Protecting the Permanent Fund requires new revenue, leadership

Tough times require tough people to make tough decisions. Alaskans are pioneers — we've survived long winters and the Good Friday Earthquake. But our inadequate and out-of-balance fiscal structure and economic downturn jeopardize the progress we've made. For years, the Alaska Legislature lacked the courage to create a workable fiscal plan. This resulted in billion-dollar budget shortfalls and cuts to the Permanent Fund dividend, and also contributed to increased unemployment.

The tough decisions Alaska needs now require us to protect both the Permanent Fund and the dividend in the Alaska Constitution while generating additional revenues to pay for vital public services.

After years of delay, the Legislature created a system for spending Permanent Fund income to bridge a multibillion-dollar annual budget deficit, but the result is both insufficient and inequitable. I am a lifelong Alaskan ready to make the tough decisions necessary to establish sustainable budgets and move our state forward.

Relying on Permanent Fund income to balance the budget is insufficient because it fails to fill the fiscal gap, and sudden declines in investment markets or oil revenues will leave Alaska short. Relying on Permanent Fund income is also inequitable because it places the burden on the backs of dividend recipients, not wealthier Alaskans and highly paid transient North Slope workers who can afford to give more. Cuts to the dividend make working-class Alaskans pay while letting the wealthiest Alaskans and nonresident workers skate.

I oppose the Legislature voting on the dividend amount because it threatens the Permanent Fund and risks eliminating the dividend. I know the importance of the PFD to everyday Alaskans because I helped create it as a staff member of the Alaska Legislature. I support a constitutional amendment that guarantees the dividend and further protects the Permanent Fund.

I also support the reinstatement of an individual income tax. Alaska had a graduated individual income tax until 1980 before it was repealed in the first flush of big oil money. The easy oil money is gone, and we need an income tax to pay for education, public safety, child protection and road maintenance. An income tax would protect your dividend from legislators who would otherwise cut the dividend to zero to fund the budget. It would provide incentives to Alaskans to examine the budget for additional efficiencies. It means the wealthiest Alaskans and transient workers would pay their fair share for public services.

No one wants to raise taxes. But we need change or we risk losing the dividend, threatening the Permanent Fund and crippling our economy.

I am the only candidate in this race tough enough to do the hard work. My opponents in the Democratic primary election issued position statements online that omit the words "Permanent Fund," "Permanent Fund dividend" and "income tax." They represent the status quo and would rather ignore our fiscal situation than address it. I will face these issues head on, with honesty and resolve.

You can find a complete list of my positions at www.cliffgroh.com.

I am the clear and bold choice to represent Downtown Anchorage and the South Addition, Fairview and Government Hill neighborhoods. I am the only lifelong Alaskan among the Democratic candidates and the only former prosecutor. I have a demonstrated record of success in adopting of major legislation, including the bills creating the Permanent Fund dividend and raising oil taxes significantly. I have the experience, fortitude and courage to make real, necessary change.

If you want real solutions for Alaska, vote for me. If you want to cross your fingers and hope someone will bail us out, there are other candidates in the race.

Cliff Groh is a candidate in the Democratic primary for House District 20 on Tuesday, August 21.

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