Turning its attention to a statewide problem, the state's largest Native organization tackled Alaska's fiscal crisis by hosting leading lawmakers who said they'd work to make sure rural regions aren't unfairly hit with coming budget cuts or new taxes.
But they also said everyone, including rural Alaskans, will have to give to reduce a $3 billion deficit.
The discussion came amid concerns at the Alaska Federation of Natives annual convention that powerful urban lawmakers will take steps to balance the budget on the backs of rural Alaska, including by closing small rural schools and slashing the Power Cost Equalization program that provides energy subsidies in rural areas.
Resolutions to protect small schools and the energy program will be considered by delegates Saturday, the event's final day.
The Legislature already cut the state budget an unprecedented $800 million last year, said Bryce Edgmon, D-Dillingham, and chair of the House Bush caucus. He and others in the caucus will "fight like heck" to make sure additional cuts don't disproportionately hurt rural areas.
Rep. Steve Thompson, co-chair of the House Finance Committee and a former mayor of Fairbanks, said lawmakers will carefully analyze the impact of introducing new taxes. For example, a state sales tax could be burdensome for many communities that already have sales taxes.
He told a reporter after the event that he wants to find a way to make sure funding from the threatened community revenue sharing program continues, at least for rural communities. Perhaps that would mean reducing the millions of dollars received by large cities, such as Anchorage or Fairbanks, that have more ways to generate income than rural communities.
But Thompson also said the solution to the budget gap might include withdrawing state funding for schools with 11 students or less, rather than the current 10. That could involve relying more on boarding schools, an unpopular idea with many Alaska Natives.
"We'll have to look at schools to some degree," he said.
Sen. Peter Micciche, R-Soldotna, and vice-chair of the Senate Finance Committee, told the audience that the state has likely reached the point where it's time to use some of the earnings of the $52 billion Alaska Permanent Fund to fund government.
He blasted some of his colleagues for saying they would do all they could to protect the fund, a reference to press releases issued by Rep. Craig Johnson, an Anchorage Republican, and Sen. Bill Wielechowski, an Anchorage Democrat.
"Shame on those putting out press releases saying 'I will fight to keep the Legislature from raiding the Permanent Fund.' They are helping divide Alaskans," Micciche said.
He said the statements confuse Alaskans about the state's options, and that it's still possible to continue paying a dividend while also using some earnings to help support state services. With more than $60 billion in savings, he doesn't use the words "fiscal crisis." A solution will require change, but the state has the money to find the answer, he said.
Micciche said he was surprised by a poll he recently conducted in his home district, involving 700 respondents, showing that 73 percent are not in favor of additional cuts. People also favored using some of the fund's earnings over an income tax to help pay for government.
He said everything has to be on the table for consideration so Alaskans aren't living like "cavemen" without services such as road maintenance, police and adequate schools. Those solutions include finding further efficiencies in state agencies as well as looking for new revenues, he said.
As for cuts to the Power Cost Equalization program, he said he hasn't heard discussion from lawmakers about cutting it, but said his goal is finding more creative options, such as distributing natural gas to rural areas or supporting renewable energy.
"The question is do we subsidize forever or invest in long-term technology," he said.
Rep. Charisse Millett, R-Anchorage, noting the high cost of living in rural Alaska, said such things as an income tax will affect different areas of the state differently. But she said a solution is needed in the next legislative session.
"If it isn't this Legislature, we will miss the mark and will be off the cliff," she said.