Parnell/Begich boost "big, bold" plan that is neither

“Unprecedented events, however, require a big, bold response,” according to former Gov. Sean Parnell and former Sen. Mark Begich.

“Our political leaders must make big decisions now,” they say.

“We understand the cash call on the state being proposed is big, it’s bold,” they say. “However, big threats require a huge response.”

In the opinion piece they distributed to Alaska news organizations, Parnell and Begich said the state should give out cash every month for three or four months.

The plan they put forward is neither big, nor bold. It is timid.

Actually it’s worse than that. It resembles a feel-good campaign ad.

Parnell and Begich forgot to include any mention of how big these cash payments should be and how much should be withdrawn from the Alaska Permanent Fund to pay the bill. They also didn’t mention the long-term consequences, which are serious.

Are they thinking about giving $100 a month to everyone in Alaska, rich and poor? Or $500? Or $1,000 and direct it only to those who need it the most?

Instead of claiming to be bold, Parnell and Begich should give Alaskans a clue of what they are talking about. That would be bold.

The hard part of this is not saying, “Let’s start handing out lotsa cash!”

That is the easiest thing in the world. Anyone who has followed the long history of grandstanding on the Permanent Fund Dividend knows that, avoiding the consequences and tradeoffs that come with financial decisions.

Let’s say the Parnell/Begich plan is to take an additional $2 billion from the Permanent Fund. That could provide about $3,000 per person. The single biggest beneficiary of that would be the federal government, through the income tax.

The Parnell/Begich plan should explain the consequences of the proposal, which include the permanent reductions in earnings from the fund and the likelihood that the decision would lead to higher taxes in the future. The earning power of $2 billion, figuring a 10 percent return, would be $200 million a year. It might be less than that. It might be more.

All the big and bold decisions, if they are real, come with political and financial risk.