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Embattled incumbent stands by record, oil deal
Article published on Monday, August 14th, 2006
By BRYAN MARTIN
Mirror Writer

Gov. Frank Murkowski said it himself: “I’ve made nearly the entire state of Alaska mad at me” at one time or another.

He joked that maybe he should consider a “personality transplant.”

Shortly after announcing his candidacy for a second term as governor of Alaska in May, his campaign put the “mad at me” ad in Alaska newspapers, as if to say it takes guts to be governor.

Murkowski paused for an hour-long interview last week in Kodiak after his visit to fire-torn Hooper Bay and a stressful face-off with an angry rationalization crowd that met him at a local brewery to sign HB 240 regulating microbreweries. He then stopped for a campaign fundraiser at the Kodiak Inn, again running late, and headed back to Anchorage and Juneau to face off with pesky legislators over his pipeline contract.

For a 73-year-old man, one wonders how he does it, always running, running, and now running again for the state’s highest office.

The “mad at me” ad, though it seemed at the time an ill-advised tactic, is somewhat revealing of the man.

“A strong leader is not always popular,” he said. “Doing always what is popular to win points, is not always the best thing to do.”

The gas pipeline has been an uphill battle for the governor. Still, it is the centerpiece of his campaign, as if his career is staked out. The end of a decades-long career as a U.S. Senator and governor, a politician, a statesman, a leader, could end in defeat. Murkowski doesn’t seem too worried about that. It’s as if whatever he does is up to Alaska’s people. He’s done all he can do at this point.

He is quick to point out he is the first governor to push through a gas pipeline contract with the big oil companies.

While his campaign war chest isn’t empty, it doesn’t appear he is worried how much is in it either. He has put $50,000 of his own money into the campaign. His total war chest has hovered this summer around $260,000, less than primary foes Republicans Sarah Palin and John Binkley. Binkley has raised over $1 million, $375,000 his own money, and Palin upwards of $295,000. Democrats Tony Knowles has $269,000, and state Rep. Eric Croft, $153,000. Independent Andrew Halcro has $115,000,

The polls reveal Murkowski is an unpopular incumbent. A mid-May SurveyUSA automated telephone poll had Murkowski with an approval rating of only 23 percent and 73 percent disapproval, making him the second least popular governor in the nation next to Ohio’s governnor.

In a Rasmussen poll released in June for the Republican primary, he garnered only 17 percent of the vote. Palin became the frontrunner with 43 percent and Binkley had 30 percent. The most recent polling has former Democratic governor Knowles ahead of Palin by 6 percent, and Binkley by 8 percent. He leads Murkowski by 30 percent.

Murkowski made himself vulnerable early on after his election in 2002. He maintained that his first task was to balance the budget, which he did. But in order to do that he began cutting. He cut the longevity bonus, a program on its way out. but the move drew fire from angry seniors. Then he cut state revenue sharing causing leaders of municipal governments throughout the state to vent their wrath. More criticism came as he began reorganizing many of the state’s social services programs, such as substance abuse rehabilitation centers that lost funding.

Now it’s the pipeline. And in the middle of that came vast negatives over the purchase by the Alaska Department of Public Safety of a state jet for $2.7 million to be used to transport prisoners to a camp in Arizona and for other state business. The governor is allowed to use it for business purposes.

But it wasn’t long before the jet came under scrutiny by the governor’s foes. Sen. Kim Elton, D-Juneau, reported in his constituent newsletter “Off the Record” examples of flights that were possibly wasteful to the state or timed for campaigning.

Kodiak, Fairbanks and Anchorage were named as locations at the center of the charges, since stops were made in all three places the day Murkowski announced for re-election.

Murkowski was in Kodiak that day, May 26, to attend the groundbreaking ceremony for the new Kodiak National Wildlife Refuge Visitor Center and later for a public hearing at the high school on his proposed pipeline project.

Murkowski responded later in an Anchorage newspaper editorial saying the stops were scheduled days before he decided to run for re-election. He also has reimbursed the state for trips in which his immediate family members have been passengers.

