Community Perspective
State could share Alaskans’ home-heating costs
Published Friday, June 20, 2008
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Stumble It!The governor is expected to announce a revised short-term energy plan today. The residents of Fairbanks and the Interior must demand a specific solution that meets our unique home heating oil needs, in addition to any additional distribution of funds that the governor offers to Alaskans.
It is time for a home heating solution that works for us. Our residents need to know that they will stay warm this winter without going broke. Winter will be upon us in less than 100 days, and we need a solution that will allow us to survive the immediate crisis. Once that is in place, we can look for long-term solutions that will restore our optimism, renew our commitment to stay in this community and allow us to refocus on sustainable energy solutions.
Therefore, I respectfully request that the Interior legislators and Governor’s administration advance a plan during the special session that will require the state of Alaska to offset the Interior’s devastating home heating costs. The cost of home heating oil is beyond the ability of Interior Alaskans to pay. Home heating fuel is projected to cost at least $5 per gallon this winter. With that price in mind, it is reasonable to ask the residents of the Interior to pay $2.50 per gallon while the state pays the balance directly to the qualified home heating oil dealers.
Residents would pay $2.50 per gallon directly to the qualified dealer of their choice, who would then be compensated from the budget surplus by the State of Alaska. For every 100 gallons of home heating fuel at those prices, the resident would pay $250 instead of $500. The state, with its coffers overflowing from the sale of North Slope oil, would pay the balance directly to the dealer.
There is, at the moment, a $7 billion surplus in the state’s bank account that, according to current projections, is likely to grow to $14 billion by this time next year. We have the means to act now. It is time to demonstrate our resolve to do so.
This plan is consumer-friendly. The Interior uses approximately 50 million gallons of home heating fuel per year; therefore, this plan would bring about $125 million into our community, directly and dramatically reducing residents’ home heating costs and helping to keep our economy afloat. This investment in the people of the Interior is well worth the price tag, will barely dent the treasury and will help keep Alaskans in Alaska.
This plan is dealer-friendly. There are fewer than 10 qualified dealers in the Interior, and last winter dealers filled many fuel tanks despite the fact that some residents could not pay their bills, and many paid them late. The dealers simply could not and would not let their customers freeze. Without immediate assistance, it is possible that both the users and the suppliers of home heating oil will continue to disappear.
This plan is easily administered. The qualified dealers of home heating oil, as part of their current reporting requirements, send the State of Alaska a monthly breakdown of the quantities of the various petroleum products that they sell, including home heating oil. Home heating oil is exempt from the motor vehicle tax and, based upon the existing reporting system, the quantities of home heating oil are easily verifiable and objectively determinable. The payment of $2.50 per gallon would be made directly to the qualified dealers of home heating oil.
This plan is efficient. It does not create a bureaucracy of paperwork or require massive government employment to operate effectively. Rather than distributing checks or debit cards to tens of thousands of individuals, the state would make a payment to home heating oil dealers in the Interior. It is a relatively simple way to transfer the money from the surplus revenues in the state’s bank account to the Interior Alaskans who need it so desperately.
I also believe the Interior’s solution should be closely connected to a solution for Bush Alaskans, whose heating costs are even greater than ours. Money from the state’s revenues should be used to help them, too.
I clearly recognize that there are many other energy-related issues that require our immediate attention, such as the high cost of gasoline and electricity. It is time to address those issues, too, with all of our knowledge, determination and creativity. I am simply advancing one practical and necessary solution to the home heating crisis in this community where I was born, raised a family and intend to live my entire life.
Joe Paskvan is from a longtime Alaskan family and is a candidate for the State Senate seat that represents Fairbanks and Fort Wainwright.
Community Discussion
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Mr. Paskvan,
It looks like your letter precludes renters who dont buy heating oil/energy directly(utilities included) but will be affected by high fuel/energy prices. Perhaps consider a voucher or something a tennant could hand over to thier landlord?
My guess is there is a lot of renters up here who do not pay heating costs directly, but may see increases in rent/lease rates due to increasing energy costs.
Natural Gas up here may be cheaper than oil, but no bargain either and maybe include that too in the thought process?
This is IMO the best way to go about this for interior residents. Subsidize heating oil prices, Propane, and current natural gas prices and do whatever she can to reduce the ridiculous costs GVEA is passing on to us. Otherwise any $$$ she gives us is just going to be taxed anyway. Good idea Joe, and one that seems quite easy to put in place and would essentially help folks the most. I am also of the belief that giving people cash in hand will not guarantee they will set it aside and do with it what it was intended for. Plus theres a lot of folks saying they are gonna take the PFD's and whatever else the state doles out to use for funding their move south before winter hits.
That is just about the best solution I've heard. It would help out renters, because their fuel bills not increasing means the landlord will be able to keep the rent steady providing they are honest, of course.
Also, it does not provide a taxable money amount to me that the Government can take another chunk of in April.
Let's give this one a try while waiting for long term relief.
We could take care of the renters by the state reducing the cost of its royalty oil to Flint Hills, and monitoring the pass-through. All fuel comes from them, and the landlords would not have to increase their rents.
Heres another thought, using a family of 3 as an example. A family of 3 would receive $3600, if you live in Anchorage that would provide an Anchorage family with more than enough money to pay their electric bill and all their heating cost with a surplus of extra spending money to do with whatever they like. That same $3600 will not pay half of the heating costs for most interior residents. Just a thought!!!!
