Candidates brainstorm ways to help Fairbanks’ economy
Published Saturday, October 4, 2008
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Stumble It!Editor’s note: This story is part of a series covering local elections. Look for more election coverage in the following days.
FARBANKS — Here’s an understatement: The energy sector drives the bulk of Alaska’s economy.
Oil producers are some of the biggest employers in the state. And oil taxes pay for most of the state’s government expenses, which in turn constitutes another major employer.
On the flip side, however, are the rising costs of energy — costs that are far higher here than in Southcentral Alaska — that provide a major drain on Fairbanks’ economy.
An analysis this spring by the Fairbanks North Star Borough estimated the collective, per-household cost to heat homes, fuel cars and pay electric bills in Fairbanks doubled between 2003 and 2007 in Fairbanks.
The trends have caught the attention of public officials.
This summer, the Borough Assembly waived public spending rules for a broad energy-emergency project, and a task force at the Fairbanks City Council took steps to look at more energy-efficient street lighting to cut long-term costs.
Most recently, national financial markets have become the subject of intense scrutiny in what national leaders say could spark a nationwide or global recession.
Question
Public officials have pointed to signs of a slowing economy in Fairbanks. What can local governments do to help?
Candidates’ responses
Assembly Seat A (1-year term)
• William Minerva: Cut taxes by streamlining government.
• Bill Stringer, incumbent: The high price of energy is a major drain on the economy. Four things the local government can do here are help get the Healy Clean Coal Power Plant operational, support the research for a plant to convert coal into petroleum liquids, investigate and possibly support the construction of a dam on the Susitna River (and) support the current program to reduce heat loss in houses and businesses.
• Doug Wilson: Trying to draw in outside businesses, that is the way you bring more money into the area; that’s the way you get things going. It’s economic development, and we’re finally getting things to happen. For 10 years, everybody (in North Pole) just sat there and spit the words out, “economic development.” And things are happening now.
Assembly Seat D (3-year term)
• Tammie Wilson: Local governments should set an example by maintaining a lean, yet creative, budget. To offset energy costs, we can open more land for wood-cutting, continue pushing for a gas line, encourage development in the copper basin and we can monitor, and possibly support, alternative energy projects underway such as coal gasification. But primarily, the borough must operate self-sufficiently to relieve the pressure of property taxes on its residents.
Assembly Seat E (three-year term)
• Tim Beck, incumbent: Given higher energy costs, residents are looking to local governments to provide leadership in educating the public in short-term solutions such as conservation practices, and in the long term to promote developing lower-cost alternative energy through a variety of processes such as wind, solar, geothermal, hydrological (Susitna Dam), Fischer-Tropsch process (coal to liquids) and natural gas to make our community a self-sustaining entity.
• Wayne Swanson: Our local economy is affected by changes in tourism, which was because of high fuel costs during the summer, and also the two military installations that have been deploying soldiers because of global situations (These installations are approximately 20 percent of our borough population). Local government can continue economic development projects that will seek out other industries, such as the natural gas pipeline for short term, but also encouraging other economic industries such as a private manufacturing sector in our community.
Assembly Seat H (3-year term)
• Mark Ames: Public officials can do for you and I what they gave us their oath to do: protect our state and nation’s constitutions from foreign and domestic enemies. They can work to counter unaffordable socialism, which can never cost enough. The revenue flow in government giveaways all should be directed to an Interior Permanent Fund Dividend program for all Interior residents.
• Joseph Blanchard: Local governments should shy away from doing what the private sector should, but can efficiently do what they are supposed to. By being fiscally responsible, we can keep money in the pockets of people already under stress from high energy costs. Local government should stay committed to providing our schools and our emergency services with the resources necessary to provide for our future and security.
• Joshua Lott: There are things like the gas line, cold-climate research and tourism that we need to continue to pursue. We need Fairbanks to become the “go to” place for top of the field education and alternative energy research. In addition, we need to continue positioning Fairbanks to be a transportation hub. In local government, we need to reduce spending so that we can lighten the burden on the taxpayer.
