News-Miner Editorial
One small step
Gas tax break is easy to accept
Published Monday, June 23, 2008
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Stumble It!Grasping the best plan to help Alaskans as energy costs continue to soar is a little like grabbing a salmon by the tail. It looks good, we’re hungry for it, but getting a grip on it requires quickness and firmness that is difficult to achieve.
One-time cash handouts seem to come up short if not paired with longer-term solutions, and coming up with an equitable distribution plan for the money aimed at knocking down energy costs is difficult — if not impossible.
Gov. Sarah Palin unveiled her $769 million energy relief plan on Friday, a large part of which includes a $1,200 payout to individual Alaskans. It also includes a one-year suspension of fuel taxes.
While the payout will no doubt see debate in a coming legislative special session, the fuel tax is one aspect of the plan that should be easy to support.
It’s a one-year measure at this point, but it could easily be revisited.
It’s also a drop in the proverbial bucket as fuel costs go for consumers, but it will be a $40 million hit to the state’s general fund. The tax is 8 cents a gallon on motor fuel, 5 cents for marine operations, 4.7 cents for aviation fuel and 3.2 cents for jet fuel. Those numbers are some of the lowest state fuel taxes in the nation. Alaska consumers will still pay the federal fuel tax of 18.4 cents a gallon.
With prices at the pump fluctuating 5 and 10 cents a day at times, the state’s fuel tax cut may hardly be noticed by consumers, but it also makes sense for a state that is pulling in billions of surplus dollars from oil production to drop its consumer-based fuel taxes.
It’s a small thing in relative terms. But it makes sense for an oil-rich state. Because the tax goes into our general fund, it will not affect federal highway funds. And, as the governor said of her overall plan, “it’s a start.”
Community Discussion
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The Palin plan will not have smooth sailing in the Legislature. The most populated parts of Alaska do not have any difficulty paying for heat or electricity. Anchorage electricity costs are so low most legislators, when asked, had no idea what they were paying for their own electricity.
The energy rebate will only buy about 200 gallons of fuel oil. And federal taxes will have to be paid. Out in rural Alaska the rebate might buy about 100 gallons of fuel.
So while Anchorage and Southeast Alaska have few worries, those in the Interior will not receive enough to make much of a difference.
So we have a plan that is not equitable and does little for the areas of Alaska that are hardest hit by high oil prices.
Oh yeah, the plan is only good for one year.
Individuals and businesses deserve some certainty for long-term planning and they are not getting it (yet) from their representatives.
Sure it will, eat/heat! If the Palin Plan involves distributing checks rather than specific-issue debit cards, it's hard to turn down. After all, who wouldn't like $1,200 in "free" money? Most folks won't even bother spending it on fuel. Hell, I know that if I got it, at least half would go toward paying off my car loan, and the other half would probably go into an investment account.
I would most certainly put it in our fuel oil account. The same place our "stimulating" tax rebate went. I felt soooo stimulated :o)...How depressing..
If the people of Anchorage don't need or want it, divide their share to rest of us. I know I could use it, before this winter. $5.+ a gallon is going to be hard for us in the interior. Send the checks already. It's a persons choice on how to spend the money, I know mine will go for heating oil and gas. Thanks for trying Sarah and legislature please listen and do something already.
Alaskans are experiencing an energy crisis unlike anything that we have seen in the past, and it is not likely to improve in the short-term. Oil prices are at an all-time high – in some villages the cost of fuel oil has gone as high as $10 per gallon. With gasoline prices reaching above $7.50 per gallon in many communities, many families and individuals are have difficulty getting to fish camp this summer in order to harvest next winter’s food; and this will be true of hunting in the fall and winter months. Schools, public buildings, health facilities and businesses are all facing energy costs up to double what they paid in 2007. In short, the current energy crisis threatens the very survival of all Alaskan communities.
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 people from the villages will become energy refugees. AGIA deliberations should pause to address the energy crisis.
Is seems for some there is never enough money given to them.A family of 4 will receive $4,800. If the PFD is $2,000 that will add up to $12,800 and add in the federal rebate for 2 parents and 2 children ($1,800) and you have $13,600. Most likely,single people will probably do the most complaining for only receiving $1200. The most at risk for not having enough are low income senior citizens with out family to help them.
