 Development Option Not on Table as Response to Fiscal Gap October 05, 2002
"Organizers of this forum emphasized just two approaches to the state's financial challenges," Murkowski said. "The first was levying taxes on working Alaskans, and the second was spending the earnings of the Alaska Permanent Fund. Along with the vast majority of Alaskans, I believe that we need to do more to control spending and maximize revenue from our state assets before sticking our hands in the pockets of Alaskans." According to a news release from the Murkowski for Governor Campaign, the organizers and moderators at the event, called "Who Pays? Dealing with Alaska's Looming Fiscal Crisis," directed a four-hour program that operated from the assumption that taxes and Permanent Fund spending were inevitable. They seemed to accept the premises that state spending must continue to grow unabated, that the Constitutional Budget Reserve would be drained in just two years, and that the state had little or no chance to increase revenues from traditional sources. "Some pessimists would have Alaskans believe that we face a '$1 billion fiscal gap' that makes it imperative to hit the panic button and impose taxes or spend the Permanent Fund to pay for a growing government," Murkowski said. "In fact, at current oil prices in the range of $28-30 per barrel, the deficit is likely to be much lower. It is bad public policy and poor leadership to allow some liberal politicians to use fear and half-truths to achieve their long-term ambition to tax Alaskans." Murkowski repeated his call for Alaska to increase revenues by bringing more oil and gas companies to Alaska to invest in exploration; by demanding development of known commercial oil reserves; and increasing our known reserves through technology, access and infrastructure. He also pointed to other revenue options including a natural gas pipeline, oil development in NPR-A, public/private partnerships with mineral developers, improved fishing economics, and making government work with, not against, private industry. Murkowski praised the few panelists, such as former Governor Bill Sheffield, House Speaker Brian Porter, former Speaker Gail Phillips, former Anchorage Assemblyman Bob Bell, and political commentator Jack Frost, who advocated for more effective state spending, tight budget controls and removal of unnecessary permitting obstacles to oil development. "I reject the notion that the only solution to Alaska's fiscal challenges is to burden Alaska families with taxes, or to divert revenue from the Permanent Fund," Murkowski said. "I believe we can replace the resigned refrain of 'We can't' with a confident assertion that 'We can.'"
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