City Council Seat D (2-year term)
• Bernard Gatewood, incumbent: Participate in efforts already underway such as Vision Fairbanks. Continue to work with economic development organizations such as Faribanks Economic Development Corporation. Have strategy sessions with the Borough Assembly and the North Pole City Council to determine economic activity that might be beneficial to all. Above all, solicit the input of the bright minds in the city and encourage residents to share their ideas on ways to strengthen the economy.
• David B. Lerman: I think Vision Fairbanks’ effort to revitalize the city deserves the council’s attention. The council agenda could include an invitational seat to allow Vision Fairbanks to address the council for a designated time slot. I support an urban renewal agency and tax increment financing to assist in the development of downtown, which would help the economy.
• Ron Warner II: There is not much a government can do to stimulate the economy, at least not in a free-market system. Reducing regulation and spending to encourage and emerging businesses to flourish is the avenue I would take.
City Council Seat E (3-year term)
• Emily Bratcher: Local governments can set a good example of sustainability and focus on empowering its residents to make better choices in how they live their lives. Not only to save energy on a day-to-day basis but to support local businesses and develop in a denser manner than the existing local land use pattern, but to think forward as opposed to backward and how things used to be.
• Lloyd Hilling, incumbent: A slowing economy means falling property values and less available income for city residents for city revenue. As an economist, I envision that a city so strapped would be hard-pressed to do more. I am open to ideas and, in the meantime, trust that the residents of this remarkable community will do the amazing things it is doing even now — through volunteerism and our many community organizations, both charitable and business-oriented.
City Council Seat F (3-year term)
• Tonya Brown, incumbent: The city can continue in its efforts to discover and use solutions that keep property taxes low, which reduce the financial burden on residents. The advantages of having alternative sources of revenue, reducing government costs via efficient use of equipment/staff time, energy, funding and services achieves the goal to enhance our overall quality of life.
• Jerry Cleworth: Local government cannot change economic cycles, but it can make Fairbanks an attractive place for businesses to locate and provide jobs. This can be done by limiting restrictions on new businesses, maintaining economic and dependable services and retaining a stable taxation policy.
Community Discussion
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If you are looking for these people to solve the economy problem everyone is in trouble. Take the tax money you collect and use it very wisely for what the city and borough are REQUIRED to do by law, and quit giving in away to things that they have no business doing. Lay off at least one half the employees that do nothing but take home a pay check.
Okay, okay, okay; I can not pass this one up! I do not know everything but I am pretty sure I am 100% on this, if you have an outstanding court case that is yet to be heard by a judge for drug possession that you admitted to the cop was yours at the time of your arrest, YOU MAY NOT WANT TO RUN FOR A POLITICAL OFFICE THAT YEAR! Check the article about the council hopeful Ron Warner II in todays paper.
It also upsets me that in this article the same guy didnt get up and say 'tax and tolerate', it should have been the no brainer answer to a smoker. He pled not guilty after admitting ownership so he must not agree with the law and he doesnt say anything to support or defend his position. Not a character trait I support.
This Is Ease! Put a Large TAX on All Alaska Newspapers, use the Tax-money to help pay for ALL the useless programs that the city is running! The best part is…You just know “The Newspaper” just won’t say anything, because taxing the Business’s till they go broke is what “”SOME””…. Newspapers pushes “”It’s the Liberal-Way” .
Have a Good Day !
The property tax on a 200,000 dollar home in the is city is about three thousand five hundred per years.
Consumers pay property tax on their property plus the property tax of all business they visit.
(I noticed the price of frozen foods at Sam's jumped nearly 20% in one week from 11 to 13 dollars on several items)
The State of Alaska sells your Royalty property oil to the refineries at OPEC prices. Those prices are passed on to you when you buy fuel oil.
The State of Alaska can, with a wave of the pen, sell your royalty oil to the refineries at LESS than the OPEC price to reduce your cost of fuel, and electricity.
The wholesale price of crude sold to the refineries is set by (AS 38.05.183)
Title 38. Public Land
Chapter 5. Alaska Land Act
Section 183. Sale of Royalty.
