With more than $1 billion in federal pandemic aid heading to the state treasury, Gov. Mike Dunleavy and Alaska's 60 legislators are busy figuring out the best way to spend the money. Our elected leaders need to stick with spending decisions that will do the most long-term good for communities, resisting the temptation of politically popular cash payouts to individuals.
It's disturbing to hear talk among some elected officials in the Capitol that the federal money could be used - in a roundabout way - to squeeze out a larger Permanent Fund dividend this year.
By appropriating the one-time federal money to cover state spending on public services, the state dollars that would have gone to pay for those services could be used instead to ensure Alaskans receive a larger dividend this year than the treasury could otherwise afford.
There are problems with that PFD-focused attitude:
It is contrary to the spirit of the federal legislation, which is to help repair and rebuild the economic damage caused by the pandemic. COVID-19 and its financial hit to Alaskans is not to blame for the state treasury's inability to pay a large PFD. The culprit is Alaskans' refusal to accept the reality that we have overspent, overpromised, undertaxed and failed for years to accept the mathematical truth: We are running out of oil money.
Giving bigger dividends to Alaskans misses the fact that many, perhaps most Alaskans are no worse off financially than they were a year ago before COVID-19 made face masks as common as rubber boots. Handing out more money to people who don't need it ignores more pressing needs statewide.
Such as the needs in Wrangell.
It will cost an estimated $13 million to repair/rebuild the Public Safety Building.
A long-term fix of Wrangell's water reservoir system could cost $50 million.
The town lost its state fisheries officer and its Office of Children's Services social worker to irresponsible budget cuts - and maybe we can get them back.
And wouldn't additional state ferry service help the community.
The best use of the federal money, and the wisest use of the state money it will free up, are services that will benefit the community for the long term. Not a few hundred dollars additional in one year's PFD.
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