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Budget Cuts and Taxes
This is written in the second to last day of the session, so a few minor changes to the state's budget can still be made, but the general picture is clear. The state has little money left in the budget reserve account and the Legislature has failed to pass a general broad based revenue measure (read income tax, sales tax, or permanent fund draw) to fill in the deficit.
We are 160 to 180 million dollars short of the governor's plan to move the state toward economic stability. The governor has indicated he will use the line item veto to individually cut programs to reach his budget cutting goal. He has also indicated he will not call for a special session to resolve this issue.
So where does that leave us? If the governor follows through, we will take more cuts to education, the university, fish and game, longevity bonus, and capital projects. This is not a pretty picture. But there are many legislators who felt there needed to be more cuts and some citizens have argued the same.
The messages I received from you folks were: we have cut the budget enough; we need to have more revenue, and we need to fund education and fish and game to ensure a prosperous future for our children and our community. Interestingly, in committee the most numerous public comments in the state came from Kodiak and that testimony was mostly for an income tax. In fact, Kodiak was very clear on that issue.
I have been fighting hard for Kodiak's point of view on these issues, but the majority of Alaskans (I.E. Matsu/Anchorage) at this point in time do not see things as clearly as the citizens of Kodiak and the Alaskan Peninsula. When revenue issues are revisited, I will continue to advocate for an income tax. It is the fairest way to raise the money we need to educate our youth and to both protect and develop our fishery resources.
Federal Money for Fisheries Development
Fisheries policy adviser Alan Austerman recently gave a presentation to the House and Senate Finance Committees outlining how the Governor's office intends to spend the $50 million in federal dollars that have been received for revitalization of the salmon industry. He provided a list of estimated payments that will be made to cities and boroughs to compensate them for lost fisheries business tax revenue. Recognizing that the numbers are not absolutely final, it appears that the City of Kodiak will receive approximately $300,000 and the Kodiak Island Borough will receive about $350,000.
In addition, some of the funds will be distributed as direct payments to individuals whose income has decreased as a result of the drop in salmon prices. If you held a 2002 commercial salmon permit or a crewmember license and you meet other requirements, you may be eligible for this financial assistance. You should expect to receive a letter and a one-page form from the Governor's Office that will explain this process in further detail. Please note that your deadline for applying for direct financial assistance will be June 7th.
In addition to direct aid to individuals and communities, the administration plans to spend $18 million on a national ad campaign for wild Alaska salmon, $13 million on infrastructure and other economic development projects, $1 million on quality control standards, $1 million on research and development for new salmon products and $2 million on fisheries business assistance through the Division of Investments and the Regional Development Organizations like SWAMC. I intend to help the Kodiak commercial fishing community to pursue whatever grant money is available under these programs.
Youth Court Funding
In other news, I have introduced , to provide regular funding for youth court programs, which are very positive factors in our justice system. The Kodiak Teen Court is a great program for Kodiak students. The bill successfully passed through the House Judiciary Committee this week, with seven of my colleagues from both parties signing on as co-sponsors. I will continue to work on this bill next winter and am optimistic it will pass.
Afognak Land Acquisition
I have also worked closely with the Chairmen of the House and Senate Finance Committees to secure full funding for the North Afognak Island Land Acquisition. In conjunction with several entities, including the Kodiak Island Borough, several native corporations and the Kodiak Brown Bear Trust, a deal was worked out for the state to acquire over 16,000 acres of land on the north end of Afognak.
This transaction is subject to a deed restriction ensuring public use of the property for hunting and fishing. I was also able to work out a letter of agreement between the principals and the Borough to receive a sizable cash settlement and/or land selection alternative. This is a great deal for all involved and most importantly to those who will use these lands for hunting, fishing and recreation.
These last two months have been exciting, rewarding and full of good work. It has been a treat to work on your behalf. I look forward to coming home to Sue, visiting with folks and going to fish camp.
As always my staff and I are available to listen to your concerns and provide assistance when needed. Please give us a call anytime at (800) 865-2487.
If you would like to receive an advance copy of this article via email, please email Cliff Stone of my staff at:
Your Representative Dan Ogg
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