Alaska’s fiscal disaster

To the editor:

Sometimes I think politicians live in an alternative universe. At a time when Alaska has multi-billion dollar deficits, our state representatives don’t seem to be aware there’s a problem.

At a press conference in Juneau, Rep. Wes Keller said, “At the state level, we’re doing great, we’ve got oil taxes sorted out, we’ve got the gas pipeline, we’re spending responsibly.”

Really? Alaska has a $2 billion deficit this year. Non-partisan budget experts say long-term annual deficits are expected to be $2.5 billion.

These deficits are so large that they threaten our PFDs. As the Legislative Finance Division said, spending cuts alone aren’t enough, and the Legislature might have to consider an income tax or cuts in the Permanent Fund.

In fact, House Republican leadership already said they are considering cuts to the PFD. At a press conference with Speaker Chenault (R-Nikiski), Alan Austerman (R-Kodiak) said, “It’s early, but using the Permanent Fund for the budget isn’t off the table.”

Is Keller living in an alternate universe? I don’t think we’re “doing great” when the Legislature is considering cuts to the PFD.

I can remember that our budget used to be in pretty good shape. Until last year, the state was saving money and the number of jobs on the Slope was growing. Oil industry profits were growing too.

But the oil companies got greedy, and Governor Parnell pushed through the oil giveaway, reducing state revenues by billions of dollars. It is no surprise that we now have massive deficits and threats to the PFD.

Sometimes I think the government is like an alcoholic who hasn’t admitted he has a problem. No, Wes Keller, we’re not doing “great” and we’re not “spending responsibly.” We have a $2 billion deficit and the PFD is at risk. Meanwhile, oil production is declining, even though oil companies are getting larger profits than ever.

It is time for our representatives to admit that we have a problem. Alaska can’t afford these oil giveaway deficits.

Valerie Mittelstead

Palmer