Thats why I think this idea is the best, simply because not everyone in this state is even feeling the burden of oil/fuel prices and it sure isn't even close to equal. Some are only complaining about fuel prices at the pump! This idea would help everyone from SE Alaska to the Bush with the real pain they are feeling!
Irresponsible idea. Everyone in the USA has the same issue and the oil does not belong to Alaska exclusively. We do not deserve subsidized energy .... period. Joe is misguided on this subject which is unusual. I think it will face a legal challenge and we will loose. At a minimum, it is unearned income.
It is expensive for sure but it is also a bed we made for ourselves and must live with until we find a permanent solution. That means not going out to party/dinner, vacation or whatever else is necessary. Time to have fiscal and financial responsibility on an individual basis.
Joe is also mistaken about the bush paying more. They pay noting as a practical matter and never have. Everything the natives and corporations have was given to them by working taxpayers along with their recurring monthly subsidizes. It matters not if oil is $100 a gallon ... they will certainly have all they need and continue as usual unaffected. Sad for the taxpayers but it is the bitter truth and a way of life. Like 5th generation welfare we see in the lower 48.
I think it is a great idea because remaining here without assistance is not really an option. fuel is draining alot of our money set aside for retirement. I hope a long term solution is on the table soon.
Theres not a place in the lower 48 that would make a equal comparison to our situation! Beyond Extreme Cold.....Oil flowing through our backyards.... multiple refineries......a fairly small population.....and a state that has sooo much money it doesn't know what to do with it!
Mr Paskvan has a good idea.
Wrong James....the oil belongs to Alaskans. And wrong again...the people in the bush do have to pay for fuel. You are an Irresponsible fool.
I have promoted a similiar version of Joe's idea for six months now and appreciate his efforts. As a thought, why not take the cost of energy in Anchorage and use that as a basis for the user's cost and bill the state for anything in excess of that amount???? Now that would be true "cost equalization" for those of us that don't live in the city that is home to half of Alaska" population. Nuff said.
With the energy assistance programs that the state and federal government have in place now that provide heating oil, firewood, propane/gas and electric for low income families, maybe the state should look at these programs and eliminate the income guidelines and let every household in Alaska apply for it. Just a thought
A great idea Joe! We should add an additional incentive (I know we have a good one) to get ourselves out of using oil for heating. Let's have a 5 year sunset clause, so we all keep focusing on getting off oil and on to renewables and gas - when it arrives! With Distant Thunder's ideas it will be sooner.
In the meantime, lets fund the final research on DC Lite as well. Only 1.8 million dollars - a drop in the bucket if it proves workable - if not it was worth the try. If it works it will revolutionize electrical transmission in rural areas. We'll be able to use it to create a distributive generation web to our smaller rural communities.
Not a surprise that Joe is running for office. When did all this take place? When were our elected officials put into office by how much they would GIVE us? EVERY one of them can not lie fast enough on what they will do to GIVE us everything you can think of. Do they really think we are all that stupid ? There is NO free lunch, at least not for long. Sooner or later someone will have pay. Why stop with oil and gas? I think the cost of food is more inportant, without it we will DIE, WAIT,,why bother with all the little details, lets just get it overwith and call Fedel Castro before he dies, he seams to be the only real LEADER.
As far as I can determine, energy assistance isn't taxable. Hey if it is, we'll gladly pay for it.
Thanks Fairbanks and the Interior for leading this charge. Rural Alaska and Southeast would be all alone if you folks weren't beating the drum.
I'm sorry for your predicament, but thankful that we have you onside. We'd be lost without you. Oh, also Juneau with it's recent exorbitant electrical charges and high fuel prices is aware of your dilemma. Lets work together to secure an immediate and long term solution to this challenge.
The folk in the Bush should team up and and have James come live in the Bush for a few weeks. I use to live out there, and to say the native people pay for nothing, is not only a uneducated, disrespectful statement, its also plain stupidity. Also in reguards to James "earned income statement". The homes that were built for hurricane survivors who lost everything, the goverment aid being sent to the Mississippi river valley.... Is that earned income as well? Now for the real reality, that james says is a fical responsibility. Math Lesson!! If you have a married couple who live in a home that burns 100 gallons of fuel pe month, and husband and wife both work 40 hours a week, at minimum wage different shifts, so one parent can be home with childern (they cant afford to pay $1800.00 a month for Fairbanks aera daycare). Their income is $2,478 a month or about $2,000 after taxes. Now for the expenses. Rent/mortgage $1000.00, electric $100, Grocerys$250.00 Transportation $100. OOPS!! Did we go over their $2,000 a month income already. Yes we did, cuz it is January 2009 and fuel oil in the interior of Alaska is now $6.00 a gallon. Yes I do agree with some of Mr. James statements. However their is also something to be said for thoes who are afforded fininicial independance, and seem to lose touch with reality... TIME TO WAKE UP MR. JAMES!!!
Great idea!! Be runnin' my Powerstroke on $2.50 fuel this winter. Get a bigger fuel tank at the house and I'm good to go!!
James,
....what in the world are you talking about? This is irrational behavior, are you okay?
I just got a $1300 fuel bill... In the middle of June.
