Alaskans would get $1,200 each to offset energy costs under Palin's plan
Originally published Friday, June 20, 2008 at 3:35 p.m.
Updated Friday, June 20, 2008 at 7:14 p.m.
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Stumble It!JUNEAU -- Gov. Sarah Palin is proposing to give nearly every Alaska resident $1,200 to offset high energy costs.
The $769 million energy relief plan released Friday also proposes suspending the state's fuel tax of 8 cents a gallon for a year for motorists.
Palin says the state can afford to help residents with energy costs that, in some cases, are double or triple the national average.
With oil prices at record highs, and a new tax law in place for nearly one year, the state's treasury is bursting with revenue.
"It's filled our state coffers, but at the same time, it's hurting the individuals' pocketbooks," Palin said. "With the crisis facing Alaskans, we've got to do something."
Soaring oil prices that once pushed $140 a barrel have helped boost the state's treasury in ways lawmakers never imagined.
One state senator in charge of the finance committee recently projected the surplus hitting $9 billion next year.
Lawmakers are seeking creative ways to help individuals as well as some of the state's other industries.
Also, the state's Division of Investments will be amending regulations to allow for low-interest loans to commercial fishermen looking to purchase more fuel-efficient engines.
Palin said this portion of her proposal would have no financial impact on the state's budget.
The fuel tax relief covers more than just road travel. It includes marine operations (5 cents a gallon), aviation (4.7 cents) and jet fuel (3.2 cents), totaling nearly $40 million.
"When you consider the billions we will have in surplus, it's not a negative hit in my world on the state's budget," Palin said.
The proposal is a scaled-down plan from the one first announced last month, when Palin proposed a $1.2 billion, one-year plan, about which some lawmakers had expressed reservations.
Part of the concern lay with Palin's idea to offer debit cards instead of a cash payout; her administration abandoned the idea after backlash from lawmakers.
"It went over like a lead balloon," Palin said. "Plus, the (administrative) costs would have been astronomical."
State Rep. Mary Nelson, a Democrat who represents the rural community of Bethel in Western Alaska, said help such as this is sorely needed. In some areas gasoline is pushing $11 per gallon, she said.
"We know exactly how we need to spend our money," she said. "Every family will have different priorities. They'll be in charge of setting those priorities."
Last month, Palin also proposed grants totaling $475 million for utility companies operating in the state who would lower customer bills. Palin says that option remains under review.
Palin's plan requires legislative approval. The Legislature is in a special session reviewing Palin's natural gas line proposal.
Palin said she plans to meet with House and Senate leaders next week to discuss the bill and the time lawmakers say they'll need to review it.
"We want to make sure lawmakers have the opportunity to make this even better," Palin said. "We want to work with them, not against them.
"If they have better ideas, if they come out criticizing this, we want to make sure they have the opportunity to offer better solutions, offer their own remedies."
Nelson said lawmakers should be ready to act.
"The ball is in our court now," she said. "Hopefully we don't botch it."
Community Discussion
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So basically she is going to give another dividend? $1200 for the year? Is that per person in a household that is a resident? Am I reading this corretly?
oops "correctly"
YEA!! but when will it get paid. Will the folks in the capital approve
or just stall around for months? Don't expect anything before next session, spring of 2009.
OK...Here's your chance...Don't screw it up!!!
Those of you who already have you're winter 2008 fuel plans already satisfied can use your surplus to invest in the all-volunteer capital-pool to build a cooperative mini-gasline project.
www.fairbanksgas.com
If 30,000 folks in Yukon/Koyukuk & North Star Borough pool your extra $1000, then you'll have a $30mil pool...
...next, find a couple of different CPA's and somebody that knows a thing or two about law.
With $30mil you'll be well on your way to getting the first steady supply of Northslope-LPG to Fairbanks.
Once you get this pool together, then I'll seriously think about coming out of retirement and working as a really cheap consultant for the project...
you can buy me my cold-weather gear to get my old fleabitten carcass back out to Atigun.
...no, I don't need a fancy office in town.
I'll just hire out of the Local-1547 hall too.
......flash/rumble
Sweeet... New track for my snowmachine!
So do they plan to do this every year, or are they actually thinking of other ways to reduce costs other than throwing money at us? I'd take a good long term solution over $1200 any day.
Apparently people can fill out paperwork to opt out of the deal if they don't want it. I won't be doing that however. Mine will go to GVEA & Fred Meyers for gasoline, any left over gets put aside for rent.
I wonder if this will be tax deductible
As we've seen, GVEA is fond of raising their rates when people have extra money. Who's to say they wont do it when people have this money?
Wonder if it includes those who do not pay for heat and electricity?
Sounds like the recent Economic Stimulus package.
