Overview of Fiscal Issues This Coming SessionBrad Keithley
A summary of Alaska's projected fiscal condition as it will be presented to the #AKLeg, the major issues, tools and proposals likely to involved in this session, a look at the "Hammond 50/50" approach and a discussion of how the fact that Alaska is in a recession may play into this session.
A presentation to the Alaska Republican Assembly on the results of the past session(s), where that puts Alaska currently and alternatives for dealing with Alaska's fiscal situation going forward.
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Nicola Wealth
In this webinar, Nicola Wealth CEO, John Nicola will address timely taxation topics to help you understand the developments in Canadian tax policy in relation to the taxation of homes, wealth, capital gains, and marginal tax rates. John will further prepare you to navigate the current tax environment by reviewing several tax planning options available to you and how these strategies integrate with overall portfolio design.
A presentation to the Alliance Fairbanks Chapter regarding the implementation of the third piece of Governor Hammond's plan for the use of the Permanent Fund (December 7, 2016).
Implementing Governor Hammond's "50/50" Plan (updated 1.4.2017)Brad Keithley
This is the previous December 7, 2016 presentation, updated for certain new information after that point. Updated slides are identified in the lower left hand corner.
Overview of Fiscal Issues This Coming SessionBrad Keithley
A summary of Alaska's projected fiscal condition as it will be presented to the #AKLeg, the major issues, tools and proposals likely to involved in this session, a look at the "Hammond 50/50" approach and a discussion of how the fact that Alaska is in a recession may play into this session.
A presentation to the Alaska Republican Assembly on the results of the past session(s), where that puts Alaska currently and alternatives for dealing with Alaska's fiscal situation going forward.
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Nicola Wealth
In this webinar, Nicola Wealth CEO, John Nicola will address timely taxation topics to help you understand the developments in Canadian tax policy in relation to the taxation of homes, wealth, capital gains, and marginal tax rates. John will further prepare you to navigate the current tax environment by reviewing several tax planning options available to you and how these strategies integrate with overall portfolio design.
A presentation to the Alliance Fairbanks Chapter regarding the implementation of the third piece of Governor Hammond's plan for the use of the Permanent Fund (December 7, 2016).
Implementing Governor Hammond's "50/50" Plan (updated 1.4.2017)Brad Keithley
This is the previous December 7, 2016 presentation, updated for certain new information after that point. Updated slides are identified in the lower left hand corner.
Implementing Governor Hammond's 50/50 Plan (Fairbanks "Budget Blitz" 2.16.2016)Brad Keithley
A presentation made as part of the Fairbanks "Budget Blitz" co-sponsored by the Greater Fairbanks Chamber of Commerce and Fairbanks Economic Development Corporation.
Agcapita February 2012 Briefing - Spare a Moment for the Real EconomyVeripath Partners
“According to the Mercer Pension Health Index, the decline in longterm interest rates over the past six months has brought the funded status of Canadian pension funds near the all-time low reached in 2008 (Chart 20). This index declined from 71 per cent in the second quarter of 2011 to 64 per cent at the end of October, indicating that a representative pension plan faces a higher risk of being unable to fully meet its financial obligations.”
An update by the Department of Revenue on the FY21 & 22 revenue outlook and the oil tax credit obligations reverting to the state following the Supreme Court's rejection of HB331.
Congratulations!You reduced the debt to below 60 of GDP in .docxmaxinesmith73660
Congratulations!
You reduced the debt to below 60% of GDP in 2024, and kept it at a sustainable level
through 2030.
Savings Relative to Current Law in Billions $7780
Dollars in billions that you need to cut to
get under 60% of the GDP by 2024.
$0
See your list of choices on page 2.
CRFB.org Stabilize the Debt Simulator: Your choices in blue.
