Regardless whether you like harp music, it’s soothing, relaxing, even peaceful.
Which leads me to apologize for continuing to harp on Alaska’s Permanent Fund dividend politics, which are anything but musical. They’re more akin to the wordless scream of a heavy-metal song, full of sound and fury, signifying nothing. But they sure get the audience fired up.
Unless you believe in $100-plus oil prices or heavy taxes or large-scale budget cuts, the state treasury cannot afford endless years of $2,500 or $3,000 dividends, especially not the $4,000 promoted by Republican gubernatorial candidate former Kenai Peninsula Borough Mayor Charlie Pierce.
Responsible spending is not Pierce’s strong suit. The borough already has paid out $267,000 to settle two workplace harassment claims against him from his time as mayor, with a third settlement pending.
Pierce is among this year’s candidates who must have discovered new laws of math. They campaign on large dividends, offering no specifics on how they would cover the checks, pay for schools, roads, troopers and everything else our communities need. At a candidate forum in Homer, Pierce indicated he would support budget cuts to pay for the massive dividends. Of course, he offered no specifics.
Gov. Mike Dunleavy, who based his winning 2018 campaign and this year’s reelection campaign on pledges of big dividends, had talked of unknown “new revenues” to balance the budget. That’s like trying to borrow money to buy a decked-out $75,000 SUV and telling the loan officer something will come around to cover the payments.
Even worse, Dunleavy wants to put a dividend formula into the state constitution, which could put the PFD ahead of education funding. Is the dividend important enough to risk no more pencils, no more books, no more teacher’s dirty looks?
Democratic gubernatorial candidate Les Gara proposes to build a state budget with a substantial dividend and solid funding for schools and other services by raising the tax bill to oil companies. Honest, but not popular with industry.
Former Gov. Bill Walker, who ignited the dividend-formula debate in 2016 when he vetoed down the payment to an amount the treasury could afford, is telling voters he will support whatever PFD formula can pass the Legislature. Probably a practical approach, but it misses the point of leadership.
Full funding for schools, a sufficient construction and maintenance budget that meets the needs of the state and its communities, a large enough state trooper contingent to protect the public, road repairs and everything else the largest state in the union needs costs a lot of money — no matter how much misleading candidates like Pierce talk of budget cuts like they were cutting an apple pie.
The math is irrefutable, like 2 plus 2 equals 4.
A $2,500 dividend for every Alaskan costs the treasury more in state general fund dollars than goes to K-12 education.
Meanwhile, oil prices are about as predictable as that Amazon order you’ve been waiting on for a month.
To manage it all without taxes is mathematically impossible. But just to prove how politically unpopular taxes are in Alaska, Dunleavy last month vetoed a new state tax on e-cigarette and vaping devices. The governor said, “Ultimately, a tax increase on the people of Alaska is not something I can support.” Unlike large dividends, which he can enthusiastically support.
Think about the math when you vote in the Nov. 8 election.
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