As the legislature works to agree on a way to fund the 2016 operating budget, Senator Peter Micciche took the Senate Floor to offer a reminder.
Sen. Micciche: “In 13 months we are out of money in this state, we are out of a Constitutional Budget Reserve, FY 17, when we’re here next year it will be an equally challenging effort to provide essential state services with a limited amount of revenue.”
He also addressed why Alaskans’ recommendations of a state income tax is not the answer for revenue.
Sen. Micciche: “Without cuts, that tax rate across the board, considering Alaskans collectively earned $17 billion last year, that tax rate would be 23% if each Alaskan would pay taxes. But they won’t the lower third would not be paying taxes. So essentially what you would be doing without these cuts would be doubling your federal income tax rate, I don’t think anyone can afford that.”
Sen. Micciche said he believes an agreement on the budget will be reached this week.