Embracing a Sustainable Budget Philosophy

The state's economy will grow and budget funds will increase. However, the current system of state spending has already demonstrated that it does not work. I would be honored to work with all citizens of Alaska, all branches of our State government, federal lawmakers, and the President of the United States to build a budget spending system for our state that is sustainable. One that saves and earns money while providing for the needs of the people. The best way to protect the dividend and prevent a state income tax is to increase the State's spending efficiency and then augment the current budget funds by further development of our natural resources. If the state has what it needs, there will be no need to take funds from the permanent fund or tax the people. If we don't address the inefficiency of state spending, we will always be in need of more money. 

We can do better than our current system that may be wasting billions of dollars each year. We must be clear that it is not people who are responsible for wasteful spending. It is our system that is, by design, wasteful. We don't need to change everything about our current system. We just need to make small key changes.

The State has already done much to move our state budget spending in a new direction. HB 76 in 2022 allowed school districts to keep more than the maximum 10% of their budget funds. Nearly every district responded by saving more money! Senator Bill Wielechowski of Anchorage and other legislators are finding sources of wasteful spending. The Alaska Housing Finance Corporation (AHFC) is a self-supporting public corporation that provides accessible mortgages to Alaskans for affordable housing, energy efficiency, senior housing and more while contributing billions of dollars to the state's general fund. We can use these lessons learned to enrich spending and saving across all departments and organizations.  

Let's draft legislation that encourages all departments and organizations to save and invest for the future, make sound financial decisions, avoid "fake inflation", and control their own spending timelines. Let's develop a system that uncovers improper spending practices before they happen.

At JP4 Governor of Alaska, our budget management philosophy prioritizes designing a budget spending system that provides for our needs and is sustainable. Our state constitution requires sustainable practices be used for all of the state's resource management. Alaska's budget is a state resource and should be governed by sustainable practices.

The Permanent Fund has provided us all with yearly dividend checks and funds for state spending all the while grown from $300,000,000.00 to over $81,000,000,000.00 since 1976. We can apply this concept to our state funds and over time, departmental and program coffers will grow their own funds in addition to what they receive each year. Since statehood Alaskans, have given the State of Alaska more than 180 billion dollars! They saved nothing; however, if the state would have saved just 10% of those funds every department in the state would now have over a billion dollars in savings. Imagine how that would change our current situation! It is not too late. We can begin now to grow funds for every department.

Our approach to budget management over time will save billions! These savings along with additional funds from natural resource development can then be use to support larger citizen dividends, return defined benefits and wages to state employees and educators, restore lost programs/services, and add new programs/services as needed. By treating the budget as a permanent fund, we can create a model that focuses on long-term prosperity and shared success for all residents.

Will the new changes work perfectly? Of course not. But we will be on the right track, and we will make further changed as needed. Let's all get to work on a system that works for all of us!