Just placing fear into people's mind is nothing short of intimidation. All the complaining that is occurring will not change what is happening. There are some things which are out of our control. It would be much wiser to figure out how to live with what you have. You may find out it is not as hard to change your life as to sit and complain and worry about it. Take time today to remember what you have to be thankful for, instead of complaining. Life does not wait for you to catch up with it.
Energy help should be needs based and not given to people who've chosen to live beyond their means. We gots to take care of ourselves and not rely on govt freebies.
andora, thanks for coining a new term, "energy refugee." It's the first time I've seen or heard the phrase. And it's very apt.
P_L, thanks for being honest about what you would personally do with any energy rebate cash you'd get. You'd spend it on anything but energy assistance. You're certainly not the only one. I just don't think that's right, though. Any state assistance in this regard ought to go to what it's designed to alleviate - untenable home heating fuel and electricity costs. It shouldn't subsidize the purchase of expensive "toys" and fatten investment accounts. It's not what it was designed to do. P_L, if that's what you'd spend any energy assistance on, then you don't really need it. And there's a vast number of people and families that really, really do.
The legislature absolutely needs to acknowledge that there's a wide spectrum of pain of feeling high energy costs. Anchorage only feels it at the gas pump, and since a lot of people commute to Anchorage from Eagle River, Wasilla, etc., but not for home heating or electricity, they're not feeling the pinch anywhere near as strong as the Interior or rural communities. We're feeling it at the pump, as well, on top of home heating and electricity.
The best - simplest - idea that I've heard yet was to send the funds directly to those companies supplying heating oil to allow them to cap what their customers pay for fuel - with the HUGE caveat that they somehow won't jack their prices up so that the state ends up paying the bill.
There are some things which are out of our control. It would be much wiser to figure out how to live with what you have.
As for vehicles, it will be easier, just cut way down on driving. For people who bought into the American Dream, post 1990,s their 3000 sq footer house is not going to like having the heat turned down too far. I suspect a lot of people who own the bigger homes have mortgages to match and their budgets can't take much $4 or $5 gallon fuel nor 25 or 30cent KWH electricity bills. Maybe some of these bloated homes could be duplexed, but that is unlikely to happen for those living paycheck to paycheck. This energy crisis seems to be hitting the middle class the hardest. I think the big houses everybody wanted before are going to be a thing of the past unless we can get a cheaper form of energy..
how did the native villages survive and keep warm before western civiliztion showed up with refined heating fuel and gasoline? they've been here for thousands of years, they must have had some way.
I know alot of people in the interior, and even on here. They know I have a really good job. I work out in the bush, live in Fairbanks. I am looking at a bleak winter with the prices for goods and services, especially energy!! If you are fortunate enough to have made much wealth, fantastic, congratulations. Many of us have done well while here. I have had the MOST money and the LEAST money in my adult life right here. Over almost 30 years, I have considered myself lucky to have done well, and lived in the greatest part of the world that there is.
If I have heard correctly, the State is making 650 million EXTRA a month for each month crude is over 120 a barrel. That works out to 1087 a month PER ALASKAN!! I am not asking for much, but that money is OURS and FUTURE ALASKANS!! It is NOT the Govts. We should be getting that 1200 dollar check about 3 or 4 times a year!! I am not asking for welfare, just some of our money.
Giving everyone an energy welfare check will just put off the inevitable. Everyone will have to spend more on energy or they need to modify their lifestyles to use less energy. In the bush perhaps the residents will have to burn wood for heat and insulate better. In town everyone needs to drive less and drive slower.
The Gov should immediately lower the maximum speed limtit to 55mph and dedicate money to enforcement. By driving slower and inflating my tires to 40psi I now get 21 mpg instead of 18 mpg. If everyone did that we would save millions of gallons of gas every day. This would reduce demand and should lower the price. But most people won't slow down because it only saves them a few dollars a week individually.
