The Legislature is debating whether to add billions of dollars in new spending by issuing the largest Permanent Fund dividends in history. These massive dividends would simultaneously require huge cuts in core services like public safety and schools, and make large tax increases nearly inevitable.If our goal is to enhance Alaska’s business environment and economic competitiveness, ensure quality education for our children, and promote safe and thriving communities for families, massive dividends and the associated tax increases are terrible policy.
As a South Anchorage resident, I was surprised and disappointed when both Rep. James Kaufman and Sen. Roger Holland voted for these huge dividend payments during budget deliberations, even when their own constituents would be on the hook for a disproportionate share of the taxes that would result from big spending.
It is reasonable to debate whether we need some additional revenue to fund core services that are necessary for safe, economically vibrant communities. Clearly, good schools and adequately funded public safety are essential to attract and retain business, maintain property values and keep residents safe.Under the governor’s “50/50” plan to recklessly enlarge PFDs, these payments would be the single largest source of government spending. Measured by amount of investment, we would be making a collective decision to sacrifice our schools, public safety, higher education and transportation in favor of one-time outsized permanent fund dividend checks.As a state, we can afford targeted need-based assistance for those who need it, such as seniors or children who, through no fault of their own, are at risk of food insecurity or homelessness. In contrast, writing massive checks to every single man, woman and child is unwise, unaffordable and counterproductive.
Legislators should reject the “50/50” dividend plan that would cut services and raise taxes. Instead, we should protect the structured draw and spending cap the Legislature wisely established in 2016. Rather than raid the Permanent Fund for short-sighted cash handouts, let’s focus on policies that will grow and diversify our economy.
Charles Rodriguez
Anchorage
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