Somebody needs to do something and soon!!!
This seems like an excellent idea.
I'm definitely voting for this guy!
Again what is there to stop the retailer from consistently increasing the cost of fuel, especially when they know that the government will keep paying it. You would have to freeze the price to maintain a constant charge.
Woodman -
Sounds like a good point, except for one thing:
What's stopping them from consistently increasing the cost of fuel now?
Nothing... So, I guess maybe it isn't such a good point at all, is it?
I would like to add, don't forget that there are also a lot of us on Natural Gas, and we also need help. At the moment they do not even have a supply in hand for Jan, Feb and March, that really makes me sleep well at night!! I know heating oil is the dominate source of heat up hear, but please add NG in your comments from time to time. As for James comments, I try and skip over them when I come to his, makes my day go a lot better!!
This sounds good. However, we forget that we have in the legislature people like Mike Kelly, Gary Wilken, and John Coghill Jr. These guys have the philosphy that State aid is bad and the citizens should do it all themselves. This will result in folks leaving the Interior in droves or freezing to death.
We've voted in very reactionary legislature members who'll stiff everyone before they touch the State monies except to fund capital projects.
It’s a Good idea but what about us who don't pay for heating oil? My wife and I are living paycheck to paycheck and selling all the stuff we don't need and it’s still really tight. Is there something we can do for electricity and fuel at the pump also? Do they really make so little at GVEA that they need to charge us a fuel surcharge and other bogus fees? Why don't they stop printing that dumb magazine they have and use that to fund their Fuel?
WoooHooo, this is a great idea. It makes so much more sense to help pay the actual cost of the oil rather that give money to every man, woman, and child who qualifies for and gets the PFD (as previously proposed). This helps us where we really need it most. As for renters, this should help keep your rent down. In addition, I wish they would also consider something similar to this for gasoline, and electricity (and natural gas for you gas users). But as a home heating oil user whose bank account is near empty, I appreciate this very much right now. Thanks Sarah.
We are already getting State assistance, in the form
of a PFD check every year. I say, increase the PFD
check to help with fuel cost. Then let the recipient
decide what to do with it; heating oil, gas, food; etc.
The system is already place and people waiting, a
simple matter for the State to pass a bill, to increase
it. Why complicate things, with more paper work?
burke
What about those who don't burn heating oil? Those who have made the effort to burn coal or wood?! They are still being affected by the rising cost of fuel, even if it isn't as direct as those who use home heating oil. The price of gas is going up, and no matter how we slice it, it is affecting EVERYONE, whether it be directly because of home heating oil or indirectly from the cost of items going up due to shipping, etc.! Lets make a plan that helps EVERYONE!
The problem I see with increasing the PFD in order to assist us w/ our energy costs is that there are many folks who get PFDs who don't buy heating oil, electricity, and in many cases, gasoline. These being military folks living in base/post housing and kids.
I agree with Joe that interior families are struggling with high heating costs, but I don't agree with his idea to have the state pick up the tab for our heating oil in excess of $2.50 a gallon...where is the incentive for competition among the 10 heating oil providers in the interior if they know the state will pick up the tab over the $2.50 mark...there is no incentive for consumers to shop around for the best price and it will allow the fuel delivery companies to let their prices keep rising...why not,the state is paying! Or, wait, is it the citizens who are missing out on that state revenue used to pay these delivery companies that could be used more efficiently/ effectively somewhere else? In fact, I can see now that if Joe's idea went through, the oil delivery companies could begin offering "rebates" (another term for a cash kickback) to their customers, since they will be turning around to get their money back from the state. Maybe a better solution is the fix the amount paid by the state. If the state agreed to pay the first $2-3 a gallon, there would still be an incentive for competition and shopping around for the best deal since the consumer would be paying the balance, instead of the state treasury.
I think this is a great idea leading to a feasible solution to the immediate crisis. Money given to individuals would end up throwing millions to Uncle Sam down in DC, money given to dealers keeps the money IN ALASKA helping Alaskans. Lets get the current state legislature to put some hard numbers to the idea - like a percentage. If they were to put forth 50% or more which is essentially what Mr. Paskvan lays out, then the cost would be consistent all winter long. The Legislature could get this approved then add long term additions providing money to those who choose alternative (maybe greener?!?!) home heating methods. Thanks Mr. Paskvan.
To the lead off poster, Gregg, and anyone else who is whining about not getting free money,I say: Why does the state need to give heating oil money to people who don't pay for heating oil. If you rent and don't buy oil, you need a discount on heating oil. If you heat your house with wood or coal, you won't get this advantage either, because you don't need the heating oil to heat your home. It's about heating oil. If you don't pay for heating oil then you don't get the discount. Mr. Paskvans was speaking about heating oil only. Yes, it's unfortunate that you don't get cheap gas for your car but, get this, I don't either. If you all complain about any state help then guess what???? NO STATE HELP>
James,
Are you filty rich or just nuts? You seem to be opposed to anything that helps Alaskans. I'm sure that participation in any program is not mandatory so whatever the legislature comes up with, you probably won't be required to take a penny in assistance. If Mr. Paskvan's proposal goes through you can tell your heating oil supplier "No thanks, I want to pay the entire cost." They will probably be able to oblige you.
I'm working two jobs in an attempt to keep up with the increases in utilities and groceries and I'm worried about heating our home this winter.
