Well it’s that time of the year again, its dividend time. While we enjoy our yearly checks from the State we must not forget where that money comes from: oil production.

 I joined around thirty business and community leaders this week to hear a presentation by former Governor and U.S. Senator Frank Murkowski. His analysis of our State fiscal situation was spot on. Our oil production volume is decreasing by an average of six-percent per year. Regardless of the price of oil, its multiplier is decreasing each year and that, coupled with not knowing when the state coffers will see a steady revenue stream from our vast natural gas reserves, means tough fiscal decisions are right around the corner. This is the same message many of you have heard from my predecessor as Majority Leader, Ralph Samuels.

Over the past few years the Legislature has paid back the billions of dollars we borrowed to balance the budget in the 1990’s. We may be in a deficit again this year and we can borrow (again), reduce spending, use permanent fund earnings or implement state income and property taxes.

 We can also do something radical like make Alaska an attractive place to conduct business. A stable and fair taxation structure, capital and investment credits, a logical, streamlined state regulatory process, and reliable, consistent transportation and energy infrastructure systems are just a few pieces to the puzzle.

I enjoy my tax-free, dividend rich lifestyle here in Alaska and I am willing to bet that you do as well. It did not happen by accident and it will not stay that way without hard work. I welcome your suggestions and support.

Thanks for your attention,