The governor provided details on how he intends to carry out some campaign pledges, however.

To streamline permitting on natural resource development projects, a key theme during the campaign, Murkowski said he is designating the Department of Natural Resources as "lead agency" for all state permitting.

"We will build on the so-called large mine project concept development by the DNR in 1992 when it considered permits for the Fairbanks gold project," Murkowski said, referring to a special state team that coordinated agency work on permits for the large Fort Knox Mine near Fairbanks.

To put DNR clearly in the driver's seat, the governor said he will eliminate the Division of Governmental Coordination in the governor's office and is transferring that division's responsibility for coordinating permits among different state agencies to DNR.

Murkowski said he would also transfer the permitting functions of the habitat division of the Department of Fish & Game to DNR. The habitat division now issues permits to allow resource developers to build bridges across streams that support salmon.

Throughout the state-of-the-state message, the governor repeated his commitment to improve transportation as a way of stimulating activity across several sectors of the economy.

The state will seek federal funding for major projects such as a Knik Arm Crossing in Anchorage, a new bridge in Ketchikan and surface road access to Juneau, Murkowski said.

He also mentioned projects he supported in the U.S. Senate, such as a road up Bradfield Canal in Southeast to provide an outlet to the coast for potential mining projects in British Columbia; and a road connection between King Cove and the Cold Bay airport on the Alaska Peninsula.

He also mentioned a state initiative to establish road connections for some villages in western Alaska, an effort that is already under way, and state support for road infrastructure on the North Slope, to enhance oil and gas exploration.

State legislative leaders expressed support for Murkowski after the governor's state-of-the-state address, but noted the Legislature will put its own imprint on changes to state policies.

Senate President Gene Therriault, R-North Pole, said that, "After eight years of a different governing approach, it will take more than eight weeks to get the wheels turning in a new direction. Governor Murkowski has laid out an agenda which I am confident we can use as a starting point to put Alaska back on the right track."

House Speaker Pete Kott said, "We fully support the new governor and we will actively pursue ways, as a separate branch of government, to resolve Alaska's tough issues."

In his address, Murkowski said he heard a consistent message through his campaign:

"From unemployed loggers in Ketchikan, to out-of-work rural Alaskans, to the concerned fishers in Bristol Bay, people said they are looking for state leadership to protect current jobs and encourage creation of new jobs," Murkowski said.

His administration's first task will be to put the state on a track to live within its means. The administration's proposed budget for Fiscal Year 2004 will be submitted to the Legislature before March 6, Murkowski said.

"Controlling spending will require unpopular choices. We will be asking all Alaskans to make sacrifices for the mutual long-term good. We simply have to hold the line on state spending," the governor said.

As for new revenues, "In a single word, it is oil," Murkowski said.

"We should first look for ways to help the industry enhance recovery from existing and known fields and increase daily production," he said.

"We need more exploration. We can accomplish these by improving access and reducing permitting time."

"Since it will take several years before these projects are producing revenue, it is critical we get them under way as soon as possible."

On the gas pipeline, Murkowski said efforts will continue on needed federal enabling legislation, "but the state must do its part to provide the regulatory and fiscal certainty necessary to get a gas line project under way."

"I want to work closely with you to pass a statutory framework for the gas line and then get to work negotiating the details with all the stakeholders. We have already met with the producers to begin this process."

On rural economic development, Murkowski said he has directed Community and Economic Development Commissioner Edgar Blatchford to work with Alaska Native corporations in developing resources.

"I believe that a close working relationship between the state and Alaska Native corporations can provide the economic engine for rural Alaska," Murkowski said.

In fishing, Murkowski said Alaskans must, "think outside the can" to find new markets for salmon, increase quality control and assist in transporting wild salmon to market.

"We must also expand our fledgling mariculture industry," he said.

To encourage mining, Murkowski restated his campaign themes, saying he would help the industry by eliminating redundant permitting requirements, coordinate permits using a large project team concept, and develop infrastructure in important mining regions.

To rebuild the state's battered timber industry, the governor said he has already asked Mark Rey, Undersecretary of the U.S. Department of Agriculture, to establish 10-year timber sale contracts in national forests in Alaska. "This is necessary to encourage investment and provide jobs," Murkowski said. Rey is in charge of the U.S. Forest Service in the Bush administration.

Murkowski has also asked the Forest Service to review and update the 1997 Tongass Land Management Plan to increase the Allowable Sale Quantity in the Tongass to 360 million board feet per year. "This level is necessary to support a sustained, integrated timber industry," he said.