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.

Historical-Oil-Price

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Total UGF Spending 2006-2017

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General-Fund-Savings-in-Capital-Budget

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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:

  1. A spending limit, to restrict future government growth
  2. 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.

Agency-reduction-percentages

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Permanent Fund Dividend historical amounts and projections under SB26.

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CBR projections

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Featured Videos more >

Media Outlet

Senator Cathy Giessel

Striking a Balance for Alaska's Future

Senator Bert Stedman

Sen. Stedman: Protect the Permanent Fund

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Senator Chris Birch

A Dividend Alaska Can Afford

Senator Natasha von Imhof

Sen. von Imhof Advocates for a Balanced Budget

Senator Bert Stedman

Sen. Stedman: A Better Solution for the Economy

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Senator Mia Costello

With release of Dunleavy’s budget, it’s time to listen to Alaskans

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Senator John Coghill

Is the PFD a Constitutional Right?

Senator Peter Micciche

Sen. Micciche Presents Spending Cap Bill, SB196

Senator Natasha von Imhof

Unleashing Alaska's Potential, Part 1

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Senator Natasha von Imhof

Better a temporary deficit than an income tax

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Senator Mike Dunleavy

Alaska must cut $800 million

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Keep the dividend, balance the budget and limit government

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Senator Peter Micciche

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SOLDOTNA – Senator Peter Micciche, R-Soldotna, sent a letter Thursday requesting a meeting with federal officials to investigate why efforts to fully extinguish the Swan Lake Fire...  Full Story >>

Majority Press Office

Alaska Senators Praise Proposed Roadless Rule Exemption

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Senator David Wilson

Sen. Wilson Welcomes More Mental Health Treatment Options for Alaskans

WASILLA – Sen. David Wilson, R-Wasilla, Chairman of the Senate Health and Social Services Committee, welcomed the approval Tuesday of the state’s behavioral health portion of its...  Full Story >>

Senator Cathy Giessel

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ANCHORAGE – BP today announced that it has agreed to sell its entire business in Alaska to Hilcorp Alaska.  Full Story >>

Senator Chris Birch

Chris Birch, Senator, Engineer & Grandfather, Passes Away at 68

JUNEAU – Anchorage Senator Chris Birch passed away on Wednesday. He was 68 years old.  Full Story >>

Majority Press Office

Senate Restores Critical Programs, Provides for Sustainable PFD

JUNEAU – The Alaska Senate today voted to restore funding for programs critical to Alaskans and provide for a sustainable Permanent Fund dividend amount.  Full Story >>

Senator Cathy Giessel

Governor’s Call Amended to Include Capital Budget

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Senator Cathy Giessel

Legislative Leaders Act With a Sense of Urgency as Veto Overrides Fail

This week, the clock ran out on the Alaska Legislature's constitutional opportunity to reject Gov. Mike Dunleavy's $444 million in budget vetoes through an override vote supported by...  Full Story >>

Majority Press Office

Alaska Legislature to hold veto override session on Wednesday

Joint floor session scheduled for 11:30a.m. in the Alaska State Capitol  Full Story >>

Senator Cathy Giessel

Statement from Alaska Senate President on Governor’s Vetoes

ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today released the following statement on Governor Mike Dunleavy’s announced vetoes to the state’s operating budget....  Full Story >>

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