House challenger Sivertsen talks budget, caucusing

Ahead of next month's general election, candidates for Wrangell's State House district have been stopping in to meet with constituents and secure their votes on November 8.

Running for District 36 as a Republican, Ketchikan Councilman Bob Sivertsen spoke about his candidacy. He had previously visited the community on the campaign trail over July 4 and in September.

"I think the campaign's been going great," Sivertsen said. "I spent a fair amount of time in Wrangell, visiting with residents. And I've spent a lot of time on the dock talking with fishermen, visiting the processors."

Speaking with residents, Sivertsen found the largest issue on their minds has been the state's ongoing deficit, a gap which stands at better than $3 billion this year.

"Due to the looming budget deficit that we have, they're concerned about what's going to happen in regards to taxes, the Permanent Fund Dividend, and government spending," he said. "I think that there's a deeper interest in regards to all that, as the legislature closed us out last year without really coming up with a sustainable budget plan. We're really in need of that in the next coming years to get us on path, getting rid of the deficit and moving our economy forward.

"I think the first thing you're going to have to do is understand the whole situation that we're in," he explained. "We've had good runs with oil, but when oil money drops as quick as it did it put us in a severe crunch, and we've been burning savings to balance the budget. We're rapidly approaching that time when we won't have those savings."

On ways to close the budget gap, he explained: "We're going to have to look at new revenues, and we're going to have to be careful at how we structure those. It's a large geographical state, so what works in Anchorage doesn't necessarily work in Southeast Alaska. I'm referring to maybe the sales tax issue. We already, in our small communities on these islands, Wrangell's at seven percent and (Ketchikan is) at six and a half. If they add a sales tax of three percent we're all of a sudden at ten and nine and a half. That's going to be tough for our local business, it's going to be tough for our communities.

"To the credit of the legislature in the last two years, they've reduced the budget a little over 28 percent," he pointed out. "Which is a task in itself. There were a lot of those cuts that were easier than the next round of cuts."

Among these, Sivertsen listed the cutting of already-vacated state positions and the paring down of capital projects as examples. Additional items were vetoed by Gov. Bill Walker in June to the tune of $1.29 billion, including a cap on individual Permanent Fund Dividend payments to $1,022.

"I was a little disappointed in how we got to this point, and the process wasn't as clean as I'd hoped it would be. There were a number of special sessions trying to find consensus. But in the House there were three separate groups: There was the smaller House Majority at that time because they had the 'Musk Ox' Caucus – that was a group of its own – and then the Minority. And neither one of them had the votes to move forward or override the veto.

"When we go back to Juneau this time there's going to be a larger list to get the budget reduced. I think that there's not one silver bullet. I think it's going to take, first of all, looking at those different agencies."

Sivertsen acknowledged there would need to be a balanced approach to further cuts, particularly with regulatory agencies like the state's Fish and Game, Forestry, and Environmental Conservation departments.

"You've got to have foresters and you've got to have fish management people in order to allow for the use of our natural resources. If we don't have fisheries management, we don't open fisheries, and our fishermen don't have access to our resources. The same way, if we don't have foresters, then we're not going to get a timber sale on Alaska land through the door. So it would be important that we go and look at that, and not shoot yourself in the foot because you think you need to cut money there.

"The problem is, when we run out of cash – that's what they call falling off the cliff – we no longer have any capital to fund our budget, so government just starts to shut down," he continued. "You can't get a permit, you can't build. It really just hampers the economy."

To that end, Sivertsen put it to voters that it would be beneficial to have a representative in the Republican-led House Majority, which he would intend to join if elected. Current Rep. Dan Ortiz caucuses with the House Minority.

"The majority writes the budget. I'd rather be in the room writing the budget than have somebody write it for me," Sivertsen explained. This includes making appointments to committee and subcommittee chairs and putting forward bills. "The majority has more appetite for listening to majority bills than it does minority bills. That's just the way the legislature works. ... So I'd rather be in the room for the discussion to protect or bolster the perspective of our district with regards to what's happening in our state. Like the sales tax issue."

The Sentinel's interview with Independent candidate for District 36 Rep. Dan Ortiz appeared in last week's issue. Candidates for the Alaska House race will be attending a debate in Wrangell on October 26, set for 6:30 p.m. at City Hall. The event is being organized by radio station KSTK and the public is invited to attend.