Murkowski feels he can beat the odds and win another term despite this heavy load of issues carried like a sack of bricks.

But it’s back to the pipeline, an issue he feels will ultimately carry him through once the voters realize how vital the pipeline is to the state.

“The future of this state is based upon economic development. When I decided to run for governor the first time, I felt I could make a better contribution than remaining in the senate,” Murkowski said.

“I haven’t finished the job,” the governor said.

He had been elected to a fourth term in the U.S. Senate and cut the last term short two years in 2002 to become governor. At the time, the Republicans had lost control of the Senate. Murkowski was chairman of the Senate Committee on Veterans’ Affairs and a member of the powerful Committee on Energy and Natural Resources.

He was first elected to the U.S. Senate in 1980. Prior to that he served as state commissioner of the Department of Economic Development from 1966 to 1969.

Murkowski started out as a banker with the National Bank of Alaska in both Anchorage and Wrangell. In 1971, he became president of the Alaska National Bank in Fairbanks.

He was born March 28, 1933, in Seattle, graduating from Seattle University with a degree in economics. He attended public schools in Ketchikan. He also served in the U.S. Coast Guard.

His wife Nancy, who is currently seen on television campaign ads, has been his longtime supporter; they have been married 52 years. They have six children and 14 grandchildren.

One of those children, U.S. Sen. Lisa Murkowski, also became the center of controversy when the governor appointed her to his vacated seat. Subsequently, she was elected on her own to the U.S. Senate in a race against Knowles, likely to be Murkowski’s opponent in November if the governor wins in the Aug. 22 primary.

Winning in the primary may not be easy.

“I had hoped the gas line wouldn’t have gotten in the way of the political season,” Murkowski said.

As the pipeline issue now stands, a bill passed both the House and the Senate just hours before the close of a second special session Thursday.

The new production tax moved somewhat away as a compromise from the governor’s original 20-20 plan.

The tax bill would set a base tax rate of 22.5 percent of companies’ profits from Alaska operations and allow them to claim credits and deductions in the tax bill to pay for investments.

In secret negotiations with BP, Conoco Phillips and Exxon Mobile the governor had agreed to a 20 percent tax rate and 20 percent credit on net profits.

“Some would have liked to have seen the contract fail because it presents an opportunity for opposition from political candidates,” Murkowski said.

“But I am running for Alaska, not against the candidate,” he said.

Murkowski said the gas pipeline is essential to Alaska’s future economy because North Slope oil is on the decline and revenue from the gas pipeline will be needed to replace lost revenues.

He said the loss of production and resulting price increases from last week’s pipeline shutdown indicate the need to start building a pipeline.

The Alaska Department of Revenue put the daily loss of 400,000 barrels of oil a day at $6.4 million.

“The objective has always been to get a pipeline.

“My re-election depends on an assessment of who can best anchor in the economy of the state for the next 30 years,” Murkowski said.

Murkowski said that although the Legislature has passed a bill there is still a ways to go before a contract is signed.

The oil companies are arguing the tax is too high compared to other world markets.

But Murkowski also notes another matter yet to be settled is negotiating the State of Alaska as the corporation manager of the pipeline.

While the gas pipeline has overshadowed other issues, Murkowski is attempting to defend his administration’s efforts the past four years.

On fishery rationalization, Murkowski told angry protesters during his quick visit last week, “I have always supported the fisheries in this community.”

He said that since he has been governor the price of salmon has gone up.

On education, Murkowski said his efforts resulted in more increases in funding than any previous administration.

He also notes than he was able to get a new multimillion dollar veterans center in Palmer, recently opened.

Looking back over more than 25 years in office as senator and governor, Murkowski said there is one event he cherishes most.

He tells the story of a mother and her children separated by war during Vietnam.

“The mother ended up in

Fairbanks.

“I remember the young woman came to us and wanted to get her children back. The children were in Hanoi. After much searching and diplomatic effort, they were finally reunited,” Murkowski said.

“That has always remained with me, one of the rewards of being a public servant,” Murkowski said.

Mirror writer Bryan Martin can be reached via e-mail at bmartin@kodiakdailymirror.com.

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