Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Monday, September 15, 2008

Palin's Project List

"She also has sought $4.5 million to upgrade an airport on a Bering Sea island that has a year-round population of less than 100."

"The state's earmark requests stand out in part because its state government is among the wealthiest in the U.S. Flush with oil and gas royalties, it doesn't impose income or sales taxes. In fact, money flows the other way: Every man, woman and child this year got a check for $3,200."


McCain Campaign
Says Record Shows
Drop in Requests
By LAURA MECKLER and JOHN R. WILKE
September 15, 2008; Page A5

Last week, Republican presidential candidate Sen. John McCain said his running mate, Alaska Gov. Sarah Palin, hadn't sought earmarks or special-interest spending from Congress, presenting her as a fiscal conservative. But state records show Gov. Palin has asked U.S. taxpayers to fund $453 million in specific Alaska projects over the past two years.

These projects include more than $130 million in federal funds that would benefit Alaska's fishing industry and an additional $9 million to help Alaska oil companies. She also has sought $4.5 million to upgrade an airport on a Bering Sea island that has a year-round population of less than 100.


Getty Images
Gov. Sarah Palin sought more than $130 million in federal funds for the Alaskan fishing industry.
Sen. McCain has made the battle against earmarks and wasteful spending a centerpiece of his campaign. He has never sought earmarks for his state of Arizona and vows to veto pork-barrel spending bills that come to his desk as president, saying these projects should go through normal budget review. And he derides the argument that states often make: that they're funding important projects.

"If they're worthy projects they can be authorized and appropriated in a New York minute," he explained on his campaign bus earlier this year, before Gov. Palin joined the ticket. "If they're worthy projects I know they'd be funded."

During an appearance Friday on ABC's "The View," Sen. McCain said Gov. Palin shared his views, and hasn't sought congressional earmarks. "Not as governor she hasn't," he said.

In fact, in the current fiscal year, she is seeking $197 million for 31 projects, the records show. In the prior year, her first year in office, she sought $256 million for dozens more projects ranging from research on rockfish and harbor-seal genetics to rural sanitation and obesity prevention. By comparison, her predecessor, Gov. Frank Murkowski, sought more than $350 million in his last year in office.

The McCain campaign said Sunday that Gov. Palin's overall record is one of fiscal discipline. "Her record is cutting the number of earmark requests from the previous administration sizably," said McCain spokesman Tucker Bounds, and she has vetoed wasteful state spending.

As for Sen. McCain's televised comments on Friday, Mr. Bounds added, "If he gave viewers a mistaken impression, it certainly wasn't intentional."

In an interview with ABC News on Friday, Gov. Palin herself suggested she no longer seeks earmarks for her state. "The abuse of earmarks, it's un-American, it's undemocratic, and it's not going to be accepted in a McCain-Palin administration. Earmark abuse will stop."

When pressed about her record as governor, she said: "We have drastically, drastically reduced our earmark request since I came into office. This is what I've been telling Alaskans for these years that I've been in office, is no more."

Alaska's success with earmarks is due in part to the power of Sen. Ted Stevens, the top Republican on the Senate Appropriations Committee. The state's earmark requests stand out in part because its state government is among the wealthiest in the U.S. Flush with oil and gas royalties, it doesn't impose income or sales taxes. In fact, money flows the other way: Every man, woman and child this year got a check for $3,200.

The McCain campaign has also come under fire for saying on the stump and in TV ads that Gov. Palin killed the controversial "Bridge to Nowhere," a $223 million earmark linking the mainland to a sparsely populated island. In fact, she supported the project initially and killed it after it was widely criticized and Congress allowed the state to use the funds for other projects.

On the campaign trail, Gov. Palin has repeatedly attacked Sen. Obama on earmarks. "Our opponent has requested nearly one billion dollars in earmarks in three years. That's about a million for every working day," she said at a rally in Albuquerque, N.M.

Sen. Barack Obama requested a total of $860 million in earmarks in his Senate years, according to Taxpayers for Common Sense. That doesn't include $78 million for projects that were national in scope and had been requested by many lawmakers. Sen. Obama halted all earmark requests in fiscal 2009.