The president has rightly stated that as a nation we are addicted to oil. This addiction is most obviously expressed through illegal driving over the speed limit. As with other addictions the only way to break the dependence on oil is to intervene with the addicts. Rational individuals should drive the speed limit and when on a multi lane hiway should block all lanes while going the legal speed limit... This would force speeding addicts to obey the law and save fuel. This would lessen fuel use, reduce demand for fuel, lower the price of fuel and reduce our need for importing fuel from countries that hate our guts.
REAL PATRIOTS support our troops by driving slower....
PolarMark, We agree on alot of things, but maybe not so much here. I do not think it is a matter of how to conserve, it is a matter of dividing a small portion of the mega windfall profits to Alaskans. And for those that think all of live lavishly, I live in a 2 bdrm log house and probably drive less than 10K a year and drive a fuel efficient 1991 car. I try to save a little to hopefully one day retire seeing how I am in my 50s, so I feel I live within my budget. I do go south fairly regular, but havent been in a couple of years. Once again, living within the money I make. Again, NO ALASKAN should be hurting this winter for lack of money for food/energy!!
At what point does personal responsibility click in for personal decisions made. For years, people have heard to have enough savings to survive for an 8 month to year without income coming in. How many people have done it. They made decisions to buy instead of save. Just think if you have been saving the PFD, instead of spending it. How much would you have. Just think if you had choose to live in Anchorage rather than Fairbanks. Could have, would have, should have.
Energy refugee. There isn't a real refugee in the world that won't trade your lifestyle for what they are living. You do a great deal of disrespect to those who are truly refugees by comparing yourself to them. Again, take a look at your life, it isn't as bad as you may think.
The fuel tax set-aside is a good idea. The State of Alaska certainly doesn't need the $40 million (peanut money), but every penny in Alaskans pockets is going to be needed this coming winter.
Governor Palin's $1,200 individual Alaskan energy rebate is an excellent idea, too. Government needs have been met, a huge savings account has been fattened (for rainy days) NOW IT IS TIME TO HELP ALASKANS with the bounty of our resources.
While the fuel tax set-aside and energy rebate are for the immediate response; Alaska also needs a long term energy plan and solution. Let's hope the Alaska Energy Authority has collected enough data from around the state on potential energy sources and the Alaska Legislature is focused on making it happen.
FreeDarfur-
"Energy refugee. There isn't a real refugee in the world that won't trade your lifestyle for what they are living. You do a great deal of disrespect to those who are truly refugees by comparing yourself to them. Again, take a look at your life, it isn't as bad as you may think."
Exactly, whine whine whine. you people should go live in south America for a year, or better yet go to the Sudan in Africa for a year and try to keep your wits about you, you'll be begging for our plush lifestyle and- ooo poor babies "high gas prices" *shudder, oh no!
gas is quite a bit cheaper in south America, just a suggestion if you dont like the prices here.
We are in the process now of finalizing our future windfalls; ie: natural gas. Do you realize how much we have? Marketing a million cubic feet a day of natural gas, it will take over 2,700 YEARS to sell a trillion cubic feet...theres at least 3x that much in the Tanana valley alone! The North Slope fields are even BIGGER.
So let me ask those of you who think an energy rebate is only socialistic welfare; What exactly do you think that money should be spent on? Are we as a state such misers we should just continue to bank it, forgoing the needs of those who, in return, may well leave for points south? Should we, instead of taking care of our own, allow the economy of our towns and villages to be decimated?
DO YOU REALIZE HOW LUCKY YOU ARE? Get over it, or prepare to flip your own burger at McDonalds...
"You do a great deal of disrespect to those who are truly refugees by comparing yourself to them"
....oh, Lord. We're fending for the plight of those who are defined as a true "refugee" now? Quit being so sensitive to those you have never met and to those you know nothing about.
Yep ... let's just spend it all right now and the hell with tomorrow, the kids and the grand kids can fend for themselves. Are you with me people .... after all, we are "Alaskans" and we are entitled to all of the resources NOW!
Can you smell it? Those nice crisp checks just pouring off the printer and coming our way. By golly, that's better than goat milk fudge! Truly, an Alaskan dream come true.
Those who wallow in their proclaimed "need", rationalizing how the state has all this "extra" money, will be broke tomorrow and again next week and again next year. They are the same people who are always on the edge living hand to mouth, taking everything and contributing little. They stand out in a crowd and may even glow in the dark like a shining beacon of bad example. Thank god there are still a few folks who see the light for what it is and I applaud you.
