Last year (2019), Gov Dunleavy's initial budget proposed approx $1B in spending cuts. B/w the pushback last year and this session's supplemental, virtually all of that was rolled back b/c there was still sufficient rev (+savings) to cover it. #akleg 1/n

Some argue the dynamics will change going forward given the $$oil rev drop. But even at $35 oil, there's still sufficient "state revenue" (including PFD's as part of that, as many in the #akleg do) to cover roughly 90% of current spending + inflation over the next 10 years. 2/n

Frankly, given the "support" for con't spending that we saw in the course of last year's effort, we are extremely skeptical the spending number will come down as long as (most believe) there is sufficient "revenue" to cover it. #akleg 3/n

As a result, to us the key issue going forward is not "whether," but "how" that revenue is raised, in particular, how the additional revenue (in gray) above Trad Revs + POMV 50/50 is raised. #akleg 4/n

Many will push to continue to do so through PFDcuts (or, essentially, PFD elimination). But - and here's our point - that approach to raising revenue has the "largest adverse impact" on the #AKecon & #AKfams of all of the options. #akleg 5/n

As importantly, it pushes the bulk of the costs off on middle & lower income #AKfams. The Top20% pay a relatively trivial share (compared to other income brackets) and non-rez, none. #akleg 6/n

Especially in these economic times, we believe using a rev approach that has the "largest adverse impact" on #AKfams & #AKecon, as well as a hugely regressive distribution, is not only reckless but indeed, to put it as bluntly as we can, unconscionable fiscal policy. #akleg 7/n

As we have written previously, there are other rev approaches that are much more equitable & have a lower economic impact. If we are headed toward spending these amounts anyway, we should raise the revenues to do so in as balanced & low impact a manner as possible. #akleg 8/n

We don't oppose those that con't to argue for spending cuts. But we believe stopping there is hugely shortsighted. #akleg 9/n

Given reality, the likelihood is that spending is likely to continue in any event. Refusing to address how that should happen - avoiding a discussion even of "if" it happens - simply leaves the field open to those who want to do so through continued PFDcuts. #akleg 10/n

To us, the worst possible outcome of this difficult era is to leave future gens with a budget financed through an approach that has the "largest adverse impact" on the #AKecon and #AKfams. But that's where we are headed if the debate con'ts on its current path. #akleg 11/end