Contributed by Mark Neuman
It’s unfortunate that Governor Walker and many in his administration believe the ONLY way to close Alaska’s fiscal gap is to take more money from you. His veto of $1,000 from your permanent fund dividend, proposals of new taxes on virtually everything and supporting a broader-based tax does exactly that. Taking more money from you does not reduce the fiscal gap, as it doesn’t reduce spending or introduce new money… It only redistributes yours.
At the beginning of the 2018 Legislative Session, the Speaker asked members of the House to offer ways we could address our fiscal crisis, due in part to the drop in oil prices. I rose and asked the body to consider new ways to turn our abundant resources into jobs here in our state.
As a young state, our rich abundance of resources held a great deal of promise for Alaskans and the nation. For that reason, Congress impressed upon Alaska at statehood a requirement to retain the subsurface rights to minerals, thereby providing a primary source of income for the state’s day-to-day operations and services Alaskans would expect.
Today’s budget is funded through a mixture of taxes and royalties from the development of those natural resources along with additional taxes on business like tourism, fishing and transportation.
There are few places in the world with our abundance of oil and gas, minerals, timber and fish. Most would love to have that abundance to provide opportunities for their families and friends. Yet, with all these resources, plus $8 billion from the federal government, Alaska can’t produce enough to fund government services for 739,000 people as of 2017.
A part of our problem is we have too much government in Alaska.
When industry considers the cost associated with investing in Alaska, we frequently come up on the wrong side of the ledger. With the high cost of transportation, healthcare, crime and regulations, we can price ourselves right out of the market. Yet, the administration and some members of the legislature do little to ease regulations and frequently talk about increasing taxes.
I hear regularly from business leaders visiting my office that starting or moving a business to Alaska is challenging, especially with the transportation costs of moving goods in and out of state.
Healthcare costs in Alaska can be crippling to families and businesses. Studies show we have the highest cost of any state in the nation, at twice the national average.
We all know about the crime epidemic. Alaska has the highest number of violent crimes on a per capita basis in the nation. Why is that?
A common driver in all these issues is a bureaucracy that has grown and created regulations that stifle growth and business. Yes, even in our healthcare, regulations like the 80th Percentile Rule, have contributed to the outrageous cost of seeing your doctor.
We need a significant review and reduction in our regulations. Doing so will not only cut the cost of doing business in Alaska, but it will also decrease the time and workload of our state employees; which in turn, will lower the cost of day-to-day operations for the state.
Less regulation will also provide new opportunities for businesses and new jobs for Alaskan families. A stronger economy will help lower the crime rate and create healthy communities. Many of us have friends and neighbors we have watch struggle after losing a job. Fact is Alaska has the worst economy in the nation right now, while other resource development states like Texas have booming economies. Good-paying legacy jobs are the antidote for despair in a weak economy.
Alaska needs to develop ways to add value to our resources prior to shipping the raw materials to other locations enhancing their economies. Doing so will provide our youth incentive to stay and work in Alaska.
Taking more of hardworking Alaskans’ money is not the answer, cutting the cost of government and bringing in new revenues from new businesses is the way to strengthen our economy. With a strong economy, we will see reductions in crime, healthier communities and less need for government services.
A reduction in regulations will open the throttle on our economy. Your support in this upcoming election will ensure we can continue that fight. I ask for your support and pledge to continue the fight to reduce regulation and the cost of state government.
Thank you,
Mark Neuman