DenaliGuy, once again, you are "spot on" with your opinion. It is interesting to me the ignorance of our Constitution in our great State!! The Framers made it quite clear about resource management, even if there are people here today that see it as something else.
You know. Makes Me wonder if becomming an alaskan citizen automatically gives me a percentage of the mineral rights here. If that were true why not as for coal delivered to your house for free by the state, or gold handed to you once a month. Its not OUR oil, its the states oil. You dont represent the state you are the state. There are people that represent you and YOU gave them the power to make your decisions about what to do with the States OIL. I dont think anyone owes me anything. I work for what I have and if i cant live within my own means, then its my problem not the states.
The second thing is people always think fairbanks is far more expensive than anchorage and everything should go to us because its more expensive for us. Ok... with them do you think they will not be hit with rising food costs, or rising shipping costs at all? I live in a 2 bedroom apartment that should not cost me well over $1000 dollars a month, but with heating fuel tied into it, it still costs me as much as the rest of you if not more because you can peace of mind and such as were i cannot. So if is perfectly fair that anchorage gets it and those of us in an apartment who still pays all of their amenities in one form or another. We are all hit by it, and by the way not many other states are helping them out with their rising bills, what are those people to do... Move here?
I have served in the Peace Corp. Lost Alaskan have you?
JWC - You stated "I don't think anyone owes me anything." So, you'll not be applying for your PFD???? Just wondering.
JWC - Without a doubt everyone in Alaska feels the crunch. But the people who say Fairbanks feels it more than Anchorage does are absolutely correct. A colleague of mine came up from Anchorage on a business trip about a month ago, and he was telling me that it cost him $200 to heat his 4500sf house in Anchorage in January. Meanwhile, I paid $550 to heat my 1200sf house in North Pole in the same month - and it's very well insulated. They do pay the higher gas prices we do, and very similar prices for food and other items also. But when it comes to utilities, they've got it made compared to us.
If Darfur had any oil we'd be liberating it right now. What they got? Sand and mud huts? We aint interested. We only trade good ol American blood for oil. That will be all gentlemen.
PFD Balance: over 38 billion dollars
State Budget Reserve: 5.8 billion dollars
State total annual revenue to date: 13 billion dollars
Total authortiziation to spend this fiscal year: 11.6 billion (2 billion toward PFD)
Windfall profit checks to residents: 1.2 billion dollars
Yep, we need more government handling more of our money so we can all feel the effects of winter. Celebrate this sunny day and share the spoils of high oil prices.
SmallBob, I sadly and wholeheartedly agree with you on this. At the time we invaded Iraq in 2003, there were a number of nations that were more clearly connected to 911 terrorism, or otherwise posed a far greater risk to our national security. But off to Iraq we go, to "liberate" the people from - true - a ruthless dictator, but one who also provided relative stability to an otherwise chaotic region. We go in, liberate them, and unleashed the forces of chaos that we have yet to be able to contain. We liberated them from Saddam so that we could "liberate" them from their vast, untapped oil reserves.
FreeDarfur, the way I read Lost's post, it supported your argument, and wasn't something you needed to defend yourself against.
I agree with your words, FreeDarfur, but not with their tone, and not with the presumptions that could allow such a tone.
Refugees are those who seeks refuge, safety, by leaving a region they otherwise wouldn't in order to increase the odds of finding safety, and therefore survival. It could be because of war, natural disaster, religious or political persecution, but the bottom line is, people leave in order to continue living, continue surviving.
Not eating in order to stay warm, or freezing to death in order to put food on the table is not safe, and not conducive to survival. Plain and simple. A number of people - who would otherwise stay - are leaving this region because this is precisely the situation they're trying to avoid. Refugees. Energy refugees. Dig it. Deal with it.
And get off your high horse. Just because these people don't have bullets flying around their heads, or crazed machete-wielding killers running after them, makes their peril no less credible, and no less worthy of acknowledgment and respect.
