Westerners to get an idea of what that means to the asian culture, especially someone thats a big and as proud and longstanding as china. They lost a lot of face as that and they have that never again mentality. After they start, mindset we will build up our navy and Defense Forces in such a way we never lose face like this again. Sunday night at 8 00 p. M. Eastern on cspans q a. Next Alaska Governor bill walkers state of the state address. He highlighted efforts to boost the states revenue and employment through oil and Natural Gas Development and increasing mining and timber production. Also, education and health care. President kelly, speaker edgman, members of the legislate legislature, members of the cabinet and my fellow alaskans, good evening. Thank you for this opportunity to address the second regular session of the 30th legislature and speak directly to the people of alaska. Lieutenant governor, over the last three years you have been so much more than a lieutenant governor. You have been a friend, a brother, a shoulder to the wheel. Your fierce devotion to the state where we were both born inspires me every day. To my first lady of 40 years, donna, and to byrons first lady of 45 years, toni, thank you both for all you do of the people of alaska. Byron and i could not do our jobs without you. [ applause ] i also want to acknowledge our daughter, tessa, soninlaw dennis, as well as joey mallott and all the family members tuning in. Thank you all for your daily support and encouragement. [ applause ] to my cabinet and staff, your diversity of thought, experience and background have collectively formed the backbone of this administration. I am proud of you and grateful for your dedicated service. [ applause ] to our military men and women, and first responders, who run toward danger, to protect and defend others, you are our everyday heroes and to the families of the three young alaskans, private first class hanson kirkpatrick, chief warrant officer jacob simms, and Staff Sergeant david brabender, who lost their lives last year while in combat and in support of combat operations, we extend our deepest sympathies and gratitude. [ applause ] a debt of gratitude is also owed to our 70,000 alaskan veterans. Thank you all for your sacrifice, your service, and your selfless dedication to this state and this nation. [ applause ] and finally, to my fellow alaskans watching or listening all over the state, being informed is critical to being part of the solution. Thank you for your engagement tonight. [ applause ] i dont have to tell you how richly blessed we are to be alaskans, to live in a land of unparalleled beauty with limitless potential. Of course, we have some challenges. Some more difficult than others. But my optimism this evening comes directly from the state of our state, from the strength and resilience of our people, and from the steps we are taking to control our own destiny by building a safer, smarter, stronger alaska. [ applause ] i would like to start by sharing a story from the past year. Last october, byron and i sat with a 17yearold as he delivered his keynote speech to the elders in news conference. Chris told us about a simple Facebook Post about a successful bowhead whale hunt that provoked a thunderstorm of threats and hateful messages from outside alaska. This wasnt the first time chris had faced challenges. He told us about one hunt when the clamp on the boat motor broke and he helped keep the motor in place by gripping the steering shaft in his hands for 100 miles for the ride home. He told us about running aground during a hunt and how he had to camp out in the cold for two nights until search and rescue could arrive. I was inspired by chris story. While some 17yearolds might be feeding their egos, chris was feeding his village. One reporter tweeted that alaska is a great place because the governor will hold the mic of a teenager in a polar bear hat for 20 minutes so he can talk about whats going on with whale hunting. Chris had plenty of opportunities to give up or get discouraged but instead, he is standing tall as a leader for his people. To that, i say alaska is a great place because we are home to people like chris. People who persevere [ applause ] people who persevere and triumph in the face of adversity. And if this young man can land a bowhead, survive the wilderness, hold a boat motor together for a 100 mile journey, the least i can do is hold his mic so the world can hear his story. At best, alaskans are tough. Resourceful, and independent. We harvest king crab in the bering sea in midjanuary. We run dog teams 1,000 miles to nome. We come back from hunting and share our moose meat with our elders. We take pride in not doing things the way they do them in the lower 48. Some refer to alaskans as imagineers. We dont have a 1800 number for every problem. We are alaskans and we figure it out. At some of the most pivotal moments in our history, our rugged independence has carried the day. We fought tooth and nail to become a state and to make sure that the oil pipeline was built, transforming our economy. Alaskan leaders like nick beggich, and ted stevens, worked for years to develop the groundbreaking alaska native claim settlement act. Too often, however, we have played a passive role. In the past we have accepted the idea that tough negotiating is bad for resource development. We have assumed that addressing the reality of Climate Change would somehow be imcompatible with building major infrastructure and improving our quality of life. We have conceded that our politics at home should look just like the dysfunctional partisanship we see in washington, d. C. Byron and i ran for office because we believed this antiquated system sets us up for failure. Sure, it works fine when theres plenty of money to spread around. But when you dont make tough decisions to plan for the