Tax first

It is interesting to watch government’s reaction when its flow of money is interrupted – and entirely predictable.

Gov. Mike Dunleavy whacked $444 million from the state government budget and you would think the world had ended. It set off a chorus of howls across the state, from the largest cities to the remotest corners of the state.

His veto of half – or about $49 million – of state funding used to pay down school bond debt has Mayor Ethan Berkowitz in a dither, promising a property tax increase to make up the more than $20 million the cuts will cost Anchorage.

That will amount to about $210 in increased taxes on a $350,000 home next year. Berkowitz called it a “Dunleavy tax increase,” the Anchorage Daily News reported.

What is missing in all this? Any mention of local spending cuts, program elimination or municipal belt tightening. Berkowitz’s first reaction, as always, is to blame somebody else and tap property owners.

This time around it is particularly vexing because many warned the city and the school district that the state’s promise to defray the bond debt cost always was iffy; that state revenues were sliding and that could mean cities would be left holding the bag.

The state, running in the red, finally halted the bond reimbursement for new school bonds in 2015, but continued to defray earlier bond debt.

Would it not be nice to hear the mayor and city officials – instead of blaming Dunleavy – tell us how they plan to reduce the size of government before they begin talking about raising taxes?

Don’t hold your breath.

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to Frontiersman.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.