Rookie state legislator Rep. Dan Ortiz, who represents District 36, visited Wrangell last weekend for Bearfest to meet with constituents.
Ortiz is up for re-election in November and said Wrangell residents have expressed concern about the $3.5 billion state budget deficit, the ferry system and a restructuring of the permanent fund.
Ortiz said he’s heard plenty of concern from Wrangell residents over the state’s fiscal future.
”And frankly, they want to know what it is that the legislature is going to do about that situation,” Ortiz said.
The legislature didn’t take much action after two special sessions, he said, mainly on Gov. Bill Walker’s fiscal plan, including a restructuring of the permanent fund.
“Some are quite fearful the permanent fund dividend will disappear,” he said.
Walker vetoed half of the money for this year’s dividend along with several other vetoes to education and road projects. Walker also delayed payments for oil and gas tax credits. Ortiz said the governor’s decision wasn’t easy, but he supports a restructuring of the permanent fund.
“So what I’m saying is and what the governor’s office and financial experts are saying is eventually that dividend will not be there for the people of Alaska,” Ortiz said. “When I say eventually, I’m not saying distant, I’m talking three to four years.”
An income tax also is an option that needs to be thoroughly looked at, Ortiz said.
“In fairness to the governor, he’s definitely not a tax-and-spend guy,” he said. “But, he’s looking at the reality that said we’ve cut the budget and yet, even as much as we’ve cut it, we still have about a $3 billion to $3.5 billion deficit. We can’t just continue to have that, and we’ve got to come up with new revenue.”
Ortiz doesn’t support all of Walker’s fiscal plan, particularly a 3 percent state sales tax. He said that increase might deter “buying local” in communities such as Wrangell with a 7 percent sales tax.
Southeast Alaska has seen dramatic cuts to the ferry system over the last few years. Oritz sits on the transportation committee and said he understands businesses’ concerns that rely on the system.
Wrangell could see 22 fewer sailings October through April compared with last year. Leslie Cummings, who owns Grand View Bed and Breakfast in Wrangell, told KSTK in an earlier interview that she receives roughly half of her business from marine highway travelers.
Ortiz said an increase in sailings isn’t likely, but hopes to make the system’s budget stable.
“Really what I would be hopeful for is if we can stop the bleeding, if you will, and basically keep the ferry system on its current operating level, at least for the short term,” he said. “In doing so, creating certainty for businesses, certainty for travelers on the ferry system which I think is important for the overall health of the ferry system.”
Although the state’s fiscal future is uncertain, Ortiz said there were some positives to come out of this year’s session. He said Senate Bill 32, which allows the state to open more of its timber lands to sawmills, was one of the key legislative wins for Southeast. The other is a tax on cruise ship passengers that helps fund refurbishing port facilities. He said that was on the chopping block but was restored.
Ortiz faces two opponents in November, Republican Bob Sivertsen and Constitution party member Ken Shaw.
Ortiz is an independent but caucuses with the Democrats.
