Cronyism Hurts Everyone

Alaska labor commissioner retiring effective March 23, 2012 – Anchorage Daily News.

On March 15th, the Anchorage Daily News published a short article announcing Governor Palin’s appointee Commissioner Click Bishop’s resignation from the cabinet.  A midterm cabinet member’s resignation would seem odd to me if there weren’t an election coming up this fall.  It isn’t farfetched to imagine jumping from the Administration to the Senate. Stranger things have happened.  Who knows who will throw their hat in the ring?  If the rumor mill is correct, that is the plan here.

What is odd about this article is that a Palin appointee is leaving and it did not generate a single comment; not a snark, not a nasty gram, no typical Palin Rage.  He’s done the best job of going completely unnoticed I’ve ever witnessed.

Looking forward, our state leaders have an opportunity to do something wonderfully different.  They can and should select a new commissioner who is visionary; an expert in public administration.  One who can take the Department of Labor to the level it has the potential to go.  It is exciting to think about such an opportunity.  A leader with deep integrity and high standards; wise, compassionate, experience – plus a field related education – could unleash new ideas.  This approach would help grow the economy, bring down years of double digit unemployment in rural Alaska, and reduce poverty.  These things can be done given a talented leader.

It is time for our elected leaders abandon cronyism in filling these positions.  Give us what we so desperately need.  The disparity between those who can (urban, rail belt) participate in the economy and those who cannot (off road, rural) is deplorable.  No state department is more important in closing that gap than the Department of Labor.

The commissioner for the Department of Labor has evolved over many years to be the turf of organized labor.  This is a special interest group no different than any other special interest group such as open shop advocates, environmentalists, right to lifers, prochoice organizations, industry specific professional groups (like BP Oilies) and so on.

I am not anti-union; I just think special interest groups should stay out of government operations.  The government is a referee for many competing interests and must work unbiased for the greater good of all citizens.  A special interest advocate at the helm of any government office has the authority to direct and prioritize the use of state resources such as staff and funding.   Too much depends on the individual integrity of the appointee under this practice.  Cronyism, when abused, can result in the gross mismanagement of public resources, and even corruption.  A recent scandal involving Fish and Game Director Corey Rossi is a good example of how one man’s personal agenda allowed for his misdeeds.

Our elected leaders need to abandon the good old boy system (cronyism) and step into the world of modern management.  I do hope this appointment finds someone stellar to put in the driver’s seat at Alaska’s Department of Labor.  I remain optimistic.

Leaddog © March 2012

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Turn Up the Heat!

Dear Alaska Lawmakers:

Village residents from all across Alaska have expressed the dire impacts the home heating fuel crisis is having on their communities.  Alaska’s leadership, not Venezuela and not Russia, needs to step up their game.  Lawmakers have the authority and the state has the financial resources to make a difference.

The annual home heating fuel crisis threatens the lives and well-being of Alaska’s rural residents.  In any given year, a federal disaster application would not offer relief in time and is, therefore, not appropriate, sought after, or needed for a short term remedy.

The severity of a fuel crisis is impacted by several factors including, but not limited to, devastating temperatures causing increased fuel usage; ice in the rivers causing delivery problems, the high cost per gallon to transport the fuel, and high unemployment causing scarce wage earning opportunities.  This winter’s crisis has been especially frightening.

I have an idea.  Each village could briefly outline its definition of the crisis and submit its statement of need to their elected officials.  The legislature could then appropriate fuel relief grants according to the community needs – swiftly and with little red tape.  In total, these grants would be a drop in the bucket compared to the oil company tax relief subsidies proposed by the Administration.

I recognize longer term energy solutions are a priority for our elected officials.  The following article from the Fairbanks Daily News-Miner demonstrates one good effort underway:

Lawmaker wants to expand energy program in rural Alaska

“JUNEAU, Alaska – A Dillingham Democrat wants to expand a program that helps rural Alaskans pay for the cost of electricity.

Rep. Bryce Edgmon at this point doesn’t expect a groundswell of support for his proposal, HB294. But he does see the bill as a way to have a broader discussion on rural energy costs and the Power Cost Equalization program, or PCE.

