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P E N I N S U L A
Wednesday, October 17, 2018 Kenai Peninsula, Alaska
Vol. 49, Issue 15
In the news Students defrauded by colleges score win in court decision WASHINGTON — Students defrauded by for-profit colleges scored an important victory on Tuesday, when a court cleared the way for an Obama-era policy that will make it easier for them to get their student loans forgiven. Education Secretary Betsy DeVos had said the regulation, known as borrower defense, made discharging loans too easy and was unfair to taxpayers. The rule was due to take effect in July 2017, but DeVos froze it while she worked on devising a new regulation. But U.S. District Judge Randolph Moss ruled last month that DeVos’ delay was unlawful. On Tuesday, he denied a request by an organization representing for-profit colleges in California, to further postpone the rule, thus paving the way for borrower defense to enter into force. “The rule is finally in effect. No more excuses. No more delays,” said Julie Murray, an attorney with Public Citizen, who is representing the defrauded students in their suit against DeVos. Education Department spokeswoman Liz Hill said DeVos “respects the role of the court and accepts the court’s decision” and will soon provide information about how the regulation will be implemented. But DeVos continues to regard the regulation as “bad policy” and will continue writing a new rule “that protects both borrowers and taxpayers,” Hill said in a statement Tuesday.
Mega Millions jackpot now $667M, 3rd largest in US history DES MOINES, Iowa — The Mega Millions prize was already giant, but now it’s even bigger. Lottery officials have increased the estimated jackpot for Tuesday night’s drawing from $654 million to $667 million, making it the thirdlargest grand prize in U.S. history. The increase reflects a surge in ticket sales. The record lottery jackpot was a $1.6 billion Powerball prize won in January 2016. Although the Mega Millions prize has grown larger, the odds of winning remain the same, at a dismal one in 302.5 million. The $667 million jackpot refers to the annuity option, paid out over 29 years. The cash option, which is favored by nearly all winners, is $380 million. — The Associated Press
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Alaska lieutenant governor resigns By BECKY BOHRER Associated Press
JUNEAU, Alaska — Alaska Lt. Gov. Byron Mallott resigned Tuesday over unspecified inappropriate comments, complicating what was already a difficult re-election fight for Gov. Bill Walker. Mallott, in his resignation letter, said his decision was “compelled by inappropriate comments I made that placed a person whom I respect and revere in a position of vulnerability.” He apologized and acknowledged that his actions had compromised Walker’s ability to lead the state. The nature of the comments remained unclear. Mallott did not immediately return a phone message seeking details, and Walker did not take questions during a news conference with Mallott’s successor, Valerie Davidson. Until Tuesday, she had served as the state health commissioner. Walker’s office also provided few details. In a statement, Walker said he learned late Monday that Mallott — a man with whom he has shared a brother-like bond — had made comments not suitable for his office. “As leaders, we must hold
ourselves to the highest standards of conduct,” Walker said. The resignation was announced shortly after Walker participated in an at-times testy debate in Anchorage with his two chief rivals, Democrat Mark Begich and Republican Mike Dunleavy. Davidson said she was “deeply saddened” by Mallott’s resignation and “profoundly disappointed by his conduct.” “Respect for women, and the dignity of all Alaskans, is our responsibility,” she said in a release. Walker, in a separate statement, said it’s too late for Mallott to remove his name from the ballot but that Mallott would not accept the position of lieutenant governor if elected. He said Davidson would assume the role of his running mate. Walker campaign manager John-Henry Heckendorn said the campaign has been in conversations with Begich’s campaign for several days about a “path forward for Alaska.” He declined to go into details, but he said the conversations were prompted by concerns about Dunleavy and the dynamics of a three-way race. The talks so far have been “inconclusive” but will continue, Heckendorn said. Libertarian Billy Toien also
In this file photo, Alaska Lt. Gov. Byron Mallott addresses a news conference in Anchorage. (AP Photo/Mark Thiessen, File)
is running. A message was left with Begich’s campaign manager. Mallott and Walker had forged a tight bond since joining forces as part of a unity ticket in 2014. That year, they each were running for governor and saw joining together as their best shot at defeating Republican Gov. Sean Parnell. As part of the arrangement, supported by state Democrats, Walker changed his party affiliation from Republican to undeclared and Mallott, a Democrat,
abandoned his gubernatorial ambitions to be Walker’s running mate. They narrowly won. On Tuesday, as Walker and Davidson held their brief news conference at the governor’s office in Anchorage, the largest gathering of Alaska Natives in the state was being held nearby at the city’s convention center. Word of Mallott’s resignation was beginning to circulate among the delegates at the Alaska Federation of Natives conference, where Mallott, an Alaska Native leader from
southeast Alaska, had long been treated as a rock star. “Oh my God!” said Victoria Campbell when informed of Mallott’s use of inappropriate comments. Then she asked what was on the minds of many Alaskans: “Towards who?” The Democrat from Gambell, located on St. Lawrence Island in the Bering Sea between Russia and the United States, said she didn’t know enough to comment on the resignation but did say it wouldn’t affect her vote for Walker.