The oil IS ours, the royalties ARE ours. If it belonged to the entire USA, I'm sure we would have been sued by the rest of the country by now.
goldenheartfamily: The idea is that the state provides a certain fixed amount(% or whatnot) and not just "keep oil at 2.50" which would keep the current capitalist practices to provide the cheaper delivery. And to Burke, give money through the PFD?... not many military families get a PFD - sounds like we're good neighbors leaving them flat on the floor. Also, many people who get PFD's aren't even here for the winter. We NEED a HOME HEATING solution now.
When was the last time fuel was $2.50 a gallon? I agree that things are tight financially and the cost of oil directly impacts EVERYTHING, but why do people feel that the government is responsible to bail us out? Other than of course it is them that got us in this crisis?? Something to consider...a person owns rental property in Alaska but lives out of state - who gets the money the landlord or the tenant? We lose money every month that we pay for heating fuel for our rental nowadays. We are going to be forced to raise the rent just to break even. I dont feel like I deserve any handouts but it is something to consider.
Joe, you aren't in my district. With all due respect, if you were, you would have just lost my vote with this idea. It just allows the same ol' thing to continue, and puts real conservation and change on the backburner. It's time to rethink things and look toward the future of continuing higher prices of everything because our country runs on oil. We can't continue to afford to live as we do; that's the bottom line. So we have to adapt.
And hey, what about people who burn wood, as many out in the Goldstream Valley do? What about folks who don't need help with heating oil but rather the skyrocketing costs of everything else (because higher oil prices affect everything)? Your idea seems to leave them in the proverbial cold.
This whole "help us" thing is truly ironic; the line I used to hear from so many was "You choose to live in the remote bush, Mark, and you knew it was more expensive to live out there; you made your bed so lie in it." Gee, we've been paying about $5/gal for gas for a long time now, but no one demanded the govt. help us. Now we're gonna pay about $8/gal for gas. It is what it is. And certainly this was a long time coming and the writing was on the wall.
But now the line I hear is "well since you live the way you do, Mark, it's much easier for you to adapt. You burn wood and live in a small cabin and aren't as dependent on heating oil as we are. Your only increase is fuel to run the chain saw. So you don't really need any help."
This all boils down to "I can't afford to live here anymore, so the government should bail me out." And irony of ironies, this line of thought is coming from a whole lot of conservatives who denounce "welfare" and "subsidies." I guess when the shoe is on the other foot, eh. Pshaw.
Bo,
my read from Joe's "solution" was that the consumer would pay $2.50 per gallon, then the state would pick up the rest...whatever the difference between the $2.50 paid by the consumer and the going price per gallon for delivery. I did not read Joe's comments to say that the state would pay the fixed amount, but rather I read it to propose the consumer pays the fixed amount, then the state covers the (ever increasing) remaining cost per gallon.
On another note,The State incentives for conservation or a switch to alternative fuel/heating sources should allow people who want to try a coal burner, or solar panels, or wind turbine, or any other alternative energy source, to receive some sort of tax credit, or because we don't pay income taxes in AK, to receive a rebate from the state...I know I have been looking at the coal burning stoves/boilers since the heating costs are about 1/5 that of heating oil...but at 8-15K for a complete system, it is hard to justify (and even harder finding the money after current heating costs).
Otherwise, just hand over the money! I'm sure we can all figure out where to best put it to use...heat, electric, gas, food, rent, property taxes, vacations we haven't been able to take because of the high fuel costs we've been paying just to stay warm during the winter...I know several people who could not afford fuel and had to let their homes freeze up this last winter, and they still slept there and showered less often (usually at the public pools or friends homes). This should not be the case, and so I don't care what is done...not everyone will be pleased with any result, but we need something done, not just talk!
Goldenheartfamily: I agree that we need something done now and this idea is a step in the right direction. I think the heart of the idea is that distributing cash to families individually will result in approximately 25% being taxed out by the federal government as "direct payment" would have to be considered income. With this plan families, renters & landlords all benefit because the people using home heating oil are directly being helped. The crunch in home heating oil skyrocketed recently and needs to be addressed. Families should not go cold and should not be forced to choose between groceries and fuel ever. The Legislature and current administration can add the long term benefits later providing money to people who chose alternative heating methods; HOWEVER, WE CANNOT ALLOW our friends and neighboors to choose between freezing or moving to a warmer climate.
Burke, your PFD idea really wouldn't be equitable in this case. Here's an example: my family of four would get more money than my neighbors, a couple whose children have all grown and moved into their own homes. They have similar heating costs to ours, but using the PFDs means two checks for them and four for us. This was the problem with the debit card idea as well. I like my neighbors, and I don't think I should be getting a better deal than them just because my kids are younger than theirs.
If the government is going to get into the business of subsidizing our heating costs (and that's a whole other debate I'm not going to dive into here), then Joe Paskvan's idea makes more sense than any I've heard so far.
This is not assistance or subsidizing, it is profit sharing from windfall oil profits. All Alaskans own the minerals in this state and should benefit equally. Period, the end. Come on people it is in the State Constitution. Call your legislators and demand they follow the edicts of our existing laws.