Edgmon says energy costs are a major concern for his constituents. He says he hasn’t seen any other proposal that would provide immediate relief for rural Alaskans paying high energy costs.

The Alaska Energy Authority says the kilowatt-hour charge for electricity can be three to five times higher in rural Alaska than in more urban areas. PCE helps rural electric utility customers by paying a portion of their electricity costs.”

Another energy investment to benefit the rail belt communities is the state subsidized Susitna Hydro Project.  Anchorage Daily News, January 8, 2012, reports as follows:

“600 MEGAWATTS

Although the design currently envisions an installed capacity of 600 megawatts using three generators, it’s possible that could be increased to 800 megawatts by the time that the final FERC license application is submitted, according to the pre-application.

Once the system goes into operation, the topping up and drawing down of the system’s reservoir would be timed to meet Railbelt demand, with peak loads during winter. The facility would produce an average of 250 megawatts of guaranteed power between November and April, but with power output perhaps varying briefly between 100 megawatts and 500 megawatts, the pre-application says.”

I applaud these efforts.  However, hundreds of Alaska villages off the grid have been in an energy crisis year after year with no relief in sight.  This year’s weather created a crisis calling for immediate action. 

In closing let me say, as a fiscal conservative, one-time fuel grants will not grow or expand government.  They would extend a helping hand to our neighboring communities.  It is an opportunity to put people first in the annual fight over discretionary dollars.

LeadDog © 2012

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Breaking News…Governor Sarah Palin did not invent the crony system.

A scandal regarding an appointed state official recently rocked the Alaska Department of Fish and Game.  Numerous violations were filed against Director Corey Rossi prompting
his resignation.  Because Mr. Rossi was originally appointed by Governor Palin’s Administration, the predictable wave of Palin Rage rolled through the blogospheres.  It was as though she invented cronyism; the practice of giving jobs to friends, accomplices, co conspirators, and chums – regardless of their qualifications – especially in politics.  This practice is older than dirt.  If it weren’t so steeped in our system, it would be much easier to reform.

Now that the Palin Rage has diminished, it leaves the practice of appointed hiring an issue to be examined.  Like term-limits and discretionary spending, cronyism (as its used in this context) is a darling practice of the establishment.  Only the brave dare try to change it.  As a twenty-year plus state employee who served as both a classified employee and an appointed employee, I have seen it from both sides.

One aspect of appointees holds true with every administration.  Stellar people have been appointed, and some not-so-stellar people have been appointed.  Most fall into the first category; far less fall into the latter.

Appointees are needed in some instances.  It is, however, a hiring practice that can be
used and abused.  Today the term cronyism is often used synonymously with appointed state employees and political appointees, but there is a need for deeper analysis.

Elected officials have appointed staff.  This staff is expected to do a ton of work.  Legislators need competent, trustworthy, hand-picked, well trained politically savvy people.  In this instance, the flexibility to appoint employees is a must.

A Governor must have Commissioners that understand the Governor’s directives inside and out.  In a perfect world, the Commissioners would also have leadership skills such as vision, intelligence, integrity, compassion, and political savvy.  It is imperative the Governor be able to hand pick his or her Commissioners and Chief of Staff.  In the real world, a special interest group may occasionally manipulate a representative into the cabinet; however, this becomes readily apparent.  It is the Governor’s cross to bear and to make adjustments to correct it.

The Governor is not typically involved in Department appointments lower than the Commissioner’s Office level.  A Division Director, for example, is a relatively low level appointee when looked at from this perspective.  An exception is the Director of the Office of Management and Budget (OMB).  The Director of OMB is a position of exceptional importance to the Governor.

The Chief of Staff takes care of day to day government operations through the Commissioners.  Appointments within Departments are usually a task of the
Commissioner and Chief of Staff, and finally approved by the Governor.

At the Director’s level and below is where the appointee hiring practice has many problems.  To put it bluntly, it stinks like dirty bilge water in the bottom of a leaky boat.  I’ll write more about the abuse of this practice in my next article; stay tuned.

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Keep Trying or Just Settle

January 13, 2012

Should I keep trying to make a difference in a constructive way, or settle for the status quo? This is the question I’m asking myself with the start of the Alaska legislative session in a few days.  Alaska’s governing system has many flaws, but it is what it is – so I’ll keep trying.  My logic tells me if I were to settle, then I would also have to shut up; both unappealing and unlikely.

