During an afternoon visit here last week, Alaska Gov. Bill Walker said he would be putting the issue of new revenues “on the table” when the Alaska Legislature convenes in January.
Walker, elected last November as an independent, spoke in Haines Thursday in private meetings with Haines Borough and tribal leaders. He also took questions from local reporters for 15 minutes.
Walker said the $1 billion cut from the budget last year was unprecedented, but some people want the state to cut more before seeking additional forms of revenue. “We can cut too far. We don’t want to do that. Many have said, ‘Don’t bring on new revenues from our pockets, until you have reduced government.’ My question is what’s the right number (for a budget)? We’re looking to find that spot, then add new revenue.”
Walker said he supported a discussion of all types of state revenue, including an income tax, statewide sales tax, new user fees and use of permanent fund earnings. “We’ve been taking the earnings of the permanent fund and putting them away for a rainy day. I think we’re there.”
But more cuts are coming, he said.
“We’re going to have more cuts. I don’t think they’ll be as significant as we’ve had. We’re trying to be very careful where we cut. I come from a local government background. I’m very sensitive to local government needs,” Walker said.
He said he was sensitive that cutting a few positions in a small town had a much larger effect than cutting the same number of jobs in a large city.
Walker said the state has a “cash-flow problem,” not a wealth problem, as it holds more than $100 billion in savings. “There’s no gloom and doom,” he said.
For the first time in its history, Alaska is taking in more money in interest and investments on savings than it is from resources, he said. “We have to make sure we manage (our savings) appropriately,” he said.
In discussions with people around town, “budget stuff” seemed to be the biggest concern, Walker said. “The state has less money so, as a result, in some respects the local governments have less money, are getting less money in revenue sharing, education, those things we funded in the past, so it’s an unfortunate trickle-down effect. There’s uncertainty about what to expect.”
Walker was finishing a statewide tour of meetings with tribes. He has about a week to decide whether to continue a state appeal of a decision that allows the federal government to put Alaska tribal lands into trusts.
Walker said he was concerned that 62 percent of Alaska land already is controlled by the federal government, and he had other questions about how the trusts would affect local government and zoning issues and hunting and fishing access.
In regard to the Juneau Access Project, Walker said he was spending money to complete an environmental impact statement on the road, not to push the project. The state was at risk of having to return $27 million in federal planning money if the EIS isn’t completed, he said.
“Once (the record of decision is made), (the EIS) will go on the shelf. That will be something of value in some future if oil goes to $500 a barrel or something else happens, but it will be worth something… Don’t misinterpret that as we’re plowing forward on that (road). We’re leaving that (study) in a logical spot. It will sit there. If some private group wants to do it or whatever, it’ll be there.”
