Information on Alaska Politcs Re: Sarah Palin

AlanG — Tue, 09 Sep 2008 17:17:15 EDT

I lived in Alaska for 10 years. Because of oil revenue from oil production on state land, royalties, and other taxes that the state levies on the oil companies that operate in Alaska, there is no state income tax. Also, in 1982 Alaska established what is called the Permanent Fund. Every year, a percentage of the revenues from oil production on state lands go into this fund. This is a professionally managed portfolio of investments. Every year, every eligible man, woman, and child in Alaska gets a dividend check from this fund based on a percentage of the profits that were made by the fund. The value of the Permanent Fund is now over $30 billion.

On top of this year’s Permanent Fund dividend, the state has also added an additional refund of $1200. Alaska Governor Palin was a supporter of this, to assist with the high cost of heating oil and gasoline in Alaska. Especially outside of the major cites in Alaska (Anchorage, Fairbanks, and Juneau) much of the home heating is done with heating oil, so the huge increase we have all seen for a barrel of oil was hitting Alaskans very hard. The 2008 dividend will be $3269 and includes the one time Alaska Resource Rebate of $1200.

Now for another side of this story. As the citizens of Alaska do not pay any income taxes; and actually get money back from the state every year, they have very little concern for state spending. Subsequently, the per capita spending for state government in Alaska is nearly double that of every other state in the United States. Due to the huge geography of Alaska and the lack of infrastructure, it is not unreasonable that Alaska would be near the top in state spending, but the fact that it is nearly double that of any other state should send up a red flag. Basically, with no check and balance from income tax payers in Alaska, the state government has grown and grown unchecked.

As for earmarks, Alaskan’s pride themselves on sending the same congressional representatives back to Washington, D.C. in election after election so they rise in seniority. Then they “bring home the bacon” in return. Year after year, Alaska is among the top recipients of earmarks and other Federal spending. I read where Governor Palin had submitted request for $200 million in earmarks for the state of Alaska, so she learned well as the mayor of Wasilla, where she received $20 million. Besides the “Bridge to Nowhere,” (not built but money still kept in Alaska) my favorite example of pork barrel spending in Alaska, is the Anchorage International Airport, now renamed the Ted Stevens International Airport after Alaska’s “bring home the bacon” senior senator. Not surprisingly, he obtained the money for much of the expansion and improvements that have been done to the airport. Inside the airport, they have marble floors with inlaid bronze salmon. There is a huge railroad terminal on the east side of the airport that is sitting there unused, as it has never been connected into the Alaska railroad system. This is the “train terminal to nowhere.” Supposedly, people were going to fly up to Alaska and then board a train to travel 45 miles to Girdwood, Alaska, to golf in the summer and do winter sports in the winter at the Alyeska Ski Resort. Coincidentally, Girdwood is where Senator Steven’s has one of his homes that was renovated at minimal costs to him with the assistance of Veco Corporation, a huge Alaska oil service company involved with Alaska North Slope oil production. This renovation is the source of Senator Steven’s recent federal indictment charges.

When I lived in Alaska, I liked to describe it as “Kuwait North.” And it is very similar to oil producing Arab countries. The citizens are paid off to keep them pacified. Being Governor of Alaska has little resemblance to being governor of some other state in the United States. Basically, your job is to parcel out the cash and set some aside to cover the expenses of a hugely bloated state government when the price of oil is down. Unfortunately, peak oil production on Alaska’s North Slope oil fields occurred several years ago. So the future of the gravy train is in jeopardy. Hence, the overwhelming support in Alaska for offshore drilling, drilling in ANWR, and building the gas pipeline to the lower 48. In other words, most citizens want to continue the party and free lunch. Shocking, I know.

So, when you hear about Governor Palin skilled governing, think “Emir of Kuwait North” rather than thinking about her as a governor of one of the other 49 states. The rules in Alaska are completely different and it does not take a financial wizard as governor to work with the legislature to parcel out the oil cash.

Alan Gunderson's Blog For Obama/Biden '08

Information on Alaska Politcs Re: Sarah Palin