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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JUNEAU – Senator Bert Stedman, R-Southeast Islands, today expressed disappointment with comments made by Department of Transportation (DOT) officials casting blame on the...
JUNEAU – Senate President Cathy Giessel today released the following statement on the Alaska Reads Act, a new statewide early education and K-3 reading program by Governor Mike...
Alaska Senators congratulated Alyeska Pipeline Service Company today for transporting the eighteen billionth barrel of Alaska North Slope crude oil safely through the Trans Alaska...
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...
JUNEAU – Today, the U.S. Department of Agriculture announced it is seeking public comment on a draft environmental impact statement offering alternatives to roadless management and a...
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...
ANCHORAGE – BP today announced that it has agreed to sell its entire business in Alaska to Hilcorp Alaska.
JUNEAU – Anchorage Senator Chris Birch passed away on Wednesday. He was 68 years old.
JUNEAU – The Alaska Senate today voted to restore funding for programs critical to Alaskans and provide for a sustainable Permanent Fund dividend amount.
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