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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FAIRBANKS – Today, a bill restoring access rights to private homesteaded property owners in the James Dalton Highway corridor became law.
ANCHORAGE – Today, a bill designating September 11 of each year as Patriot Day was signed into law.
Today Governor signed a bill allowing school districts to temporarily fill vacancies with qualified retired teachers.
Today the Alaska Supreme Court ruled that major portions of Ballot Measure #1 may appear on November’s general election ballot, despite striking down other un-constitutional...
ANCHORAGE – Today, a bill to increase Alaskans’ access to affordable behavioral healthcare and save state dollars was signed into law.
ANCHORAGE – Today, a bill ensuring that companies in the business of helping Alaskans appraise real estate can continue to operate was signed into law.
ANCHORAGE – A bill to protect Alaskans from the adverse health effects of secondhand smoke in the workplace was signed into law this week by Gov. Bill Walker....
ANCHORAGE – Today, Sen. Bert Stedman (R-Sitka), chairman of the Legislative Budget & Audit Committee, sent the Department of Law a criminal referral for the unauthorized leak of a...
ANCHORAGE – Sen. Bert Stedman (R-Sitka) today announced he will serve on the National Petroleum Council (NPC) following his appointment to the board by the Secretary of the Department...
ANCHORAGE – A bill to reduce the state’s regulatory burden on barbers, hairdressers, hair braiders and those with student loans was signed into law today by Gov. Bill Walker....
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