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.
Featured Videos more >
Senator Natasha vonImhof discusses Alaska's budgeting and political challenges in this 8 part video series.
News more >
JUNEAU – The Alaska Senate today unanimously voted for a resolution urging the U.S. to issue a presidential permit allowing a railroad crossing between Alaska and Canada....
The numbers are in for the 2019 Alaska Permanent Fund Education Raffle. The program, in its first year, raised a grand total of $976,400, with 85 percent of the proceeds directly benefiting...
The Alaska Senate today unanimously passed Senate Bill 16 to clarify irregularities detrimental to small businesses in the state’s alcohol license laws.
JUNEAU – The Senate Finance Committee today introduced a pair of bills to cap government spending and establish a 50-50 split between dividends and state expenses from the limited...
Leaders from all parties come together for Alaska’s future economy
JUNEAU – The Alaska Senate today unanimously approved a measure that improves statewide access to vaccines and reduces healthcare costs for providers and insurance payers....
JUNEAU – Today, the U.S. Supreme Court ruled 9-0 in favor of John Sturgeon, finding that the Nation River is state, not federal, land, and is therefore navigable inside of Alaska’s...
JUNEAU – The Alaska Senate today unanimously approved funding to aid communities impacted by the Nov. 30 Southcentral earthquake.
JUNEAU – A bill was introduced in the Alaska Senate this week to give Alaskans the option of donating all or a portion of their Permanent Fund dividends (PFDs) directly to the state’s...
JUNEAU – Today, a bill was introduced in the Alaska Senate to repeal provisions of a new law found to be too restrictive of Alaska’s citizen legislature.
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