This year I will implore every legislator to look at several issues of import and please not allow one issue to monopolize their time.  Issues such as oil tax reform and affordable
energy resources are critically important; their importance cannot be overstated.  However, there are simple things the legislature could do that might make life easier for rural residents in the short term.  I will mail all of the legislators the following ideas just to start someplace and get the ball rolling.  Feel free to join me.  There is strength in numbers.  Ideas welcome.

  • Appropriate funds to purchase and install larger bulk fuel storage tanks with a priority for communities dependent on barge deliveries;
  • Expand the Power Cost Equalization (PCE) program to include local business in communities where residents already meet the program criteria. This would likely create a few new jobs as well as avert winter fuel shortages;
  • Order a third party audit of all state statutes and regulations that limit or restrict subsistence food gathering, hunting, and fishing. Do away with restrictions that don’t serve a specific purpose.
  • Ask each Department to explain in plain English how the distribution of scarce staff and money is determined. Do they have a consistent formula to insure consistency? Ask how many staff each Department has stationed in rural hubs.
    Publish your findings.
  • Order a third party audit of total the costs versus benefits of the 110+ state boards, commissions, and staff.  Cut the waste.
  • Publish the recommendations the Rural Subcabinet was ordered to give to the Governor two or three years ago. There may be some good ideas to consider in such a report.
  • Establish a website and solicit ideas from Alaskans. Ask for ways the State could help rural communities manage the high cost of living in the short term. A lot of expertise lives in Alaska!

My next question will be “Did any of our elected officials make a genuine effort to ease the high cost of living for residents living in rural Alaska?”  I’ll answer this one from the
voting booth next election.

 

LeadDog ©1/2012

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The Day Governor Palin Resigned

A movie about Governor Sarah Palin’s resignation, The Undefeated, is due for DVD release in October.  I’ve not seen it, but the pending release has me reflecting on that day, July 4, 2009.

The Anchorage Daily News posted an article that same day which read in part:

“Palin calls it quits…

Shock was the order of the day Friday when Gov. Sarah Palin announced her resignation. Many Alaskans had speculated that she wouldn’t seek a second term as governor to clear the decks for a presidential run in 2012, but no one expected her to walk away from the job with a year and a half to go.”  This statement seems shallow and more than a little harsh to me.

I was camping that morning when the radio interrupted its broadcast with a breaking story going live to Governor Palin.  Before she came on, everything stood still for me and I said out loud “She is going to step down!”  Then she did.  I was deeply saddened but not surprised.  I spent the rest of the week-end grieving the loss, feeling sorry for myself, and trying to buck up.  Our offices were only a few doors apart so I knew I would see her Monday.  I wanted to be composed.

Monday came and, sure enough, there she was by the elevator packing some of her personal belongings from her office to her car.  All my composure went flying out the window.  I went to help her carry things and could not stop my tears.  She did what she could to comfort me then we went for a little ride just to have a little alone time.  When she dropped me off I was still sad, but happy for her to get her personal freedom back; especially the freedom of speech.  I thought “What a strong role model for anyone who feels they don’t have a choice in their lives.  There is always a choice!”  This simple message is incredibly powerful when seen demonstrated in living color.

I know there were those with ulterior motives who pretended to support Sarah as candidate then Governor, and many more that underestimated her.  I credit most of that behavior to a collective resistance to change, and, in some cases gender bias, unbridled greed, and/or a great desire for position and power.  The establishment absolutely had to get rid of this rabble-rouser.  No one knew this better than the appointees within the bureaucracy.  The same ones who laughed at her around the water cooler before the election were sucking up like crazy after the election – trying to save their jobs until they could get rid of her.  No entity resists change as well as a bureaucracy, and so the dance of sabotage began and continued to the end of her term.

Sarah’s hunger for positive change is bigger than partisan politics.  The political system is broken.  We all know it!  She is saying it from the mountain tops to anyone who will listen.  The way she is treated reminds me of the experience of other social reform leaders I’ve watched in my lifetime.  None of them had it easy.  For example, Gloria Steinem, a leader of the woman’s movement in the 60’s and 70’s was ridiculed, called names, accused of pushing lesbianism, and marginalized by the establishment.  She had to start her own magazine just to get an honest message out.  The mission was equality for women, so simple and so obvious.

