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© Copyright 1985-1999 - Anchorage Daily News.

Sunday, September 06, 1987

A MAN WITH CLOUT COWPER'S CHIEF OF STAFF HAS HAD LONG CLIMB FROM STREETS OF MICHIGAN CITY
By JOHN LINDBACK, Daily News reporter
JUNEAU-In 1960, 15 year old Garrey Peska roamed the grimy streets of Grand Rapids, Mich., with a street gang looking for trouble. Two of Peska's friends found it when they beat up a kid and killed him.

The manslaughter convictions that followed scared young Peska straight. He wanted more for himself than that. So, with the coaxing of a high school business teacher, a blue-collar kid who looked like a sure dropout turned from hood to good.

In 1987, things are going good again for Garrey Peska. In July he was named Gov. Steve Cowper's new chief of staff. At 42, he holds one of the most powerful jobs in state government.
Instead of the leather jacket and black boots of his youth, the now bald and bearded Peska dresses his 5' 9" frame in suits and ties. At the office every day, he decides who gets to see Cowper and who doesn't.

He advises the governor on nearly all major decisions, including appointments to key government jobs, intricate negotiations with legislators and budget decisions.

He supervises Cowper's Cabinet and directs the governor's personal staff.

The chief of staff wields a lot of power. But, lately anyway, not for long. Peska's predecessor, Pete Jeans, lasted eight months. The man who held the job before that, Ray Gillespie, made it for 17 months until his boss, former Gov. Bill Sheffield, lost a re-election bid to Cowper. The man who held the job before Gillespie, John Shively, lasted 19 months. He lost his job as a result of his role in a contracting scandal that prompted impeachment proceedings against Sheffield.

"Do I wonder sometimes if I can do this job for a long time? Sure I do. You bet I do," Peska said during a recent interview in his Capitol office, just 10 steps from Cowper's office door. "It's a hell of a challenge, and it's somewhat intimidating."

Judging by his background, Peska is no stranger to intimidating challenges.

The son of a young member of the Army Air Corps and his wife, Peska was born in Abilene, Texas. His mother named the boy after her Dutch father, who's name was Garret. She changed the "t" to a "y," creating an odd spelling for a conventional name.

When he was just 6 weeks old, Peska's mother packed up the infant and her belongings and moved back with her parents to Grand Rapids, leaving a troubled marriage behind. A divorce and remarriage followed a couple of years later. Peska's father disappeared from his life. His stepfather later adopted him. As time wore on, Garrey acquired three stepbrothers.

Life wasn't easy in Grand Rapids, a tough industrial area of about 300,000 people that depends on the auto industry for its livelihood. Peska's stepfather was a teamster who worked at low-paying warehouse jobs.

"I never thought of us as poor but we certainly didn't have money to buy things," Peska said. "My step-dad and some friends built our house. He couldn't afford to just buy one. He had to buy it a board at a time. I guess the only way I could describe it was we lived in a shack in the back of the property while he was building it. My mother and step-dad were married when I was 3. We never moved into the house until I was 9, as I recall."

Because money was tight, Peska said, he and each of his brothers started working in elementary school, Garrey as a janitor's helper.

"It was just the way we did it in our family. There was never any question about whether or not you were going to work. It was a question of when you were going to go to work, and what you were going to do. To this day I'm grateful to my step-dad for teaching me the value of an honest day's work."

By the time he was 15 and enrolled at Lee High School, Peska had fallen in with a tough crowd.

"I was a member of one of the street gangs and thought I was a probably a lot tougher than I really was," Peska recalled. "What spun me away from that whole scene was when two of my friends were involved in a manslaughter. That blew me away. I said, "Wait a minute. This is not where I'm headed.' "

At the same time Peska's high school business teacher, Jim Skidmore, noticed his skill with numbers. Skidmore was fresh out of college, so he was a bit uncertain about how to handle a problem student who showed potential.

"I think when he first started in high school everybody thought that he was going to be a bum," said Skidmore, who now heads the business teaching staff at Grand Rapids Junior College. "He was more surly when I first ran into him. He was kind of a "you're not going to teach me anything, you young punk.' "

But Skidmore took Peska aside and told him he could become an accountant someday. He got Peska a college-level book and he responded to the challenge, Skidmore said,

"He tried to be a hood. You know, the leather jacket, heavy boot kind of thing. It didn't take long to see that he was bright. I played on that. I guess I just saw through him quicker than anybody else."

What followed was a swift and radical turnaround in Garrey Peska. By the time he graduated from high school in 1963, Peska had been president of the student council, captain of the football team and editor of the yearbook.

The talent he showed in earlier years for the trumpet carried through, too.

"I'm a college teacher now," Skidmore said. "I taught in high school for eight years. And he was by far the most outstanding leader that I ever came across. He just had a maturity beyond his years.

"He was very serious. I got the impression that it was absolutely essential that he make something of himself. It was an "I'm going to be more than where I've come from' kind of attitude."

His success in high school failed to make life much easier for Peska when he got out. He lacked the money to go to a major university. At Skidmore's urging, he enrolled in Davenport Business College in Grand Rapids. Not long after high school, Peska married his high school girl friend.

He did well in business college and became an accountant. After earning a two-year degree, he joined a small accounting company and got plenty of experience helping small businesses handle their cash flow. He became a certified public accountant. But he also became impatient at the time it was taking to become a general partner.