Choose Your Path
Afghanistan
Reduce Troop Levels to 30,000 by 2017 -$680B
Eliminate War Funding After 2021 -$820B
Maintain Current Funding Levels $0
Alter the Sequester
Fully Repeal the Sequester $1,040B
Repeal About Half of the Sequester $540B
Further Reduce Discretionary Spending -$320B
Maintain the Sequester $0B
Defense, Diplomacy & Security
Replace the Joint Strike Fighter Program
with F-16s and F/A-18s
-$50B
Foreign Aid
Cut International Assistance Programs
by 25%
-$150B
Increase International Assistance
Programs by 25%
$150B
Veteran Benefits
Reduce Veteran Income Security Benefits -$50B
Expand Veteran Income Security Benefits $50B
Cancel the Ground Combat Vehicle and
Defer Development of the Long-Range
Bomber
-$50B
Reduce US Navy Fleet to 230 Ships -$110B
Increase Homeland Security Spending $70B
Troop Levels
Maintain Current Army Levels $130B
Replace Military Personnel with Civilians -$30B
CRFB.org Stabilize the Debt Simulator: Your choices in blue.
Domestic Social & Economic
Spending
Restart the NASA Moon Mission and Create a
Moon Colony
$250B
Enact New Jobs Bill $340B
Highway Funding
Limit Highway Funding to Dedicated Revenue -$190B
Enact Increased Transportation Funding $100B
Block Grant Food Stamps and Reduce to 2008
Levels
-$140B
Cut Temporary Assistance to Needy Families
(TANF) Program
-$80B
Cut Federal Funding of K-12 Education by
25%
-$80B
Restrict Eligibility for Pell Grants -$120B
Cut School Breakfast Programs -$30B
Double Funding on Adoption and Foster Care $80B
Increase Education Funding by $10 Billion
Each Year
$110B
Social Security
Raise the Normal Retirement Age to 70 -$80B
Slow Initial Benefit Growth
Gradually Reduce Scheduled Benefits -$150B
Progressively Reduce Benefits, Protecting Low
and Middle Income Earners
-$30B
Progressively Reduce Benefits, Protecting Low
Income Earners
-$90B
Use a More Accurate Measure of Inflation for
COLAs
-$150B
Reduce Spousal Benefits from 50% to 33% -$10B
Increase Years Used to Calculate Benefits -$70B
Include All New State and Local Workers -$90B
Institute a Minimum Benefit $70B
CRFB.org Stabilize the Debt Simulator: Your choices in blue.
Healthcare
Modify Health Care Reform Law
Establish a Public Option in the Health
Exchanges
-$220B
Repeal Insurance Mandate -$550B
Repeal Entire Legislation $170B
Repeal Legislation, but Keep
Medicare/Medicaid Cuts
-$1,010B
Modernize Cost Sharing for Medicare -$160B
Increase Medicare Premiums for High-Income
Beneficiaries
-$90B
Require Manufacturers to Pay a Minimum
Drug Rebate for Medicare Low-Income
Beneficiari.
Since 2007, federal debt held by the public has more than doubled in relation to the size of the economy, and it will keep growing significantly if the large annual budget deficits projected under current law come to pass. The Congress faces an array of policy choices as it confronts the challenges posed by such large and growing debt.
Testimony before HRES on South Central GasBrad Keithley
By invitation, we testified before the Alaska House Resources Committee on March 15, 2024, on Southcentral Gas Supply. The presentation was part of the Committee's look into the implications of the challenges currently facing Cook Inlet gas supplies.
The presentation addressed both energy and fiscal policy. Our theme was simple: " Let the market decide" and no subsidies. But if there are subsidies, they should be paid for other than through PFD cuts.
The slide-deck we used is attached here. The hearing itself is available at https://bit.ly/48YyBFf.
Presentation to Greater Fairbanks Chamber of Commerce's Government Relations ...Brad Keithley
Our September 27, 2022, presentation to the Greater Fairbanks Chamber of Commerce's Govt Relations Comm on Alaska's current fiscal situation and our views on the positions of the candidates for Alaska Governor in response.
