While dropping oil prices may have helped quickly create Alaska’s fiscal crisis, Governor Bill Walker says the real enemy to the state is a lack of a fiscal plan.
In his State of the Budget address Thursday evening the governor noted that spending has been cut by 40 percent. Nonetheless, he says the remaining $4 billion deficit will need new revenues via Permanent Fund earnings and various taxes.
Gov.Walker: “Spending cuts and the Permanent Fund Protection Act will get us a long ways towards closing the budget gap, but we also need part three of the plan: new revenues. I personally dislike any form of taxes or changes to the PFD, but this isn’t about what I like, this is about what’s best for Alaska.”
Walker called on lawmakers to make “politically uncomfortable decisions” as this session comes to an end in order to balance the state’s budget.
His tax proposals on fuel, tobacco, income, fishing, alcohol, and tourism have heard fair amounts of push back and may reach the final vote on the House Floor only to be failed.
So yesterday Representatives rolled three of the proposed taxes into a mini-omnibus bill, leaving out three of the more controversial proposals.
House Finance members revised House Bill 249 to include a doubling of the motor fuels tax, along with taxes on mining and commercial fishing, leaving out the suggestions to tax alcohol, tobacco, and cruise ship passengers.
The income tax is its own bill which has received criticism from both legislators and the public.