It is easy to blame the governor and Legislature for the budget woes. But the public has the real responsibility and has failed in their obligation to resolve the problem. As long as the public requires that somebody else pays for all the services they are demanding there will not be a solution to our budget dilemma. Alaskans have had more than a free ride for several generations. In fact we get paid to ride in the form of a Permanent Fund dividend. We pay no state income tax and the property and sales taxes that some communities levy are significantly offset by the PFD.
The best solution the Alaska Legislature can come up with is to make Alaskans take responsibility for their actions. Say, "OK, you demand all these services, here is your share of the bill." Start by using some of the profits from the Permanent Fund to fund the state. But in no way should the accumulated principal ever be touched. The remaining deficit needs to come from those demanding the services.
For example, we have the lowest fuel tax in America, dwindling federal transportation funding for transportation projects such as highways, airports, mass transit subsidies, etc., while the cost of even maintaining our existing transportation infrastructure continues to rise as the systems age. A very fair and easily managed way to resolve this dilemma is to increase the fuel tax while fuel prices are low. Companies whose bottom line is significantly affected by fuel costs such as airlines, trucking companies and fishing charters were making a profit when fuel prices were high. None of them reduced their prices when fuel costs dropped. So it is hard to sympathize when these companies cry economic hardship if the Legislature imposes a reasonable fuel tax. These companies just pass the higher operating costs on to those who use their services. It is a very fair tax. One paid for by those who benefit from the transportation services. But yes it is a tax. It is time for Alaskans to grow up and realize they need to at least pay some of the cost for the services they are demanding, or stop demanding that government provide services you are unwilling to pay for.
Education funding is a universal concern. Before we had all the oil revenue there was a $100 per-person education tax. Every employee in Alaska had a flat $10 education tax deduction from their paycheck until the $100 limit was reached. It was a great system and one that should be reinstated at today's dollars. For example, deduct $25 per week but not to exceed 20 percent of the paycheck's gross until a total of $500 is paid at which time the deduction ceases. Mechanisms for dealing with multiple employers in a single pay period and hardship could be easily implemented. But at least every Alaska wage earner could honestly say, "I am a taxpayer and this is what I demand for my tax dollar." Right now Alaskans cannot say that and until they can, they have no right to wear the "I am a taxpayer" mantle.
Furthermore, we have a lock them up and throw away the key mentality for dealing with crime rather than embracing crime prevention strategies and alternatives to long-term incarceration for nonviolent criminals. Locking just one person up in Alaska costs nearly as much as what many an honest Alaska family earns. Time for a paradigm shift.
Fish and game are a resource that belong to all Alaskans just like the oil. Some commercial fishing operations pay a share in the form of the fish tax but other stakeholders should also pay their fair share of managing this resource. Certainly a nonresident trophy hunter/fisher should pay more than a subsistence user but everyone needs to contribute to insuring this critical resource is professionally managed. Right now Alaskans are demanding services and demanding that somebody else pay for these services. It is time to grow up. At least be willing to pay for some of the costs or stop being spoiled by generations of someone else paying your way. Be willing to pay a higher fuel tax or stop bellyaching when every flake of snow isn't off the road in time for your morning commute. Maybe the state can and should pay for a basic reading, writing, and arithmetic education for everyone, but if a community wants a fancy football stadium, swimming pool, or tennis court, they should pay for it, not the state. Many schools already do the same with fundraisers for class trips.
Put differently, the unfunded portion of the budget proposed by the Legislature is $4,000 per Alaskan. How much of that are you willing to pay for? What services are you willing to do without? The savings we have will be gone very quickly unless you answer these two questions.
There is nobody out there willing to continue to give you a free ride except a politician. And they can only continue that ruse until the savings run out. Yes folks, either be willing to pay taxes or gut state services. Yes, Legislature, it is time to initiate taxes. Only then will the public begin to grow up and only demand those services they are willing to pay for. At least start by initiating easily understood taxes like the fuel tax, a flat per-person education tax, and a reasonable fee structure for services. The budget reserve fund is a stop gap. It is not THE answer. The answer is the people of Alaska need a balanced budget. And that means stop demanding services you are unwilling to at least help pay for. And Alaska Legislature, you need to start by initiating some forms of taxation before we have too many more generations of children growing up in a mythical free lunch for all society.
Jerry George graduated from Anchorage High School when Alaska was still a territory, then from the University of Alaska School of Mines in Fairbanks, served in military, and worked an entire career in Alaska as an engineer.
The views expressed here are the writer's own and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)alaskadispatch.com.