Ballot measure one threatens the PFD; We’re voting no

We stand together with Alaskans who support a full Permanent Fund dividend based on the law. For years, we have worked and fought for following the PFD statute, no matter how intense the pushback. We now stand in strong opposition to Ballot Measure One, which would raise state oil taxes, because the initiative threatens the dividend in the long-term.How does Ballot Measure One jeopardize the PFD, and not “save and protect” it, not ensure “larger PFDs” as the ballot measure promoters claim?Economics 101. If dollars used as upfront capital to develop fields are sucked up in taxes, the fields will not be developed. If taxes are lower elsewhere, businesses will shift their focus elsewhere.Based on this knowledge, if Ballot Measure One were to pass, how would things unfold in Alaska? Initially, oil revenues collected by the state would increase, but in a mere few years, oil revenues would drastically drop. Therefore, Alaskans, Ballot Measure One puts your PFD at tremendous risk.If we want full PFDs into the future, we must oppose Ballot Measure One.Anyone who pays attention knows oil prices have cratered and state revenues have slumped, but they also know we have not reduced government operations spending to live within our means. We have simply slashed dividends to close our budget deficits. The PFD problem has not been our oil tax policy; the PFD problem has been a lack of spending restraint.Case in point? Most of the ballot measure proponents went along with reducing the PFD with barely a peep the last few years, but hollered loudly and fought against any spending reductions. Most have never been and never will be true defenders of the PFD. They are not interested in collecting more oil revenues for PFDs. What is so incredibly ironic is that their tax initiative not only puts the PFD at risk in a few years, but it also jeopardizes the revenues needed for state operational and capital expenses.Based on recent actions, any money the legislature gets its hands on will go to more government spending, not for PFDs. So, if we pass Ballot Measure One, we get less investment in the private sector, less oil, less revenue, and smaller PFDs. Join us in voting NO on Ballot Measure One in November.

Sen, Shelley Hughes represents District F, Sen,. Mia Costello represents District K and Rep. Mike Prax represents North Pole.