To:
Alaska
State Legislature,
House of
Representatives Finance Committee
Good
Afternoon Folks…
I want to
start my Thanking you all for your public service and for volunteering to do
represent the people of Alaska. As part
of that service, the legislature must remain vigilant in protecting Our
resources. Those resources include more
than carbon fuels and fish, but also We The People of Alaska and Our
Resources. Since before Statehood
“Alaskans” have always had a Spirit of Freedom and Family Values. This is even written into the State
Constitution.
““the
pursuit of happiness” for We The People is not defined as having to pay Taxes
that reduce “the enjoyments of the rewards of their own industry” so that Our
government continues to grow.”
The growth
of government spending on itself has to be decreased… taxes upon the private
sector are quite frankly un-constitutional and will harm the private
sector. Costs across Alaska are
generally higher than the lower 48 and especially so in rural areas. Some rural municipalities already have sales
and property taxes that can add-up pretty quickly on higher priced consumer
goods and services. The State of Alaska
has to look into departmental restructuring and simplifying government roles to
adhere to the State Constitution and declining revenues. Implementing more and more taxes is not the
answer to reaching sustainability, if even for a stop-gap band-aid quick-fix to
Alaska’s fiscal woes.
Let’s
look at where We stand right now…
Working through the HFIN
first Committee Substitute. At first glance it appears to come in within the
$4.5 B target spending level the HFIN Co-Chairs previously have identified ...
except it doesn't. Let’s look at these 3 things…
First, while funding for the
University appears to be cut by another $25 million, that in fact is offset by
a $25 million draw from Power Cost Equalization in order to keep actual
spending at the same level proposed by the HFIN Subcomm.
Second, while the
contribution made to PERS/TRS appears to be cut, that in fact is offset by a
$76.7 million draw from the Alaska Higher Education Investment Fund
(scholarships) to keep actual spending near the same level proposed by the
Governor (and recommended by the state's actuaries).
Third, the budget includes a
$145 million generalized credit resulting from a reversal (draw) from a
previous fund capitalization (what I have been told is the Public Education
Fund).
Such credits previously have
been considered below the line adjustments, not spending "cuts."
Shifting money and directing
revenue from one area to another isn’t the same as cutting the spending. Please
see the chart below.
Once again, Thanks for Your
service and God Speed in figuring this mess out!
Sincerely,
Jon Corbett
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