future, you leave the destiny up to chance. Thats exactly what we saw when the price of oil crashed to 26 a barrel at the end of 2014. Fortunately, we meet alaskans who are making tough decisions and taking control of their future. In valdez, they suffered a devastating fire in late 2016. Some suggested the owners, Mike Williams and his sister should take the insurance money and call it a day. Mike and connie had a different plan. I saw mike the day he signed a new construction loan and with a deep emotion, he told me bill, i believe in valdez. I believe in alaska. Not only are we going to rebuild, we are going to rebuild with all alaskan materials, alaskan contractors, and alaskan labor. [ applause ] it is on track to open in time for tourist season this year. From new breweries, to energy and Small Business startups to Large Companies making significant new investment on the north slope, alaskans are committed to this state. They are making tough decisions and fighting for their future. They deserve leaders who are willing to do the same. [ applause ] alaskans, we are turning a page in history as we move into position to control our destiny. Let me describe what controlling our destiny looks like. When alaska became a state, the alaska statehood compact established conditions for our entry. Alaska was granted 103 million acres of public land and became the only state in america with exclusive ownership of the resources in the ground. The message from washington, d. C. To the new state was clear. Alaska was to develop our Mineral Resources in order to establish a viable economy and support the cost of selfgovernment. Therefore, controlling our destiny required taking aggressive measures to access and develop those resources responsibly. It means pursuing innovative measures to fill up the oil pipeline. The model today is for the state to provide the infrastructure to develop our resources. This is the customary role of government. We make nothing on Oil Discovered but left in the ground. Access and production are key. We are now working to develop toll roads so exploration can take place 12 months a year, rather than just in the winter months. We applaud the recent production activities which have resulted in two consecutive years of increased Oil Throughput in the pipeline. We also welcome all the new players out in the field working hard to increase production. This year, we saw the highest dollar bids on north slope lease sales in over 20 years. We also applaud the successful efforts of our congressional delegation to secure access for responsible exploration in the land set aside decades ago for development, the 1002 slice. [ applause ] however, even with all this welcomed activity, oil alone is no longer the sole answer. We must diversify our portfolio. The most promising opportunity to emerge has been the accelerated momentum to develop our huge natural gas reserves. It is fortunate that the legislature created the Alaska GaslineDevelopment Corporation in 2010, and that the late dan fauske skillfully put the organizational structure together. I am frequently asked how the joint Development Agreement we signed on november 9th between alaska and china is different from prior agreements. Let me briefly explain. First, alaska at the request of the producers, has taken the lead in the gas line project and for the first time in the projects history, we are working directly with the l g markets. Second, chinas participants in the project are among the Largest Companies and Energy Consumers in the world. They include the Worlds Largest integrated oil and gas company, the worlds fourth largest bank and the worlds second largest sovereign wealth fund. Third, china has long been alaskas largest trade partner with its 1. 4 billion population. China wants alaskas cleanburning gas. Fourth, the alaska l g project has the full support of the president of the United States and the full support of the president of china. Both leaders now have a vested interest in its success. At the federal level, agdc has been granted taxexempt status which significantly improves the projects economics. The white house has also granted fast track status to the project to help expedite review and permitting. Nothing on alaskas horizons has greater potential to fuel and propel our prosperity than this opportunity. Jobs, low cost energy for alaskan homes and businesses, clean air, and a healthy economy all across the state are whats at stake. A strong project labor agreement. Alaskans will be first in line to go to work on the gas line. [ applause ] since that signing, i have held critical meetings here in juneau with the ceos of three north slope producers. We had productive indepth discussions on securing gas supply and on the mutual benefits of this project for their companies and for alaska. The companies are engaged and those high level talks are continuing. I know what this project would do for alaskans, especially young alaskans. I experienced something similar in the 1970s. I remember standing outside the laborers 341 dispatch trailer in valdez to receive a dispatch ticket to unload and stack pipe coming from japan to build the pipeline. While i cant remember the name of the person who handed me my law school diploma, i will always remember the business agent who gave me that dispatch ticket. That first dispatch opened a world of opportunity for me. This led to further dispatches as a journeyman carpenter that helped me pay for my college, my first home, my First Business and law school. The alaska l g project does not come together overnight and there is much work to be done but together, we are proving when alaskans take the lead, alaskans get the job done. [ applause ] it is time that we, as alaskans, define our future rather than hope somebody else defines it for us. We must have a thriving economy and an Education