It is difficult to compare Sen. Obama's earmark record with Gov. Palin's -- their states differ in size, for instance, and the two candidates play different roles in the process. But using the same calculation that the McCain campaign uses, the total amount of earmarked dollars divided by the number of working days while each held office (assuming a five-day workweek, every week, for both), Gov. Palin sought $980,000 per workday, compared with roughly $893,000 for Sen. Obama.

Mr. Bounds, the McCain campaign spokesman, called this an "apples and oranges comparison" because Sen. Obama sought more than Gov. Palin and because she cut earmark requests.

Write to Laura Meckler at laura.meckler@wsj.com

Saturday, September 13, 2008

In Office, Palin Hired Friends and Hit Critics

In Office, Palin Hired Friends and Hit Critics

By JO BECKER, PETER S. GOODMAN AND MICHAEL POWELL

WASILLA, Alaska — Gov. Sarah Palin lives by the maxim that all politics is local, not to mention personal. So when there was a vacancy at the top of the State Division of Agriculture, she appointed a high school classmate, Franci Havemeister, to the $95,000-a-year directorship. A former real estate agent, Ms. Havemeister cited her childhood love of cows as one of her qualifications for running the roughly $2 million agency.Ms. Havemeister was one of at least five schoolmates Ms. Palin hired, often at salaries far exceeding their private sector wages. When Ms. Palin had to cut her first state budget, she avoided the legion of frustrated legislators and mayors. Instead, she huddled with her budget director and her husband, Todd, an oil field worker who is not a state employee, and vetoed millions of dollars of legislative projects. And four months ago, a Wasilla blogger, Sherry Whitstine, who chronicles the governor’s career with an astringent eye, answered her phone to hear an assistant to the governor on the line, she said.“You should be ashamed!” Ivy Frye, the assistant, told her. “Stop blogging. Stop blogging right now!”Ms. Palin walks the national stage as a small-town foe of “good old boy” politics and a champion of ethics reform. The charismatic 44-year-old governor draws enthusiastic audiences and high approval ratings. And as the Republican vice-presidential nominee, she points to her management experience while deriding her Democratic rivals, Senators Barack Obama and Joseph R. Biden Jr., as speechmakers who never have run anything.But an examination of her swift rise and record as mayor of Wasilla and then governor finds that her visceral style and penchant for attacking critics — she sometimes calls local opponents “haters” — contrasts with her carefully crafted public image. Throughout her political career, she has pursued vendettas, fired officials who crossed her and sometimes blurred the line between government and personal grievance, according to a review of public records and interviews with 60 Republican and Democratic legislators and local officials.Still, Ms. Palin has many supporters. As a two-term mayor she paved roads and built an ice rink, and as governor she has pushed through higher taxes on the oil companies that dominate one-third of the state’s economy. She stirs deep emotions. In Wasilla, many residents display unflagging affection, cheering “our Sarah” and hissing at her critics.“She is bright and has unfailing political instincts,” said Steve Haycox, a history professor at the University of Alaska. “She taps very directly into anxieties about the economic future.” “But,” he added, “her governing style raises a lot of hard questions.”Ms. Palin declined to grant an interview for this article. The McCain-Palin campaign responded to some questions on her behalf and that of her husband, while referring others to the governor’s spokespeople, who did not respond.Lt. Gov. Sean Parnell said Ms. Palin had conducted an accessible and effective administration in the public’s interest. “Everything she does is for the ordinary working people of Alaska,” Mr. Parnell said.In Wasilla, a builder said he complained to Mayor Palin when the city attorney put a stop-work order on his housing project. She responded, he said, by engineering the attorney’s firing. Interviews show that Ms. Palin runs an administration that puts a premium on loyalty and secrecy. The governor and her top officials sometimes use personal e-mail accounts for state business; dozens of e-mail messages obtained by The New York Times show that her staff members studied whether that could allow them to circumvent subpoenas seeking public records. Rick Steiner, a University of Alaska professor, sought the e-mail messages of state scientists who had examined the effect of global warming on polar bears. (Ms. Palin said the scientists had found no ill effects, and she has sued the federal government to block the listing of the bears as endangered.) An administration official told Mr. Steiner that it would cost $468,784 to process his request.When Mr. Steiner finally obtained the e-mail messages — through a federal records request — he discovered that state scientists had in fact agreed that the bears were in danger, records show.