By Greg Knight, News of the North
Senate Majority Leader Cathy Giessel, in her most recent district newsletter, says that Alaska needs a new source of revenue.
Sen. Giessel wrote that, “‘New revenue’ usually makes Alaskans think of personal income taxes. And that is in our future, without question.”
Giessel wrote that the states traditional dependence on oil taxes to base its budget on doesn’t work anymore.
“Most of our funds come from the Permanent Fund earnings,” Giessel wrote. “Alaskans knew this would happen when they created the Permanent Fund in 1976.”
“In the meantime, we continue attempts to reduce spending. Inflation continues,” Giessel added. “The Federal Administration is reducing funding for Alaska, which provides a major chunk of our funds.”
She stated that budget reductions will not narrow the state’s deficits. And when it comes to paying for education, healthcare, state troopers, forest firefighters, snowplows, hiking trails, and other budgetary items, Giessel wrote that the state has an option it can explore right now.
“By moving about $325 million into the budget, we reduce the deficit to about $215 million,” she wrote.
The Legislature is currently debating the next capital, operating and mental health budgets.
