Why we will oppose Bill Walker's (as well as a number of R and D legislators') reelection: They don't get that "it's the economy"

An exchange in Governor Bill Walker's interview last week with KTUU's Austin Baird ("Q&A: Why should Bill Walker keep his job for 4 more years?,"   https://goo.gl/JSAHj5), encapsulates our huge frustration with both his -- as well as a number of legislators (both R's and D's) -- actions in office these last three years.

Here is the exchange:

"AB [Austin Baird]:  Are you going to call lawmakers back this fall? 

"BW [Bill Walker]: 'Most likely. We're talking with leadership about timing and whatnot, but we won't do that unless there's a reason to. We won't call them back just to call them back. So we're working on how to tighten up that $700 million gap that's left. If it's possible to do that, we'll call them back, and if it's not then we most likely will not.' [Note: earlier in the interview Walker said 'we've now brought that [the deficit] down based on the legislation that's been passed by both bodies -- not together but separately -- we're down to about a $700 million deficit']. 

"AB: What are you considering putting on the call for a special session? An income tax again, making some version of a Permanent Fund restructure actually permanent... 

"BW: 'It has to be a consensus on how we build some sort of broad-based revenue, and that's certainly not necessarily just an income tax. Maybe that won't be the fix, but it has to be some vehicle that ties our economy with the services we provide. We'll work with them beforehand to decide what's most palatable to both bodies and present something.'"

Our frustration encapsulated in that passage, as well as Governor Walker's actions the past three years, is that there is no recognition -- none -- of the impact government's actions are having on the overall Alaska economy and Alaskans, other than those tied to government.

The "$700 million gap that's left" cited by Walker assumes that the PFD is permanently cut by more than half, and that those funds formerly injected largely into Alaska's private sector through the decisions made by Alaska families, will be permamently redirected instead, going forward, to government for government to make the decision about how those funds are used.
The problem with that is, while it benefits government and those tied to it, it has and will continue to wreck havoc on the overall Alaska economy and Alaska families.

All -- all -- of the economic analyses done these last two years about Alaska's fiscal options have concluded that a PFD cut of the size assumed by Walker: 1) "has the largest adverse impact on the economy [of all the new revenue options] per dollar of revenues raised," https://goo.gl/ZxR1Hw at A-15; 2) is "by far the costliest measure for Alaska families,"https://goo.gl/ivf9D2 at 1; and 3) "will likely increase the number of Alaskans below the poverty line by 12-15,000 (2% of Alaskans)," https://goo.gl/iuTjv2 at 14.

Think about that for a moment.  The actions of Alaska's own leaders these last two years have had "the largest adverse impact on the economy," have worsened the financial situation of Alaska's families more than any other approach, and likely pushed an additional 2% of -- two percent, twelve to fifteen thousand -- Alaskans below the poverty line.

We aren't talking about the consequences here of federal overreach or some other, Outside event or enemy.  This is damage inflicted on Alaska and Alaskans by Alaska's own Governor (and many legislators), and now he (and they) want to make those effects permanent.

Moreover, nowhere in Walker's interview is there an appreciation that he (and supportive legislators) can -- and may be about to -- make the situation even worse as they work to close the "$700 million gap that's left."

In Alaska's current situation, fiscal policy involves two decisions.  The first is whether and, if so, how much "new revenue" to raise.  The second and equally important is, if you decide some "new revenue" is needed, how to raise it.

As ISER's and others' analyses over the last two years repeatedly have made clear, different approaches to "how" such funds are raised have different effects on the overall economy and Alaska families.  Some approaches hurt the overall economy worse than others, and some hurt Alaska families more than others.  While the PFD cut has the worst impact from both perspectives, others are not far behind.

There is no appreciation of those differences, however, anywhere in the interview.  Instead, the only focus is on raising the $700 million in whatever fashion is most politically expedient ("[w]e'll work with them [legislative leadership] beforehand to decide what's most palatable to both bodies and present something.")

Indeed, the only use of the word "economy" in the entire interview comes in this passage, where the focus is on making the economy bend to government, not the other way around:  "it [the $700 million 'fix'] has to be some vehicle that ties our economy with the [government] services we provide."

A Governor truly concerned about the impact of government's actions on the overall economy and Alaska families would have in mind and be focused on offering and allowing to be enacted only those approaches that have at least lower, if not the lowest, effect on both.

Walker's interview indicates that this Governor, on the other hand, is only concerned about closing the $700 million gap some way -- indeed, it appears, almost anyway -- so that government can continue to be "fully funded," regardless of the impact that way has on the overall Alaska economy and Alaska families.

In short, rather than being a Governor concerned about the effect of government on his state's economy and people, the interview reveals that this Governor, instead, is more concerned about protecting government and those tied to it, regardless of the effect that has on his state's overall economy and people.

Instead of being a Governor holding government accountable for the effect it has on its citizens, he is a Governor intent on protecting government (and those tied to it) at the expense of its own citizens.

Taken to its logical conclusion, that approach ends up with Alaskans working to support government (and those who benefit from it), rather than government working to support them.  By making the PFD cut permanent and closing the "$700 million gap that's left" without concern about the impact the approach used has on the overall Alaska economy and Alaska families, we are closer to that "logical conclusion" than many think.

While we have looked for signs the last three years that he might come around, this interview is an indication that the Governor (as well as a number of legislators who think similarly) clearly just don't get it.

As James Carville summed it up concisely for Bill Clinton during the 1992 Presidential election, "it's the economy, stupid."  Governor Walker and others appear to think, instead, "it's the government, stupid."

We think Carville had it right and Walker and the others don't.  That is why we will be opposing Walker's (as well as those R and D legislators that believe similarly) in their reelection bids.