Though you may question his first proposed "road map," at least give him credit for having the guts to float out suggestions that he knew would attract flak. Though he seems to have alienated almost everyone else by doing so, it instead inclines me to appreciate he's in the driver's seat and, more than anyone, can help us bridge that fiscal gap without too much carnage.
Let's face it Fran fans, even if she drew up a map exactly like one Frank might sell legislators, the Republicans would never buy it. Look at the way they're cringing at almost every one of Frank's proposals. Even those prime slash and burn stalwarts, Ogan and Kohring, are aghast at the thought of facing the flailing canes of old timers should they cut the longevity bonus. And though many would much prefer to get their hands on your dividends, even Speaker Kott, who hates dividends, recognizes their demise could devastate Alaska's economy. Meanwhile Democrats delightedly shred the governor's budget proposals in anticipation of votes from a multitude of threatened interests, including all those who fear dividends may be docked.
Most folk, save legislators, seem to forget those heart burning budget proposals are simply just that: proposals. Legislators would rather they were perceived as the Governor's demands so they would not have to feel as much heat as he while agonizing over which would cause the least blistering. During discussions with the governor on these matters, I was heartened to learn he believed the Permanent Fund's very permanence is only assured with a sound dividend program and that he would not permit the Constitutional Budget Reserve to be completely exhausted. Moreover, he was open to other proposals. Within those parameters, what then are the possible options?
Can the governor steer clear of most those first suggested unpopular budget cuts or "revenue enhancements" and thereby get old-timers, educators, tourism operators, municipalities, car drivers, shell-shocked legislators, and even Mike Doogan off his back? Moreover, can he keep his promise not to invade the Permanent Fund? Now that his first proposals have gotten our rapt attention, perhaps we'll be more inclined to support a comparatively benign alternative.
Such an alternative has been suggested that could not only do all the above at virtually no administrative cost, but also greatly reduce the magnetic attraction of dividends luring outsiders up here and append that "public purpose" to the Permanent Fund, the absence of which some believe leaves the fund vulnerable to federal taxation. Most importantly, this approach might be all that's required to bridge the current fiscal gap.
This could be accomplished with a single "user fee" paid only by those receiving the service: a temporary, sliding-scale tuition fee from dividend checks of all 18 or younger. Those fees should only be what's required to keep the CBR healthy and automatically decline when new revenues could supplant them.
So long as tuition is less than that year's dividend, the state would be fulfilling its obligation to provide free education. I would simply shift part of that "freebie" from one hand to the other. Far better than kids, along with everyone else, losing their entire dividend if the legislature completely exhausts the CBR, leaving little but dividend dollars for fiscal gap fill.
While I'd much prefer instead readjusting Economic Limit Factor and/or the pipeline tariff to recapture Alaska's originally agreed upon share of our oil wealth, let's face it, folks, neither are likely to happen. Therefore perhaps a bit of back-seat driving is in order to help the Governor navigate. Let him know if you, as do I, at least find the tuition plan preferable to any plan likely to pass, or tell him what you think may be a better, fairer, less painful way to keep us out of the ditch.
Jay Hammond is a former Alaska governor. ,/i>
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