System that can support the type of jobs and investment needed to improve our quality of life. One that provides opportunities for all alaskans, todays generations and tomorrows. Being such a majestic and resourcerich state, we have much more options than most. We are welcoming a recordbreaking number of tourists and our Winter Tourism continues to grow. We have world class fisheries and are now promoting new opportunities such as kelp and shellfish production and we will continue to prioritize healthy salmon habitats that benefit all users. [ applause ] alaskas large retailers are expanding efforts to market alaskagrown agricultural products. This has prompted some farmers to significantly expand their production. We have an unlimited opportunity to meet the instate demand for livestock and produce. With agriculture, i often say we dont need to look for the market, we are the market. Mining. Mining provides 8600 highpaying jobs in alaska. It injects hundreds of millions of dollars into the states economy through rents and royalties. New projects could add millions of dollars in new revenue and greater Job Opportunities for alaskans. A bright spot in our Forest Products is our ongoing effort to work collaboratively with all stake holders to promote a viable and sustainable industry. This includes the recent use of the Good Neighbor authority, allowing the state to partner with the u. S. Forest service to complete work on National Forest lands. It cannot be overstated that energy, mineral and Timber Development depends on access to our natural resources. Federal restrictions to access in southeast via the 2001 rule has harmed our ability to develop our resources. Alaskans are the best positioned to determine responsible development. Today, my administration filed a petition with the u. S. Department of agriculture to undertake a rulemaking process to restore the exemption to the region. [ applause ] over the past three years, our state corporation has invested over 425 million in alaska businesses and projects. Ada has leveraged over 1 billion in private investment and supported the creation or retention of over 3200 permanent private sector jobs and over 3,000 construction jobs. Almost every time i visited the late governor hickles office, he would show me on his globe how asia with its close proximity to alaska is where our unlimited opportunities lie and how right he was. We are assembling a multiindustry trade mission to asia this year to advance other opportunities with our largest trade partners. We are also working to begin direct flights from asia to alaska. This will help us to attract more of the hundred plus million asian vacationers each year to further enhance our extraordinary tourism industry. Alaska is open for business, and we want the world to know it. [ applause ] in our effort to create a safer, smarter, stronger alaska, we are restoring confidence in our institutions, demanding accountability, and rebuilding the public trust. Government itself is now more efficient. While maintaining most public services, state spending, including capital spending, is down by 40 and the number of state employees had dropped by nearly 3,000. We have closed over 40 state facilities and significantly reduced or eliminated state funding in more than 100 programs and services. Public trust has been restored in our National Guard. Alaskas National Guard is now a beacon of honor and continues to deploy for Wartime Missions and Disaster Relief to defend and protect our nation. Major general humell and her team have assumed a leadership role in the development of the defense doctrine. We are also working not just to preserve alaskas current military force structure but to grow that structure. [ applause ] i have heard from many of you that it doesnt matter whether you live in minto or muldew, theres no meaningful future without feeling safe and secure. Last october, the attorney general, working with the department of Public Safety, department of corrections, department of health and social services, launched a 68point Public Safety action plan. The plan increases efficiencies and partners with local and federal Law Enforcement to attack crime headon. My budget [ applause ] my budget for fy 2019 is in support of that plan. It adds 34 million for Public Safety. We must have the resources required to keep alaskans safe and secure. [ applause ] a major focus of the Public Safety action plan is to stem the tide of Illegal Drugs by increasing prosecution of traffickers and holding them accountable with greater penalties. The Opioid Crisis has devastated so many families and communities. On february 14th of last year, i issued a declaration of emergency and established an incident command structure to coordinate responses. This has proven extremely effective way to marshal available resources and we are already seeing results. One example is the increased use of drug dogs. In 2017 alone, our three k9 teams have confiscated thousands of grams, hundreds of thousands of dollars in drug currency. One of our drug dogs, moka, is featured in an ad at the seatac airport. Beneath her smiling photo it reads if you bring drugs to alaska, i look forward to meeting you. [ applause ] controlling our destiny depends upon our children receiving an excellent education that prepares them for good jobs, college, rewarding careers and for life. The department of Education Early Development working with the state board of education has just completed a yearlong statewide outreach effort to develop practical approaches to improving our Education System. Parents, teachers, school districts, legislators, as well as other interested Citizens United around three commitments which will drive meaningful changes in the coming months and years. Building on the many instances of educational success in our state, we will Work Together to increase