Our political system needs dramatic reform.  A lofty goal, so simple and so obvious.  Kudos to those determined to make a difference.  Sarah Palin is beating the drum for reform.  Although unintentional, resigning set her free to go that direction.  Her decision to step away from her office demonstrated strength, not weakness.  She really is her own person.

Anyone who thought Governor Palin would sit around and collect a paycheck if she could not be productive does not know her.  Anyone who expected her to sit down and shut up couldn’t possibly have heard or read anything she said on the campaign trail.  Her slogan was Take a Stand!

Resigning had to be an excruciating decision but Sarah is a very strong person; grounded in who she is.  I, for one, wish her well wherever her destiny takes her.  History tells us it won’t be easy.

LeadDog Alaska 

September 17, 2011©

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Just Imagine

The nation’s June jobs report listed national unemployment at 9.2% with an estimate of 16.2% as the more realistic measure of American joblessness.  It went on to say the private sector created 18,000 new jobs in June; not nearly enough to claim a viable recovery from the recent recession.  I hate to be insensitive to the nation’s unemployed, but imagine a 9%, or even 16%, unemployment rate in rural Alaska.  We would be dancing in the streets. 

Political pundits say jobs will be the number one issue in the upcoming presidential election.  I hope they are right.  We haven’t done anything about it in Alaska worth bragging about.

Rural Alaska has had depression era joblessness for the last thirty years (that I know of) and more likely since the subsistence economy was largely displaced by the cash economy.  The need for cash has increased while the opportunities to earn cash have not increased at the same pace.  A great inequity exists between those who can participate in our economy and those who cannot.

State government has not demonstrated any vision or provided any leadership to address this economic inequity.  It is shameful.   It gets some lip service in an election year but that’s about it.  Others just put their ignorance right on the table and say “If it costs too much, they should just move to where the jobs are!”  I suppose, if one has no deep sense of heritage or home, one could just move without much duress.  This strategy doesn’t work well for many others.

If the jobless issue is left to the bureaucracy to deal with, we will stay stuck in the past.  Change is not encouraged at the Alaska Department of Labor.  In fact, the longevity of its senior managers is a bragging point for AKDOL.  What is the Alaska Department of Labor’s vision to reduce unemployment?  Think Apprentice.  Are you serious?  This is a one trick pony if ever there was one.  It is another way of sticking your head in the sand and just doing nothing at all.  Taking a Governor moose hunting cannot be the only qualifier to head the Labor department, can it?  Somebody please say it isn’t so!  It is the definition of insanity to keep doing the same thing over and over and expect a different outcome.  Let’s do something – anything – different!

Alaskans need a group comprised of brilliant leadership and creative minds to tackle joblessness in rural Alaska.  Given the dynamics of cultural diversity, geographic hurdles, educational disparities, and limited infrastructure as it relates to workforce development is a huge challenge.  I realize the Alaska Workforce Investment Board exists.  On paper, the board reports to the Governor.  In reality, it answers to the Commissioner of Labor.  It is therefore rendered ineffective.  These are good people stuck in a bad situation. 

The legislature needs to create such a group.  The creative minds are here.  The group should be a balance of organizations, variety of perspectives, and regional expertise.  The group would be charged with reporting their action plan and recommendations to the legislature after public comment is taken.  Take the bureaucracy out of the equation; it is part of the problem not the solution!

Rural Alaska has been stuck in the rut of depression era joblessness for much too long!  Any plan for natural resource development needs to require a section for fair and equitable local workforce development and hire – with local defined by the impacted residents.

Anchorage and Fairbanks had the federal government to provide the foundation for their economic and infrastructure development.   It is time for the state to provide the same for rural Alaska.  That is, after all, where all of the state’s riches come from.  Rural Alaskans deserve a fair share of resource extraction revenue.  An equitable revenue distribution formula is in order. 

In fact, it is way overdue.

