State likely to drop energy debit card proposal; Alaskans may get cash instead
Originally published Wednesday, June 18, 2008 at 1:33 p.m.
Updated Wednesday, June 18, 2008 at 3:45 p.m.
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Stumble It!ANCHORAGE -- Administration officials say Gov. Sarah Palin plans to abandon her proposal to offer all Alaskans a $100-a-month energy debit card.
The Anchorage Daily News reports Wednesday on its Web site that the governor instead is looking at asking the state Legislature to just send everyone money directly.
Palin plans to offer a new version of her energy cost-relief plan on Friday. But Joe Balash, the governor's special assistant on energy issues, says no final decisions on the final proposal have been made.
The debit-card plan announced in May would have applied to Alaskans eligible to receive this fall's Alaska Permanent Fund dividend.
Community Discussion
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Show me the money!!
With heating oil over 4.25 per gallon the biggest question is WHEN???
A better approach would be for the state to sell royalty-oil products to residents at below-market prices. Since the market price is not based on the cost of production they would simply forego some of the extraordinary profits. And they would help a lot of Alaskans. The ripple effects would change the entire economic picture for residents by making everything less expensive. Begin with building materials and groceries.
Why doesn't the state subsidize the fuel costs so that everyone pays a reasonable rate? This happens for the residents on the north slope. All of these surplus funds that the state has could help across the board for residents while eliminating people who don't live here from collecting checks the way some of the other programs would have allowed. Just a thought.
maybe the state should just buy the oil either refined, or refine it ourselves and store it. then dole it out to us after we go through an application process. we should start the process NOW. send money to everyone and a lot of people will be plenty oiled, but still freezing in the dark.
Yeah it would be nice to get some of our royalty money from our oil but how much you wanna bet it will not even buy a hundred gallons of oil for the house.
este,
The increased costs of building materials and groceries is because of transportation cost increases before the products get to Alaska. Giving a break to residents wouldn't help here. Although, the rest of your plan looks good to me! I emailed my representatives in opposition to the original plan to give most of the excess to the electric companies and one of them responded that giving money directly to us would be socialistic so he wouldn't be for it! At this point I'm truly worried about heating my home this winter.
Gimmegimmegimme.
Well first the good ole boys will do something wonderful just about election time. Second Flint hills is already getting a break on oil but is not passing the savings to us. I do not know the price break they are getting but I bet they are not paying even 130.00 a barrel
Just give me a break on heating oil, price-wise and include my income bracket with the home insulation assistance. Just sending money is not a good plan in the long run, since Uncle Sugar is gonna want his cut in April.
We just paid 4.47/gal for 289 gals of #1 oil. A fillup of my 500 gal tank will run $2,200+ dollars. A cold winter could mean 6 monthly fill ups. $13,000 + dollars. Who's got money like that for oil? I'm glad the wood stove works and we have 10 acres of trees to burn. The money (if we ever see it) from the state should go primarily to registered home owners/renters actually buying oil in state. These same home owners pay high local borough property taxes and get little in return in my opinion. Giving the money out based on the Permanent Fund List includes a lot of people who never buy home heating oil (like thousands of folks living on the local bases or out of state). I'm a 21 year Alaskan, and a Military Vet. I just want to see the money go where it's needed most; to the folks actually buying home heating oil.
Debit cards dead what is next? Nothing! The interior of Alaska is facing a loss of over 20,000 people this fall. The mass migration is simply the result of Alaska’s leadership studying ways to lower the cost of energy without conclusions or one concrete thought. Everybody seems to have an idea, but mostly way out fiscal unreachable or unattainable in a reasonable time. There are working people out there paying off last winter’s massive heating bills and no fuel in the tank for the coming winter. Simply put, the cost of energy outran the working Alaskan’s income. The only real fix is cash, everything else is a Band-Aid. Credit cards and/or prepaid oil supplies doesn’t pay last years heating bill, it doesn’t clean the chimney for next winter nor pay the expense of putting up wood. This is not a subsidy or handout it’s our oil the state sold and we are entitled to our fair share to spend as we see fit without government’s heavy hand. I suggest doubling the PFD this year. One check right now another at PFD’s regular time. There can be no argument if everyone receives a check it should quiet the nay slayers and would heat everyone's home, fuel everyone’s car or truck and keep the lights on. Then our leadership should turn to long range energy solutions Dams, Wind, Solar and Nuclear. Next the state should take control of its own oil and gas products by declaring them as a public utility to be refined by a Co-op or private non-profit. Never again would working families be forced to leave Alaska because energy took all their food money. This can be done within the confines of the state’s income but may shakeup how business is conducted in Alaska.
