From Richard Mauer in Juneau —

The oil industry began its testimony on the Senate’s oil-tax bill this morning, and it was clear they didn’t like it.

First up was ConocoPhillips Alaska. Bob Heinrich, its vice president for finance, said the Senate measure does almost nothing to reduce the state’s large share of the value of oil when prices are high. That means there’s less reason to invest in Alaska than another oil province where the company gets more of the benefit of high oil prices, he said.

From Richard Mauer in Juneau —

The chairman of the House Education Committee urged the Anchorage School Board to go slow in deciding whether to adopt new national standards for its core curriculum.

“I’m saying we really shouldn’t lunge forward,” Rep. Alan Dick, R-Stony River, told reporters Monday at the regular news briefing of the House majority coalition. “I’m not telling Anchorage what to do at all, but I’m asking them that they make a well-informed decision when they do make a decision.”

From Richard Mauer in Juneau -

With 28 days left to the regular legislative session and the Senate still working on oil-tax legislation in committee, House Speaker Mike Chenault wouldn’t be drawn into a prediction Monday about whether the issue could be resolved before adjournment.

From Lisa Demer in Juneau --

State Sen. Lesil McGuire put out a press release Wednesday evening with "OMG" overtones: She got engaged in Anchorage.

McGuire, who turned 41 last month, announced her Feb. 14 engagement to Anchorage lawyer Jason Skala in a release on state letterhead emailed to the state Senate's distribution list of about 600 people including reporters, legislators, aides and members of the public who have signed up for Senate news. An aide wrote it up, and the notice was sent out by the press secretary for the coalition of Republicans and Democrats who run the state Senate. The release includes a video link that shows him proposing.

"February 14th was a romantic night for many, but a truly magical night for Senator Lesil McGuire and long-time friend Jason Skala," the release begins.

The couple was attending a "chocolate and champagne" reception hosted by the Denali Society, a group that honors big donors to Alaska Pacific University. Both McGuire and Skala attended APU though McGuire graduated from Willamette University in Oregon. He's a longtime family friend.

From Kyle Hopkins in Anchorage --

Former governor Bill Sheffield says that Assemblyman Paul Honeman solicited his political support and campaign donations shortly before calling for Sheffield's ouster as port director.

Here's Sheffield's account of what happened, filmed today at City Hall following Mayor Dan Sullivan's press briefing:

And here's Sullivan reacting to the news:

In an interview today, Honeman said his failed request for political aid from Sheffield played no role in his decision to call for Sheffield's replacement. Sheffield was one of countless past contributors who he had contacted through routine campaign calls, he said.

From Kyle Hopkins in Anchorage --

The I/M program that requires Anchorage drivers to pay for an emissions test that the Environmental Protection Agency says is no longer necessary may end even sooner than you think.

Mayor Dan Sullivan will announce a proposal today to kill the program six months earlier than expected, a spokeswoman said.

The EPA on Tuesday agreed to allow the city to end the program. But while the EPA approval is effective Feb. 9, current city law calls for the emissions testing program to linger for an additional six months.

That’s because when the Assembly agreed to kill the program in May 2010, Assembly members added a “grace period” under which the testing program would continue for half a year. The idea: Give businesses that sell the tests -- which cost up to $68 -- time to prepare for the change.

“(Sullivan) is going to ask the Assembly to rescind that six-month grace period,” Sullivan spokeswoman Sarah Erkmann said today.

The mayor will announce his plans today at a press briefing, she said.

“Basically, we’ve been talking about I/M going away for so long, he’s confident that the places that provide I/M tests have had ample time to prepare their business model,” Erkmann said.

The anti-pollution program requires that drivers get their vehicles tested every two years.

The program -- "I/M" is short for vehicle inspection and maintenance -- began in 1985 in an effort to help Anchorage meet federal clean-air standards for carbon monoxide. Anchorage has not violated the standard since 1997.

From Kyle Hopkins in Anchorage --

Assemblyman Paul Honeman accused Mayor Dan Sullivan today of “cronyism” and “wrongdoing” following reports that the city will offer the outgoing port director a $60,000 consulting contract.

Honeman, who is running for mayor, said he delivered a two-page letter questioning the details of the consulting job today to City Hall. The mayor recently announced that Sheffield would step down as port director Jan. 15 but would be paid to serve as liaison with federal agencies on the troubled expansion project.