LeadDog Alaska © 2011

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Governor Sarah Palin Email Extravaganza

Subtitle:  What Was Old is New Again

The infamous Sarah Palin emails have come and gone.  There was no exciting fodder for scandal like the Corrupt Bastards Club of years the past, no juicy gossip like last year’s love caucus affair.  It was a rather anticlimactic event; big news day though!  How weird is that?

It seems the publication of this email record would close the door on this witch hunt, but a handful of people are still scraping for anything to continue the Sarah bashing.  I saw the emails and it made me think about the great contrast between the modern leadership style and the old leadership style.   The old style being stuffy, guarded, shifty, white, middle aged, and male.  I was also reminded of some who owe Sarah a BIG thank you.  I wonder if she ever got one from either of the people below – given the popular trend of distancing one’s self from her since her resignation.

Governor Parnell, under the cloak of being her supporter, accepted quite a gift from Sarah.  If she hadn’t given him a year plus in office before his own campaign, do you think he could have won the Governor’s race?  I don’t.  The 2010 Governor’s race was downright boring.  Alaskans were distracted by the Senate race, enabling him to slide in quietly.  He is Alaska’s luckiest guy!

Then there is Chief of Staff Mike Nizich.  By the time a new Chief of Staff was needed, Sarah had been convinced by her advisors (alligators in the moat – mostly Murkowski holdovers) that she needed seasoned staff in this position.  Mike Nizich, who had served about five administrations, fits that description.  He had been a deputy chief for years.  It was only when Sarah came along did he make top dog.  He has been there so long, there isn’t anyone he doesn’t know in state government.  Thus the subtitle; What Was Old is New again.

With Governor Parnell setting the course for the next three and a half years and Nizich driving the bus, I say, with sadness, that the Old Guard is back in full force, the status quo firmly in place, and the bureaucracy is operating like its old unexceptional self. 

Agree with Governor Palin’s policies, or not, she had Alaskans engaged.  As an extra bonus, she had the Old Guard off balance for a few years.  She campaigned in earnest and administered in earnest.  The Bureaucracy, a creature unto itself, is downright unwilling to change.  Governor Palin was short shafted, sabotaged, and rendered ineffective during her tenure.  Any wonder she resigned?   Score one up for the Bureaucracy.

Those who wanted change in Alaska are still here.  Sarah did her part.  After all, it is not a one person job.  Next time around for Alaska, it will be our turn to do the heavy lifting.  I remain optimistic given the new tools offered by social media.  It will be a whole new ball game and I can’t wait!

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“Alaskans First, Others Later” Letter to Governor Parnell from Nels Anderson, Jr.

Today Nels Anderson Jr. wrote the following letter to Governor Sean Parnell addressing the critical need for affordable energy in Alaska.  Nels Anderson Jr. has dedicated many years to public affairs, including service as a State Legislator.  Nels, thank you for your dedication to Alaska, and your permission to share your perspective with others.  Tara Jollie, Leaddog Alaska.net

June 9, 2011

Dear Governor Parnell:

The quote by your spokesperson in the story below caught my eye since it addresses a matter of great concern for me as a lifelong resident of Alaska.

“his [Governor Parnell’s] desire to see Alaska resources “help the rest of the nation’.”

This quote, I believe, addresses your ideas of using our resources to ‘help the rest of the nation’.

What about lowering the cost of energy for Alaskans first?

If your administration, other administrations and legislature had honored the people’s ANGDA initiative and stuck to the letter of the law regarding your oaths of office to uphold the Constitution and the laws of the United States and Alaska, we may not be worrying about declining oil production.

No governor or legislature fully honored the initiative that over 130,000 of us passed in early 2000. If the proper funding had been in place, it is conceivable that we could have had natural gas flowing this year. We could have had lower cost energy being delivered to more Alaskans, had more Alaskans working, more new funds for our treasury, and be building a petrochemical industry for Alaska.

I am as concerned as the next person about helping the ‘rest of the nation’ using our resources but I am also concerned about an oil producing state like ours that does not give its citizens a break when > it comes to lowering its fuel and energy costs for its residents.

Our villages in Alaska pay the highest fuel costs of any communities of the United States and your administration, legislature, our regional corporations, and federal government all have to work  together to do more to bring down the cost of energy for all Alaskans.

