As deliberations on Alaska’s budget approach the Legislature’s constitutionally mandated deadline — the session’s 121st day — the struggle to maintain full funding for existing programs is ramping up.<\/p>\n
In many cases, this struggle comes in the form of emotional pleas to not cut Medicaid, education or (fill-in the blank) because to do so means we are failing to fulfill government’s “obligation” to be all things to all people.<\/p>\n
We are told these expenditures are an “investment” in our future and that, absent such investments, our quality of life and even life itself, is at risk.<\/p>\n
Couched in these terms, it is difficult to argue against these claims. After all, we believe, and our state constitution requires, that our students must be educated. And health care is critical to everyone. But these are not binary decisions. It’s not education or health care (regardless of cost) versus zero education or health care. Decisions about the level of service should fall somewhere in-between.<\/p>\n
[Opinion: Defend the PFD and Permanent Fund, or lose them both]<\/a><\/ins><\/p>\n All investments require expenditures. Could we possibly admit that not every expenditure is an investment?<\/p>\n In the real world (outside the confines of political la-la land), an investment is an expenditure of funds that promotes a profitable return or an appreciation in value, or both. As wise stewards of our state’s resources, using this definition, if we judged every government program against the amount of money “invested” in it, how many programs would actually qualify as a prudent “investment?”<\/p>\n Most people understand the basic concept of investing and the importance of making good investments.<\/p>\n For instance, according to CNBC calculations, if you had invested $1,000 in Microsoft in 2009, that investment made on April 25, 2009, would be worth nearly $8,000 as of April 25, 2019, for a total return of almost 700 percent.<\/p>\n That’s a measurable outcome.<\/p>\n Admittedly, measuring outcomes of government programs can be difficult — especially in monetary terms. But, are we even trying?<\/p>\n Increasingly, we are asked to “invest” handsomely in pre-K, K-12 education, our university, solving homelessness, reducing crime, drug addiction, ferry systems, etc.<\/p>\n