“Their secrecy is off the charts,” Mr. Steiner said. State legislators are investigating accusations that Ms. Palin and her husband pressured officials to fire a state trooper who had gone through a messy divorce with her sister, charges that she denies. But interviews make clear that the Palins draw few distinctions between the personal and the political.Last summer State Representative John Harris, the Republican speaker of the House, picked up his phone and heard Mr. Palin’s voice. The governor’s husband sounded edgy. He said he was unhappy that Mr. Harris had hired John Bitney as his chief of staff, the speaker recalled. Mr. Bitney was a high school classmate of the Palins and had worked for Ms. Palin. But she fired Mr. Bitney after learning that he had fallen in love with another longtime friend. “I understood from the call that Todd wasn’t happy with me hiring John and he’d like to see him not there,” Mr. Harris said. “The Palin family gets upset at personal issues,” he added. “And at our level, they want to strike back.”Hometown MayorLaura Chase, the campaign manager during Ms. Palin’s first run for mayor in 1996, recalled the night the two women chatted about her ambitions. “I said, ‘You know, Sarah, within 10 years you could be governor,’ ” Ms. Chase recalled. “She replied, ‘I want to be president.’ ”Ms. Palin grew up in Wasilla, an old fur trader’s outpost and now a fast-growing exurb of Anchorage. The town sits in the Matanuska-Susitna Valley, edged by jagged mountains and birch forests. In the 1930s, the Roosevelt administration took farmers from the Dust Bowl area and resettled them here; their Democratic allegiances defined the valley for half a century. In the past three decades, socially conservative Oklahomans and Texans have flocked north to the oil fields of Alaska. They filled evangelical churches around Wasilla and revived the Republican Party. Many of these working-class residents formed the electoral backbone for Ms. Palin, who ran for mayor on a platform of gun rights, opposition to abortion and the ouster of the “complacent” old guard. After winning the mayoral election in 1996, Ms. Palin presided over a city rapidly outgrowing itself. Septic tanks had begun to pollute lakes, and residential lots were carved willy-nilly out of the woods. She passed road and sewer bonds, cut property taxes but raised the sales tax. And, her supporters say, she cleaned out the municipal closet, firing veteran officials to make way for her own team. “She had an agenda for change and for doing things differently,” said Judy Patrick, a City Council member at the time. But careers were turned upside down. The mayor quickly fired the town’s museum director, John Cooper. Later, she sent an aide to the museum to talk to the three remaining employees. “He told us they only wanted two,” recalled Esther West, one of the three, “and we had to pick who was going to be laid off.” The three quit as one.Ms. Palin cited budget difficulties for the museum cuts. Mr. Cooper thought differently, saying the museum had become a microcosm of class and cultural conflicts in town. “It represented that the town was becoming more progressive, and they didn’t want that,” he said. Days later, Mr. Cooper recalled, a vocal conservative, Steve Stoll, sidled up to him. Mr. Stoll had supported Ms. Palin and had a long-running feud with Mr. Cooper. “He said: ‘Gotcha, Cooper,’ ” Mr. Cooper said.Mr. Stoll did not recall that conversation, although he said he supported Ms. Palin’s campaign and was pleased when she fired Mr. Cooper.In 1997, Ms. Palin fired the longtime city attorney, Richard Deuser, after he issued the stop-work order on a home being built by Don Showers, another of her campaign supporters.Your attorney, Mr. Showers told Ms. Palin, is costing me lots of money. “She told me she’d like to see him fired,” Mr. Showers recalled. “But she couldn’t do it herself because the City Council hires the city attorney.” Ms. Palin told him to write the council members to complain. Meanwhile, Ms. Palin pushed the issue from the inside. “She started the ball rolling,” said Ms. Patrick, who also favored the firing. Mr. Deuser was soon replaced by Ken Jacobus — then the State Republican Party’s general counsel. “Professionals were either forced out or fired,” Mr. Deuser said.Ms. Palin ordered city employees not to talk to the press. And she used city money to buy a white Suburban for the mayor’s use — employees sarcastically called it the mayor-mobile.The new mayor also tended carefully to her evangelical base. She appointed a pastor to the town planning board. And she began to eye the library. For years, social conservatives had pressed the library director to remove books they considered immoral.