UFL Budget Narrative to the Alaska State Legislature


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FY 2018 budget going forward…

The graph below is a more accurate accounting of the Total State Budget. Unfortunately, many financial analysts are focusing on the Undesignated General Funds ( UGF ) and not the other funds in State government. These analysts are attempting to set a UGF focus on $4.0 Billion budget for this year. This is like guarding one basketball player on a team of three and allowing the other two players to score points and win the game!

Take particular note to the maroon section of Designated General Funds ( DGF ) which miraculously showed up in 2009.

Legislators have been moving funds from the UGF to the DGF and to the orange section of “other funds” in order to report a reduction in state spending by referencing only the reduction in the UGF. Additionally, some funds are “temporarily” moved over to the Capital Budget from the operating budget, and then moved back in order to maintain pet programs; creative accounting techniques 101…

We are being gamed folks!

When the governor reports a budget reduction, understand the majority reduction has come from the capital budget which has a clear impact on the private sector. Very little reductions have occurred in the operating budget which simply transfers a high deficit from one year to another in order to sustain and promote the public sector. 

This is precisely why many representatives will advocate capping the PFD and developing other streams of revenue from the people.                                                                          

This is government protecting government and it’s special interests on the backs of it’s citizens. When government believes that the priority of government is to maintain “government employment” to the detriment of the private sector, we will always get a call for more revenue streams. 

Be aware this upcoming legislative session, there will be additional, substantial calls to increase the tax on the oil companies in order to maintain and promote more government excess.

Government is least effective in reducing it’s own footprint and cost mainly because representatives of government believe that the “greater good” outweighs an individual’s ability to maintain and promote their own standard of living or existence. Margaret Thatcher said it best when she said “The problem with socialism is that some day it runs out of other peoples money.”  

If you don’t learn to ask the right questions, you will not receive the right answers.



 The PFD Relationship…

This upcoming session there will be a concerted effort to decouple the PFD from the Permanent Fund. This maneuver is designed to extinguish the relationship of Alaskans to the “Corpus” of the Permanent Fund. You will hear proponents advocating that they are “saving” your PFD into infinity by making a move to tie the dividend directly to “resource development.” Be aware, many of these “legislative leaders” advocating for your benefit are the same representatives who increased the state budget to unsustainable deficit levels. Now, they have come to save us from their own financial decisions!

Ray Charles could see that many of the representatives of Alaska’s government have their eyes on the $53 billion savings account. They want to fuel “their” vision of Alaska’s Future. Rahm Emanuel said “Don’t let a good crisis go to waste.”  They are wasting no time in their actions.

There comes times in legislative history when the good answers and directives do not come from representatives of government but from the people themselves. This time is upon us now. If Alaskans allow the directive of a few well placed legislators to define our future, then we have abdicated our personal responsibilities to assist in good government and, as a consequence, we will get the scraps left after their meal. They will get the tip and we will pay for the meal.












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