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Last Update: August 5, 2008 5:32 AM

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CRITICISM: Stevens, Young shrug off questions and continue to work.

WASHINGTON -- It was just two days after Monday's FBI raid on U.S. Sen. Ted Stevens' house, and his colleague, U.S. Rep. Don Young, was at a press conference to attack a Democratic energy bill. It was the first time reporters were able to ask Young any questions since the news emerged that he, too, was under federal investigation.

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Young swatted away the inquiries. He didn't really open up until he was asked about Alaska-related projects he inserted into a federal water bill -- including money for a study of the proposed bridge across Knik Arm, a project known to the rest of America as one of the "bridges to nowhere." He grinned, happy to answer questions about the millions of dollars he has squirreled away for his home state.

"Oh yeah, I did real well," Young said, before hopping an elevator and avoiding additional questions. "I'm happy."

These days, though, such boasts make many in both Alaska and Washington cringe, especially as it becomes more apparent that two-thirds of the state's congressional delegation is being investigated for improprieties connected with how they allocated federal money. Many people also have started to question how a delegation weakened by criminal investigations and ethical concerns can continue to effectively represent a place that, since statehood, has depended on federal money and attention to thrive.

NEWS REPORTS DON'T HELP STATE

Even as she refused to speculate about the investigations involving her two colleagues, Alaska's other U.S. senator, Lisa Murkowski, said she realized that the news about the Alaskan delegation -- as well as recent questions about the ethics of the Kenai River real estate deal she was involved with -- hadn't been good for the state.

"There has been a very intense media scrutiny on Alaska," Murkowski said. "And it's one thing if you read about it in our own newspapers or hear about it on the 6 o'clock news. It's another thing when you see the media reports coming out of New York and the Washington Post. We all want coverage to be good about our state. And I acknowledge that it is not particularly good news for Alaska."

There was another development in Washington last week that had an effect on the delegation. The House and the Senate passed an ethics bill calling for more detailed and transparent disclosures about earmarks, the special spending allocations that have made the Alaska delegation so infamous. It's a change that has made it just a little bit unsavory for Stevens and Young to continue to brag, as Young once did in 2003 of an appropriations bill, that he "stuffed it like a turkey."

The Alaska that once appreciated such talk has changed in the past 40 years, said Willie Hensley, a former state lawmaker and a founder of the NANA Regional Corp. who now lives in Washington and handles government relations for the Alyeska pipeline.

As the state matures, its leaders have to be cautious about how they look to the rest of the nation, Hensley said. That means they can no longer afford to appear as though they're cravenly grabbing for federal money -- and its leaders can't be tarnished by ethical problems. There is simply less tolerance for such behavior, even though Alaska might still need the federal help, he said.

"Alaska is somewhat fragile," he said. "Oil is about the only thing that pays its way, really. I don't think we have a lot of room for error in our political judgments, and we have to have the best people we can in there, using their judgment and influence."

NO RESPONSE, THANKS

Like Young, Stevens also has refused to talk about the investigation, or directly address the question on a lot of people's minds: Has the investigation become such a distraction that it hampers his ability to work on behalf of the state?

His spokesman, Aaron Saunders, said in a written statement that "Sen. Stevens remains committed to working with members of the Appropriations Committee to ensure Alaska receives the same rights bestowed upon other states -- the right to basic transportation, clean drinking water, essential education programs, quality public housing and other things that Americans in the Lower 48 take for granted."

And in fact, both Young and Stevens have been busy, even with the distraction of reporters camped outside their offices hoping they'll say something about the ongoing investigations.

Stevens and Murkowski co-sponsored a resolution to protect Arctic fisheries. Congress passed a Stevens-sponsored bill to direct more money to research in science, technology, engineering and math. He introduced legislation to enhance child pornography enforcement. And he and the rest of the state's delegation approved sweeping ethics reforms in Congress.

Young, who had prostate surgery and was out for a few days in July, jumped right back into the legislative fray by attacking a Democratic energy bill as "energy suicide" on the House floor Saturday -- as Congress went into an extended session. And as the former chairman of the House Transportation committee, he called on the president and Congress to consider a new gasoline tax that would pay for upgrades to the country's infrastructure, improvements that Young said would help prevent tragedies like the Minnesota bridge collapse.

As senior GOP lawmakers who held powerful committee posts, both Young and Stevens had already lost much of their influence when Democrats took control of Congress last fall. But their legacy of federal earmarking lives on in Alaska.

For years, Alaska has topped the list of states with the most per-capita federal government spending. There is no underestimating the role federal spending plays in the state's economy, said Scott Goldsmith, an economist with the Institute of Social and Economic Research at the University of Alaska Anchorage.

One third of Alaska's economy is based on oil, another third is based on federal government spending, and the final third is everything else, said Goldsmith.

"The federal dollars that come into Alaska are clearly a very important part of the economy and influence the economy in myriad ways,'' he said. "Just because they're trying to tighten up in general on earmarks, those earmarks and grants in general are in jeopardy, and to the extent that gets squeezed, it has a negative effect on our economy."

But Goldsmith also points out something interesting about the federal money that keeps one-third of the state's economy afloat: It's mostly in the form of everyday spending that would come to Alaska regardless of who is in office. It includes salaries for federal employees such as postal workers, military spending, highway money and even Social Security payments to retirees.

"Much of the federal money that comes into the state is insulated or not really very sensitive to the kind of problems were seeing right now with our delegation," Goldsmith said. "Those come independent of what your legislators are doing."

SENSE OF IMPENDING FALL

Politically, many smell blood.

For the first time in years, Rep. Don Young has a challenger with fundraising juice: Jake Metcalfe, a former Anchorage School Board president and former head of the state Democratic Party, who announced his candidacy last week. Democrat Diane Benson, who challenged Young in 2006, is also running. There may be more. There's also serious talk about both Republicans and Democrats considering a run against Stevens -- people who wouldn't have dared take him on in past years.

The delegation's actions have consequences for the state, said Ethan Berkowitz, a Democrat and former state lawmaker who ran for lieutenant governor last year. Berkowitz is now considering a bid for Stevens' seat, and also has thought about running for Young's. He expects to make an announcement in September.

"As long as the current delegation is there, Alaska's going to be cut up in the process," Berkowitz said. "In my judgment, they're hurting the state. The national perception of Alaska is something we need to change."

Metcalfe was in Washington last week and said it was "scary" to see the headlines about Alaska politicians under investigation. He said Young and Stevens have been in Washington too long.

"Their generation has passed and I think their effectiveness has really diminished in the past four years," he said. "Part of that has to do with the Democrats taking over, but part of it is the style of leadership. When you have the corruption and the offices stained by what's happened, people don't believe government works for them. They believe it works for the special interests and campaign contributors."

That generational shift may have already started within the state's Republican Party, with the election last year of a governor whose first order of business was to pass an ethics reform bill.

"It's a generational shift that's going on, but it's also a values shift that's going on," said Gov. Sarah Palin.

The "culture of corruption" that has become ingrained in Alaska politics is a poor example to the rest of the nation as the state tries to be taken seriously in negotiations over a natural gas pipeline, Palin said.

"We have to prove that we are responsible, that we are trustworthy, that we are truthful up here," she said. "Our actions have to speak louder than our words."


Find Erika Bolstad online at adn.com/contact/ebolstad.

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