May 10, 1999

Dear Constituents of District 32:

What should our government do? - What services should our government provide? - What size should our state government be? - Should the citizens pay for services from the free market or should we tax people to provide these services? - Should we protect the state government before protecting the private economy of Alaska?

The "Healthy Alaska" Plan keeps government at about the same level with modest reductions for the first year and a small growth projected. I am thankful that this plan went as far as it did and I hope that we will look at a priority that will answer some of the questions in the first paragraph. I am not happy with the plan because it protects government instead of protecting people in the free market. Do you really want the state to be the center of the economy or shall we protect the right of the people to generate an industry that builds a private economy?

The Alaska Income Account's taking 58 cents out of every dollar that has been entrusted with the people of Alaska as a generational trust from the resource extraction, is a tax pure and simple. The Permanent Fund is not just a "rainy day account". This generation and the next should benefit from "their" part of the royalty from oil and other resources. If we are going to take a large portion of the Permanent Fund dividend away from them, - we had better ask them for permission!

I like the flexibility of the plan and will continue to bring suggestions for reorganization and prioritization of our state government services to the discussion. Also I will not agree to burden the people of Alaska with more taxation until we make a serious effort to fit our government to the income allowed it. I am convinced that private industry should build our economy instead of government. I am committed to stay at the discussion as long as I feel that I have credible input. I remain open to your input.

Sincerely,

Representative John Coghill