Candidate shares concerns, hopes

Spectrum, by Bill Allen

I am a candidate for re-election to the Mat-Su Borough Assembly District 2 and the purpose of this article is to share with you my concerns and plans pertaining to your borough government.

I am extremely concerned about the borough's financial condition. The simple fact is our needs (expenses and reserve requirements) exceed our current revenues.

Your borough assembly has made several decisions affecting the budget. We have fully funded education the past three years. In FY04, it was necessary to defer funding-ordinance-created reserve accounts because funds were not available without first increasing the mill rate. Increasing the mill rate was not an option favored by a majority of the assembly members, including myself.

Other sources needed to be considered in order to provide minimum funding for education based on the education funding formula, so the assembly passed the transfer fee funding ordinance and placed the question of a 1-percent sales tax on the Oct. 5 election ballot. Unfortunately, a resource severance tax question failed to make it to the ballot because the assembly voted not to ask the voters to approve the tax by a 4 to 3 vote.

I supported full funding for education based on the transfer fee and the passage of the severance tax and the sales tax. I did not support the sales tax in the form it was presented. I offered an amendment to the proposed sales tax ordinance that would have explained to Mat-Su residents how the funds collected would be disbursed. My plan would have funded the ordinance-mandated reserves, it would have also maintained our cash reserves to protect our bond rating, and it would have repealed the transfer fee. The balance would have been split 50/50. Fifty percent would have gone to a fund for road repair and capital maintenance and fifty percent would have gone directly toward lowering the property tax mill rate.

I supported the severance tax. I know of no other area in this state or the United States that allows extraction of its non-renewable resources without taxing except the Mat-Su Borough. In addition, the state Department of Natural Resources Reclamation Act is not enough. Right now, the gravel pit industry is working with our Borough Planning Commission to develop an acceptable reclamation ordinance.

At the budget hearings this year I heard resident after resident say "fully fund education but don't raise my property tax." The irony is, we did not increase the mill rate appreciably, but real estate property taxes will go up anyway. The borough by statute is required to assess real property at 100 percent of market value, and in the current economy, values continue to rise substantially.

One aspect of our borough's growth that causes me great concern is the impact of a "heated" economy on local government. The demand for services increases substantially in education. For example, a family of 5 or more moves to the valley and purchases a home. If the 3 children are in school the cost to the borough just for education is approximately $24,000. The average revenue from property taxes to the borough is about $2,600. You do the math. The cost of borough government, including the school district, can't finance borough operations on the backs of the property owners in the Mat-Su. Ideally, the commercial section of a community would pay the lion's share of the tax to support education etc. But, in the valley we do not have the kind of commercial sector or value-added resource development that has the ability to create jobs and help with the tax burden property owners are now paying.

I support responsible, environmentally sound development, but the residents within our borough need to plan and decide what kind of growth is acceptable.

On that point, let's establish the rules by which we will accept industry before announcing, "We are open for business." Take the case of Evergreen -- they were invited to come to the borough and invested several million dollars in our economy. Now they're told that the rules have changed concerning their industry. The first 15 years after oil was discovered in Alaska, we changed the tax law 14 times. Those resources belong to the people of Alaska, but we must be fair and be prepared to listen to those seeking to develop our resources.

Yes, I am concerned about the borough's finances but the shortfalls in revenues and increases in expenses are manageable. We need the private sector to develop here in the Valley so we can generate jobs and revenues that will stabilize our tax base.

I have spent considerable time working on concepts to develop our economy and create local employment. For example, last spring I invited President of the University Alaska, Mark Hamilton and Karen Perdue to meet with the hospital administrators from Fairbanks, Kenai, the Mat-Su and Juneau to discuss health care training. Our discussion centered on the gaps that health care providers face throughout our state. I submit that the Mat-Su could be a perfect venue for a training center for health care professionals.

The Denali Commission and other federal agencies are developing health clinics throughout Alaska and they need trained staff. Providence, Fairbanks Memorial, Kenai and Juneau are paying in excess of a total of $15 million for traveling temporary health care workers. It is time for us to turn those resources into a future for our children!

I have been honored to serve you as an assemblyman for the past 1 1/2 years and I'm asking for your vote on October 5th to continue my service.

Bill Allen is currently a member of the Mat-Su Borough Assembly and is seeking reelection.