I hope the state will use its windfall revenue for all 3 important things:
1. short term solutions (like this one) to help people adjust to the sharply increased prices. People on the edge should get the most help though.
2. medium term solutions (making it work to converting where sensible to coal and bringing gas to Alaskans) and increasing efficiency (sounds like houses and fishing boats first, maybe businesses and vehicles too?)
3. long term solutions - what if in 20 years gas prices spike like oil has? Now's the time to invest some of the surplus into renewable energy projects.
We've been used to cheap energy for a long time. It'll be interesting to see how our way of life changes over the next few years.
GVEA is fond of raising their rates even when people do not have extra money.
Distant Thunder:
The proposal you linked a few days back is a far better option than anything else out there. Better, faster, less expensive....
Seriously, I would drop a couple subsidies into a pool of that nature. Only "buy in" is going to give it a viable future. The other concerned parties (BP, Conoco, TransCanada, etc) would have no interest in such a cost effective and fast option - they would not make nearly as much off such a plan.
So the family of 10 will get $12,000, the family of two who are running a small business or who has rentals will get $2,400 with no relief as to the business or rentals. And don't give me the bull about passing costs on to customers and tenants, it just isn't possible in this environment.
And after Gov. Palin has wetted your appetite this year what will happen next year? When the energy companies see the state is dumping money, they are going to want their share... Welfare moms will have that money burnt up in a week.
Betty, even renters pay for electricity and heat if it is included in their rent. Do you think landlords just eat that cost? I would guess rents around the borough will be going up this winter, or more landlords (like one I know) will stop paying utilities and start making the tenant cover those costs.
Boy, what a deal..It costs $5,000 to fill up the 1000 gallon tank to get through the winter...What happened to the millions or billions that our(meaning the people of
alaska) state has realized from the increased cost of fuel????Used for more pork in the budget???
NO,NO.NO...I say once a month take your fuel bill down to a state office and get your refund. That is so the people that actually spend money on home heating fuel will benefit not every person like the ones that have their fuel bill paid for by the federal government or state government.I can run that state office and I'll save the State billions. Maybe I can save enough to feed my dogs.
Inchworm, yes some landlords have been "eating it" for a long time now. If they hand out $1200 checks to offset the cost of fuel, why wouldnt you think the landlord should get it? The only way to collect that is to raise the rent $100/mo and it STILL wouldnt cover expenses - fuel costs have increased for the landlord too! We love our tenants dearly and have tried to figure out a way to avoid rasing rent but if the handout money is to offset fuel prices, just like everything else, rent has to go up. I know most people hate their landlord, we have been there too, but I now have a new appreciation of the situation being on the other side. Not all landlords are bad people.
Sounds good, only two in my family, but that kind of money will top off my half empty 1000 gallon fuel oil tank. We do indeed have a true crisis here, and it is going to take strong measures to protect the interior and rural Alaska economy. We are in danger of a mass exodus, and all that would go along with it. Drops in home values (if you can sell), reduction in tax base, serious stuff. Alaska's economy is in danger here. So maybe we have some short term help, we need to get down to business with the long term solutions, or I am outta here too, that is if I can last a few more years until retirement.
i heard if they pass it, everybody eligable for a 08 dividend will receive this payment by september this fall
Still don't understand why per person instead of per household. 20 people in one house burn the same fuel as one person in one house. I'm not convinced paying anything to oil or electric companies is worthwhile to the citizens...
Why dont you guys disclose who you are instead of playing the I know how you are and you dont know who I am game
why don't we just pull up borough tax assesments and pay out to the owners of land where there are structures. seems this would be fairest thing to do, as they are the ones having to pay for fuel.
st,
I understand you view on heating a house no matter how many people are in it, but please try to understand it takes a larger house to hold more people, and thier are more mouths to feed, more water to heat for showers, more laundry, etc., which takes away money for the fuel tank.
I'm not trying to put you down, I just want to give a little more understanding.
yup, child support will just garnish mine, so i'll have no increase in income, but the landlord will think i'm richer and raise my rent. too bad the kids won't even be warmer. this is back child support and the kids are in their 20's and live on their own. and besides, they live in washington state and always have.
i'd rather they did't give us anything. i stand a better chance at surviving that way. other than that, i just see way too much potential for abuse with this plan. i bet the entrepreneurs are already working up plans for drunks and drug addicts to sign up and turn over their energy money for a fraction of what they are suppose to get now.
Do not do this quit getting government to bail out the idiots in this town. Downsize your house get out of your SUV and learn to conserve. Subsidies are just encouraging consumpsion.
Pat
oh jeez polarmark - I agree with you on so many topics, so you blow my mind with your complaints about child support. If any money you get is garnished, it's because you didn't pay when you were supposed to, so you owe money to the person who supported your kids financially, regardless of their current ages.
