Solving the fiscal crisis begins with listening to Alaskans

For the first time since 2014, when oil prices crashed, the Legislature is singing from the same sheet of music: We need a comprehensive fiscal plan, and we need one now.

Although the journey to this consensus has been long, arduous, and full of harmful growing pains, we now have a real chance of closing Alaska’s structural deficit once and for all. Democrats from dark-blue districts in Anchorage, Republicans in the bright-red Mat-Su, and rural and coastal legislators all publicly agree that our financial crisis can only be solved with a blended solution.

The recently formed Comprehensive Fiscal Plan Working Group, created specifically to produce recommendations at the upcoming special session, is one significant proof point of engagement and buy-in from members of all stripes.

This politically and geographically diverse group is composed of equal membership from minority and majority caucuses in both bodies and is meeting on an aggressive schedule to find solutions that Alaskans and legislators alike can support.

While there is increasing consensus among legislative leaders on the financial problems we face, building consensus around a particular solution, or a blend of solutions, remains a work in progress.

There is no doubt that Alaska needs a permanent solution for the Permanent Fund dividend. The yearly cycle of uncertainty must end.

I applaud the governor for putting forward a plan — Constitutionalizing the PFD at a 50/50 split and transferring $3 billion from the Permanent Fund’s Earning Reserve Account to fill ongoing deficits while new revenue and cuts are pursued — and I believe it serves as a strong starting point. However, the proposal has been unable to garner consensus during either the regular or special sessions.

In order to assess how Alaskans view the governor’s plan, the House Majority Coalition recently commissioned a public opinion survey across the state on the topic. The results make it clear that the plan needs more public vetting and engagement.

When initially polled about constitutionalizing the PFD, respondents answered favorably, with 65% in support. Support dropped off significantly if doing so would require cuts or new taxes. Only 48% of Alaskans polled supported constitutionalizing the PFD if it would necessitate deeper cuts to state spending or services, while 53% opposed it if it would require a sales or income tax.

And finally, 67% of respondents to the survey were not aware of the governor’s proposal, and once the plan was carefully explained, 63% opposed it.

I am not saying that Alaskans necessarily oppose the concept of constitutionalizing the PFD, but the devil is certainly in the details.

This poll clearly demonstrates the need to engage the public on meaningful solutions to the PFD and to be crystal clear about what is required to implement those solutions.

In 2017, the House Majority put together the “Four Pillar Plan,” which would have solved the state’s fiscal problem. Unfortunately, the measure stalled in the Senate after passing the House. This year alone, numerous legislators put forward proposals that would help bridge our gap. And again, I applaud the governor for offering a proposal of his own.

Somewhere between the governor’s proposal, others before us and those produced by the working group, there is an acceptable balance that spreads the burden equally across all sectors of our economy.

As these proposals are considered, re-engineered, and molded into a framework of potential solutions for the upcoming special session, it is critical that the working group be given time to engage in an honest dialogue with the public.

History shows us that building consensus requires engagement from all stakeholders. Although this process takes time, it is well worth the effort.

The House Majority Coalition will not rush to approve a plan that Alaskans oppose. We are deeply committed to fixing this problem as soon as possible, which will hopefully be when we next reconvene. Moreover, we remain steadfast in our resolve to approve the reverse sweep, fully fund Power Cost Equalization and Alaska Performance Scholarship Programs, and appropriate a PFD we can afford, all during the upcoming special session.

Rep. Louise Stutes, R-Kodiak, is Speaker of the House of Representatives, leading a bipartisan coalition. She has served in the House since 2016 and previously worked in the private sector as a commercial fisherman and bar owner.

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