At 27, he joined three other partners in a new computer company. The company was bought out by a larger company and Peska, unhappily, found himself working half of each month in Chicago and the other half in Detroit. He hated city life and wasn't enjoying the job.

"I came home one day at lunchtime just thoroughly frustrated. I had just come from a trip to Chicago, tired of dealing with this large company I was forced to deal with. I opened up my Journal of Accountancy and there was an ad that said the state of Alaska was looking for auditors to work on the legislative audit staff. There was another one that said a company was looking for a controller for their Ethiopian sales branch. I wrote letters to both of them and decided that if either one of them offered me a job, I would accept the first one that came in."

A short time later, the job offer from Alaska arrived in the mail. Within two weeks, Peska was stepping off an airplane in Juneau.

By the fall of 1986, life had taken a few more turns for Garrey Peska. Both success and disappointment had cropped up. Though he was financially comfortable, he wasn't on Easy Street.

In the years after arriving in Juneau, he had a daughter, divorced his wife, took a trip around the world, married again, and took in a foster son. He served as the first director of the Division of Legislative Audit, tried unsuccessfully to keep a computer service business alive in Juneau and worked as an aide to both the Senate and House finance committees.

Between those jobs, he farmed himself out as a independent consultant or accountant.

As an aide to the finance committees, Peska was known as an accountant, a "bean counter," not a politician. He was, however, a highly regarded bean counter with a thorough knowledge of the state budget. Unlike some members of the legislature's staff, he was not known as an aide with a political agenda of his own. If he made any enemies during those years, they are difficult to find now.

In the fall of 1986, he got his big opportunity. One of his friends from his days as the legislative auditor, former Rep. Steve Cowper of Fairbanks, had just been elected governor. Peska and his wife, Karen, had donated about $1,000 to Democrat Cowper's campaign. He hoped that if Cowper got elected, the new governor might offer him an important job.

One day that fall Peska, an avid hunter, returned from a successful deer hunting trip. He had bagged an aging but beautiful buck. He was in a good mood. Cowper called him.

"He said he wanted me to do something in his administration. I said I would like to do something. I said I would prefer to be the commissioner of the Department of Administration."

He got the job, and with it a harrowing eight months. Throughout he was forced to deal with both politics and bean counting.

First came big budget cuts. Saying he felt state government was paying for some things it shouldn't, Peska suggested cutting senior citizens' longevity bonus checks and eliminating money for public radio and television stations.

Peska's proposals drew him into the political whirlwind of the Capitol. Both proposals angered vocal constituencies. The legislature backed away and refused to adopt the budget cuts, leaving Peska and Cowper out on the lonely point.

Peska also supervised the state's labor negotiations, another delicate task. Cowper wanted to cut at least $40 million from the state's personnel budget. Negotiations were tough and often bitter. Peska had to confront the anger of state workers who had supported Cowper's run for governor. So far, Cowper hasn't achieved the $40 million in savings.

In July, Cowper asked Peska to replace Pete Jeans as chief of staff, a job that involves even more politics. Peska leaped at the opportunity.

The head of the buck he had bagged the day Cowper first called him now hangs on Peska's office wall. "I thought, "What the hell, I'll bring him with me,' " Peska said, glancing up at his good-luck charm.

Five weeks after taking the job, Garrey Peska seems to be in control. His accountant's mind has brought new organization to Cowper's suite of offices on the Capitol's third floor.

Under new procedures hatched by Peska and approved by Cowper, staff members will no longer walk into Cowper's office, sit down and shoot ideas past him. Instead, they must prepare briefing memos for Peska's examination before he will let them in to see the governor. Peska also must OK most other meetings the governor has. Note-takers sit in on all the governor's meetings to keep track of any promises Cowper makes.

A disciple of Macintosh computers, Peska carries in his briefcase a computer-printed list of things to do that is longer than he is tall. An admitted workaholic, he goes home to his Mac and consolidates various lists of things to accomplish. He often does office work at home until 11:30 p.m. He gets up, he says, at 5:30 a.m. to work before breakfast.

Peska says he also intends to whip the governor's relationship with the legislature into shape. He suggested that he doesn't want any more embarrassments, such as the July special session veto overrides. The governor's office is going to start counting votes and communicating better with legislators, Peska said. He already has sent the governor's lobbyist, Bob Evans, out on the road to meet with legislators about what Cowper wants next session.

"We need to understand the political level that the legislature operates on. And we need to understand that if we're going to operate with them, and work with them, we have to work within that political environment," Peska said.

He regards his first big dive into the world of politics, the cuts he proposed last year in the Department of Administration, as a bellyflop. But he says he is determined not to let both his shyness of politics, and his relative inexperience with leading a political charge, prevent him from handling his new assignment.

In that assignment, he won't be able to avoid politics. As chief of staff, he will be as close to setting the political agenda as he can get without running for office. But, he says, he is motivated not by the chance to use power but by the necessity to organize its use.

"I like to have organization," he said. "I like to know what the decision was, who's responsible for implementing it and when it's supposed to be implemented. And then I like to have follow-up, so that I can determine that it is happening."

"I really am feeling very optimistic about how things are going here. I think people are realizing that I'm not trying to take control because I'm trying to gather power. That's not my objective at all. I'm trying to take control so that we can get good decisions made up here."

© Copyright 1985-1999 - Anchorage Daily News.
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