The promoters of the Alaska LNG project hope that the Trump administration will boost the economics of the project by branding it as essential for national security, which could create new ways to subsidize and speed up the project.

A declaration of this sort could go along with long-term contracts in which the federal government would promise to buy gas from the project for decades to supply Alaska military bases.

The Dunleavy administration has not spelled out any of this in detail, but Frank Richards, CEO of the Alaska Gasline Development Corp., presented an outline of how the Trump administration could boost the project.

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The United States is summoning officials of Japan and South Korea to Alaska June 2 to continue the pressure campaign to get those nations to pledge tens of billions for what Sen. Dan Sullivan calls “America’s Gasline.”

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The Dunleavy deficit and his failure to propose to do anything about it went unmentioned in all of the news coverage of the failed legislative attempt to override the Dunleavy education veto.

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If the Legislature fails to close the loophole and fails to cut oil tax credits, the consequences will be lower Permanent Fund Dividends and less money for education and other services.

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Sen. Dan Sullivan’s unfortunate vote to defend the idea of reductions from Medicaid helped guarantee that the plan to cut $880 billion—which would lead to tens of thousands of Alaskans losing Medicaid coverage if the state does not pick up the cost—remains alive in Congress.

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On Thursday, Dunleavy snarled his way through a press conference in which he failed to take any responsibility for planning to spend $2 billion more than the state is taking in—pushing the state toward a real crisis.

He said he’s not interested in taxing and spending. His actions, not his words, show that he is interested in spending state savings down to zero without doing anything to stop the decline.

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“We’re talking about laying pipe as early as the end of this year, the beginning of next year,” Sen. Dan Sullivan claimed to Fox News on April 10 about the Alaska LNG pipeline.

“And it’s got President Trump’s name all over it, cause if it happens, it will be largely due to him,” Sullivan said.

It’s not going to happen, as anyone who looks at the calendar can tell.

Gov. Mike Dunleavy, drinking from the same fountain of wishful thinking as Sullivan, recently predicted on Fox News that the pipeline would be supplying gas to Cook Inlet by October 2027, which is also not going to happen.

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With Gov. Mike Dunleavy in absentia, a divided Legislature is left grappling with Alaska finances when there is no fiscal plan, no hope of a fiscal plan and no leadership.

It would not be complicated to fix this. It would take a modicum of political courage, however.

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The Alaska Industrial Development and Export Authority has repeatedly boasted that its earnings last year—$65 million—were strong enough that it contributed $20 million to the state general fund.

It was that boasting, in part, that led the State Senate to decide that AIDEA should contribute $32.5 million to the general fund, an increase of $12.5 million from the amount approved by the board.

But AIDEA’s cash income should be tapped to do more to fight the Dunleavy deficit.

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When the Senate Resources Committee advanced a bill to close the Hilcorp loophole, Anchorage Sen. Matt Claman said he had “no recommendation” on the bill, which is tantamount to saying he wants the loophole to remain.

Claman’s opposition could be crucial in blocking the bill. I have asked him to explain, but he has not responded so far. Alaska news organizations have yet to examine his opposition.

Closing the Hilcorp loophole, an idea that is understandably unpopular with billionaire Hilcorp Owner Jeff Hildebrand of Texas and his employees, would be a small step toward a sensible Alaska fiscal plan.

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