Comments in opposition to SB 199 & SB 200 (2.20.2022)Brad Keithley
The comments of Alaskans for Sustainable Budgets in opposition to Senate Finance Committee bills SB 199 & SB 200, which propose to substantially restructure and cut the Permanent Fund Dividend.
HB 202 (HFIN): Comments of Alaskans for Sustainable BudgetsBrad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets with the House Finance Committee on HB 202 (Rep. Merrick) proposing a restructuring of and cuts in the Alaska Permanent Fund Dividend (PFD).
HB 202 & HB 37 (Statutory PFD Reductions): Comments of Alaskans for Sustainab...Brad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on HB 202 (Rep. Merrick) & HB 37 (Rep. Wool) proposing (and in the case of HB 37, some substitute revenues to reduce the level of) cuts in the Alaska Permanent Fund Dividend (PFD).
HB 189 (Employment Tax for Education): Comments of Alaskans for Sustainable B...Brad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on HB 189, the House Ways & Means Committee bill which would establish an employment tax for education.
HFIN CS for HB69 (work draft presented 4.23.2021): Comments of Alaskans for S...Brad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on HFIN CS for HB69, the House Finance Committee's proposed committee substitute for HB69, the Governor's proposed operating budget.
SJR6/SB53 (HJR7/HB73): Comments of Alaskans for Sustainable Budgets Comments ...Brad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on SJR6/SB53 (HJR7/HB73), the Governor's proposed Constitutional Amendments relating to the Alaska permanent fund, appropriations from the permanent fund, and the permanent fund dividend.
HJR1 & HB165: Comments of Alaskans for Sustainable Budgets CommentsBrad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on HJR 1 & HB165, Rep. Kreiss-Tomkin's proposed Constitutional Amendment to Guarantee the Permanent Fund Dividend
SJR 1 (Guarantee Perm Fund Dividend): Comments of Alaskans for Sustainable Bu...Brad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets on SJR 1, Sen. Wielechowski's proposed Constitutional Amendment to Guarantee the Permanent Fund Dividend
Impact of Proposed PFDCuts on Alaska Income & Jobs (Supplement to 3.4.2021 Le...Brad Keithley
This presentation is to supplement the 3.4.2021 LegFin Presentation to the Senate Finance Committee to analyze the impact of the PFDcuts discussed there on Alaska income & jobs.
Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracke...Brad Keithley
This presentation is to supplement the 3.4.2021 LegFin Presentation to the Senate Finance Committee to analyze the distributional impact by income bracket of the level of PFDcuts discussed there.
Analysis by the Legislative Finance Division of Alaska's fiscal position: how we got here, where we are and where we are headed under various alternatives.
Upcoming Federal Fiscal Deadlines (10.20.2020)Brad Keithley
An important fact to know in thinking about federal fiscal policy is when are the upcoming "action forcing" events -- the dates on which, if Congress does not act, there are serious fiscal consequences. As part of a larger presentation the Concord Coalition's National Policy Director, Tori Gorman, recently complied a list of those dates. Here is the slide deck.
Concord Coalition: The Current US Fiscal Situation (October 2020)Brad Keithley
A chart talk from The Concord Coalition analyzing the fiscal challenges facing the US before COVID, and how the economic impact of COVID and the federal response has made that situation even more difficult.
31052024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
हम आग्रह करते हैं कि जो भी सत्ता में आए, वह संविधान का पालन करे, उसकी रक्षा करे और उसे बनाए रखे।" प्रस्ताव में कुल तीन प्रमुख हस्तक्षेप और उनके तंत्र भी प्रस्तुत किए गए। पहला हस्तक्षेप स्वतंत्र मीडिया को प्रोत्साहित करके, वास्तविकता पर आधारित काउंटर नैरेटिव का निर्माण करके और सत्तारूढ़ सरकार द्वारा नियोजित मनोवैज्ञानिक हेरफेर की रणनीति का मुकाबला करके लोगों द्वारा निर्धारित कथा को बनाए रखना और उस पर कार्यकरना था।
role of women and girls in various terror groupssadiakorobi2
Women have three distinct types of involvement: direct involvement in terrorist acts; enabling of others to commit such acts; and facilitating the disengagement of others from violent or extremist groups.
