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Portrait of Representative Vic Kohring Interim:
600 E. Railroad Ave., #1
Wasilla, AK 99654
Phone: (907) 376-4866
Fax: (907) 373-4724

Session:
State Capitol, Room 128
Juneau, AK 99801-1182
Phone: (907) 465-3878
Fax: (907) 465-3265
Send E-Mail

For Immediate Release: January 27, 1999
Contact: Representative Scott Ogan at (907) 465-3878.

There is No Salvation in Taxation

Juneau -- Governor Knowles' real agenda is finally out of the closet. First he promoted a gas tax, and he now is pushing his triple dip plan, raid the permanent fund, gas, and income taxes. After sounding like a skipping CD all last year with "just let the people vote" on subsistence, he now opposes the people voting on tax issues.

To those of us who are trying to bring government down to an affordable size and avoid a huge tax burden to citizens, the Governor’s triple-dip plan can only be viewed as ill advised. It is unfortunate that he has chosen to protect a constituency called big government instead of the average working Alaskans. He may be betting the people of the state will not weigh in on this decision and demand to vote on new taxes. My constituents have been very outspoken against taxes, and I encourage all those who oppose the governor’s push to spend your dollars to support his government to let the legislature and governor know how you feel.

If we capitulate to new taxes with no serious downsizing, we will lose the incentive to make the fundamental changes in priority's we must fund. We simply cannot tax ourselves into prosperity, especially at a time when low oil prices are affecting so many who work in the oil industry.

I have been researching the growth of the state operating budget since 1980 and the increase in permanent state employees and government operating expenses. The cost of government has increased over 184% from 1980 through 1998, with the addition of nearly 6000 permanent state employees for a 61% increase. Our statewide population on the other hand has only increased 48% in the same amount of time. I don’t think you’ll find many Alaskans who feel their state services have improved in proportion to budget increases.

Many of my constituents who call state agencies to complain usually are met with "the legislature cut our budget, and we need more money." The fact is, we have seen very little reform or serious efficiency undertakings by government. It is a sad testimony that the Governor's proposed budget adds 600 more new employees while he tries to sell his triple-dip plan. No amount of taxes can support his proposed level of government, let alone the current level.

In my opinion, the only issues that should be on the table are two models of reform.

  • The reorganization and downsizing similar to what the oil companies have been doing for the last several years. Top oil company executives have told me two levels of upper management have been eliminated, unnecessary operations eliminated or consolidated and many jobs out-sourced. This was all before the latest round of pink slips. A good model I am looking at is the structure of state government before we had big oil money.
  • Areas of the state that get a free ride, (unorganized Boroughs) need to come into the fold and start paying their way. Alaskans must question the idea of an additional tax on citizens paying their way to support those that do not pay any local support.

I encourage the public to support the legislative leadership to eliminate programs and re-prioritize services, that left as status quo, will strengthen the Governor’s triple-dip plan. Please encourage this Governor to work with the legislature to help identify those non-essential portions of government, which need to be downsized or repealed. In my opinion, if the Governor continues to resist the legislature on reductions, he (Knowles) may be putting high priority services and state employees and ultimately the state’s economy at unnecessary risk.

Alaska is facing a new economic challenge. If we are to overcome it, those who have built the towers of government on the shifting sands of oil must realize two vital points. The tower must be reduced in size or it will topple, and the only bedrock in any world economy is private sector development.

Alaska is a young state, the Permanent Fund was set up to be our "retirement" account. Instead, the Governor is acting like a teenager with a trust account, not willing to live with his allowance being cut back. Instead of scaling back his bureaucracy’s lifestyle, he wants to dip into our retirement account. Deposited into the Constitutional Budget Reserve, which requires a ¾ vote to access, minority democrats will be further empowered to ratchet up state spending.

Until we can honestly look our constituents in the eye and tell them we have done all we can do to reduce state government to an affordable level, then and only then should Alaskan’s consider other options.

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