The PCE program, weatherization efforts, bulk fuel loans, LIHEAP, and other energy programs help but we need a state-wide energy policy and smart state-wide energy grid so that all Alaskans can get affordable, reliable, and long-term energy to develop its own resources for in-state use, add value here, and create wealth for Alaskans and Alaska.

We need to cap our fuel costs at $3 a gallon as proposed by Senator Hoffman in years past.

A State-Wide Fuel Coop and/or regional state sanctioned fuel coops could help by purchasing our Alaska State Royalty Oil, have it refined here, and distributed to our residents at no more than $3 a gallon for diesel, gasoline, jet fuel, heating fuel, and propane.

And finally, we need an Energy Czar to bring order to our energy efforts, coordinate activities, and fix an energy system in Alaska that is broken at best and totally ineffective at worst.

Our Constitution says that we are to use our resources for the maximum benefit of its residents. Doing any less than what is mandated by our Constitution rips us off and leaves us the poorer.

 I pray that more will be done to solve the energy crisis that has bedeviled our villages for over ten years, created energy refugees escaping high cost energy in their villages, closed schools, and has caused severe hardship among a large segment of Alaskan’s Rural and Remote population.

Best regards,

Nels Anderson, Jr.

Editor’s Note, this is Governor Parnell’s quote  referenced in the letter above:  Huckabee meet in Juneau by Becky Bohrer / Associated Press 06.09.11 – 02:54AM JUNEAU, Alaska – Alaska Gov. Sean Parnell discussed the state’s oil and gas potential during a meeting with Mike Huckabee on Wednesday.

Parnell spokeswoman Sharon Leighow said Parnell described the challenges Alaska faces with the federal government in developing its resources. She said Parnell also talked about the states vast resource potential and his desire to see Alaska resources “help the rest of the nation.”

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Agrium’s Sweet ♥ Deal

Senator Lesil McGuire’s compass piece published in the Anchorage Daily News, June 3, 2011, expressed “Agrium to leave but the sky’s not falling.”  Senator McGuire states “A Norwegian company recently announced that this August, two large ships will arrive in Cook Inlet to transport the fertilizer plant that once employed hundreds on the Kenai — and pumped millions into our local economy — from Nikiski to Ossiomo, Nigeria.”  Senator McGuire go on, “The image of this Alaska industrial icon being disassembled and carted off should serve as a reminder of just how much the economics of natural gas production in Cook Inlet have changed. The abundance of cheap natural gas that was discovered in the Inlet and led to the construction of the fertilizer and LNG plants on the Kenai has evaporated. And while some studies show that demand could exceed supply as early as 2013, Alaskans should know that the sky isn’t falling. It isn’t falling because the Legislature, Gov. Sean Parnell and Anchorage Mayor Dan Sullivan have all come together to put into place policies that promote emergency preparedness as well as new exploration and development.”

That’s reassuring, but who is watching the state coffers?  Is the state getting back the $5M it gave Agrium a few years ago?  This designated legislative grant was awarded to Agrium in 2006.  It had some characteristics of a loan – such as term limits and interest charges.  One condition was that Agrium would repay the funds to the state if the plant failed.  Obviously, the plant failed.

The specifics of this grant agreement are public information and available upon request to anyone; my recollection of the agreement comes from my last visit to the Agrium plant in November of 2007 as Director of Community and Regional Affairs.  At that time there was a skeleton crew holding down the fort.  Agrium had dramatically downsized a few years before then.  The State Labor Department, Rapid Response team, had facilitated a transition center to help those folks find new employment.  As a foreign owned corporation, it would be interesting to know just how many Alaska residents it employed in the last 4 years.

Did the state just give Agrium $5M?  That’s a pretty sweet deal for Agrium if it is true.

Senator McGuire gave leadership credit in her article to the Legislature, Gov. Sean Parnell and Anchorage Mayor Dan Sullivan.  Her article assures us that we are in good hands “because they have all come together to put into place policies that promote emergency preparedness as well as new exploration and development.”  What about fiscal accountability?

In any case, it sounds like it is all good – they are on it!  Thank goodness, we don’t have a thing to worry about.

LeadDog Alaska © 2011

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