Today,the Legislature approved what Members and the Governor called a "resource rebate" when they voted to approve Senate Bill 4002. The result will be, among other provisions, a one-time payment of $1,200 to every man, woman and child eligible to receive the 2008 Permanent Fund Dividend.

To rebate to someone is generally defined as "to pay back (a sum)". In the last two years, the Legislature and Governor have enacted huge production tax increases on the oil industry which has propelled Alaska into, possibly, the highest taxing oil and gas jurisdiction on earth. This money is being redirected/transferred/relocated/given to citizens, not to the taxpayers who paid it. Therefore, it is a subsidy to citizens, "subsidy" commonly being defined as, " a grant or contribution of money".

If we can honestly agree on definitions, then we can move next to how this situation might be approached in the future.

By January, most of us will have disposed of our PFDs and Subsidies one way or another. Then what? I'm thinking that were we in the future to invest some surplus into infrastructure that reduced utility costs-such as transmission lines and generation facilities-government might be able to help citizens receive a much lower utility bill every year going forward rather than the one-time handout. Surplus funds could also be used to create roads and other infrastructure that both improves quality of life and reduces transportation costs to citizens. Surpluses could provide tax incentives for more investment that produces more jobs for us and future generations. One recalls the wisdom of the Chinese proverb which observed that it is better to teach folks to fish than to give them fish.

Heck, we all like to receive a windfall subsidy for doing nothing to earn it. But after the money is spent and we're left to contemplate the future of our children, we might be thinking of the wisdom of devoting future surpluses-if there are any-to projects designed to improve lives for many years to come. What say you?

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