While I don't agree with government subsidies except in the direst of circumstances, I can see a lot of people hurting as far as fuel goes this coming winter. I see some of you saying "downsize" your vehicle and home and learn to conserve, and while that makes sense to me on one level, I wonder how easy it is in actuality to downsize home and vehicle if everyone else is selling, too? What do you do? Walk away and leave someone else with the debt?
Speakin' of kids, I'z gonna have me sum more so's I can get bigger checks. Are there any of them Fundamentalist Latter Day Saints churches round these parts? Must be one in North Pole somewheres. I'm fixin' to git me more wives and more kids so's I kin git more guv'ment money. Gonna make this danged-fool idear pay off. Them I'm gonna buy me sum beer. Yee-haw!
Thank you Governor Palin for reviewing the the energy debit card concept and considering the PFD energy supplemental plan. You have made the State responsive to ALASKANS needs, while holding down government growth and unnecessary confusion.
To All members of the Alaska Legislature: I would urge you to swiftly approve this energy assistance plan to help Alaskans prepare for winter. As each day passes means it is one day closer to winter.
It would be very helpful if we could get Alaska State Royalty Oil and have it sold to Alaskans at a discounted rate that would attack the core of our problem - high cost fuel. If we could get our Royalty Oil refined and distributed at $2/$3 a gallon for heating fuel, gasoline, diesel, aviaton fuel, and propane, it would be most helpful.
As we look at short term relief, we still need to push for developing a Statewide energy policy and plan that includes the following:
* Alaska must provide energy equality for all the citizens of Alaska
* Energy must be affordable, reliable, and long-term
* Energy conservation must be encouraged for all Alaskans
* Alaska must work toward a common state-wide energy grid
* Energy alternative research and development must be encouraged and supported
* Non-renewable oil and gas set-asides need to be adopted to allow for in-state use
* Energy providers and producers must plan collectively for energy infrastructure development
* Alaska must be on a path of energy self-sufficiency by 2010 and energy self-sufficient by 2025
andora: Right on!!! Development of a comprehensive energy for Alaska that include each of the items you suggested is a MUST HAVE.
Wasn't that the plan behind AGIA? Maybe not those specific items but similar in intent for the future of Alaska?
I could be off the mark here, but, doesnt the state raise revenue through taxing? So if the state gives you money, are they not just giving back to you what they have taken?
I wonder how much more of our money they can afford to give back.
Give me, give me, give me, Sounds like my kids when they have spent all their allowance. Fuel prices are going to continue to rise, just how many times do YOU wont the government to bail you out from YOUR consumptions. Fuel bill, tax bill, rent, electric bill, car payments, vacations, after all you owe me because I voted for you,, what a shame, we have no pride left, just GIVE ME>>>
I'm encouraged by the comments a lot of folks are taking a longer term view of this problem. Giving everybody another taxable $1200 solves nothing besides taking $$ away from future generations of Alaskans who have as much right to this dough as those currently w/a pulse.
The Governor must be felling insecure and thinks this will make her the most popular girl in school. Just give money to folks and they'll lover you, only in Ak. I understand giving $$ to people in need but this is weird.
Hey Gov how about an energy plan w/long term benefits?
I am a mother of 2 children who are not in school yet, I work my 40 hours minimum at my main job and another 15 or 20 on the side. My husband works way more than me ( he has a full time job and 3 part time jobs ), and we own a very modest home, little more than a trailer. We have 10+ year old vehicles, we don't have the means to take nice vacations, there are no frivolities at all in our lives. We make what in the continental US would be comfortable, we pay our bills as best we can, but there is nothing left with fuel prices where they are. So yes, as a struggling family that works our butts off, this small amount of help would be extremely appreciated- it would fill the empty fuel tank sitting outside our home once. Yes, it's a short term fix, so what? It will help take a bit of pressure off those of us that are pulling our own weight and still barely filling the freezer and the fuel tank. It's just a bridge, that's all it's meant to be, while the long term ideas are being formed and perfected. We have to start somewhere, and it has to be now, because there are people who just don't have any more money left. Things are stretched super thin in my household and we make a decent living, I cannot imagine what it's like for the families living on less.
It seems to me everyones cost are going up in all areas of life not just in providing fuel for a house. Ya, so a lot of people rent and get their heat included in the rent, but rent has already started going up for a lot of people. Do you think the landlords will lower rent if they get all the money and the renter gets nothing or maybe the cost of shipping food and cloths will go down if the land owners get it all. In times like these we all need to think of each other not just ourselves. If everyone gets a little something maybe it will make life a little better for everyone not just the people that can afford to own land.
Days are getting shorter, folks; are you prepared for winter yet?
$1200 % $5.00/gal = 240 gallons x 20 mpg = 4800 miles of driving...sounds like the state may pay my gas bill this winter :)
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