“I believe this is cronyism at its worst, or at its best, if you’re on the receiving end,” Honeman told reporters at his Midtown campaign headquarters.

Sullivans plans to release a statement responding to the accusation today, said city spokeswoman Sarah Erkmann. He would not be available for an interview, she said.

“There’s no contract yet, but the proposal is to pay Sheffield for one year (only one year) to help with the transition to a new director,” Erkmann wrote in an email.

“Nothing is finalized. I’m sure you can gather the political nature of the press release,” she wrote.

UPDATE: Erkmann sent a one-line statement from Sullivan, in response to questions about Honeman's claims:

“Per the usual process, details of the proposed one-year contract will be provided to Assembly members before the item is up for discussion and vote," Sullivan said.

The salvo by Honeman is just the beginning. Voters are in for a long, bruising march along the 2012 campaign trail as local and state politicians –- all but one legislator must run for reelection this year -- battle for jobs.

Honeman is looking to gain traction after finishing sixth, with less than 5 percent of the vote, in a crowded 2009 mayoral race. The former police officer has targeted Sullivan on the port project before, demanding in November that Sheffield be fired.

Cost overruns and construction problems have plagued port expansion efforts. The estimated bill for the project, as envisioned by Sheffield, has grown from $360 million in 2005 to about $1 billion.

The city has asked the Legislature for $350 million to fund a less ambitious project.

The port announced Sheffield’s plan to retire on Dec. 29, a day after a reelection fund-raiser held for Sullivan at Sheffield’s home.

“It begs the question, first of all, is this some sort of golden handshake or golden parachute at the taxpayers’ expense of a person who is responsible for what is ultimately right now viewed as one of the biggest boondoggles in Alaska’s history?” Honeman said.

Sheffield’s supporters have said problems at the port were largely beyond his control and that the former governor has been unfairly saddled with the blame.

“The project has faced challenges but we have worked hard over the last two years to get the management and construction back on the correct course,” Sheffield said in a written statement Dec. 29.

Erkmann, The mayor’s spokeswoman, said she could not provide a copy of Sheffield’s proposed consulting contract because it has not yet been completed.

“That said, the Assembly (and any other interested parties) will have ample time to review it once it’s finished,” she wrote.

ORIGINAL POST:

Mayoral candidate Paul Honeman today is questioning the proposed $60,000 consulting contract offered to outgoing Port Director Bill Sheffield. The East Anchorage Assemblyman has planned an 11 a.m. news conference at his campaign HQ.

I asked Sarah Erkmann, spokesman for Mayor Dan Sullivan, about the status of the contract.

"There's no contract yet, but the proposal is to pay Sheffield for one year (only one year) to help with the transition to a new director," Erkmann wrote in an email.

"Nothing is finalized. I'm sure you can gather the political nature of this press release," she wrote.

From Kyle Hopkins in Anchorage

UPDATE: The finalists for Anchorage School District superintendent are: Kenai schools head Steve Atwater and Jim Browder, the former superintendent of schools for the Lee County school district in Fort Myers, Fla.

ATWATER

Read Atwater's resume and application.

...

BROWDER

Read Browder's resume and application.

Recent news articles about Browder's education career in Florida describe a tumultuous run as an administrator at Edison State College, during which college faculty called for his ouster, according to the Naples News and the News-Press (Fort Myers). Browder was a finalist over the summer for a superintendent job in Jackson, Tenn., and a finalist this fall for a superintendent post in Broward County, Florida.

Both candidates will visit Anchorage in January, meeting with district employees, local leaders and the community at a pair of public meetings. The school board hopes to make a selection by late January or early February.

The school board selected Browder and Atwater from a pool of roughly 150 applicants.

The Kenai Peninsula Borough School District, which would lose its top administrator if Atwater wins the job, issued this statement from board president Joe Arness today:

"Operations of the school district will continue without interruption until such time as a final decision is made in Anchorage, and then the KPBSD School Board will respond to whatever that decision may be. At this point, Dr. Atwater remains under contract to the Kenai Peninsula and will remain welcome to continue that relationship should he not be offered and accept the Anchorage Superintendent position.”

No matter who is hired, the new superintendent will likely be paid more than Comeau, who was making $165,000 a year plus benefits, as of July.

According to their resumes, Atwater is making $140,000 at the Kenai district and Browder was most recently making $260,000 as senior vice president of operations at Edison State College. (He was making $170,000 a year as a schools superintendent.)

