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At 50, Alaska has what it takes to avoid midlife crisis

COMPASS: Other points of view

At a recent event honoring every Alaska governor in statehood history I was struck by how young our state is, how far it has come and how far it has to go.

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Alaska is just 50 years old. To me 54 feels like the prime of life -- an adult, for sure, but with a lot left to give and accomplish. Alaska is an adult. Over the last 50 years Alaska has matured and begun to establish its place in the world.

Yet, postelection Americans are left bewildered about Alaska -- a state that, surveys in previous years indicated, Americans held in high regard. "Drill baby drill" has sold our state far too short.

Alaska has a lot to be proud of. We have weathered $10-per-barrel oil prices three times -- our economy becoming more diversified and stronger each time. Our ethnic diversity, a prerequisite for growing states, includes more than 90 languages. Anchorage and Fairbanks play critical roles in international air cargo movement -- even the savviest logistician is surprised by this fact.

Alaska-based corporations, predominately Native corporations, are importing billions of dollars, earned worldwide, back to their corporate headquarters in Alaska as dividends, salaries and spending with vendors and contractors. Most importantly, we have built a multigenerational economy -- 25 years ago few were actually from Alaska; today it is common.

But at 50 we might be having a midlife crisis. We send a mixed message to companies who would consider investing in our future. Alaskans often characterize the oil and gas industry as taking advantage of Alaska. We forget the critical role oil and gas have played in making statehood possible. Revenues from oil and gas filled Alaska's Permanent Fund and the Constitutional Budget Reserve and pay for much of the infrastructure and government services Alaskans take for granted.

With the notable exception of the fishing industry, taxes from oil and gas have provided a significantly reduced tax ride to most other industries in Alaska. Alaskans are regularly ranked among the lowest taxed Americans.

Early in Alaska's statehood history dramatic swings in seasonal fishing, timber, construction and tourism employment were taken for granted. The oil and gas industry helped smooth these seasonal employment swings through the year-round employment it provides, and through the state and local government jobs its taxes support. With all economic multiplier effects figured in, oil and gas still provides about one third of Alaska's employment.

Another third comes from federal spending. Alaska is unfairly criticized as a burden to federal taxpayers. Yes, we lead the nation in federal spending per capita, but the federal government owns 60 per cent of Alaska -- that's more land than Texas -- including five major military bases and more national park land than the rest of the country. Ownership brings responsibility. If federal spending is measured by dollars per land area, New Jersey leads the way and Alaska ranks 50th. Sure, some federal earmarks may disappear with Ted Stevens, but most spending will continue.

Twenty-five years ago, construction, oil and gas and technical consulting services all came from out of state -- today they are local firms. More seafood is processed here, more tourism products are provided by locally owned companies, and critical transportation and logistics services are provided by Alaska-owned companies.

But, as Tom Bodett recently lamented on NPR, his friends used to ask about Alaskans living in igloos. Now they ask, postelection, "What's up with Alaska?"

Alaska has accomplished a lot in just 50 years. But we have a lot yet to do. We need to provide the jobs for our multigenerational economy. We have to present Alaska as a reasonable and potentially profitable place for Outside companies to do business in order to attract Outside investment.

America needs to see Alaskans as well educated, capable and industrious people. They need to see that Alaska is much more than shooting wolves from airplanes or any number of other silly stereotypes. We need to show the world that we are a well-traveled, experienced, intelligent people who understand our place in the world and who are excited about Alaska's next 50 years.


Bob Poe has served five of Alaska's governors in a variety of roles throughout his career.

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