Gov. Walker tackles array of questions By VICTORIA PETERSEN Peninsula Clarion
The Kenai Peninsula’s economy has long been dependent on oil and gas. What will you do to boost the economy on the Kenai Peninsula beyond oil and gas? Well, beyond oil and gas, certainly agriculture. The blue economy. We have oyster farms. We have kelp salsa now made in Alaska. We have kelp beer now. I had some kelp beer in Kodiak. We need to be using and looking at all of our resources across the state, not just oil and gas. However, we’re still going to be a resource state. There’s no doubt about that. The largest project is on track to come to Kenai. A lot of people on the peninsula are counting on the success of the LNG project, but there is a long way to go before it will start bringing in money. What policies do you plan on putting in place to make sure this project happens? The policy is never to give up and continue to lead from the front and not to sit back and wait for someone to do it for us. That’s the model we’ve had before, and that’s what Sen. Dunleavy talked about.
He would move back to that model that’s gotten us nowhere in 40 years. The governor of Alaska is the CEO of Alaska. You need to be the CEO of the company and lead the project, as I have. We need to sit down at the White House with the president of the United States, president of China, president of Korea, president of Vietnam, president of Tokyo Gas. That’s where the governor of Alaska needs to be the leader of this — and not sit back and hope somebody works it into their portfolio. You’ve got to have a governor that understands it, that knows it, that’s going to lead, and step up and make the project happen. You got a lot of flack for reducing the Permanent Fund Dividend. What do you think the future of the PFD is considering Alaska’s deficit and economy? We saved the PFD. We saved the program. It was on its way out. You look at any of the analysis done by the legislative financial analysts. If we hadn’t made that change, the PFD was at risk. We had to make the decision. Did we want to have it around for generations or a couple high years and then it goes away? You overdraw on that, you are going to do that.
Gov. Bill Walker
We did what we did to save the PFD. It has now grown to $1,600. About eight years ago, it was $800. Now it’s on track for another couple hundred. It’s going to continue to grow over time. The thing is, it’s going
For 1st time, residents air concerns to Marijuana Control Board in Kenai By VICTORIA PETERSEN Peninsula Clarion
The Alcohol and Marijuana Control Office met in Kenai for the first time, with members of public from across the state convening at the Kenai Legislative Office on Tuesday morning to present public testimony to the Marijuana Control Board. The board accepted public testimony for nearly an hour before cutting people off to move forward with the agenda. People came forth to express concerns to the board mainly about public cannabis events and licensing.
Members of the public give testimony to the Marijuana Control Board, who met in Kenai for the first time Tuesday. (Photo by Victoria Petersen/Peninsula Clarion)
Dollynda Phelps of Peace Frog “Instead of being treated like Botanicals in Nikiski said she felt farmers and business owners, that licensees were experienc- we’re being treated like criminal ing difficulties when it came to drug dealers,” Phelps said at the AMCO. See AMCO, page A13
to be here for generations and generations. That’s what we did as far as restructuring that permanent fund. Alaska has been hit hard by the ongoing opioid crisis. You’ve taken steps to tackle
this with a package of measures that include increased public safety staffing, better mental health care and criminal justice reform. Considering the ongoing debate about See WALKER, page A13
Rain, flooding in Seward area prompts state of emergency By VICTORIA PETERSEN Peninsula Clarion
Kenai Peninsula Borough Mayor Charlie Pierce declared a state of emergency Tuesday due to flooding events in the borough, a press release from community and fiscal projects manager Brenda Ahlberg states. The city of Seward also declared a state of emergency today when stormwater and debris caused damage to roads, bridges and public facilities, the release states. Seward, Bear Creek and Lowell Point are included in the declaration. In another press release,
the Kenai Peninsula Borough School District announced that all Seward schools would release early Tuesday due to area weather and flooding. All after-school programs are canceled. The district will announce Wednesday’s school schedule as more information is available. Moose Pass School will continue on a normal schedule. The borough’s Emergency Operations Center is providing resource requests to residents in affected areas. The center will continue to monitor water levels and assess damage, the release said.