Revenue commissioner admits Dunleavy's 'timeline doesn't work,' but fails to call for fiscal plan

In asking for legislative confirmation to lead the revenue department, Lucinda Mahoney told the House Finance Committee that Alaskans need to be educated about the complexities of the state’s financial situation.

Fairbanks Rep. Steve Thompson suggested that, given the chance, Alaska voters would reject taxes and support higher dividends. Thompson, who is both practical and astute, asked her a question that deserved a simple “Yes.”

“If we have no taxes for revenue and more money coming out to pay a larger dividend, does that sound like a disaster in the making?”

Refusing to answer directly, Mahoney said, “I think it sounds like it’s a situation where we all need to educate Alaskans in regard to our fiscal condition. So that they understand that large dividends with deficit spending puts us, long term, in a very difficult situation.”

But it was clear from Mahoney’s testimony that she has no intention of actually doing anything to educate Alaskans so they understand the disastrous impact of Gov. Mike Dunleavy’s refusal to offer a fiscal plan.

It appears that Mahoney, who has decades of experience, is more interested in holding the job of revenue commissioner than in doing the work of the revenue commissioner. At the risk of losing her job, she needs to tell Alaskans the truth.

She almost did so when she admitted that the proposals made by the governor would delay significant action on a fiscal plan until sometime after the 2022 gubernatorial election.

The governor wants constitutional amendments on the ballot in 2022, when he might be up for re-election. After that he promises he will do something.

“I recognize that the timeline doesn’t work. However, the governor is not supportive of any new tax without the vote of the people, so I guess what that means is that we would just be spending into the ERA (earnings reserve account) to fund any any deficit balances in the future,” Mahoney told the House Finance Committee.

Rep. Bryce Edgmon asked if drawing more money out of savings is Mahoney’s recommendation to Dunleavy.

“That would not be my recommendation. However, that may be our only choice,” she said.

It’s not your only choice Ms. Mahoney. You are in the ideal position to choose to educate Alaskans so that they better understand, as you do, that the Dunleavy timeline doesn’t work and that there is no fiscal plan other than drawing down the Permanent Fund.

Your contributions help support independent analysis and political commentary by Alaska reporter and author Dermot Cole. Thank you for reading and for your support. Either click here to use PayPal or send checks to: Dermot Cole, Box 10673, Fairbanks, AK 99710-0673.