Your peace corps credentials don't impress me. Why bother traveling halfway across the globe when there's an overabundant supply of people in dire straights, in urgent need, in your own back yard, in your own country? You would do well to try to understand the real motives behind your humanitarian efforts.
The Governor's plan will put money in the pockets of Alaskans. If you spend every last penny you have on fuel with none left over for shopping, everyone will get laid off/fired and the oil companies will still get rich. So, if welfare moms, renters and military spend their money at McDonald's, movies, or big corporations/military/homeowners expand what they have it will keep Alaskans (my husband) employed.
There needs to be long term AND short term solution. From what I have read, this is a small portion of a large surplus that is in ADDITION to our state budget and PFD. A mid-term solution is more oil/lower prices, and a long term solution is eliminate our dependence on oil-period. McCain has the right IDEA. Lets have a $1billion dollar prize for who ever comes up with a viable way to turn sewage/trash into heating/auto fuel :).
DenaliGuy knows Alaska has gas-pains all over the place...
Within 100miles of Prudhoe there's more natural-gas leaking out of the ground and getting lost to atmosphere than everybody in Alaska needs to keep warm all winter.
There's gas available all thruought the interior of Alaska.
There is a way to permanently change the Tide of Events..
Take your $1200 and pool your money.
------------repeat------------------
Take your $1200 and pool your money.
------------repeat------------------
Take your $1200 and pool your money.
------------repeat------------------
Form your own gasline cooperative.
www.fairbanksgas.com
...do it before a bunch of weirdos from WARshington come up here and do it for you.
The bigwigs are "legends in their own mind" playing in their own league, and they show their immaturity and greed by blatantly trying to claim it all long before they have proved they actually have a rational method for resource management..
..much like WA-state trying to own all of the rainwater with an obsessive compulsive disorder.
http://www.ecy.wa.gov/news/2008news/2008...
Alaskans need to pool their collective resources and build their own energy grid.. the bigwigs are laughing and taking scalps.
Do the russians need to come over and show you how to collectivize during hard times?
$1billion dollar prize for who ever comes up with a viable way to turn sewage/trash into heating/auto fuel--->
http://peswiki.com/energy/Directory:Wast...
.....trash/humble
JWC ... nice write-up and comment. I agree. It is unfortunate that the folks like Yukonjohn are so arrogant and ignorant with their constitution and resource ownership BS that they are blind to the facts around them. Hopefully, you have shed some light for them. We certainly are NOT entitled to the resources simply because we live here.
Actually, we are already well compensated for living here. PFD, no sales tax, no income tax, no personal property tax (Fairbanks). And now we have people looking for still more free stuff.
Yukonjohn .... you're a mess man. I bet you think that it is illegal to levy income tax too ... lol.
DT,
Does it make more sense / cents to ship electricity or gas from the north slope? Electricity seems the easier to maintain a line.
I am from Anchorage...Lived 6 months in Bethel and bought my house in Fairbanks- Fairbanks has been the CHEAPEST place to live, for me...Anchorage isn't Hawaii...-20 still requires home heating fuel. To get to work and home I was in a car for at least 2HOURS. Bethel was expensive but I made a LOT of $$, and there is NOWHERE to drive. Anchorage has higher food and gas prices, compared to wages, sometimes just higher. I go there often since that is where my family lives. We are all Alaskans. I am not entiled to money from the government...however, putting extra money in my pocket will mean I don't have to dip into college funds and retirement to fuel my house (1100 sq ft for 8 of us). It would mean I don't have to start over. Just that little boost. I don't deserve it, but it would keep us afloat. It would mean more to me as extra income than sitting in a government bank account.
As far as I'm concerned...anyone in the legislature who is against the (present) Palin plan is against me (personnally). I don't care who comes up with the plan (Palin did in this instance)...If it's for giving the average Joe like me a break...then I like it.
I'm writing in this style because I'm done with "looking at the other side" of issues, when they are so blatantly aimed at squeezing the average joe ....when the "other side" is Corporations who can ignore the consequences of their actions, a State government who ignores the state constitution and dumps on its own citizens, and the Federal government that does it's damnest to hinder the average joe in business, by choosing to give nearly every advantage to the elitists...as opposed to the average Joe, being an easy target from all sides....
Ok...i'm done venting for today.
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