Deciding the basic functions of government

Last week Alaskans received a record high permanent fund dividend check. Oh, what a difference a year makes.

This time last year Alaskans had just overwhelmingly said no to a plan to tax you and every member of your family almost $750 a head on their PFD.

Oil was at $10 a barrel earlier that year and those who have had their sights on your PFD saw their opportunity.

Fortunately, their doom and gloom predictions did not pan out. The public did not buy it.

Oil is now close to $30 a barrel. For now, the state will remain solvent. I am proud to report your entire Valley delegation fought against this ill-conceived plan.

Your check represents your share of the earnings from the oil wealth owned collectively by you. The state, for the most part, retained the subsurface rights to the land (except Native land and some older pre-statehood fee-simple land).

In Texas, for example, ranchers became millionaires when oil was found on their land because they owned the subsurface rights to their land. In Alaska, we get our share of the earnings because we all own the subsurface rights by virtue of being a resident of this state.

Gov. Walter Hickel called this the "owner state." The Alaska Constitution backs this concept by stating that our resources are "available for maximum use consistent with the public interest" (Article VIII Sec. 1, Alaska Constitution.)

During the early 1980s with new, big oil dollars rolling in, the public had little reason to reign in spending or demand higher government efficiencies.

However, as the oil production began to decrease and taxing became the talk of Juneau town, the message to me was very clear - improve government efficiency and eliminate or at least scale back nonessential services.

I have identified almost 500 new state programs created since oil money filled the state treasury. In the past there has been an unwillingness on the part of legislative leaders to eliminate any of them.

However, since 1995 the Legislature has reduced general fund spending by close to $250 million and resisted spending billions of dollars of increases proposed by the Knowles administration.

The new challenge will be to hold the line on spending as oil prices are high. We still have a long-term production problem, especially if we get Al Gore for president.

Our Valley has been most fortunate during these up and down years. We have had major projects such as the Port and Hatcher Pass make progress, as well as four new schools approved for construction at a 70-percent state-funding match.

Additionally, we're able to protect and eventually bring home $14 million of Valley development money from the old rail car fund before it was grabbed up by other areas of the state.

Road construction dollars will remain higher per capita in the Valley than any other area of the state, with federal dollars stretching the state match quite a bit.

Because of legislation I authored, there is extreme interest in exploration for shallow coal bed methane gas in our area and across the state.

As Anchorage runs out of real estate, the Valley continues to grow and employment opportunities are increasing. We should pick up an additional legislative House seat in two years due to population growth.

Private-sector development will fund the taxes needed to give our children a quality education. The brightest star on the state horizon, stranded North Slope natural gas, is now steadily rising over Alaska.

Finally, with major new oil fields like North Star and Alpine coming on line, our decline in oil production is abated.

We must have the discussion of what is the basic function of government, fund those functions well, and eliminate nonessential programs.

I believe with such boundaries firmly in place, local government may not have to face tax caps and public education, public safety, and road construction and maintenance will receive the support they truly need and deserve.

Rep. Scott Ogan is running in the Nov. 7 general election against Alaskan Independence Party candidate Lawrence Wood and Democrat Howard Bess, to keep his District 27 seat in the Alaska House.