The plethora of financial mixed messages is particularly rich in the sadly broke state of Alaska. We are running the state at a deficit, paying oil companies more than they pay us, and yet just announced our record Alaska Permanent Dividend Fund checks. It feels like a family has lost their house, is moving into their car, and suddenly get to go on a surprise trip to Disneyland. Yeah! Oh, wait. Do we get to move back in our house when we're back from seeing giant rodents dressed in clothes, princesses and riding scary rides? Please?
No. Now, forget about it! Let's all have a good time.
Some of our lawmakers seem to be most guilty of this disconnect. Almost $100,000 spent on a junket to Seattle this summer. Some hotel rooms for $450 on the state dime? Please, Speaker Chenault, does the Crowne Plaza offer a Princess and the Pea room for you? At least share pictures of your fancy meals on social media because those must have been spectacular dishes that cost the state $411. Our legislative aides were spending more money than most of the lawmakers. Woot! Disneyland is fun! You would think they would have noticed the state is in a dire situation during one of their brief writings or hearings.
Trying to cover up their excess, Sens. Kevin Meyer, Mike Chenault and Lesil McGuire are taking turns throwing each other under the bus. It's comical because McGuire has stacked her Alaska Airlines Mileage Plan for years on the state dime. I've often wondered if there was a junket she wouldn't go on. Oh, look! We found one, but her staffers apparently didn't realize there was a "do as I say after the fact, not what I've done for years" clause in their employment. The classic was McGuire telling a local TV station she didn't want to comment because she's planning on firing the staffer. Glad to see you keeping it classy, Lesil.
The good news is more of our elected officials are talking seriously about the finances of this state. Gone are the promises of "more jobs" if we just stop charging for oil development. (Though some of those same snake oil salesmen are still sitting in leadership seats in the House and Senate.) Now they can sit in their renovated offices in Anchorage and think about the boondoggle that it is while throwing their garbage into automatic garbage cans, when they aren't finding $450,000 to sue to stop Medicaid expansion.
Gov. Bill Walker warned Alaskans about getting the swelled dividend check. If you think "well, everything is fine. Well, it's not." He hasn't sugarcoated the realities facing our state and is seeking solutions.
I'm really glad Walker is our governor. If Parnell had won the election he'd probably have quit by now since we're out of money to hand over to oil companies.
Some of the proposed solutions to our tax woes call for an income tax. The problem with that is, we don't have enough income to tax to make up the difference. Not to mention the amount of paperwork and infrastructure it would take. A statewide sales tax wouldn't be enough either. Anchorage doesn't charge a sales tax now, but most boroughs and municipalities do. Mine charges 7.5 percent combined. Oh, and if your solution is to cut jobs to pay for it, you should know, we couldn't make up our deficit by firing every state employee. We are that far in the hole.
The question that begs an answer is: Do we want to move into the car and go to Disneyland or do we want to try to keep the roof over our head?
I know. Our previous three governors did everything they possibly could do to run this state over the financial cliff. They hated the dividend. I don't. I think our founders were visionary in setting up a "rainy day account" with our collectively owned resources. The truth is, it's past rainy -- we're in a monsoon.
Relax. Just breathe. Just think about this for a minute. What if we capped the amount going into the Disneyland fund? If it had been done last year, this year could have been a $1000 dividend and the rest would have gone to education, fire, school bond reimbursement, infrastructure maintenance, safety officers, etc. You know, the things you need more than a big screen. The interest that we all have a share of would be funneled partly to what is essential. Over the last 30 years the fund has averaged a little more than 9 percent appreciation per year. I propose that 5 percent of the POMV (Percent of Market Value) go to the discretion of the governor to put toward our essentials during years we are at a billion-dollar deficit or more. On average the fund is making $4.5 billion a year. The most the governor could take out is $2.6 billion -- so the fund would not be depleted. The fund wouldn't lose money, bills get paid, and when oil prices go back up the governor wouldn't be able to use the fund.
It's a slippery slope! I know. It may not work but I'm not running for office so I can float some ideas others won't. We have to find what will work -- before we have a budget crisis next July -- because the Republican majority hasn't done their jobs (just like this summer). I may not have the answer and I'm okay with that as long as there is a continuing discussion looking for a remedy. Part of the solution is freeing ourselves of the fiscal drunks running the show in Juneau. Become or support a candidate who puts Alaska First. The other is to use part of the Permanent Fund for what it was originally intended for -- a safety umbrella for our fiscal rain storms.
Shannyn Moore is a radio broadcaster.
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