Residents in blue states are rejecting the woke liberal policies their governments are trying to impose on them. Ideas like high taxation, extravagant public-school spending and support for transgenderism of minor children might be popular among the most radical members of the far left, but they alienate traditional Americans who are choosing to flee liberal enclaves, seeking a better place to live.

This outflow of taxpayers has severely impacted the ability of those state and local governments to operate, resulting in increasingly higher costs being placed on an ever-diminishing number of taxpayers. The system cannot continue like this, and these governments will ultimately go bankrupt in blue states like Illinois and Oregon. There is a warning message in this mess that our Alaska legislators in Juneau would be wise to heed.

Illinois is a blue state experiencing outmigration, with a net population loss in 2024. Last year, 146,000 high-income taxpayers left the state, and they were replaced by 111,000 lower-earning individuals, resulting in both a decline in the number of taxpayers and a decrease in the amount of per capita taxes collected. Part of this is attributed to the fact that Illinois is a so-called sanctuary state and has had an influx of lower-wage-earning illegal immigrants, as American citizens flee the state.

This woke form of governance does not come without a price. Alaska is experiencing a population decline as residents begin to leave the state.

The net impact of this population change is evident in the public school system of the city of Chicago. There are 47 schools in Chicago operating at less than one-third capacity, resulting in very high costs per student and limiting the amenities that can be offered. Declining school attendance is a product of out-migration. The Chicago Public School district had 325,000 students enrolled in the past school year, which is 70,000 fewer than they had a decade ago. Declining enrollment results in more costs per student to keep these failing schools open. Some schools in Chicago cost $93,000 per student to operate, rivaling the most expensive schools in rural Alaska.

The obvious solution would be to close unneeded schools to right-size the school district, but that would result in teacher layoffs. Teachers are a core demographic in Democrat politics, and the far left can’t tolerate the resulting loss in teacher jobs. The Democrats running Chicago would rather raise taxes, plead for taxpayers to pay their “fair” share, and kick the can down the road, hoping for a miracle to bail them out. Perhaps the federal government will do so, but there is no way to force American taxpayers to remain in Illinois instead of seeking a more traditional place to live.

In Oregon, the story is similar. I recently spent two weeks there and got to see the liberal train wreck the state has become. One prominent feature of every street corner in Oregon is the Dutch Bros Coffee stands. Dutch Bros is the Starbucks of Oregon. It was founded in Grants Pass and is wildly popular in the state. I saw far more Dutch Bros coffee company outlets than I did Starbucks. However, that may soon change. Dutch Bros announced today that it is relocating its company headquarters from Grants Pass to Phoenix, Arizona. Company executives stated that the move was made to enhance operational efficiency and facilitate the company’s growth. Nothing says operational efficiency like moving your company headquarters three states away from your core business location.

The reality is that Oregon is an unfriendly state for business. The state has high corporate taxes and a complex regulatory environment. Dutch Bros, along with other major Oregon corporations like Tektronix, are moving their company headquarters out of Oregon to more tax-friendly states.

These situations should serve as a warning to Alaska’s legislature in Juneau. Our legislature has imposed a stealth tax on Alaskans for the past several years by gradually stealing a portion of every Alaskan’s PFD check. In the last session, some legislators even proposed imposing an income tax to help pay for the liberal profligacy.

This woke form of governance does not come without a price. Alaska is experiencing a population decline as residents begin to leave the state. Similar to Illinois, this outmigration has led to declining public school attendance and increased costs, which the legislature is attempting to offset with another reduction in this year’s PFD check.

President Trump is famously quoted as saying, “Everything woke turns to shit.” Having spent the last two weeks in the blue state of Oregon, I can confirm the accuracy of his claim, and I believe what is happening in blue states should be considered a warning message for Alaska.

The views expressed here are those of Greg Sarber. Read more Sarber posts at his Seward’s Folly substack.

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