03062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
‘वोटर्स विल मस्ट प्रीवेल’ (मतदाताओं को जीतना होगा) अभियान द्वारा जारी हेल्पलाइन नंबर, 4 जून को सुबह 7 बजे से दोपहर 12 बजे तक मतगणना प्रक्रिया में कहीं भी किसी भी तरह के उल्लंघन की रिपोर्ट करने के लिए खुला रहेगा।
01062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
CLICK:- https://firstindia.co.in/
#First_India_NewsPaper
In a May 9, 2024 paper, Juri Opitz from the University of Zurich, along with Shira Wein and Nathan Schneider form Georgetown University, discussed the importance of linguistic expertise in natural language processing (NLP) in an era dominated by large language models (LLMs).
The authors explained that while machine translation (MT) previously relied heavily on linguists, the landscape has shifted. “Linguistics is no longer front and center in the way we build NLP systems,” they said. With the emergence of LLMs, which can generate fluent text without the need for specialized modules to handle grammar or semantic coherence, the need for linguistic expertise in NLP is being questioned.
Do Linguistics Still Matter in the Age of Large Language Models.pptx
Weathering Alaska's Fiscal Storm: The Challenge & Solution
1. Weathering Alaska’s Fiscal Storm
The Challenge …
The Solution
STUDENTS WHO ENJOY ECONOMIC THINKING
UNIVERSITY OF ALASKA - FAIRBANKS
OCTOBER 17, 2015
Dr. Scott Goldsmith
Professor Emeritus
UAA & ISER
Brad Keithley
President
Keithley Consulting, LLC
2. Summary
The challenge
Alaska’s current, “business as usual” fiscal model – matching
current spending to current oil revenues – is failing
Even before the price drop, declining oil production and rising
spending were heading Alaska toward a “fiscal cliff”
The price drop has brought us face to face with the cliff
The solution
A “sustainable budget” model matches spending levels to
long term revenues, avoids a fiscal cliff, achieves
intergenerational equity and provides long term fiscal stability
The current “sustainable” level is $4.5 billion (down from $6
billion 3 years ago due in part to continued overspending)
Transitioning to a sustainable model can be done over time,
but the longer the “transition,” the lower the sustainable
number
2
3. Problem has been building
2013 …
“Right now, the state is on a path
it can’t sustain. … we do not
have enough cash in reserves to
avoid a severe fiscal crunch soon
after 2023, and with that fiscal
crisis will come an economic
crash.” --ISER Web Note 14 (2013)
2014…
“The implications of the figures
are severe … Failure to reduce
the projected deficits will result in
a very hard landing -- Legislative
Finance Division (2014)
3
4. And then this happened … 4
ANS Price
FY 2014
Actual $108
UGF Pet Rev $4,763 mil
FY 2015
Actual $ 73
DOR est $ 67
UGF Pet Rev $1,660 mil
FY 2016
Since July $ 51
DOR est $ 66
UGF Pet Rev $1,634 mil
The future (2023) is now …
5. What does it mean … 5
$105 $70 oil
• The revenue equivalent of a
54% production decline to
~230,000 b/d
At current spending rates:
• Draining ~$10+ million per day
from savings
• ~$3.8 billion (60+%) deficit
(~$5,250 per Alaska man,
woman and child; $21,000 per
family of 4)
• Less than 3 years of unrestricted
savings (CBR) remaining as of
June 30, 2015
Statutory and Constitutional
Budget Reserves
