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83% RE-UNITED ON SAVING PFD

Submitted by Eddie Burke
Anchorage, AK
April 16, 2002

Recently, a group of well intended, life-long Alaskans reunited to hopefully save the Alaska Permanent Fund Dividend from the Alaska Legislatures deceptive "Fiscal Plan." We call ourselves the "83% Coalition."

In the 1998-99 legislative session, a majority of the Legislature cooked-up a Fiscal Plan asking voters to give-up $500.00 dollars of their PFD to fill the state budget gap. Voters supported our group's principals and rejected this plan by 83%. Prior to the public vote, former Senator Al Adams called the plan, "Half-Baked." Ladies and Gentleman, the legislature is back in the kitchen again.

Anchorage Daily News editors and most of the folks we elect, will disagree with me, but the current debate about needing a "fiscal plan" is just a little amusing at best. You see, It's good political spin to say, "We need a plan," because everyone likes a plan, but the only plan they all have in mind is, tax you and me, ending the PFD as we know it, to fuel increase government spending. I call it the "Blank check plan."

This approach implies that a future legislature will comply with a past legislature's plan. The Alaska State Constitution clearly does not allow for one legislature to bind or restrict a future legislature except for what is written in the State Constitution. Furthermore, the Constitution does not allow for designated funds, so all new monies would be simply deposited into the General Fund.

In contrast to the House, Senate Leaders have been advocating "incremental action." In my opinion, this approach will build trust and confidence with the voters. Plans are nice, but action is what voters want and deserve from those we elect. Below are action steps that the Legislature should adopt before asking Alaskan families to contribute:

  1. A Constitutional spending limit.
  2. Implementing cost savings and privatization recommendations.
  3. Require Alaska's largest industries to pay fair market taxes.
  4. Look for new revenues.

Former State Legislator Ray Metcalf, a member of our group, has reviewed and published a study sponsored by the International Petroleum Fiscal Systems Database, an internationally recognized authority on oil field development.

The database establishes that BP is leaving the state with 22% more oil profits on average than any other place where they are currently drilling. Moreover, the research discloses that if the Legislature required BP to pay fair market taxes, Alaskans would be enjoying a $400 to $600 million dollar budget surplus.

Representative Eldon Mulder, who Co-chairs the House Finance Committee has been reported saying, he won't ask cruise-ship tourists for a head tax, but he favors asking residents for a portion of their PFD. Let me get this straight Eldon, you won't ask total strangers for $50 bucks, but you can't wait to snatch your neighbor's PFD?

Senator John Cowdery served as Co-chairman of the Privatization Commission. The commission produced 400 state-wide cost saving and privatization ideas for the legislature's implementation. Nearly three years later, nothing has been implemented.

Speaker of the House, Brian Porter should quit spinning his wheels attempting to further the Anchorage Daily News fiscal series and look to Senate President Rick Halford and Senate Finance Co-chairman Dave Donley, who seem to be exercising more prudent fiscal principles and have established solid records protecting the PFD.

Like before, our group promises to stand solid with Alaskans in attempting to save the dividend and bring attention to those in the legislature who wish to pledge their political careers to big oil and big business instead of putting Alaskan families first.

You would think the Legislature would have heard the message when 83% of Alaskans told them NO to tapping the PFD in 1999. So why are they back in the kitchen again? Voters forgot what they did and re-elected them. The next election is not until November - allowing plenty of time for you to forget again.


Eddie Burke is a 30-year Alaskan, A member of the 83%Coalition and is Vice-chairman of District 19 for the Republican Party of Alaska. He was former Chairman of Save Your Dividend Committee and a Legislative Aide in the Alaska State Legislature-He can be contacted @ lakersalaska@aol.com

Copies provided to the Alaska State Legislature Contact @ 907-229-2287

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