The fifth special session of the 29th Alaska Legislature just concluded without adopting a comprehensive fiscal plan. I'm as frustrated as you are right now. But, according to recent commentaries, if I don't support taking the Permanent Fund dividend first, like what the Senate has done, it's because I'm a coward or only worried about my election. Somehow with all the finger-pointing and name calling they failed to recognize the reason why I don't support it: my values. My values are grounded in fairness and equality, in taking care of our seniors and elders, in caring for the least among us and creating opportunities for everyone to succeed. Everything I've done or not done is because of my values and has nothing to do with an election or being too afraid.
Fixing our flawed system of overly generous subsidies to the oil and gas industry must be the first step taken toward a comprehensive fiscal plan. It's a matter of fairness. We need to recognize that low prices are the new normal and we need a system that works for the state at low prices. To put some numbers to this, the difference between the House compromise and the Senate version of House Bill 247, which was signed by Gov. Walker, is more than $1 billion. I find it unacceptable that we would consider taking half of the PFD from children, seniors and elders, and those with disabilities to subsidize the most profitable corporations in the world. These policies socialize the cost and privatize the profit.
I was a member of the conference committee that produced what Walker signed into law. I think the committee can best be described as a sham. After weeks with no meetings, in less than an hour, the single meeting was over and the bill passed. I was the only no vote. When I objected, they said we didn't need to consider the "net operating losses" sections, which, left in place, will cost the state billions because oil prices were going to rise to over $50. Since the conference committee met on June 6, the price of oil has only once reached $50 and has consistently hovered in the mid-$40s, where it still costs the state a lot of money in subsidies. The Republicans passed a version of HB 247 that costs the state over $1 billion more than the House compromise. If prices hover around $40 a barrel, the liability to the state could be over $4 billion by 2025.
After this experience, if you asked me who is in control of the Legislature, or at least has influence over some very key members, I would say BP, ConocoPhillips and ExxonMobil.
Allowing corporations to have undue influence over our oil and gas policy is wrong. Alaskans deserve a Legislature that works for the people. The size and scope of our fiscal challenges should have provided enough political pressure to achieve reforms. I would have thought legislators would fear losing an election for taking the PFD before reform. I just can't believe Alaskans would put up with their PFD being reduced while not fixing Senate Bill 21.
In regards to Walker's fiscal plan, I've been reluctant to criticize the governor too much because I'm a supporter and he walked into a real mess. Beyond that, the Republican Party has been working overtime to tear him down. However, I must push back when the governor says that this is about my election.
Again, it's a matter of fairness and equality, I have shared that with Walker. The Rasmuson Foundation commissioned a report that confirms the governor's plan, as originally drafted, places the biggest burden on the lowest wage earners. I have explained that I support alternatives that create a long-term plan, but share the burden among all industries and Alaskans.
As a member of the minority, I can't force the Republican majorities to hold honest hearings on all the different measures that can be part of a fiscal plan. But, after six months, I'm unwilling to wait any longer. The Alaska Independent Democratic Coalition will begin a series of meetings to roll out alternatives we believe should be in a comprehensive fiscal plan.
We will discuss proposals put forward by Republicans and Democrats. For example, we will begin with alternatives to the PFD bill passed by the Senate, including a proposal by Rep. Paul Seaton, R-Homer, that hasn't gotten much attention. We want the public to learn more and weigh in.
I see Alaskans as the 12th man in this process. Think of it like it's halftime and we are behind, but with your input and constant pressure to keep working we can get the job done. The stakes couldn't be higher. Our future depends on it.
Rep. Geran Tarr, a Democrat, represents Anchorage in the Alaska House of Representatives.