Taxes are not the best answer to budget shortfalls. Alaskans want better government, not more government.
$5.2 billion is the big number in the governor's budget plan, which incorporates a host of new taxes and a change in the Permanent Fund dividend structure and formula. For the last decade, the state of Alaska's government spending has outpaced inflation by a considerable amount. If calculated using inflation, the Unrestricted General Fund budget should be about $3.8 billion and stabilized, but that is most definitely not the case.
In the current budget is at least $720 million that, if cut, would have minimal impact upon the services provided by the state of Alaska. Just those "low-hanging fruit" cuts would bring the budget down to about $4.5 billion and avoid the need for more taxes and the aforementioned restructuring of the Permanent Fund.
As has been pointed out by the Institute of Social and Economic Research at the University of Alaska Anchorage, a change in how the dividend is formulated will adversely and disproportionately affect lower-income Alaskans who rely upon the annual payout of Alaskans' money to help make ends meet. In contrast, the proposed income taxes will have a great effect upon the discretionary incomes of higher-paid Alaskans. But neither of these proposed solutions does anything to address wasteful expenditures by our government. It's not fair for our government to expect Alaskans to take a financial hit while still funding things like "Cadillac"-feature Medicaid programs, vacant job positions and redundant government administration.
Over the past year, we have worked together to dissect the department budgets and to develop an array of ideas and solutions to this fiscal fiasco. From the comprehensive budget evaluation published by United for Liberty to the budget plans released by Protect the PFD, Alaskans have stepped up to the present challenge. Now is the time that we expect that our voices be heard in Juneau by our legislators and governor.
Below is how #ProtectThePFD proposes to structure the fiscal year 17 budget with cuts and revenues aimed at minimal impact on Alaskans.
$5,2 billion is the big budget number:
-- minus $250 million in vacant but funded job positions,
-- minus $220 million to revert Medicaid to basic coverage,
-- minus $200 million in restructuring of the education system,
-- equals 4.53 billion.
How to pay for it:
-- $4.5 billion Unrestricted General Fund budget,
-- minus $1.2 billion oil revenue,
-- minus $3.3 billion from savings,
Equals $0.
We need a truly sustainable plan for Alaska's future that considers everyone. For more on these ideas, we invite you to check out our website, protectthepfd.com.
Mark Chryson is a 29-year resident of Alaska, 26 of them in the Mat-Su Borough. He is a former Alaskan Independence Party chairman and vice chairman.
Gary Nielsen is a lifelong Alaskan who resides on the side of Lake Iliamna. An Alaska Native, he runs his local small business and sits on the board of the Alaska Peninsula Corp., a merged village corporation in the Bristol Bay region.
Michael Chambers is a former educator and longtime political activist in Alaska. He currently serves as vice chair of the Alaska Libertarian Party and is founder of United for Liberty Alaska.
Jon Corbett is an entrepreneur and veteran living in Dillingham with his family. He is a co-founder of Alaska First and initiated the #ProtectThePFD effort, a group of concerned Alaskans who have long been working to promote sustainable government spending.
Steve St. Clair is a retired veteran living in Wasilla. He's a former president of the Conservative Patriots Group. He holds a master's degree in business and describes himself as an avid "budget hawk" working tirelessly to protect Alaska's future.
Eddie Burke has been involved in the fight to save our dividend for more than 20 years. He was a former chief of staff in the Alaska State Legislature and a radio talk show host. Eddie is a Navy veteran and a 43-year resident of Alaska.
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