Spending Cap, PFD, and SB9 Should Be First, Not Taxes
Discussion among leadership and the governor ensued last week about the need for a fiscal plan (sooner rather than later) after a conversation about what our fiscal situation will look like in just a few years – especially considering some of the big-ticket items on the table.
What is interesting is what certain legislators think of first when they consider a fiscal plan. Some focus on a spending cap, settling the PFD, and/or government efficiencies. Others gravitate toward thoughts of taxes. It’s fascinating.
For a fiscal plan to work, however, all the pieces have to be hooked together. Each only goes into effect if the other pieces are in place. The constitutional pieces must be set in place first (in Alaska: fixing the spending cap and settling the PFD). These are the “bookends”, the parameters that determine any gap. The gap is then addressed through reductions and/or revenue.
When you get to the reductions vs revenues debate, my bill, SB 9, which would create the Alaska Sunset Commission, an independent audit board and staff team, would help with the efficient and effective government piece. Ten other states have sunset commissions to help make sure the public is getting the most bang for the buck when it comes to their state government. [Read more here.]
SB 9 is up for a hearing, by the way, tomorrow in State Affairs at 3:30pm (3rd bill up). Call in to testify in support 907-563-9085 (Anchorage), 907-586-9085 (Juneau), or 844-586-9085 (Rest of Alaska).
The closest the legislature has come to agreeing on a fiscal plan is the Fiscal Policy Working Group Report August 2021 – an easy read – which is definitely worth a quick browse.