student success, cultivate safety and wellbeing, and support responsible reflective learning. An excellent Education System also requires a strong university system. Faced with unprecedented budget challenges, the university of alaska has made drastic cuts but under the capable leadership of the university of alaska board of regents and administration, the university continues to produce wellprepared graduates and excellent programs. We are strengthening relationships among our own people, particularly with alaskas tribes and native people. In years past, our governments did not work well together and resorted to litigation but today, we are identifying barriers and developing policy to build a foundation of respect and collaboration. [ applause ] the governors Tribal Advisory Council and our new willingness to join forces for the good of alaska have already yielded strong results. The historic compact between the office of Childrens Services and tribes to benefit our children in foster care is one example of a giant leap forward. We will continue to find opportunities to Work Together, heal the divide and celebrate the rich history and the contributions of alaskas first people. [ applause ] securing our future must also include addressing the fact that alaska is at ground zero for Climate Change. Retreating sea ice and glaciers and thawing permafrost are not partisan issues. They are a social, environmental and economic one. As chris, the 17yearold hunter explained, Climate Change has created a new challenge for his people. Storms are more frequent and more intense. The ice is more fragile and takes longer to arrive each year. Hunters must now travel more than 100 miles to find the whales and walrus they used to harvest just offshore. The evidence of Climate Change is obvious offshore and it must be part of a healthy resource economy. Last fall i established the alaska Climate Change strategy and appointed 20 outstanding alaskans to the leadership team. The team is charged with advising my administration on critical and timely action to address Climate Change challenges that will safeguard alaskans now and for future generations. [ applause ] a Healthy Future means a healthy alaska. Nearly 40,000 additional alaskans are now receiving health care since i accepted Medicaid Expansion. [ applause ] many lives have been saved or drastically improved and Medicaid Expansion has brought over 500 million additional federal dollars and hundreds of jobs into our economy during a time of recession all at minimal cost to the state. However, health care continues to be one of our largest expenditures each year. We have been working internally with other states as well as with the federal government to explore options to reduce Overall Health care for all alaskans. We have been successful in reducing Health Care Insurance premiums in alaska by 26 this year. Establishing a Reinsurance Program thats now being modeled around the country. We are also anticipating that after years of unified efforts by many alaskans, the lifesaving eisenbeck road will finally be built. [ applause ] despite many obstacles, alaskans persevered in their fight for access across federal land to safely secure emergency medical treatment for the residents of king cove. When we pull together for a common goal, alaskans are mighty and victories are won. [ applause ] even with all the good news, theres still one thing standing in the way of truly controlling our destiny. And thats our inability to get our own fiscal house in order. Credit rating agencies, investors, employers, and the Real Estate Market are all waiting for longterm sustainable fiscal solution. Without one, alaskas economy will remain in jeopardy. We celebrate that Oil Throughput and oil prices are up, but even with these positive developments, the fact remains the pipeline currently is threequarters empty. Oil revenues which once funded up to 90 of our state budget now fund approximately 30 . Controlling our destiny requires accepting that our Financial Assets such as the Permanent Fund, generates much of our current revenue. When combined with broadbased direct participation by individuals, alaskans can take charge of our fiscal future. [ applause ] unfortunately, in recent years, alaska has fallen behind the rest of the country and the consequences are significant. We are the only state that does not have a financial connection between its economy and the Government Services provided. The only state funding a huge deficit from savings, and the only state that does not have either a statewide income tax or sales tax or both. On the other hand, we are also the only state that pays its residents a dividend and that, we will continue to do. [ applause ] we have the resources, we have the wealth. I ask each of you, do we have the courage to seize alaskas destiny and pay a modest temporary tax. Accept a 1200 and growing dividend and use the Permanent Funds in a manner thats fair to future generations. Over the past three years, the failure to adopt a sustainable fiscal plan has caused the state to drain 14 billion in onetime savings. Lets put 14 billion in perspective. Last year, our municipalities identified their top three wish lists, Infrastructure Projects, for a combined total of 2. 5 billion. Three major Infrastructure Projects could have been built in many communities throughout alaska. Think of the jobs, the economic boom, the needed improvements across the state that could have been secured for 2. 5 billion. Instead, we have spent 14 billion in savings really with little to show for it. And now we have run out of savings to cover the deficit. Let me be clear. The longer we hold on to partisanship, the longer we hold on to the deficit. [ applause ] when i ran for governor in 2014, the state had a 1. 6 billion deficit that was not being addressed. That deficit quickly escalated to 3. 