I have found the solution to the state of Alaska’s budget problems. Just follow these steps and all budget problems will just disappear.
First, reinstate the state income tax, but at a slightly higher 18 percent rate. Second, borrow roughly $1 billion per year from the principle of Permanent Fund for two years, with an option for a third year. This would require a vote of the people. The only con to this budget solution is getting the approval of the people, and if it doesn’t get the approval, all bets are off.
Pros to this plan are a state income tax, taxing the thousands of out-of-state workers who pay the income they make in Alaska to the states they live in.
Another pro to this plan is legislators would not take any of the earnings of the Permanent Fund. We all know the yearly payout of the fund is the greatest economic benefit to the state.
Taking (stealing) some of the earnings, as called for by Gov. Bill Walker, would have great negative impact on every Alaskan man, women, child and grandchild. The intent of Gov. Jay Hammond and the lawmakers in the 1970s who created this great wealth fund was to ask the people and not bypass the vote of the people. Gov. Walker and the Legislature should consider this plan to be the state’s best solution.