OPINION: There Will Never be Enough Money
Published 4:30 am Thursday, March 26, 2026
The Washington State Legislature recently passed a bill levying a new 9.9% tax on personal income over $1 million. Middle-class Washingtonians won’t feel the pain as it only affects the upper crust. But for how long? After all, there is never enough money to feed the Machine.
The average Californian is in the same boat. The Machine is coming for them too. Same for residents of New York City and jurisdictions across the country – including Alaska. The Machine is insatiable. It eagerly consumes the product of our labor, each bite bigger than the last.
Here in Anchorage the FY25-26 school district budget totals $966 million all-in. While potential budget cuts are always well publicized, the bottom-line number is rarely cited. It’s big. Nearly $1 billion. Of course, transparency risks sticker-shock. So, the Machine dwells in the shadows. In April, Anchorage voters will be asked to approve Proposition 9.
This is an $11.8 million tax on property owners earmarked to top-up the school district’s FY26-27 operating budget. It will add $27.40 per $100,000 of assessed value for one year. This is over and above the bond proposals. If this proposition passes, the Machine will have invented a new food source. So, a similar prop will be on next year’s ballot too, only bigger. The Machine always tests limits. For those outside Anchorage, heads-up. If Prop 9 is successful here, the Machine in your town will take notice. Of course, the MacDaddy Machine operates in Juneau with near impunity. The dinner bell rang the Alaska State Legislature back into session on January 20th. Teed up for passage this year is House Bill 78. This bill will allow the pension genie to, appallingly, escape the bottle – again. Brief Recap: In 2005 the legislature performed a miracle by swapping the public employee defined benefit pension in favor of a defined contribution plan. This was absolutely necessary due to a massive, unfunded, liability in the State’s pension system for which we are still paying.
Today, politicians beholden to the Machine are pushing hard for a return to a DB pension. The legislative record for HB 78 features copious findings and emotion-filled testimony, much of which only serves to reinforce confirmation bias held by sponsors and supporters of this bill. But, a March 2025 analysis by consultant Gallagher exposes a serious defect. The firm states, “By shifting active members and future hires from the DCR plans to the DB plans, the State will assume greater risk of larger unfunded liabilities and higher contributions in future years.”
In other words, HB 78 lets the pension genie loose again.
This is simply astonishing.
HB 78 backers insist this time will be different. Risk will be shared and money saved. But that’s not how the Machine operates. Once the DB pension door is cracked open, the Machine will demand ever more generous terms. Politicians bound by the Machine will deliver, as always. These are just a few examples of the Machine at work. By its nature, there will never be enough money. The only way to curb the Machine’s appetite is to retire its enablers. Municipal and State elections are on the horizon. Will the Machine run rampant? Or will it be checked?
Brian Hove is a UAF business graduate and a 46-year resident of Alaska. He worked as a community banker and staffed a state senator back in the day. He lives in Anchorage and volunteers on behalf of the Alaska Republican Party serving as national committeeman.