I am not sure why I should be concerned about people burning wood, coal, renting or paying high prices at the pump. The problem lies with the fact that homeowners who rely on fuel oil are the ones that are having the hardest time. The homeowners with fuel tanks to be filled are also seeing the crunch in the stores and at the tank on top of having to heat the house. The prices at the store and fuel for the car can be off set by better spending habits. The price of fuel to heat a home is a different story. I wish I had a wood burning stove so that I could off set some of that cost. I think that Joe's idea is a great way to address the main problem right now. Let's hope it buys some time to get a long term plan.
I rent, and you better believe once those boilers fire up again in September my landlord will be more than happy to pass on the increased cost of heating oil to me and mine. In April when those boilers aren't going so often do you think my rent will go down? Not likely, more than likely I will be forced to pay that increase and another in Sept or October whenever fuel prices jump again. That renter argument is way over used, when it comes to any expense to the property owner you better believe his renters are the ones really paying for it in the end.
Why would your rent go down in April? The homeowner can't possibly charge you what you are actually costing him for you to be there. He gets to try to off set those prices all year, so yes your rent will be affected, but no where near what the homeowner is seeing!
this is my opinion. To just hand people a $100 check each month would be throwing good money away. If the money is TRULY meant to HELP people with their heating fuel costs or fuel for their truck , then make it go as credit to the company of choice or vouchers or something that can ONLY be USED for FUEL.
Otherwise you are going to have a good majority of people NOT putting it towards their fuel needs as much as they SHOULD do so.. they will instead look at it as FREE MONEY and go play with it where ever their pleasures are.
I dont know about anyone else, but a post above mentioned Energy Assitance paying for propane? I'd like to know how.. because I have qualified for Energy Assitance now for 2 years in a row and Propane was NOT allowed on the list.
I am one of the few people left in Alaska I guess that lives below standard code levels. I use propane lights in the winter which helps add extra heat to my house with my woodstove. I cannot get NEAR enough Heating fuel to carry me through the winter on one $425 fuel check. I am greatly thankful for the money but it doesnt buy me much fuel in the long run. I need approx two 300 gallon tank fills if I was to use the Heating oil more than I do. But I didnt use the oil until I absolutely needed it in the cold snaps to help join in the heating of my home with the woodstove heat. My heat only comes from one small woodstove and when it goes out the house gets cold. I cannot afford to have the oil stove burning AND the woodstove too. So I try to stretch the Heating oil to only when I absolutely need it. I could have used it a LOT more this winter but chose to be cold rather than run out at a bad time when I couldnt afford it.
So I would love to see Energy Assistance include Propane on the list. The only problem is there.. they will offer to pay PART of the money to Power and part to the Fuel company if you want, but when you do that..it only really helps pay for maybe 2 power bills and a very small amount of Oil..and when thats gone in a month..its gone. I still have the rest of the winter needing fuel with no money to buy it. I wonder how many people that just cannot make ends meet for good honest reasons are sitting freezing in their coats in their house because they simply couldnt afford the oil for heat or wood for their woodstove? :( how many little kids shivered in their beds all winter because their single mom just couldnt get a good enough job to cover all their needs and buy fuel too.
I imagine a lot of people will not put Govenor Palins money to helping their fuel costs but to alcohol , candy, treats, new clothes, makeup, pop, movies, toys, CDS, shoes, cameras'.. you name it. What good will that money have done in the end.
I say put it to vouchers at any gas station to help people get to work in their cars.. put it as credit or vouchers to the Fuel companies the people use so they can actually put it towards FUEL and no where else.
The APARTMENT owner, resets his prices whenever he sees fit.
I think you must have a slumlord, not an apartment owner. Move if you think that is the case! I am an apartment owner and I had to up the rent also, but if I charged what it is costing me no one could afford to rent a one bedroom place. My fuel bill comes steady year around and my tenants don't pay for electricty, fuel, water, or garbage pick up. Those things are included in the price of the apt. It is a pretty good deal if you only see a $50 or $100 dollar increase instead of every single time you buy fuel it has gone up to whatever!
James:
the "bush" includes tons of people who are not "natives". We pay like everyone else. Do you know that many communities on the road system are considered "bush" communities, like Nenana, Anderson, Healy, Cantwel, etc.???
I was recently telling an associate that there should be some way to compensate the homeowners for the increased cost of fuel oil and suggested that homeowners (and renters who paid their own and had an account with a provider) could bring proof of the amount of fuel oil they purchased over the past year and be compensated at some rate per gallon. Joe's plan seems alot simpler and still compensates those who really are having to pay for fuel oil. An arbitrary amount to every Alaskan resident does not help those who are hit the hardest by these cost increases. I think Joe's idea has great merit.
To Skagdog,
Read before YOU whine, please read my post again . How does handing over a voucher to a landlord equil complaining about not getting free money?
How would renters pick up an financial advantage handing over an voucher to a landlord to offset energy increases thier landord may incur?
I rent, and would like to see our landlord get a breather from energy costs other wise wouldnt blame him for raising rental rates. I personally dont require an unfair payment or advantage over those who pay for fuel oil directly.
I hear ya lagirl! Owning a rental is very costly and getting much worse. We in NO WAY turn a profit and have mounting credit due to the cost of fuel. If we charged what it actually cost to have people living in our property, no one could afford it. Selling is always an option but I think it would be a problem for anyone who owned it. We arent going to raise our rent because we really value our tenants; but we have considered raising it for the winter months. Water is expensive too - $120/mo for 2 units. Then there is trash, fuel and the mortage. Justme, you got it! Handing over a check to most people would be a bad idea.
