INSIDE THIS ISSUE...

• RUMORS OF ARM TWISTING BY KNOWLES-ULMER ADMINISTRATION
• TAXES -- A BLANK CHECK AT THIS TIME
• REPRESENTATIVE VIC KOHRING'S PLAN

Participate

"The only thing necessary for the triumph of evil is for good men to do nothing."
- Edmund Burke

CAUTION:

Agreeing with any of the contents of this publication could be hazardous to your relationship with the Knowles-Ulmer Administration.

RUMORS OF ARM TWISTING BY KNOWLES-ULMER ADMINISTRATION

When our last newsletter was inserted in several local Alaskan newspapers, it didn't take long for the phones to start ringing. It seems that the Knowles-Ulmer Administration was concerned that the public might be exposed to ideas that their administration finds offensive. You know ideas that don't conform to reality as they spin it, like the myth that we are living in the midst of "unprecedented prosperity".

While compliments were being paid to our University President for his stand on free speech, the Knowles-Ulmer Administration had its staff calling members of the Common Sense Board of Directors and others asking that they cease supporting our efforts. They were only partially successful in having some funds and support withdrawn. You can't blame those who relented to the arm twisting as it is not good business in Alaska today to thumb your nose at the Knowles-Ulmer team.

TAXES -- A BLANK CHECK AT THIS TIME

You have probably seen our ads and understand that we are against an income tax. In truth, Common Sense for Alaska is currently against all taxes, including the "Dime a Drink" and tourism taxes. There is no place in responsible budgeting for only addressing the income side of the ledger. Asking for more revenue without controlling the state's expenses is asking for a blank check.

Taxes will hurt our economy and although they may someday be inevitable that day is not now. Not when there is still more that can be done to cut expenses and not while we are sitting on earnings from the Permanent Fund that would cover our expenses.

University President Mark Hamilton commented at a meeting a few weeks ago that if you think saving the Permanent Fund Dividend program for your grandchildren is smart, to please think again. Our children are not going to remain in a state where there are no meaningful opportunities - just the diminishing possibility of getting a $1,800 dividend check.

The exchange of ideas is important and to that end we have included another approach to the Fiscal Plan dilemma. As a footnote, Rep. Kohring was the only member of the Alaska House of Representatives who was present and did not vote to censure us for the anti-income tax ads we ran. Thanks for that...

REPRESENTATIVE VIC KOHRING'S PLAN

http://www.akrepublicans.org/22ndleg/kohring.shtml

Objective:

Eliminate deficit; cut government by a third; no new taxes; no spending of the Permanent Fund; fund core essentials; develop private-sector economy

Strategy:

1. Enact 10-Point Budget Proposal

   Immediately put in place spending reductions outlined in the "Kohring 10- point Budget Plan" (see attached specifics) and continue until the deficit is zero by year seven.$500 million in cuts by year one, one billion by year five and approximately $1.5 billion (accumulative) by year seven from all funding sources.

2. Fund Constitutionally Mandated Essentials

   Fully fund core essentials required by Constitution including roads, schools, public safety and court system. Everything else subject to elimination, with few exceptions.

3. Reactivate Existing Rainy Day Account

   Reactivate existing "Rainy Day Account" and draw upon each year to balance budget until deficit is zero by year seven. The funds will come from a combination of sources including CBR, land sales, non-essential program cuts and sale of state-owned facilities including but not limited to railroad, office and commercial buildings, dairy, meat and fish processing plants.

4. Major Oil and Gas Industry Expansion

Develop strong private-sector economy by expanding oil and gas industry, resulting in additional revenues to state treasury for funding core essentials and eliminating the need for new taxes. A package of legislation will be advanced to: a) streamline permitting processes; b) reduce regulatory requirements; c) provide tax incentives; d) increase acreage for leasing. The desired result will be substantially increased exploration and development.