 Subsistence, Children, Education Also Priorities in Knowles' 8th Annual Address News Release
"Thanks to the hard work of Alaskans, our state is enjoying unprecedented prosperity," Knowles said. "To keep building a better Alaska, I believe we must take these three important actions this year. Doing nothing threatens the economic, social, and physical well-being of Alaska's families. But if we are able to muster the courage and vision to address these challenges responsibly, I believe they will profoundly benefit generations of Alaskans." SUSTAINABLE BUDGET - After twice introducing plans for a sustainable, balanced budget, Knowles again called on lawmakers to muster the necessary votes to put a plan into action this year. "Because Alaskans want and deserve straight talk, I'll be direct," Knowles said. "Time is short; the stakes are high. Now the day of reckoning is upon us." Knowles offered a proposed solution that reflects the best ideas of many public-spirited Alaskans and is based on five principles that are broadly supported by Alaskans:
Knowles' proposal is to phase in $400 million in new revenues during each of the next three years, for a total of $1.2 billion. For this session, Knowles' has three elements:
"No one likes paying taxes and no elected official likes proposing one, but I believe the most fair, broad-based tax is an income tax based on the percentage of federal income tax paid," Knowles said. "People who work in Alaska but pay nothing for the state services they consume here would contribute about $23 million of the bill. To assure that the state is not collecting more than necessary, I will include a provision to reduce the tax rate when reserves are sufficient." Knowles noted that the state tax on alcohol was last raised in 1983, and is small compared to the cost each year of treating the problems of alcohol abuse, estimated at $453 million a year. Knowles endorsed the measure sponsored by Rep. Lisa Murkowski to increase the alcohol tax by a dime per drink. The multi-billion dollar cruise ship industry pays no corporate income tax to Alaska on its cruise ship operations, or to the federal government or any other state. A tax of $30 per passenger would raise about $20 million for the state. Knowles said it is only fair that every industry contribute something to Alaska for the many benefits they receive here. In the following two years, Knowles noted there are sufficient tools available to future Legislatures to fill the remaining gap before the reserves are totally exhausted. This includes a revision in the oil tax, although noting that private investment depends on fiscal stability and global competitiveness, Knowles said. "Tax rates should be changed only if they meet those criteria or we'll kill the goose that has laid the golden egg." "Each year in this balanced budget plan requires heavy lifting and the first may well be the most difficult, yet the do-nothing approach is a blueprint for future economic disaster," Knowles added. "Doing nothing when reserves are exhausted means drastically and irresponsibly cutting basic services and liquidating state assets --including Permanent Fund earnings -- at a frightening clip." Knowles commended those who have participated in the bipartisan Fiscal Policy Caucus and in calling the Legislature to action, said that this effort cannot afford to fail. "My children, your children, the next generation, deserve at least the same opportunities we have had in this great land," Knowles said. "We cannot let denial or lack of gumption foul their future." CONTINUED INVESTMENTS - While seeking a balanced budget, Knowles stressed the need to continue investments in education, and child safety and health. Knowles is seeking a $33 million increase in funding for Alaska schools recommended by the Education Funding Task Force; $17 million proposed by the University of Alaska regents; and $13 million to continue the success of the Smart Start program to boost Head Start and early literacy programs, and fight teenage tobacco use substance abuse and suicide and child abuse and neglect. "I recognize there is
a fundamental difference of opinion between some of you and the
many Alaskans who, like me, believe this is a top priority, so
I welcome a healthy, open, honest debate on two different visions
of what our Alaska can be," Knowles said. SUBSISTENCE - Just as failure to balance our budget is a clear threat to our economic future, Knowles said the failure to resolve subsistence has created a growing and bitter urban-rural divide. "The cultural, nutritional, and economic importance of subsistence to rural Alaskans is respected by every Alaskan," Knowles said. "Yet, the permanent protection of this time-honored way of life by allowing Alaskans to vote on a constitutional amendment has been denied us for 12 years by a handful in the Legislature." That's why in August Knowles
convened 42 Alaska leaders - business, civic, religious, fishing,
village, rural and urban -- to participate in the Subsistence
Leadership Summit. "Since then, many summit members have worked to produce an innovative constitutional amendment that protects the importance of subsistence for rural Alaskans first, and then recognizes the needs of those urban residents who have a customary and traditional use of fish and game resources," Knowles said. "With the broad support of Alaskans, I will introduce legislation to allow Alaskans to vote on that constitutional amendment. By giving Alaskans the opportunity to vote on subsistence, let this Legislature be the one to build a bridge across the urban-rural divide." While calling on lawmakers to join him in working on his three goals for continued investments for Alaska's children in education, health and safety, protecting the subsistence way of life and taking action on a sustainable balanced budget, Knowles highlighted several Alaskans for their public service over the past year. They included Fairbanks Trooper Larry Erickson, awarded the state medal of heroism for saving the life of a child; substance abuse prevention activist Francesca Sutton of Togiak; teacher of the year Vivian Montoya of Juneau; family health physician Dr. Cathy Baldwin-Johnson of Wasilla; subsistence advocates Katie John and Father Michael Oleksa; and former prisoner of war Bob Bowen. "We know this challenge won't be easy," Knowles concluded, "but let's be inspired by the call to great new heights of citizenship already answered by these Alaskans whose stories of public service demonstrated so dramatically by ordinary people doing extraordinary things for their neighbors, their friends, and fellow Alaskans. We should do no less. "
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