I understand mid and long term think tanks developing plans and that some of those plans are already in the pipeline(no pun intended).
The problem is while these plans are developed families are dealing with the harsh reality that winter is less than 100 days away and many families are still trying to pay last years fuel bill.
I'd like to hear how our locally owned fuel dealers are dealing with there creditors and banks,how are they able to fuel the're trucks and pay there employees i'd bet some are very stretched and just how long will creditors and banks start forcing local owners to have to look at going out of business?
This plan is simple,not cumbersome layered with layer after layer Juneau paper work,its a solid short term solution that will meet the needs of alaskens while those mid and long term solutions become real.
I applaude Joe Paskvan for being concerned enough to sit down and develop a real short term solution.
We as a community now need to become the wheels and engine to drive this plan forward by contacting friends and neighbors and if they haven't heard about this educate them...100 days and counting.
Begin to contact every elected official,the media push this plan to the forfront of importance during the upcoming session. Otherwise many could be faced with a real decision HEAT OR EAT, A earlier post(newsreader) mentioned it cost them $1300.00 to fill up in June just think without this plan that will be a good deal come August if what are predicting is true of $5.00 plus
batman_ak <----> Right on Joe is running for Gary Wilkens seat He is the only one I am sorry to see go. Gary is truely a man of integrity. Now we need to remove Mike Kelly Jay Ramras and John Coghill jr. We need Outside the box thinking like Joe's You Go Joe.
If I read one more "James" bashing comment, I'm going to scream. I don't agree with a single thing he had to say, but let the man speak his peace, ok?
I think giving everyone in the state an "x" dollar amount *will* end up in folks spending it in any other imaginable way than it was intended to. We are, after all, Americans. And we Americans have *the* worst record in terms of being able to save money. The Japanese, the Europeans - now, *they* seem to know how to save for a rainy day. Us? Dig it - nationally, we have a 0% rate of saving. Sad, sad, sad. We've been living too high off the hog for farrrr to many years now. Most of us get a financial windfall of any kind . . . ?
We buy more booze and more drugs, we add more channels to our cable subscriptions, we talk ourselves into feeling ok about buying yet one more "toy" . . . just this once. You get the picture.
We Americans are addicted to discretionary spending.
What Paskvan proposes is just about the sanest thing yet I've heard . . . . besides Distant Thunder's brilliant and visionary ideas.
For that reason, I think Paksvan's thoughts have great merit. His idea applies the solution to exactly where the problem is. Heating oil, plain and simple. We can all work around the costs of gasoline, and even of food, but in the Interior, it just gets bitchin' cold in the winter. We can all car pool and choose to switch our protein source to ramen, or to whatever ends up in our gun sights or fish nets, but in the Interior - which includes both municipalities and the villages - living in homes with temperatures that fall below the human metabolic rate required for survival is just not an option. We have got to heat our homes. Plain and simple.
Joe's plan allows us to do just that. And that alone.
Which is why I think his idea has *so* much more merit than the state simply handing out an "x" dollar amount to *every* resident.
This idea helps keep us alive. It also helps keep alive those fuel companies serving our communities. And it helps those who would be committed to staying in our wonderful state in actually helping those, "us", stay here.
Joe's plans allow us to provide assistance where it's needed most - to those who directly have to pay some company for each and every 100 gallons of heating oil. Landlord, or tenant.
For those of you who would argue that the "market" be the sole determinant of our continued residency here, and that without increased fuel prices, unsubsidized by the state, we would be rendered unable to truly achieve measures of conservation in real dollars and cents . . . whatever. Go back to the land of privilege from whence you were born; I frankly have nothing to gain from listening to you. Under the conditions that we face now, living in the hydrocarbon-rich state that we've chosen, by happenstance, to live in, and living in a state whose very constitution allocates to us, citizens, a portion of its mineral resources and wealth, I couldn't disagree with you more.
Us citizens are hurting, individually and collectively.
Joe, who the heck are you anyway? Whatever, you'd make a great engineer - a person who makes it a profession of solving real-world problems. For that alone, you'd get a thumbs-up from me. Yeah, ok, your idea needs to be tweaked a little to take into account those who rent, those who have kids, those who live in-state only a portion of the year . . .
But your basic premise is great. I hope to hear more from you in the future.
Good job there Joe. You started something and the temp rose. At least you have a idea. Its a start where all the real smart people just want to criticize with no solution of their own. I say drill our own oil, and refine and distribute it. Alaskans don't need the profiteers raping us and our state bank accounts. I knew sooner or later somebody was getting that state oil money and it seems to me its the companies that gave it to us . The oil companies and the politicians that are the lobbyist for energy sources. Circle of life.
alaskaflier ... looking over your analysis offers some insight why you may be a minimum wage earner.
You are willing to work for $1200 a month so you can pay the $1800 a month child care ... lol. Brilliant. Hint ... think before you have children. Hint #2 .. find a different option that is much cheaper.
Interesting and workable concept, however small businesses are hurting too and should not be excluded.
