The majority of Haines business operators oppose Gov. Mike Dunleavy’s plan to balance the budget, and are in favor of reducing PFD payments, creating a statewide income tax and reducing oil tax credits to North Slope oil companies, according to a Southeast Conference business survey released last week.
Business owners and top managers from 25 Southeast communities told Southeast Conference how they’d like to see the state achieve a balanced budget. Of the 320 surveyed, 37 were from Haines. Haines business leaders submitted more responses than any community besides Juneau.
Dunleavy’s promise to pay Alaskans a full dividend this fall contributes to the state’s $1.6 billion deficit, which he aims to shrink by making major cuts to education, the ferry system, Medicaid and other community services. He has rejected changes to oil company taxes and creating new taxes.
In Haines, 73 percent of business owners and managers said the state should reduce oil tax credits, 81 percent supported a statewide income tax, 59 percent supported reduced individual dividend payments and 70 percent opposed cuts to education funding. In Haines, Dunleavy’s proposed cuts to the statewide per-student funding formula would reduce the Haines School budget next year by nearly $600,000.
Seventy-one percent opposed cuts to the ferry service.
“That’s my town,” said Southeast Conference executive director Robert Venables. He said the survey is distributed to business owners each year to gain a kind of “collective wisdom” regarding economic issues. “Each year we add a question of the day. This year it was the budget. We have over 300 business leaders coming out with a singular voice. Southeast Conference looks to be the platform to channel that voice.”
Haines responses largely matched regionwide with 66 percent of Southeast business leaders opposed reductions to education funding, 77 percent were in favor of reducing oil tax credits, and 63 percent were in favor of applying a statewide income tax.
Fewer Haines business leaders, 59 percent, supported reducing PFD payments, compared to Southeast as whole, which averaged 71 percent in favor. “Haines was grasping their PFDs payments a little more closely than the rest of the region,” Venables said.
Haines business leaders were more in favor of a statewide income tax than the rest of Southeast.
In Haines, 47 percent were in favor of a statewide sales tax, while 44 percent were opposed. The remaining of those surveyed said they were unsure.
Regionwide, 66 percent supported the use of an increased portion of permanent fund earnings to pay for state services.
Southeast Conference is composed of more than 185 member organizations and individuals including those from chambers of commerce, economic development organizations, municipal bodies, tribes and businesses.
The survey also asked business leaders if they planned to add, remove or maintain jobs in 2019. In Haines, 58 percent expected to maintain jobs, 21 percent expected to add jobs, 9 percent expected to reduce jobs and 12 percent were unsure.