AkFarmer
Hilgeinak.
So what you are saying, that since I rent and even though my heat in included in my rent; it still affects my rent that I am somehow unaffected? Somehow less entitled for help than yourself?
Sure I may not pay the money directly to the oil company but this place I live sure the hell isn't worth $1800 a month in any other place in the country. If your plan went through I might see a cut in my monthly rent; afterall I have one of the few good landlords in this state. If you honestly believe that the majority of "slumlords" would pass on their savings then you must have never rented in your life.
For the record, I'm not for the state subsidising or helping us with payments. However, if to do decide to help then it needs to be done fair for every Alaskan and I would gladly accept the help.
Here is an idea that would give an answer to the people who don't like "entitlement programs" and will give the most money to those who will be in the most need. First of all, just give money to people claiming head of household on their fed income tax return. Then the state should give out money to those heads of households based on where they live. Establish a baseline for each region or town based, say from 2006 as to what electricity costs and fuel oil costs were in that region and pay each summer based on what the costs were over the baseline. That way you would be getting the same as your neighbor does, and wouldn't be getting extra because you have more kids etc. This is about heating a home after all. If this bubble ever does pop and the prices go back to 06 levels the program simply goes away. This would give people some confidence that we can weather the economic storm and not freeze to death. People in the bush would no doubt get more then people in Anchorage, but they are in greater need as well. This program could be coupled with other weatherization programs too.
In addition to the above program, meant for heating a dwelling, whether that is an apt, or log home, another separate program could address the increased costs for gas for vehicles and the increased costs for food due to shipping. It could also have a baseline and be based on regions of Alaska and give more help to those who are in the greatest need and yet give everybody something. I am just afraid that they are never going to please everyone and so might go for pleasing no one and give out zero. Heaven help us then!
If I know Alaskans, there will be bitching and complaining no matter what she decides to dole out and in what way she see's fit. Truly theres no way its justified to give an Anchorage resident the same as a Fairbanks resident and then again its not justified to give a Fairbanks resident the same as someone who lives in Kotzebue. It just doesn't cost the same to live in each part of the state. We will all just have to accept that they ARE trying to help us and or appease us and that many folks really need the help. It will definately be interesting to see what they decide, but IMO we should all be thankful that they are doing anything and not forcing folks to move south regardless of how many billions ar ein the Royalty Fund!
Everyone directly affected by the price of heating oil needs help, whether you rent or own a home. I would hope landlords will pass on the savings to renters. I'm not sure what folks are going to do this coming winter. A large number will leave Alaska. The $1200+ dollars we spent today for less than 300 gallons is a warning. At this point I have little faith we'll see any money. I'd just like to see the money go where it's needed most.
Quit your whining and go South. I did not like it when you moved North in the 70's and will not miss you when you leave. I will be in a cabin with wood heat and be happy about it. We do not need Government handouts and surely do not need subsidized fuel to entice more weak members of society to Fairbanks.
Pat
Akbearable, I disagree with you. This is not about heating a home or an entitlement program. This is about returning some of the profit that all Alaska residents earned from their natural resources to the people. A person with kids may incur additional costs for fuel because of having to wait for the bus in their car at -40 or driving them to school. I am advocating that Alaska's kids and chronic innebriates have as much right to their share of the profit as do the heads of household. Not having a title other than state resident should not disqualify any Alaska resident from getting their share of the record profits.