More info shortly.

By Curtis Tate in Washington, D.C. --

The Obama administration had been hoping for months to have the support of Alaska Republican Sen. Lisa Murkowski for the head of its new consumer watchdog, but Murkowski said Tuesday that she has "great concerns" about the agency's structure and that it shouldn't have a director without changes Republicans want.

From Sean Cockerham in Anchorage –

Alaska Sen. Lisa Murkowski wants an investigation of why the Justice Department abandoned the teen sexual exploitation case against former Veco Corp. Chairman Bill Allen.

Murkowski on Nov. 23 wrote the Justice Department’s acting inspector general and its office of professional responsibility, saying the attorney general has never given a good explanation and the matter needs to be investigated.

From Sean Cockerham in Anchorage –

Sarah Palin announced she’s not running for president today on the Mark Levin show.

The conservative radio host read a letter from Palin and spoke to her about the decision.

Palin told Levin “the consideration of what a candidacy does to or for a family” weighed in her decision.

“I believe not being a candidate you’re really ur unshackled and you’re allow to be even more active,” Palin said, saying she expected to be active in trying to defeat President Obama and in Congressional and gubernatorial races.

Palin's letter said she wouldn't seek the 2012 Republican nomination, prompting Levin to asked if she'd consider running as a third party candidate.

Palin said she wouldn't do that.

"I would assume a third party would just guarantee Obama's re-election," Palin said.

Levin started off his interview by reading the letter from Palin:

After much prayer and serious consideration, I have decided that I will not be seeking the 2012 GOP nomination for President of the United States. As always, my family comes first and obviously Todd and I put great consideration into family life before making this decision. When we serve, we devote ourselves to God, family and country. My decision maintains this order.

– Sarah Palin

Meanwhile, Palin's political action committee, SarahPAC, posted this video to YouTube, saying "“You don’t need an office or a title to make a difference."

From Kyle Hopkins in Anchorage --

A quick look at early results from city and borough elections held across the state Tuesday. We'll update as more info becomes available:

2:30 p.m. UPDATE: Barrow voters reject liquor store
A controversial proposal to create a city-run liquor store in Barrow failed 609-485, the mayor says.

Voters rejected the effort by a 12 percent margin, according to unofficial figures provided by Mayor Bob Harcharek. The proposal, placed on the ballot by petition, would have allowed local liquor sales in the North Slope city for the first time since at least 1997.

Only 90 absentee and questioned ballots remained to be counted, according to unofficial results.

The liquor store could have poured $500,000 to $1.5 million a year into city coffers, Harcharek said, but many Barrow residents worried it would have increased alcohol-abuse and alcohol-related deaths in the community.

Two Barrow city council seats also were on the ballot. George Olemaun defeated incumbent Mike Schults and others by more than 100 votes, Harcharek said. Incumbent Lloyd Leavitt also lost his seat. Qaiyaan Harcharek is leading that race with 378 votes, followed by Carolyn Thompson (330) and Leavitt (288), the mayor said in a short phone interview today.

...

Mat-Su Borough
Valley voters approved about $246.7 million in school and road bonds. The new construction projects are expected to cost the average homeowner more than $230 in taxes each year, according to borough figures.

In the Assembly races, Steve Colligan is leading Pat Johnson in the race to replace Mark Ewing of Wasilla. Colligan holds about 55 percent of the vote, according to unofficial results.

In the school board contest, incumbent Erick Cordero beat Lynette Warhus 3,898-2,624.

Read the results here. Incumbents fared well in races across the Valley, the Mat-Su Frontiersman reports.

Darcie Salmon was running unopposed for an Assembly seat while Ole Larson ran unopposed for school board.

Voters approved the $214.5 million school bond by a roughly 6 percent margin, according to the early figures. The bond will pay for school construction projects over a five-year period.

The $32.2 million road bonds package passed by about 59 percent to 41 percent.

Someone with a $208,000 home -- the average median assessed value of Valley homes in 2011 -- will pay an additional $231.29 a year in taxes to cover the bonds, according to the borough.

...

North Slope Borough
The mayor’s race looks to be a close one. Only two dozen votes separate former borough Assemblywoman Charlotte Brower (559 votes) from George Ahmaogak Sr. (535 votes).