“People would bring books back censored,” recalled former Mayor John Stein, Ms. Palin’s predecessor. “Pages would get marked up or torn out.”Witnesses and contemporary news accounts say Ms. Palin asked the librarian about removing books from the shelves. The McCain-Palin presidential campaign says Ms. Palin never advocated censorship. But in 1995, Ms. Palin, then a city councilwoman, told colleagues that she had noticed the book “Daddy’s Roommate” on the shelves and that it did not belong there, according to Ms. Chase and Mr. Stein. Ms. Chase read the book, which helps children understand homosexuality, and said it was inoffensive; she suggested that Ms. Palin read it.“Sarah said she didn’t need to read that stuff,” Ms. Chase said. “It was disturbing that someone would be willing to remove a book from the library and she didn’t even read it.”“I’m still proud of Sarah,” she added, “but she scares the bejeebers out of me.”Reform CrucibleRestless ambition defined Ms. Palin in the early years of this decade. She raised money for Senator Ted Stevens, a Republican from the state; finished second in the 2002 Republican primary for lieutenant governor; and sought to fill the seat of Senator Frank H. Murkowski when he ran for governor.Mr. Murkowski appointed his daughter to the seat, but as a consolation prize, he gave Ms. Palin the $125,000-a-year chairmanship of a state commission overseeing oil and gas drilling.Ms. Palin discovered that the state Republican leader, Randy Ruedrich, a commission member, was conducting party business on state time and favoring regulated companies. When Mr. Murkowski failed to act on her complaints, she quit and went public.The Republican establishment shunned her. But her break with the gentlemen’s club of oil producers and political power catapulted her into the public eye. “She was honest and forthright,” said Jay Kerttula, a former Democratic state senator from Palmer.Ms. Palin entered the 2006 primary for governor as a formidable candidate. In the middle of the primary, a conservative columnist in the state, Paul Jenkins, unearthed e-mail messages showing that Ms. Palin had conducted campaign business from the mayor’s office. Ms. Palin handled the crisis with a street fighter’s guile. “I told her it looks like she did the same thing that Randy Ruedrich did,” Mr. Jenkins recalled. “And she said, ‘Yeah, what I did was wrong.’ ”Mr. Jenkins hung up and decided to forgo writing about it. His phone rang soon after.Mr. Jenkins said a reporter from Fairbanks, reading from a Palin news release, demanded to know why he was “smearing” her. “Now I look at her and think: ‘Man, you’re slick,’ ” he said.Ms. Palin won the primary, and in the general election she faced Tony Knowles, the former two-term Democratic governor, and Andrew Halcro, an independent. Not deeply versed in policy, Ms. Palin skipped some candidate forums; at others, she flipped through hand-written, color-coded index cards strategically placed behind her nameplate. Before one forum, Mr. Halcro said he saw aides shovel reports at Ms. Palin as she crammed. Her showman’s instincts rarely failed. She put the pile of reports on the lectern. Asked what she would do about health care policy, she patted the stack and said she would find an answer in the pile of solutions.“She was fresh, and she was tomorrow,” said Michael Carey, a former editorial page editor for The Anchorage Daily News. “She just floated along like Mary Poppins.” GovernmentHalf a century after Alaska became a state, Ms. Palin was inaugurated as governor in Fairbanks and took up the reformer’s sword. As she assembled her cabinet and made other state appointments, those with insider credentials were now on the outs. But a new pattern became clear. She surrounded herself with people she has known since grade school and members of her church. Mr. Parnell, the lieutenant governor, praised Ms. Palin’s appointments. “The people she hires are competent, qualified, top-notch people,” he said.Ms. Palin chose Talis Colberg, a borough assemblyman from the Matanuska valley, as her attorney general, provoking a bewildered question from the legal community: “Who?” Mr. Colberg, who did not return calls, moved from a one-room building in the valley to one of the most powerful offices in the state, supervising some 500 people.“I called him and asked, ‘Do you know how to supervise people?’ ” said a family friend, Kathy Wells. “He said, ‘No, but I think I’ll get some help.’ ” The Wasilla High School yearbook archive now doubles as a veritable directory of state government. Ms. Palin appointed Mr. Bitney, her former junior high school band-mate, as her legislative director and chose another classmate, Joe Austerman, to manage the economic development office for $82,908 a year. Mr. Austerman had established an Alaska franchise for Mailboxes Etc.To her supporters — and with an 80 percent approval rating, she has plenty — Ms. Palin has lifted Alaska out of a mire of corruption. She gained the passage of a bill that tightens the rules covering lobbyists. And she rewrote the tax code to capture a greater share of oil and gas sale proceeds.