Your thesis also does not account for apartment renters and lease holders who have heat and electricity included in their rent. You are furthering the belief in a fabricated energy crisis, and ignoring the state government's constitutional responsibility to the citizens when the government has more money flowing into the coffers than their budget planners could predict a year ago.
Sounds like the Governor has been reading the state constitution and reviewing her campaign speeches. Unlike some on here, I have faith in my fellow residents that we are making every effort to prepare for winter and won't just waste any additional income from taking on extra work or because the resources we own are selling at record profits. Whether they go buy more quilts, oil, wood, insulation, solar panels, or gasoline, the money is theirs to spend and not our representatives to decide on a short term blanket program that won't work for all of the residents.
There are a lot of viable long term ideas being offered on this string and those ideas have to be decided on their merits. This is the first mention of the Nenanna stranded gas field that I recall, and it sounds like something GVEA could invest their excess operating capital in to save us members more increases in fuel surcharges.
Finally, remember we are paying more at the pump because oil went way up and thus we should be getting a larger return. The question is, will we actually get it, or will it be filtered through the program sieves to the point that all of the profit goes to the special interest profiteers that come up with the next big thing in energy.
ONAPA-
Read the previous comments. The vast majority of Alaskans think this is about heating their homes or getting what they think they're entitled to. Well, that, and "I want my free money and I want it now!"
What the heck is wrong with coming up with ideas and making sure this is the best program possible or determining that it is, in fact, necessary.
?
ONAPA- Thank you.
I'm so sick of saying it.
Imusuallyright,
I read the comments, and I have been following the "energy crisis" debate. I am a strong proponent that the state government needs to develop a long term plan to fix the in state energy cost problems. But I also agree that the Governor needs to take the lead on providing some profit sharing with the residents or it won't happen. What is being wasted by the big businesses including GVEA is hurting us more than a large hole in our walls would. We can buy duct tape. We can't afford fuel surcharges that are a full one third of our bills. There is nothing wrong with ideas, and I expect the government to deliberate before they throw our money at the problem.
I am of the opinion that:
1. We do not have an energy crisis. No one is threatening to shut down power, or fuel delivery.
2. We in the interior do not have poor quality housing overall. Even the oldest and worst built houses survived the 7.9 earthquake, and a week at -50 in February.
3. Alaskans are frugal shoppers, and know how to survive if allowed the opportunity to do so.
4. Alaska is not a socialist state that gives non-alaskans relief for living here just because we are rich in resources. We do pay out of state temporary workers some of the highest wages in the nation.
5. The state is taxing us at 100% of our current rate of return on our resources and we are paying out the nose for the refined value of those same resources as consumers.
6. For residents the oil profit is not "free money" it begins as an equally shared resource being sold at unpredictable record profits taxed at 100% by the state and those profits are I fear, being squandered on knee jerk programs that won't benefit everyone being taxed.
7. The state legislature is a deliberative body that should vet these ideas through the constitution, and do what is best for the State, the regions, and the local communities in the best interest of the citizens.
I'm slow, what else can I say...
Myself, I guess I'm already sick and tired of thinking of ways the state can help its citizens. I've lost all confidence in our political leaders to even have a clue as to what the rest of us are facing on a day-to-day level.
Speaking for myself, it's far better for me to just plan - and budget - for the worst. Crude hitting $150 by july 4, and probably $200 by december 31. Better to do that than invest hope in the state being able to get its act together in a timeframe that I'd otherwise need it to.
I can still afford the every other month prime rib dinner at the turtle club at today's oil prices. When the price hits $200 per barrel, I'll be down to rice and beans. No doubt. But the truth is, I can live life off rice and beans as well - already did so when I was a college student. No fun, but I already know that I can do it, and if I have to, will do it again.
I've gotten to the point of being *very* cynical about our oil-wealthy state doing anything for its citizens who are being sucked dry by energy prices. Juneau is, and will continue to be able to live off king crab, caviar, and fillet mignon. Any part of me that wishes to bitch and moan about that has only to acknowledge that I should have chosen politics as my career. I did not. Despite everything, I'm glad that I did not.
Rice and beans will suit me just fine when I get to that point. And knowing that, I have every confidence that I can *make it,* whatever else may come.
