. We’ll have $36 billion income in the next three years. That is almost
unheard of in the history of the United States… I do really believe you should have
more confidence in the future than you’ve ever had.
"This state has the resources no other state has. We also have the
money. If we combine them the right way, Alaska’s got a great future. I think the
state’s going to be booming in the next few years."
Mayor Fred Shields said he was disappointed by Stevens’ remarks as
they might apply to projects like the harbor expansion, Fort Seward rehabilitation and
repair of local roads. "He doesn’t see the flow of federal dollars as large.
I’m not as hopeful as I wanted to be."
Two weeks ago, leaders at a harbor meeting were placing hopes for a
harbor expansion on the federal government. Shields said perhaps the borough should now
look toward the state as the main funding agency for the work, and consider the federal
government a secondary source. "We might have to rethink our funding source."
State Rep. Bill Thomas, R-Haines, said he’d have to work with
other legislators in getting more money to municipalities. "The feds are still going
to match. But (the legislature) is just going to have to put out more. We have funds. We
just have to be strong enough to get the money."
Thomas pointed to legislation he sponsored that provides $250 million
for development of alternative energy sources as an example of state funding benefiting
rural areas and said he was disappointed by Gov. Sarah Palin’s vetoes of other
spending he’d proposed for Haines.
A World War II veteran who flew in the Army Air Corps, Stevens traveled
to Klukwan, speaking mainly on military and veterans’ issues while helping unveil two
warrior totems near the village’s veterans’ memorial. Bosh Hotch, who created
the memorial, used the ceremony to honor the village’s 22 deceased and 24 living
military veterans.
Stevens also spoke with villager Walter Hotch-Hill, a second lieutenant
in the Army National Guard who returned in April from six months of service in Balad,
north of Bagdad. Hotch-Hill, about to start work as an officer recruiter, said Stevens
talked about improved military benefits Congress recently approved that may make his
recruiting easier.
Stevens’ talk at the Fort Seward parade grounds outlined the long
history of the U.S. military in Alaska, noting that Secretary of State William H. Seward
used the state’s strategic location to convince Congress to purchase the territory
and that soldiers built the territory’s early infrastructure.
World War II veterans who returned to Alaska were among the staunchest
supporters of Alaska statehood, he said.
Military bases and operations in Alaska pump $1.4 billion into the
state’s economy, he said. "This Fort Seward stands as testament to our defense
needs, and they are not static," he said, giving an account of Alaska bases that have
closed over the years.
He described the surplusing of Fort Seward after World War II as
"unfortunate." But no military installation is immune from changing, he said,
noting that since 1968 more than 150 military bases in Alaska have been closed and that
the cost of energy will figure into the next round of base closure decisions.
Alaska’s five remaining bases are particularly vulnerable because
they’re some of the nation’s most expensive to operate, due to fuel and freight
costs. He touched on efforts to improve veterans’ health care and closed with a
reference to Fort Seward. "I do want to join you in doing whatever we can to preserve
this historic fort. I think it is a most historic place for Alaska."
Asked in an interview if the Iraq War was bleeding off the
nation’s resources, Stevens said, "It’s using the resources of the country
but it’s preserving our freedom. Since 9-11, we haven’t had another (terrorist
act on U.S. soil) since." Other industrialized nations haven’t been so
fortunate, he said.
"What we’ve done is we’ve taken the war from our shores
and kept it over there. I do believe (the war) is winding down. The word I heard this
morning was that Democrats were moderating their stand to say we can’t rush out of
there. We have to make sure they have a sound government before we leave. But I do think
it’s winding down. The one that’s coming back up again is Afghanistan."
Former mill owner John Schnabel and commercial fisherman Larry Albecker
were among a crowd of about 50 residents, supporters and campaign contributors who turned
out at the eagle foundation to shake Stevens’ hand.
Albecker said he’s a Democrat, but he always votes for Stevens.
"I’ve known him forever. He was a good friend of my dad, Leo Albecker Sr."
Schnabel embraced Stevens on his arrival. Schnabel said Stevens is
getting "a little bit vacant" but said he was "totally grateful" to
Stevens and former Sen. Frank Murkowski for shepherding Shakwak legislation that ensured
years of federal funding for the Haines Highway and Alaska Highway, as well as for
ferries.
"If it hadn’t been for them, we wouldn’t have anything
here," Schnabel said.