Landlords charge rent on what the rental market will bear not what it costs to operate. Hopefully it will cover the expenses and give a return on investment. When the market is soft or unforeseen costs come along then they may loose money. Renters have nothing invested and nothing to loose. Just like every time the property tax argument come up rents say they pay the property tax in their rent. No they don't. And renters are free to leave and move elsewhere if the prices get to high. A property owner is stuck with his investments and his payments. I know you renters don’t want to miss out on any state giveaways but use a better argument.
lakloey1 ... your the same person that thinks the oil belongs to "Alaskans" ...right. As with your argument above, you are clueless and actually contradict yourself.
So, if everyone from California for example comes to Alaska, and stays for 30-90 days, then the oil also belongs to them right? After all, they too are "Alaskans" at that point .... pitiful man.
I've been here 38 years and I have no special "entitlement" to the oil or its revenue. Only a small slice of the state royalty.
Do you also think it is OK to spend your children’s PFD checks? Or, just the grandkids oil?
People everyplace have the same issue we have here BTW.
Why is it that in all this argument we overlook two important points; (1)The PFD is paid from interest earned from the investment of just part of what oil money provides and (2) no scheme to help Alaskans pay for the high cost of energy unless every Alaskan is provided for equally, that is the law. Any program that provides a single avenue for spending help money will fail because of the sheer weight of illegal words needed. It is lunacy to think that everyone's needs can be provided for by vouchers, credit cards, or anything except cash. Cash works, it is equal in the view allowed by law and it is sheer snobbery to tell people how to spend money and really none of anybodies business until their frozen body is found, put there by misspent wisdom, buried with public funds.
James, James, what is your problem? Can’t see the forest for the trees, mother didn’t clean the afterbirth from your eyes or you just arrived yesterday in Alaska and don't have the foggiest ideal what or who we are and the real hardship of raising a family on work-a-day wages in Alaska. I suggest you spend some time out and about—talking to the people on the street, the guy who drives the fuel truck, the teacher who has to wipe the snotty nose of a kid raised in a to cold of home. These are the people on the front line and sees the suffering caused by folks with your kind of thought patterns, a family budget crushed by energy costs facing the dreaded thought of the long trip south. Think James before committing opinion to paper, your words hurt some people and without justification.
AKFarmer. You are misguided and perhaps that cold house has put your brain in glacial mode. I don't think I caused your suffering ...lol. Have a look in the mirror for the villain.
If you have a "real hardship of raising a family on work-a-day wages in Alaska" then should have considered your ability to provide for a family before you had those children? Or wasn't that a consideration? After all, it was a free choice right? You should also consider leaving if you think it is much better elsewhere. I, like others, have the same needs and cost as you so your complaint isn’t special? I think the prospect of free money gets you excited and that is really the difficulty? A quick fix and we will wait for the next crisis. Sorry, I just don’t buy it and I hurt and bleed just like you.
We are not unique in Fairbanks and we certainly do not need or deserve a state handout, as nice as that would be. Tell us what you have done to earn this or better yet, how you deserve it more that the family in Okalahoma? Are you better, unique or just because you’re an “Alaskan”? I think they deserve it as well and that is really the only point I want to make instead of running off on an emotional tangent..
Are you also saying it is OK to spend the PFD that is your children’s? Or, have you put those checks in savings for their future since it is theirs and not yours? If the latter I commend you. That is the only point I make about the PFD money.
Just imagining what hardships those of us raising families are facing with prices going up. Can just imagine what it is doing to the older citizens and their fixed income......wow.
Great plan for this year, but then what happens next year when heating oil is $7.00/gal? Or even if it remains at $5? How bails everyone out next year.
This is a long term crisis for Alaska.
As far as renters go, I think that if they can prove they pay their heating bill then they would qualify for this idea.
As far as landlords raising rent, you can honestly only raise the rent so high until you find that you have outpriced yourself in the market.
I am still charging the same amount for rent that I did 4 years ago. I have tried to raise the price of rent on very nice properties to accomodate for the increase in property tax and fuel....when I have tried this my apartments sit empty.
So, increasing the rent is not a prospect and it looks like a really good time to sell rental property.
AkFarmer-
That's right. The first post.
It is snobbery and elitist thinking.
In fact, we shouldn't even be thinking about all this in terms of "helping out" with energy costs.
We should be thinking of it in terms of we want some more of our share, as equal shareholders, of the biilions surplus windfall.
This notion of letting government spend ALL of our money for us is idiocy.
And the plan of us getting only 1,200 bucks of our share, (it says it'll be 769 million or so), is a drop in the bucket. Or the oil tank.
Oh dear James perhaps you read too much in my writing. Alas I have raised my family, managed to live over seventy years, understand Alaska’s history and I learned that some folks need help from time to time, apparently you have learned neither nor really care. No one is offering a hand out, they are offering a hand up from a treasury bloated with money earned from overpriced oil, some of that money is yours, if you don't want it, you can refuse it or give it away. As far as that family down in Oklahoma is concerned they don’t deserve one red cent or drop of Alaskan oil. Alaskans traded away certain property rights and universal rights to certain Government programs namely; Farm to market roads, subsidized crop programs under the 1948 Farm Act, etc. in the Statehood Contract. Under property rights unlike most states Alaskans can not own subsurface rights under their property those rights are collectively owned by all Alaskans, not Okies, Texans or Californians. As you can plainly see our laws provides for better or worse a collective right to the states natural resources. You don’t like it don’t let the door bump you in the butt leaving Alaska.
