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Extended Evening Budget Testimony By Phone
Dear Neighbors: I didn’t mean to scare you with an “alert”. All is fine. Sort of. We have worked with Finance Committee Chairs to make it easier for you to testify on the budget. Here are a few budget facts for your consideration: You may call in tomorrow from your home if the previous testimony times I wrote you about don’t work. Extended testimony will be from 6PM to 9PM tomorrow, March 5. Please call 465-4648 or 465-6258 for telephonic testimony. The committee requests Off Net callers hang up immediately after their testimony is taken to keep as many lines open as possible for other callers. You can continue to access the meeting on your computer through akleg.gov (click on Alaska State Legislature and then choose the “Live Now” button) or watch on Gavel to Gavel, 360 North (check local listings). Call as early as you can! Here are some budget facts and smarter savings ideas for your consideration. Some House members have recommended cuts to the most vulnerable Alaskans, and to job training. I support the Governor’s gradual, but significant, cutting level. Many legislative proposals are now in the draft budget bill. The budget difference between the Governor’s and proposed House amount is minimal, but the effect on kids, the disabled, education, and job training is massive. We need to cut the budget, but hopefully smartly. According to the non-partisan Division of Legislative Finance, you could fire every state employee and would only cover half the projected $3.5 billion budget deficit. We need to save money first by not paying out unwise corporate subsidies, and fix an oil tax law that will produce negative $500 million in “revenue” in the next two years (that is, we pay more tax credits and deductions than we receive in production tax revenue). Even a temporary oil tax fix until we can fully revisit this flawed law, and hear arguments for other ideas, could extend our savings for an extra 3-4 years. The Governor’s cuts leave a roughly $3.5 billion deficit given the plunge in oil prices. The proposed legislative cuts, with all the harm they cause, leave a $3.35 billion deficit. For little budget savings, cuts to opportunity, education, job training, dignity for seniors are being pushed. We should not write a budget that puts us on a road to recession. I don’t agree with each of the Governor’s proposals but will work towards his smarter savings goal. Here are some of the things I propose that fit within the Governor’s budget cut numbers. Many of the proposed additional legislator cuts will cost us more money in the long-term. 1. Cut $15 million in spending on corporate subsidies by asking the oil industry to help pay their share for maintaining the Haul Road they use for oil production. 2. Cut the $30 million a year we directly pay refineries in a poorly crafted subsidy bill passed last year, and replace that expensive subsidy with low interest loans to refineries that actually need them. 3. Restore the proposed complete cut of all state pre-K programs, including pre-K classes, Best Beginnings, Parents as Teachers in home pre-K training for parents, and cuts to early learning and literacy help. 4. Support a K-12 education budget that keeps up with inflation, and stops staff cuts. 5. Reduce the program cuts from a proposed reduction in $35 million university funds. The university is a needed economic engine. 6. Restore Southeast and Interior grants for interpreters for the deaf, used to help deaf Alaskans at work, and in life. 7. Restore some cut troopers and “cold case” murder investigators. 8. Protect our most vulnerable youth rather than paying for jail and welfare costs. 40% of our foster youth end up homeless or couch surfing and 24% end up in jail. Staff and educational help are needed for a foster care system all concede is vastly understaffed. A 2012 Governor’s study showed Alaska cannot adequately prevent child neglect and abuse when Anchorage and Mat-Su workers have caseloads that are 70% higher than they can handle. Since the 2012 study showing how short-staffed we are, foster youth numbers have grown by 600, and the short-staffing problem has become worse. 9. Restore Senior Day Services so families with an older parent who needs care during the day can avoid expensive Medicaid funded nursing homes. These services allow families to work during the day, and help families with parents who battle dementia. We need to grapple with this budget, but also protect the economy with a soft landing. Doing extra damage for little budget savings, while paying out unjustified corporate subsidies makes little sense. As always, let me, or my aides Joe and Molly know if we can help, or if you have any questions. My Best,
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