“Does anybody doubt that she’s a tough negotiator?” said State Representative Carl Gatto, Republican of Palmer. Yet recent controversy has marred Ms. Palin’s reform credentials. In addition to the trooper investigation, lawmakers in April accused her of improperly culling thousands of e-mail addresses from a state database for a mass mailing to rally support for a policy initiative. While Ms. Palin took office promising a more open government, her administration has battled to keep information secret. Her inner circle discussed the benefit of using private e-mail addresses. An assistant told her it appeared that such e-mail messages sent to a private address on a “personal device” like a Blackberry “would be confidential and not subject to subpoena.” The governor’s office did not respond to questions on the topic.Ms. Palin and aides use their private e-mail addresses for state business. On Feb. 7, Frank Bailey, a high-level aide, wrote to Ms. Palin’s state e-mail address to discuss appointments. Another aide fired back: “Frank, this is not the governor’s personal account.”Mr. Bailey responded: “Whoops~!”Mr. Bailey, a former mid-level manager at Alaska Airlines who worked on Ms. Palin’s campaign, has been placed on paid leave; he has emerged as a central figure in the trooper investigation. Another confidante of Ms. Palin’s is Ms. Frye, 27. She worked as a receptionist for State Senator Lyda Green before she joined Ms. Palin’s campaign for governor. Now Ms. Frye earns $68,664 as a special assistant to the governor. Her frequent interactions with Ms. Palin’s children have prompted some lawmakers to refer to her as “the babysitter,” a title that Ms. Frye disavows.Like Mr. Bailey, she is an effusive cheerleader for her boss.“YOU ARE SO AWESOME!” Ms. Frye typed in an e-mail message to Ms. Palin in March.Many lawmakers contend that Ms. Palin is overly reliant on a small inner circle that leaves her isolated. Democrats and Republicans alike describe her as often missing in action. Since taking office in 2007, Ms. Palin has spent 312 nights at her Wasilla home, some 600 miles to the north of the governor’s mansion in Juneau, records show. During the last legislative session, some lawmakers became so frustrated with her absences that they took to wearing “Where’s Sarah?” pins. Many politicians say they typically learn of her initiatives — and vetoes — from news releases. Mayors across the state, from the larger cities to tiny municipalities along the southeastern fiords, are even more frustrated. Often, their letters go unanswered and their pleas ignored, records and interviews show. Last summer, Mayor Mark Begich of Anchorage, a Democrat, pressed Ms. Palin to meet with him because the state had failed to deliver money needed to operate city traffic lights. At one point, records show, state officials told him to just turn off a dozen of them. Ms. Palin agreed to meet with Mr. Begich when he threatened to go public with his anger, according to city officials.At an Alaska Municipal League gathering in Juneau in January, mayors across the political spectrum swapped stories of the governor’s remoteness. How many of you, someone asked, have tried to meet with her? Every hand went up, recalled Mayor Fred Shields of Haines Borough. And how many met with her? Just a few hands rose. Ms. Palin soon walked in, delivered a few remarks and left for an anti-abortion rally.The administration’ s e-mail correspondence reveals a siege-like atmosphere. Top aides keep score, demean enemies and gloat over successes. Even some who helped engineer her rise have felt her wrath.Dan Fagan, a prominent conservative radio host and longtime friend of Ms. Palin, urged his listeners to vote for her in 2006. But when he took her to task for raising taxes on oil companies, he said, he found himself branded a “hater.” It is part of a pattern, Mr. Fagan said, in which Ms. Palin characterizes critics as “bad people who are anti-Alaska.” As Ms. Palin’s star ascends, the McCain campaign, as often happens in national races, is controlling the words of those who know her well. Her mother-in-law, Faye Palin, has been asked not to speak to reporters, and aides sit in on interviews with old friends. At a recent lunch gathering, an official with the Wasilla Chamber of Commerce asked its members to refer all calls from reporters to the governor’s office. Diane Woodruff, a city councilwoman, shook her head.“I was thinking, I don’t remember giving up my First Amendment rights,” Ms. Woodruff said. “Just because you’re not going gaga over Sarah doesn’t mean you can’t speak your mind.”

