On Jan. 15, 1987, the Juneau Empire noted the increase in lobbyists visiting the state Capitol throughout the years. In 1971, the number of lobbyists were few, but as state revenue increased from oil, so did the number of lobbyists. Even now, with revenue dwindling because of the oil crisis, the number of lobbyists at the Legislature is still high because of the competing and many needs of the state.
Also happening at the Legislature was discussion on where to make new budget cuts. With so much money being spent by Gov. Steve Cowper, the Legislature believed that the next area to cut funding were three huge entitlement programs that pay much of the cost of running local schools and governments. Together, the three programs are called “The Big Three,” and take about $528 million from the state’s budget. However, a cut in these programs would have also likely created more long-term financial burdens.
On a city level, Mayor Ernie Polley of Juneau prepared a study suggesting actions local school districts can take to deal with declining funding. The study was being considered by the Alaska Board of Education, which Mayor Polley was a formal official for.
On Jan. 16, 1987, Gov. Steve Cowper held his first cabinet meeting, saying to his colleagues that they should not worry about policy changes and that their budgets would mandate their policies. The top of both the governor and the Legislature’s priority list was the budget, and both governing bodies scrutinized different ways to attain more revenue for the state. One of the most contested suggestions was raising taxes on other existing markets, but the economic limiting factor, or ELF, prevented the idea from reaching fruition. ELF was a provision in severance tax law that limited taxing under certain economic conditions. Meanwhile, Gov. Cowper’s transition team proposed a spreadsheet of different areas where the state could gain money from. The list included reinstituting the individual income tax, enacting a state sales tax and doubling fuel taxes.
“This Day in Juneau History” is compiled by Empire freelancer Tasha Elizarde, who sums up the day’s events — 30 years ago — by perusing Empire archives.
