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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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.

Featured Videos more >

Senator Click Bishop

Sen. Bishop Supports Modest Motor Fuel Tax

Media Outlet

Senator Cathy Giessel

Striking a Balance for Alaska's Future

Senator Chris Birch

Sen. Birch on Shrinkage of the CBR

Senator Bert Stedman

Sen. Stedman: Protect the Permanent Fund

Media Outlet

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

Media Outlet

Senator Mia Costello

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

Media Outlet

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

Media Outlet

Senator Natasha von Imhof

Better a temporary deficit than an income tax

Media Outlet

Alaska must cut $800 million

Media Outlet

Keep the dividend, balance the budget and limit government

News more >

Senator Bert Stedman

Swan Lake Hydroelectric Expansion Utilized after Record Rainfall

After a summer of record-setting rainfall, the Swan Lake Hydroelectric Facility reached full capacity following expansion totaling an additional 15 feet of storage for the first time....  Full Story >>

Senator Peter Micciche

Friday: Senate Hearing on Board of Fish Appointees, Public Testimony

ANCHORAGE – On Friday, August 28, at 3:00 p.m. in the Anchorage Legislative Information Office (LIO), the Senate Resources Committee will hold a hearing to take public testimony on and...  Full Story >>

Senator Bert Stedman

Gravina Access Improvements Work to Begin, Final Bids Awarded

KETCHIKAN – Work will soon begin on a host of projects meant to enhance the movement of people and goods between Ketchikan and Gravina Island.  Full Story >>

Senator Cathy Giessel

Statement from Sen. President Giessel on Alaska LNG Export Approval

ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today released the following statement after the U.S. Department of Energy on Thursday authorized the Alaska LNG project to...  Full Story >>

Senator Cathy Giessel

Sen. Giessel: ANWR Decision a Positive Step for Alaska’s Future

ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today released the following statement in response to the U.S. Department of the Interior’s decision approving an oil and...  Full Story >>

Senator Bert Stedman

Senator Stedman Thanks U.S. Coast Guard for 230 Years of Service

JUNEAU – On Tuesday, Senator Bert Stedman, R-Sitka, congratulated the U.S. Coast Guard for its 230th year anniversary.  Full Story >>

Senate Majority Press Press

Statements from Senators on Passing of Rep. Gary Knopp

Senate President Cathy Giessel and Soldotna Senator Peter Micciche today issued the following statements after the tragic death of Soldotna Representative Gary Knopp....  Full Story >>

Senator Cathy Giessel

Senate President Giessel Makes Selection to Redistricting Board

ANCHORAGE – Senate President Cathy Giessel, R-Anchorage, today appointed John Binkley to serve on the Redistricting Board  Full Story >>

Senate Majority Press Press

State Senators Commend Approval of Ambler Road Project

ANCHORAGE – Members of the Alaska Senate Majority this week commended a decision by the Bureau of Land Management (BLM) to approve a proposed route for the Ambler Road project....  Full Story >>

Senator Bert Stedman

Historic Permanent Fund Transfer Protects Alaska’s Future

On Tuesday, the State of Alaska made one of the most important investments in its 61-year history: a roughly $5 billion transfer from the Alaska Permanent Fund’s Earnings Reserve...  Full Story + Video >>

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