I watched Gov. Bill Walker’s State of the Budget address and the rebuttal from the Alaska Legislature. The Governor said that we need to cut the budget. Because that will not be enough, we should also utilize part of the Permanent Fund, which would lower the annual dividend distributions. An income tax, like we had previously, would generate some much needed revenue.
If the Governor is willing to take the political heat over such tough decisions, then the Legislature needs to do the same. Instead of worrying about re-election, state leaders must protect the interests of Alaska and its people. Alaskans benefitted from the success of oil companies over the last 30 years, and we became too accustomed to it.
The budget work required to solve our fiscal crisis is not nearly complete. This year will be a tough one, and if we continue spending all of Alaska’s reserves over the next two years, the state could go bankrupt.
I have experience with these situations. As Governor in 1986, the price of oil dropped to $8 per barrel. Without the Legislature’s involvement, I cut close to $750 million from the state budget. This included salaries for jobs, programs and capital projects, while communicating with every mayor in each town and village over the course of two months.
My budget director said that budget cuts were politically unpopular, but I was elected to serve the people of Alaska and to steer the state toward a more sustainable future. Later I was fired, by not being re-elected. That’s OK, because I did the job with Alaska’s future in mind, just as our current Governor is doing. Now the state legislators need to follow his example of working with integrity by stepping up and doing their jobs.
The Rasmuson Foundation, with Diane Kaplan’s lead, has done a great job holding meetings across the state, explaining these problems and helping Alaskans to better understand the fiscal crisis that the state is experiencing. This outreach work is extremely helpful because it provides legislators with a more informed public in regards to gaining support for making tough decisions.
Alaska’s decision makers need to overhaul state government — now. It’s time to examine everything the state does, how it is done, and how it is funded. There are many ways to reduce government spending by making it more efficient. For anyone who has ever made a payroll, you will understand what I mean. If there’s not enough money for payroll next Friday, you need do something about it by Tuesday. With the complexities of government, it can’t react that quickly so long-term planning must be factored in.
I have always supported government spending to build and strengthen infrastructure, which is crucial to both job creation and for the private sector to grow successfully. Currently, I cannot support continued spending on projects that offer no clear or immediate benefit. The decisions that are made now will define the future of our state. If lawmakers are willing to take action, with support from our state’s residents, it can be a catalyst for positive change. Making tough choices is difficult, since it may not get them re-elected. That’s the difference between a leader and a politician.
• Bill Sheffield was the fifth governor of Alaska and a member of the Democratic Party. He served as governor from 1982-1986.
