The property tax cap initiative limits the property tax rate to 10 mils. It also limits assessment increases to the rate of inflation, not to exceed 2% per year. Both these limitations provide needed protections and opportunities to the taxpayers of Alaska.

Government taxes and spending are too high. Both the State and most local governments have created large government reserve accounts. For example, the State has more than $30 billion in reserve, and the Municipality of Anchorage has more than $200 million in available cash reserves. These funds can be used to facilitate the transition to the 10 mil cap, and create a more efficient and productive government.

The effects of this initiative will greatly benefit Alaska. The tax cap will force local governments to better manage their resources, reduce expenses, and equalize the tax burden between taxpayers. Government operations will have to become more efficient and cost-effective. Government will have to consider which services should be provided by government, and which are better provided by private enterprise.

More money will remain in the hands of individuals. This will allow the private sector economy in Alaska to expand and more jobs will be created. Lower taxes mean many more Alaskans will qualify to purchase housing. Renters benefit because landlords will have additional funds to upgrade their properties or reduce rents.

Adequate housing is a basic need. The assesment limitations will protect individuals in their right to affordable housing. Increases in property assessments recently have far outpaced inflation, harming both property owners and renters. Alaskans should not have to face dramatic assessment and tax increases as their incomes substantially decrease.

There will be a well-financed campaign and misleading scare tactics are being used by groups that fear change or just rely too much on government beneficence. Do not accept these scare tactics at face value.

This initiative was patterned after an initiative that was passed 20 years ago in California, which has proved to be very popular and successful. Six other states have followed suit since then. The California economy is now an extremely robust economy. The public education system in California has not broken down - neither will Alaskan public education. In fact, Alaskan education will have an opportunity to improve.

Governments' large reserve accounts can be used to fund any interim shortfalls in local government funding. Local governments and schools will continue to operate. Governments may also sell some of their large holdings of unused property to private individuals, and also stop competing with private enterprise.

The tax cap initiative is not the final say on the matter. In the future, the Legislature will amend the initiative to deal with the situation as it develops. It is necessary that this initiative be passed now to begin meaningful tax limitation and reform in Alaska. Along with many other Alaskans, I will vote for it. Please join us and Vote YES on Ballot Proposition #4.

Tom Fink

Former Mayor of Anchorage and Speaker of the Alaska House of Representatives