Senate Bill 21 reduced the income we get from our oil

The legislative session is over, and things aren’t looking good for Alaska’s budget. After passing the oil giveaway last year, now Alaska has a $2 billion annual deficit. Yes, “billion” with a “b.” At the rate we’re going, all of our savings will be gone soon.

Budget deficits are a real problem for our economic future. Because of these budget deficits, hundreds of teachers are getting laid off, putting our schoolchildren at a competitive disadvantage. Because of deficits, we have less ability to invest in resource development. Because of deficits, some legislators have already floated the dangerous ideas of an income tax or cuts in the Alaska Permanent Fund.

It didn’t have to be this way. Alaska is a rich state. If we put our resources to work, we can have America’s lowest taxes and some of the nation’s highest wages. To maintain low taxes on Alaskans, however, we have to earn as much money as we can from sale of our oil. Remember — it’s our oil. Oil from the North Slope is owned by Alaskans.

Senate Bill 21, better known as the “oil giveaway,” reduced the income we get from our oil. After passage of the oil giveaway, we have budget deficits. I am a prime sponsor of Proposition 1 to repeal the oil giveaway, because I think we Alaskans should benefit from oil development.

Sadly, the same politicians who passed the oil giveaway have been overspending on wasteful projects: A new office building for politicians that costs five times as much as the old building. A politicians’ smokers’ lounge that costs $74,000. And massive salary increases for political appointees.

We can’t spend more money while earning less from oil development — that just isn’t sustainable. After this dysfunctional legislative session, it is time to get Alaska’s finances back in the black with a balanced budget.

That starts by repealing the oil giveaway in August. Our oil is valuable — let’s develop it for what it’s worth, balance the budget, and make sure no politician ever has a chance to talk about creating an income tax or cutting the PFD.

Vic Fischer is one of three surviving delegates elected to Alaska’s Constitutional Convention in 1955.c