February 26,
2015
Dear Neighbors,
North Pole Middle School students and Teacher, Pat Frymark, visited the capital for the Alaska Close Up Academy. |
Finance Subcommittees are finishing this week and I, along with the other Finance Committee members, will take up the operating budget next week. It is well documented that we are facing a $3.5 billion deficit, but what does that really mean to you?
In common terms, a deficit is the difference between how much money we collect and how much we spend. This year, Alaska is budgeted to spend $3.5 billion more than we are collecting. This equates to roughly $4,750 per Alaskan!
University of Alaska Fairbanks Student Senator Michael Mancill, Senator Bill Wielechowski, UAF Student Senator Colby Freel, UAF Student Senator Lachlan Gillispie and Myself. |
While some have argued that state spending has spiraled out of control and we are paying more now than ever before, I disagree. According to our own Legislative Finance Division, we are spending about the same amount per capita (adjusted for inflation) on our operating budget as we were in the early 1980s. The Alaskan population has grown and state government has grown to match many of the needs. What has truly caused the current deficit isn’t out-of-control state spending, but disappearing revenue.
After passing senate bill 21 last year, we are forecasted to collect roughly 20 percent of the production tax revenue that we collected under the previous tax system. Not only are we collecting a minimal amount for our oil, but the oil companies are raking in the profits. Of the $14.2 billion worth of oil that will come through the pipeline during fiscal year 2015, Alaskans will receive approximately $2.2 billion. I am still a long way away before I can support any budget and justify it to the voters with my head held high. It remains an embarrassment that Alaskan teachers, children, social workers and seniors will suffer cuts while we will spend 12 percent more this year in tax credits to oil corporations.
 R/V Sikuliaq
Last week my staff and I toured the Research Vessel Sikuliaq, whose name means ‘young sea ice’ in Inupiat. The Sikuliaq is a 261-foot oceanographic research vessel designed to operate in harsh conditions to help advance polar and sub polar scientific research. It is owned by the National Science Foundation and operated by the University of Alaska Fairbanks thanks to funds that lawmakers obtained from the federal government.
The vessel is able to cut through ice 2 ½ feet thick and can accommodate up to 24 scientists and students at a time and provides the world an opportunity to learn more about Alaska marine life, oceans, atmosphere and global climate change.
Creamers Field Passed House
 I would like to congratulate my freshman colleague from Fairbanks who successfully passed his first bill out of the House on Monday. Democratic Representative Adam Wool’s House Bill 70 formally added land to enhance the Creamer’s Field Migratory Waterfowl Refuge. Creamer’s is an important recreation site for waterfowl, moose and Fairbanksans alike.
Working Hard for Fairbanks Families,
![[SIGNED]](../../images/signatures/31.gif)
Representative Scott Kawasaki
Alaska State Representative
City of Fairbanks |
