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How to Fix the Alaska State Budget Crisis

Cutting state employment by 50% would be a place to start, so would raising income taxes with a progressive plan of 0% for those earning less than $50,000 and 20% on those earning more. The business tax rate would be 0% for those earning fewer than one million dollars and 20% on those earning more.

Next up is moving the state capitol to Point McKenzie and Anchorage to save money. Maybe the legislature could be on the Dimond Mall ice rink until the capitol and Governor's palace are built. Juneau should return to being a free enterprise city-it would do well. Also, natural resource use of state properties should be taxed a flat 20% royalty.

Reforming and reducing the size of state government procedures such as the prison and highway systems is desirable. They can all be upgraded.

Of course the major problem is that state government mostly 'serves' state government and doesn't want to stop 'serving' in times of crisis. Government insiders kickback contracts to local contractors and other favorites and that too is a challenging thing to stop.

Plainly though the hope in the capitol is that oil will return to 100 dollars per barrel-and it might. If the Saudis can lever Iran into a brief war with missiles and Saudi Persian Gulf oil terminals are blasted into rubble then shortages along with American oil exports permitted again will help produce domestic American oil shortages and let the price skyrocket. Then government business as usual can return to Juneau.


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