7 billion in 2015. Community and Business Leaders across alaska recognize that no solution to our budget deficit was possible without a plan for using the earnings from our Permanent Fund. When no component of the sustainable fiscal plan passed in 2016, including the Permanent Fund protection act, i made the extremely difficult decision to reduce the dividend appropriation in order to save the Dividend Program itself. This past session, the house did pass a complete fiscal plan. Thank you. [ applause ] and the senate and house both passed legislation that reduced the pfd to a sustainable level. Nobody in this building wanted to reduce the Permanent Fund dividend. I know how hard that decision was. I also know that the worst decision we can make at this time is no decision. Our fiscal problems will not be resolved through inaction. I also thank both bodies for bringing the small explore oil tax program to an end. It was a necessary step in getting our fiscal house in order. Now that the program has terminated, i have introduced legislation to pay the credits owed to these Small Companies at a discounted amount that result in no additional cost to the state. It is time to put alaskans back to work and thats why i introduce the alaska economic recovery act. It does not take a team of economists to tell us what we already know. The economy is in recession. Alaska has the highest unemployment in the nation. At the same time, the lean capital budgets over the last few years have meant our schools, roads and infrastructure are way overdue for maintenance. These projects are important and benefit alaskans across 60 communities from our youth to our seniors. For example, school roof in nome need replacement. Three schools need water system replacement. Our homes need important upgrades. And the port is in dire need of upgrades. This bill includes partial funding of that work in addition with funding for the municipality of anchorage. Passage of the economic recovery act will reduce our huge growing contingent liability of deferred maintenance throughout the state, provide a needed shot in the arm to the economy and create jobs, move us towards a balanced overall solution. I have often said that one of the best cures for many of alaskas social ills is a job. The alaska economic recovery act is an opportunity in the near term to put alaskans to work in the very communities where they live. Now, you might be wondering how i can be so upbeat about the state of the state in light of the challenging fiscal circumstances in which we find ourselves. No question, our prosperity hinges on solving that problem. But i have faith in alaskans. We are hardworking and practical and we will step up when needed. [ applause ] let me explain what i mean. As i had mentioned before, i was born in fairbanks and spent my earliest years there and in delta junction. Following our move to delta, my dad had to be hospitalized in fairbanks for months after a serious forklift accident. This left my mom alone to care for four small in children in our rustic home with no Running Water or electricity and only a fireplace for heat. My oldest sibling, bob, 10 years old at the time, vividly recalls the hours before and after school helping our mom gather and chop wood to keep the fire going during the waking hours. The nights were long and bitterly cold. We had one hot water bottle that my mom would rotate each night at bedtime to four children. There was no income during this time. A collection jar was set up at the Grocery Store for our family. A delta resident and his wife learned of our dire situation. He came to our home and saw that we were barely making it. Hank said come on, you are all moving in with us. They already had four children of their own, yet they took us in until dad was back on his feet again. Our families became lifelong friends. Even after my dad was better, work was scarce. We had to scrape together a living. One endeavor involved selling ads and publishing the walkers weekly, a local newspaper my brother bob and i would deliver throughout delta on our bikes. Additionally, for several years, we advertised in the Readers Digest and redbook magazine for 1, we would write letters from santa that my dad would drive 90 miles to north pole to mail. I remember feeling like i was a pretty big part of santas operation at that time. Standing before you tonight as your governor, i can say that i know what its like to have plenty and i have known what its like to have practically nothing. Leading the state at this critical time, i often reflect upon my familys history that defines me. My family had to face its challenges with courage and determination. We would assess our options, come up with a plan. We would all do more than our fair share. We would conserve our resources, be creative and pull together for the good of the family. It is the capacity and empathy and generosity like that of the brewers family and the experience of my own familys perseverance and adaptability that form my opinion of what it means to be an alaskan. Knowing that there are over 730,000 of us out there, i cant help but be optimistic that we can tackle any challenge that comes our way. [ applause ] beyond the security and economic issues, what i have heard most the alaska state of the state address as well as other speeches Available Online cspan. Org. Just type the states name in the Video Library search bar on the home page. We are going to leave it here for the Senate Armed Services subcommittee on cybersecurity and the Defense Department roll in fighting hackers who try to influence the u. S. Election process. Expect to hear about the vulnerabilities in the system during the 2016 elections and russian efforts to hack Political Institutions and manipulate social media. Hearing should be starting shortly. The Ranking Member bill nelson of florida