The price of royalty oil is currently being marked up by the state from an estimated 15 dollars production cost to 90 dollars wholesale (OPEC) price.
Does anyone ever wounder: how come none of the politicians ever mention the 3-4 dollar gallon tax hidden in each gallon of fuel as a prime cause of the current economic downturn?
One other fact: there will be very little economic development of any KIND because of the high cost of energy. PERIOD,,,!!!
More over, no amount of CO2 and methane emissions from any politician is going to change reality.
As least Hilling has an understanding of how the government's income will become depressed as the entire economy does. Like the way the media is calling it a super recession, rather than what it is a depression.
Now the government will bail out foreclosures and have the court readjust the principle. Just think, judges will determine property value. Wonder how many people who were just making those payments on houses in Fairbanks that they paid way to much for, will say the heck with it and stop paying their mortgages and take the chance the government and the courts will make take care of their problem. Hope the judges really discount those mortgages, we all will save on property taxes in the long run when assessments drop dramatically.
The next question needs to be what can local governments do to ride out a depression. The cities saving account lost how much? Surprised no one said " Let the State bail us out."
Let's invite more retail business to sell crap from China, to assist the poor, so they can illegally salvage all this crap from the dump.
Plug a hole in pipelane on Chena Hot Springs rd, run oil via Ft Wainwright (for security) have free oil distribution on Airport way/Steese Hwy.
Charge FLAT $1,000 fee for anyone entering Alaska from Canada.
Require more than 1 person in any vehicle. Fine those, who don't comply.
Use the BUS!
Turn all the churches into shelter for homeless.
Free prozac, pot, beer, free housing, free fuel, free medical care, free land, free love and for a womb with a view vote Obama.
In Chicago, they vote early and often.
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Remember to vote NO on A
Vote YES on B.
You must vote correctly on both ballot props.
And have nice day!
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I cna't belive Hilling is dumb enough to run again...and think he can win. An economist? He is an adjunct part time instructor...not a professor. Plus, review his recent City Council comments- he feels drugs should be legal for adultas and the City should not have women firefighters because they can get pregnant. Nothing he says is credible.
Only sustained growth and making Fairbanks attractive to busineeses and residents will get us through the slump.
"Only sustained growth and making Fairbanks attractive to businesses and residents will get us through the slump."
Do you think eliminating the Ak tax on fuel would help?
How about eliminating FEDO's doll?"
How about a 10% raise for our Mayor?
How cutting the tax burden in half?
How about cutting education funding in half?
Would any of the above help?
Tell us what you would do?
I know what I would do….You have the right idea about the royalty oil it would cut our energy costs significantly. We should also tie into the geothermal grid at chena hot springs our tax dollars paid for that as well. Our nation wide economy is in a rough way right now but Alaska is not the rest of the nation. Fairbanks is the farthest north transportation hub. Any development up north flows through our burg. We need to develop a tax structure that will take advantage of that and ease the burden on the property owners. We need a rail line south and a gas line which ever way it goes. We also need to look at economic development beyond oil resources and into our mineral assets. So many things are on the horizon for Fairbanks we need forward thinking leaders willing to make them happen. Fairbanks had had its head stuck in the sand for to long. Do you really want the same worn out mentality that brought on our current fiscal crisis in charge again?
Sean..
Royalty Oil price cut..
is only a quick fix.
Uncle Juneau has 10 billion in the bank.
Ask the candidates for State offices, If elected how are you going to spend it? On what?
Second question: how do we know you will keep your word?
The standard socialist / communist theory of spending in on government "jobs" (low interest mortgages to people with no job, no income, no ability to care for the property) is a 100% failure.
Allowing, thieves to steal it is a 100% failure, too.
The TVA dams projects in 30's put in the foundation for massive economic development in the Southeastern states.
The same thing happened in the Pacific Northwest.
EACH PROJECT CUT THE COST OF ENERGY (ELECTRICITY).
The low cost electrified fertilizer caused the economic flowers bloom and the grass grows green in each area.
Uncle Sam gets far MORE tax revenue off those areas each year than the total original cost of construction!
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