Apocalyptic

Alaska is baking and burning. We’re also on the threshold of the most radical budget cuts that the state has ever seen—a self-inflicted fiscal catastrophe caused by our governor’s desire to give out the maximum amount of free money possible. That, and he lied his way into office by promising not to make all the cuts he’s now singlehandedly imposing.

Governor Dunleavy’s lies are detailed by Dermot Cole here.

Budget reductions over the past five years have been substantial, and this year’s budget passed by the legislature continues to cut. Their bill passed on 10 June. The governor then sat on it for over two weeks, wielding his line-item veto power on the last day before our current fiscal year began (1 July). The cuts added by the governor are extremely punitive, going after the University of Alaska (a 41% cut to the state appropriation, which had already been reduced substantially during the past five years), health and social services, debt service on school bonds, education and early development, the arts, public radio, seniors, village public safety officers, and on and on. 182 line-item vetoes, some of the biggest given here.

The guy is an extremist, but unfortunately he has the strongest veto power of any governor in the country. It takes a 75% supermajority to override his vetoes. On the bright side, many in his own party (Republican) recognize the long-term damage that such draconian cuts will have on the state’s economy and its residents, and they might get the votes for an override. That will all be done by this coming Friday (12 July). They meet in special session starting Monday and have just five days to overturn these vetoes or let one extremist knock the state into the ditch for decades. It is clear that’s where the university is headed under these cuts. Our most competitive faculty will take their Federal grants and leave for other institutions out of state, taking expertise we’ve invested in building for years with them. Students, too. We’ve already seen many of these departures over the past five years. This will accelerate them.

The economic impacts for the state, short- and long-term, were not assessed by the governor. Here is the first professional assessment. It is grim.

This is going to cause an increased brain drain and a deepening recession. Who wants to come to a state that doesn’t value education? Or invest in a business where an educated workforce becomes even harder to obtain?

If Alaskans were to receive a permanent fund dividend of ~$1,600, our budget would be fully balanced under the budget passed by the State’s legislature. If the vetoes are not overridden, everything is on the table for cutting at the university, including tenured faculty.

Why is an Alaska Republican governor insisting that everyone should get free money and not pay a state income or sales tax? A socialist entitlement program is somehow more important than education, safety, health, etc. I’ve been here over 22 years and I do not understand it. The entitlement mentality is ginormous, despite the fact that getting services for free and free money on top of it makes no economic sense when the state can’t afford it. But some would rather see no government and a few thousand dollars in their pocket instead of a quality of life most U.S. citizens have come to expect.

A couple of national news stories on the situation can be found here and here.

This report from the Anchorage Daily News sums it up well:

“The fundamental question is now squarely before Alaskans. What’s more important: a healthy economy, our schools, university, and seniors, or doubling the Permanent Fund Dividend at the expense of essential state services? The governor has made his choice clear,” Edgmon wrote.

On top of this very grim situation, it is miserable outside. Record-setting summer heat, combined with dry weather and lightning has caused an amazing number of fires this season. We’re currently breathing too much smoke from them. Some people are having to evacuate their homes. The fire watch site is here.

Red sun from smoke.

Gloom, despair, and agony on me….

P.S. The legislative battle is more complex than just the governor’s vetoes. He also threw his considerable weight around on declaring that the next special session should not occur in the State’s capitol, Juneau. (Yes, he is just that dumb.)