First off James My children’s PFDs are in the bank. Do you even have children? Own a home or rental property? And as Ak Farmer points out you are the clueless one. You know very little about Alaskan History or our statehood compact or how the funds from Alaskan oil production are distributed.
I think that Joe's idea has real merit and should be looked into further. I was hoping that the governor might introduce a statewide energy cost equalization instead of just an extra dividend. Mr. Paskvan's idea is simple, effective and most importantly, immediate.
Reading through the comments there appears to be many people who are ill informed of Alaska's resource ownership and the economics of oil in Fairbanks.
When was the last time oil was $2.50 a gallon? 1 year ago.
Who owns ALL of Alaska's resources? The residents of Alaska as defined in the State Constitution.
Why are our electric rates over .20 cents kWh? GVEA runs over 35% of their generation off petroleum products and the rates reflect what we are seeing at the gas pumps. The rest of the US has not been impacted because the entire US has less than 5% of their generation on expensive petroleum and then it is only used as backup capacity.
If you want to see how to solve the energy issue in Fairbanks by next winter take a look at www.fairbanksgas.com and view the slide show. Apparently someone has been watching it as there have been over 7,500 views to date.
You want the state to help you pay for your heating oil for your big home or even your little home. Well can we get them to pay our electric bill to while we are at it. How about the food bill. Oh you need gas to to get to the unemployment line after you stop at the bar to get a drink. What people need to do is be more creative and make adjustments to their lifes and not rely on the government to bail them out because you are plain spoiled.
James, quit posting your ignorance. You have been in Alaska 38 years, have you never read the constitution? Its not bad reading, especially the part where it says all the gas, oil, and mineral resources are held in trust for the people of the state...
Wake up!
Joe,
I don't see the Governor or her administration coming up with an energy equalization program as the $1200 energy solution that is now being proposed will buy me 240 gal. of #2 heating oil for the year. Guess they're too busy spending the billions of dollars of windfall profits on getting a new cost estimate for the Knik Arm Bridge which is now estimated at 1 Billion dollars, the $100+ million dollar fish hatchery in Anchorage, the $45+ billion dollar fish hatchery in Fairbanks and I guess more important priorities than coming up with a fair energy program in which all of Alaska enjoys the same energy costs as Anchorage.
sorry, that should have said, $45+ million for the hatchery in Fairbanks. Wouldn't be too surprised to see the "Bridge to Nowhere" resuscitated with the clock ticking and those dollars rolling in with the windfall millions.
If the state does anything, it should be to bring immediate real relief to ALL communities across the state that are crippled by extremely high fuel and electricity costs. Many villages are not going to be able to pay for all of the fuel they need to power their electrical generators because fuel prices jumped to $130 a barrel for crude oil. While this has benefited the state treasury, it is is devasting to communities who depend almost exclusively on diesel for their power. In addition, fuel costs for transportating freight, air passengers, Subsistence hunting, commercial fishing, food costs, and postage are all contributing to what will become a perfect economic storm.
Fuel prices need to be stabilized by using the state's Royalty Oil and selling it to Alaskans at a discounted price that includes only refining and distribution costs. If fuel prices are not stabilized, communities across the state are not going to survive the winter and more people will migrate outside and many of the villagers will become energy refuges. AGIA deliberations should pause to address the energy crisis.
sherry29, I agree that it doesnt take much to outprice yourself in the rental market and you have to walk that fine line between covering your costs and outpricing yourself...especially with all our troops being deployed in the Fall...that coupled with the increase in fuel could make for a huge nightmare owning rentals. I am not sure if it would be a great time to sell! I looked at my records and it looks like fuel broke the $2/gallon mark around March 2005, and $3/gal Dec 2007. When fuel breaks the $5 mark, we will personally "eat" about $700 per month in fuel costs each month of the winter as a landlord. So even if we were to increase our rent to "capture" the $1200, it would not really make much of a difference for the big picture. We appreciate our tenants so much that it isnt worth it for us. Oh well!
If the gentleman who wrote this is running for office I wouldn’t vote for him. On the surface this seems like a fair and equitable plan. However there are serious flaws.
1)What about renters?
2)By subsidizing fuel costs there is no incentive to limit demand.
3)China does this.
4)What about people using heating fuel to drive their diesel trucks?
How about giving people cash like Palin suggested.
Renters would have money to spend on gas.
Because there are other things they could spend the money on people wouldn’t increase their fuel usage past a reasonable point. For example if you had extra cash you could go on that snow machine trip instead of heating your house to 80 degrees because fuel is 2.50 a gallon.
If someone in the village or in Fairbanks is broke they can actually buy fuel. If they have no money for fuel they cant buy it at 2.50 a gallon or .25 cents a gallon.
just my two cents (which would buy about 1/229 of a gallon of heating fuel)
AkFarmer you are still misguided and your thoughts are illogical and emotional on this issue. However, unlike lakloey1, you do have a valuable opinion and I can see you are educated. You are my senior by just a few years. I simply disagree with you and see this as a quick fix without any personal responsibility attached. That is my objection. lakloey1 on the other hand ... well what can I say about that mess and remain civil.
You did cleverly evade the underlying question however.