This is the second in a five-part series, “Fed up in Alaska,” exploring local issues that voters will take to the polls this November.
ALEKNAGIK, Alaska — Jane Gottschalk is the mayor of Aleknagik, a small village (population 227) 330 miles from Anchorage and a boat ride away from the nearest paved road. In addition to her administrative duties, she spends her time stocking up for winter.
“This year, not everybody got their moose, you know,” she said, as she hung salmon outdoors to dry and laid whitefish in thin strips in the smoker. It’s work that she doesn’t get paid to do.
“To me, poverty, it’s not all about money,” Aloysius said. “I feel like we’re really rich because of all the resources we have.”
And in Alaska, natural resources are everything.
When oil started flowing on the North Slope in the 1960s, the Alaskan economy fired up. Today two-thirds of the state’s jobs come from the government or the oil industry.
In the early 1980s Alaska established the Permanent Fund under then-Gov. Jay Hammond to indirectly distribute oil revenues. Since then, every law-abiding Alaskan resident of at least one year and of any age has been eligible for an annual dividend — $1,884 per person this year.
But there’s trouble on the oil horizon. Production peaked in 1988 at 2 million barrels per day and has been falling ever since. In 2013 the North Slope produced half a million barrels per day.
Although there is a nest egg of some $8 billion to 12 billion, King estimated the state currently bleeds $500 million to $1 billion a year.
The amount of money coming in from taxes doesn’t cover spending, he said. But judging by a mere 30 percent turnout for the recent statewide primary elections, which included a referendum on taxes, many Alaskans aren’t too concerned.
“The average Alaskan is blissfully ignorant about the economy,” said King.
The cost of living in Anchorage is the fourth highest in the nation. According to the national cost of living index, four of the five most expensive cities to live in are in Alaska.
Most of the state’s low-wage workers are in the cities, and for low-wage workers the situation looks much like the situation for low-wage workers everywhere in the country.
Tuoi Yungvauer works the counter at a KFC in Anchorage. It’s the only job she’s had since arriving in Alaska from Vietnam in 1975. She used to earn minimum wage but now makes a little more — $9 an hour — as a cashier.
“Everything counts these days. Even if it’s a few cents, it counts,” said Yungvauer, who said she spends her dividend check to pay her federal taxes.
According to most observers, the minimum-wage measure is likely to pass in November in Alaska. Although there are campaigns to support the measure, for most Alaskans there are simply other things to worry about.
To view the “Fed up in Alaska” series, tune in to “Al Jazeera America News” with John Seigenthaler this Mon. to Fri. at 8 p.m. Eastern time.
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