In this video, Representative Lora Reinbold explains the current cash flow system in Alaska and outlines the governor’s so called “Permanent Fund Protection Act.” Then she goes over Senator McGuire’s effort to change Alaska’s cash flow system with SB114, and then Representative Hawker’s bill, HB224, the Percent of Market Value Plan.
Posted by Representative Lora Reinbold on Saturday, April 9, 2016
According to Reinbold, these plans may address the budget gap but do not address the underlying problem of government largess. Instead of solving Alaska’s fiscal gap by disciplining state spending, they discipline Alaskans by moving Permanent Fund dollars away from the dividend payout Alaskans have enjoyed.
She presents a “30,000 foot” view of the options at which the Legislature is considering. These bills will be voted on soon.
The Reinbold Report video gives a valuable primer to understand exactly how Alaskan leaders are manipulating Alaska’s financial accounts.
Reinbold’s main point is that the political leaders are sniffing at your pocketbook for solutions to the budget gap rather than snipping at its own checkbook.
She says, “Before we drain our savings accounts, before we discipline Alaskans with a labor tax or an income tax, or even take part of their PFD check, we need to benchmark government.”
“Government right now in Alaska is approximately three times the national average. We must first rightsize or downsize government and not give the keys to the treasury for the Permanent Fund.” Otherwise, she says, “bureaucrats or Alaskans will not be motivated to downsize or rightsize government” in the future.