Sarah, our dear governor, I *really* did have moments of believing in you.
Whatever.
With all that's been going down, what I've come to realize is that I have *far* more belief in myself, and my neighbors, who are experiencing the same things I am.
Sarah, bottom line, you haven't come through for us by now, and by now, we've come to realize that we don't *really* need you to. What we need is ourselves, and our neighbors.
Us, and our neighbors, after all, have been "here" for us all along.
State intervention or no, we'll do just fine without you.
ONAPA-
Thanks again.
I've been saying this for months. In different, but similar, words and concepts.
grouchyolman,
Your argument died with me when you said don't give out state surplus because the feds will take a share of the individual income in taxes. Half of nothing leaves us with nothing. Why not pay out 10% from the state, or whatever is deemed reasonably fiscally sound, and legislate the price of in state oil and petroleum products until the long term solutions are vetted? Granted it won't affect the cost of oranges, but price controls on in-state oil and refined petroleum products will help Alaskans save money at the fuel oil, low sulfer diesel, and gasoline pumps.
In the long run it is about the economics of individuals deciding if they can afford to drive to the movies or buy oranges with disposable income. Those without disposable income are wondering if it is time to move south and how far to go. As we tighten our individual belts, the state is looking at buying a new suit with deeper pockets.
We Alaskans are experiencing group think over the so called energy crisis rather than celebrating oil prices over $130 a barrel (which we should be doing). We should be celebrating and optimistic about our future. We can as a state redefine our economic future independent of fossil fuels. We can lead the world in long term economic solvency, both for our government and citizens.
------> LadyNYC <----- "I can still afford the every other month prime rib dinner at the turtle club at today's oil prices. When the price hits $200 per barrel, I'll be down to rice and beans. "
Well I am so very glad for you I have been on rice and beans for almost 2 years now and still owe 600 on last winter fuel bill.I strugle just to pay my house payment with my increasing elec. bill and cost to get my wife and I to work everyday. Now our 4 kids have gotten used to ramen but big thanks to the food bank. Thank you Thank you Thank you
Mexican government subsidizes gas prices. Why isn't that a viable option for America or at least Alaska?
More free money for natives in the village since they don't pay for the energy in the first place ..lol. Sure it cost xxxx but they already get free money for it.
Hell, why not just give everyone free energy to make it equal?
I'll believe it when I see it. So far the only thing our legislature has proven, is that they are full of hot air. The only thing dumber is that fact it's our oil (ALASKAN OIL) being shipped out and we are paying through the nose for our own oil. Check out how other oil producing nations are fairing at the pumps.... Middle East, is .40 - .60 a galloon. State can lock the instate price of fuel and oil, but they want to do that, that would show the residents that oil prices are what causing the serious hardships even in our own state, just sit and do nothing legislature and you'll get voted right out of office.
Hey cdog63, I'm single, have a good income, and don't have any kids. I.e., I still have a little discretionary income even at today's oil prices. My point, though, was that I already know it's not going to last, and even for me, it'll be rice and beans soon enough.
I'm growing lots of veggies in my garden this summer. If I get a decent harvest come fall, it'll be too much for me alone. I have every intention of donating the extra perishable items to a food bank, or giving it to folks who need it.
cdog63, I'd be more than happy to share that harvest when it comes with you and your family. Ramen sucks. I know. I've been there. And I'll be back there soon enough.
Ramster21 ... the oil is no more yours than it is the persons in Florida. Alaska is not a nation and it is a part of the USA. We don't have exclusive ownership of the resources in Alaska. Not that I would not like to but the energy assistance is irresponsible and it will likely be challenged in court when it is implemented and or taxed as income.
James, Check the State Constitution. We are the owners of the State's Resources.
Governor Palin,
We don't need a solution for the whole bill, after all, we found a way and paid it last winter. We need something now to make up for the difference between last year's prices and the increases that are out of control and busting our household budgets. We then need a comprehensive plan to keep this from happening again. Focus on the citizens, not the businesses profiting from our wealth.
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