But there are also 543 write-in votes –- many likely cast for Kaktovik tribal administrator Fenton Rexford, who is running a write-in campaign.

Last I checked the results weren’t on the borough website. The numbers above are from an unofficial tally the borough sent me this morning.

Those figures are missing a small number of votes from Point Lay, said Borough Clerk Jeannie Brower. As of about 11:30 a.m. today, the borough was waiting for a plane to arrive with ballots from the village.

Votes cast in Point Lay couldn't be counted in that community because of a paper jam in a voting machine, Brower said. The ballots will be counted by machine when they arrive in Barrow, she said.

“It’s not going to affect the results that much because there is hardly anybody in Point Lay that voted. It’s just going to put a scratch on the outcome," Brower said.

...

Fairbanks
Fairbanks North Star Borough voters rejected a proposal to impose emission standards for wood smoke. The initiative would have banned outdoor wood-fired boilers and all coal-burning devices within areas that don't meet federal air-quality standards.

(Ever gone running outdoors in Fairbanks in the winter? You come home smelling like a wood stove.)

About 60 percent of voters said no to the proposal.

Former state Rep. John Davies won election to the Borough Assembly with 53 percent of the vote in a three-way race with incumbent Joe Blanchard (25 percent) and Joshua Bennett (21 percent.)

Read the election results here.

From Sean Cockerham in Anchorage –

Massachusetts Rep. Ed Markey is calling for a hearing to investigate Alaska Native Corporation federal contracting in the wake of a massive bribery and kickback scandal involving an executive at a subsidiary for the Eyak Corporation.

Markey, Democratic ranking member on the House Committee on Natural Resources, today wrote the committee chairman, Washington Republican Rep. Doc Hastings.

From Kyle Hopkins in Anchorage --

Unofficial results are up for the Wasilla city elections, and Mayor Verne Rupright looks poised to win a second term.

He's leading council member Dianne Woodruff 453-284, with just 185 early/absentee and questioned ballots remaining to be counted, according to the website.

Council member Taffina Katkus is trailing in third place with 192 votes.

Think any of the write-ins were for Levi?

From Kyle Hopkins in Anchorage --

In case there was any doubt ... East Anchorage Assemblyman Paul Honeman plans to hold a Wednesday morning press conference "to announce his bid for the Municipality of Anchorage Mayor's office."

From Sean Cockerham in Anchorage –

Alaska Sen. Lisa Murkowski has hired a new fisheries adviser to replace Arne Fuglvog, who pleaded guilty in August to breaking commercial fishing laws.

Murkowski said today that Stefanie Moreland, who has been working for the Alaska Department of Fish and Game as its federal fisheries coordinator, will be her new legislative aide covering fisheries and Arctic matters.

The late Sen. Ted Stevens, then-Gov. Sarah Palin, Sherry Katz, John Katz, the late Gov. Wally Hickel and U.S. District Judge John Sedwick pose together in August of 2008. (Photo courtesy Alaska governor's office)

From Sean Cockerham in Anchorage –

John Katz is resigning as head of the state’s Washington D.C. office after working for eight Alaska governors over the course of more than 32 years.

His resignation is effective at the end of the year.

From Sean Cockerham in Anchorage –

The Interior Department today reiterated its support for drilling in the National Petroleum-Reserve Alaska at a meeting of the Energy Council, a group of legislators from oil-producing states.

Alaska legislators at the meeting in Anchorage said Ned Farquhar, deputy assistant secretary for land and minerals management at the Interior Department, told them that a disputed bridge across the Colville River into the petroleum reserve can be done safely and is the best option to access the area.

From Sean Cockerham in Anchorage -

A report from the nonpartisan legislative research division raises questions about what Gov. Sean Parnell’s proposal to slash the state’s oil production tax would mean for Alaska’s bond rating.

The report by legislative analyst Chuck Burnham was at the request of Anchorage Democratic Sen. Bill Wielechowski, an opponent of Parnell’s proposal to roll back the state oil tax. Wielechowski asked how the state’s bond rating would be impacted if the production taxes were lowered.

From Sean Cockerham in Anchorage --

The energy council, a group whose annual spring gatherings in Washington D.C. shut down Alaska's legislative sessions because so many lawmakers go, is bringing its show to Anchorage this week.

The energy council is holding a meeting at the Captain Cook Hotel that’s expected to include legislators from around the country, coming to talk about oil and gas and see what the state is about.