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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SITKA – Sen Bert Stedman (R-Sitka) introduced a constitutional amendment today for consideration in the upcoming legislative session to protect the Permanent Fund and guarantee a...
SB 28 was sponsored by Sen Bert Stedman (R-Sitka) to increase the Petersburg Borough’s land entitlement to 14,666 acres When the Petersburg Borough was created by the voters in 2013 they...
JUNEAU - Today, by a vote of 11 to 8, the Alaska Senate concurred with the House changes to Senate Bill 54 SB54 toughens Alaska criminal laws reversing some provisions of Senate Bill 91 passed...
ANCHORAGE – The co-chairs of the legislative working group created by House Bill 111, Sen Cathy Giessel (R-Anchorage) and Rep Geran Tarr (D-Anchorage), announced today the working...
ANCHORAGE – Today, members of the Alaska Senate Majority urged Lt Gov Byron Mallott to appeal a recent ruling allowing an unconstitutional initiative to proceed...
ANCHORAGE – Members of the Alaska Senate Majority today expressed disappointment with the 9th Circuit Court of Appeals decision in Sturgeon v Masica, a case centered on Alaskans’...
BETHEL – Sen Lyman Hoffman, D-Bethel, today thanked Marc Luiken, Commissioner of the Alaska Department Transportation and Public Facilities (DOT), for the Walker...
FAIRBANKS – Sen Pete Kelly, R-Fairbanks, President of the Alaska Senate, today released the following statement in response to Gov Bill Walker’s proclamation convening the 30th...
FAIRBANKS – Members of the Alaska Senate Majority today responded to Ahtna, Inc ’s rejection of the Walker administration’s proposed settlement regarding public access to...
JUNEAU – Today, Gov Bill Walker signed House Bill 111 into law, legislation that ends the state's program of cash payments to companies in the oil and gas industry...
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