Tuesday, September 9, 2008

Sarah Palin's Alaskonomics

Sarah Palin's Alaskonomics
By Michael Kinsley

Sarah Palin thinks she is a better American than you because she comes from a small town, and a superior human being because she isn't a journalist and never lived in Washington and likes to watch her kids play hockey. Although Palin praised John McCain in her acceptance speech as a man who puts the good of his country ahead of partisan politics, McCain pretty much proved the opposite with his selection of a running mate whose main asset is her ability to reignite the culture wars. So maybe Governor Palin does represent everything that is good and fine about America, as she herself maintains. But spare us, please, any talk about how she is a tough fiscal conservative.

Palin has continued to repeat the already exposed lie that she said, "No, thanks," to the famous "bridge to nowhere" (McCain's favorite example of wasteful federal spending). In fact, she said, "Yes, please," until this project became a symbol and political albatross.

Back to reality. Of the 50 states, Alaska ranks No. 1 in taxes per resident and No. 1 in spending per resident. Its tax burden per resident is 21/2 times the national average; its spending, more than double. The trick is that Alaska's government spends money on its own citizens and taxes the rest of us to pay for it. Although Palin, like McCain, talks about liberating ourselves from dependence on foreign oil, there is no evidence that being dependent on Alaskan oil would be any more pleasant to the pocketbook.

Alaska is, in essence, an adjunct member of OPEC. It has four different taxes on oil, which produce more than 89% of the state's unrestricted revenue. On average, three-quarters of the value of a barrel of oil is taken by the state government before that oil is permitted to leave the state. Alaska residents each get a yearly check for about $2,000 from oil revenues, plus an additional $1,200 pushed through by Palin last year to take advantage of rising oil prices. Any sympathy the governor of Alaska expresses for folks in the lower 48 who are suffering from high gas prices or can't afford to heat their homes is strictly crocodile tears.

As if it couldn't support itself, Alaska also ranks No. 1, year after year, in money it sucks in from Washington. In 2005 (the most recent figures), according to the Tax Foundation, Alaska ranked 18th in federal taxes paid per resident ($5,434) but first in federal spending received per resident ($13,950). Its ratio of federal spending received to federal taxes paid ranks third among the 50 states, and in the absolute amount it receives from Washington over and above the amount it sends to Washington, Alaska ranks No. 1.

View photos of Sarah Palin here.

Under the state constitution, the governor of Alaska has unusually strong powers to shape the state budget. At the Republican Convention, Palin bragged that she had vetoed "nearly $500 million" in state spending during her two years as governor. This amounts to less than 2% of the proposed budget. That's how much this warrior for you, the people, against it, the government, could find in wasteful spending under her control.

One thing Barack Obama and McCain disagree on is an oil windfall-profits tax. McCain is against it, on the theory that it is a tax and therefore bad and also on the theory that it would discourage domestic production. Obama is for it, on the theory that if oil companies can make a nice profit when oil sells for $50 per bbl., they can still make a nice profit when it sells at more than $100, even if the government takes a bit and spreads the money around to those who are hurting from higher oil prices.

Although Palin's words side with McCain in this dispute, her actions side with Obama. Her major legislative accomplishment has been to revamp Alaska's windfall-profits tax in order to increase the state's take. Alaska calls it a "clear and equitable share" tax. The state assumes that extracting oil from the tundra costs about $25 per bbl. and takes as much as 75% of the difference between that and the sale price.

Why is a windfall-profits tax good for Alaska but not for the U.S.? Well, it's obvious, isn't it? People in Alaska are better than people in the rest of the U.S. They're more American. Although there are small towns and farms and high school hockey teams in the lower 48, there are fewer down here, per capita, than in Alaska. And there are many more journalists and pollsters and city dwellers and other undesirables who might benefit if every American had the same right to leech off the government as do the good citizens of Sarah Palin's Alaska