Priority 1: Alaska's Budget
Restore Order and Sustainability in our Fiscal House
Plummeting oil prices in the summer of 2014 erased billions of dollars in revenue Alaska needed to keep our roads in good repair and schools adequately funded.
The Senate Majority immediately cracked down on spending, reducing General Fund expenditures by 44% – from $8.3 billion in FY 2013 to $4.3 billion in FY 2017. Twenty-six percent of the reductions were in day to day agency operations. Despite these dramatic reductions, continued low oil prices result in a projected shortfall for FY 2018 of $2.8 billion dollars, or $3,850 for every Alaskan.
With oil prices at record lows, Alaska's investment income outstrips all other possible revenue sources. On March 15, 2017 the Alaska Senate passed Senate Bill 26 to re-structure Alaska's investment management to a Percent of Market Value approach, protecting the Fund and Alaskans’ dividends.
Written into Senate Bill 26 are two key provisions:
- A spending limit, to restrict future government growth
- A revenue limiting provision to ensure that windfall profits from a surprise spike in oil prices are used in place of investment earnings, not for expanded government spending.
By using a PoMV approach in combination with a smart spending cap, the principal of the Permanent Fund will be protected for the long term against inflation. Investment income from the Fund will be able to pay substantial dividends for generations, and provide a reliable stream of income to support Alaska's essential government functions such as public safety and education. And, Senate Bill 26 precludes any need for an Alaska income tax or an Alaska IRS.
As the infographics below show, Senate Bill 26 covers essential government expenses, provides a historically average dividend of about $1,000 and allows Alaska Constitutional Budget Reserve to start growing again. No new taxes necessary.
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JUNEAU – The Alaska Senate today adjourned the second session of the 30th Alaska Legislature, sine die.
JUNEAU – The Alaska Legislature today passed a bill to restore access rights to private homesteaded property owners in the James Dalton Highway corridor.
JUNEAU – The Alaska Legislature today passed legislation providing students across Alaska access to the best curriculum in the world.
JUNEAU – The Alaska Legislature today took another step toward clean and affordable natural gas in Fairbanks and North Pole with the passage of legislation extending the bonding...
JUNEAU – The Alaska Legislature today concurred with the final version of the state operating budget for Fiscal Year 2019, totaling $3.1 billion in unrestricted general funds (UGF) for...
JUNEAU – The Alaska Senate today approved a program to resolve nearly $1 billion owed to small oil and gas companies and reinvigorate work in the state’s oil patch....
JUNEAU – The Alaska Legislature this week passed a bill allowing school districts to temporarily fill vacancies with qualified retired teachers.
JUNEAU – The Alaska Legislature this week provided Alaskans with disabilities greater flexibility to receive those services best suited for their needs instead of standard service...
The Alaska Senate today passed a wide-ranging crime package that provides judges and law enforcement with the tools they need to effectively fight crime.
JUNEAU – Today, Sen. Peter Micciche (R-Soldotna), Majority Leader of the Alaska Senate, withdrew his request for a House Finance Committee hearing on SB 76 following the adoption of an...
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