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
2016 2017 2018 2019 2020 2021 2022 2023 2024
Billion$
Start of Fiscal Year
CASH RESERVE LIFE
AT DIFFERENT OIL PRICES
$100
$90
$80
$70
6. What’s ahead …
If we continue to conduct business as
usual …
Historically Alaska has tied spending to
current revenues creating a boom and
bust cycle dependent on current oil prices
and volumes
Successfully maintaining that approach is
highly dependent on ever increasing price
and volume
Recent pricing events demonstrate that is
an ill-founded premise
6
7. The problem is more than
falling production …
The “Alaska Disconnect” (from ISER)
As Alaska’s economy and population grow, demand
increases for services that state and local governments
provide
Although the new Alaskan businesses and population
pay local sales and property taxes which support local
services, they don’t pay broad-based state taxes to
cover the increased cost of state-funded services
As a consequence continued economic development
and population growth ironically makes the state’s fiscal
situation worse
To now, this situation largely has been masked by
high oil production and, until recently, prices
7
8. If we hit the trifecta … 8
Assumptions …
$105 oil
2% production decline
Viscous oil: 2020
NPRA: 2020
New Conv Oil: 2020
Gas (high price
scenario) 2024
OCS: 2026
ANWR: 2026
$0
$5
$10
$15
2016 2020 2024 2028 2032 2036 2040
UNRESTRICTED GENERAL FUND
(BILLION $)
? PF CORPUS DRAW
? PF INFLATION PROOFING
? PF EARNINGS
? DIVERT PFD TO GF
? INCOME/SALES TAXES
? NATURAL GAS
? NEW OIL
CASH RESERVE
CURRENT OIL REVENUES
NON OIL REVENUES
$0
$5
$10
$15
$20
$25
$30
2016 2020 2024 2028 2032 2036 2040
SBR & CBR
CASH RESERVE (Billion $)
Start of Fiscal Year
9. But if we don’t (middle) … 9
Assumptions …
$90 oil
3% production decline
Viscous oil: 2020
NPRA: 2020
New Conv Oil: 2020
Gas (moderate
price scenario) 2024
No near future OCS or
ANWR
$0
$5
$10
$15
2016 2020 2024 2028 2032 2036 2040
UNRESTRICTED GENERAL FUND
(BILLION $)
? PF CORPUS DRAW
? PF INFLATION PROOFING
? PF EARNINGS
? DIVERT PFD TO GF
? INCOME/SALES TAXES
? NATURAL GAS
? NEW OIL
CASH RESERVE
CURRENT OIL REVENUES
NON OIL REVENUES
$0
$2
$4
$6
$8
$10
$12
2016 2020 2024 2028 2032 2036 2040
SBR & CBR
CASH RESERVE (Billion $)
Start of Fiscal Year
10. A low case … 10
Assumptions …
$80 oil
5% production decline
Viscous oil: 2020
NPRA: 2020
New Conv Oil: 2020
No near future gas, OCS or
ANWR
$0
$5
$10
$15
2016 2020 2024 2028 2032 2036 2040
UNRESTRICTED GENERAL FUND
(BILLION $)
? PF CORPUS DRAW
? PF INFLATION PROOFING
? PF EARNINGS
? DIVERT PFD TO GF
? INCOME/SALES TAXES
? NATURAL GAS
? NEW OIL
CASH RESERVE
CURRENT OIL REVENUES
NON OIL REVENUES
$0
$2
$4
$6
$8
$10
$12
2016 2020 2024 2028 2032 2036 2040
SBR & CBR
CASH RESERVE (Billion $)
Start of Fiscal Year
11. Where does that lead …
“… reducing expenditures
… institution of a broad-
based tax, and use of a
portion of the earnings of
the Permanent Fund ….”
Northern Economics and ISER, Potential
National-Level Benefits of Alaska OCS
Development (2011)
11
Draining the CBR/SBR to maintain current spending
shifts all of the consequences to future
generations—massive cuts and new taxes-- and
creates an uncertain and unstable climate for
future investors
12. The better alternative …
“I will make the hard choices necessary for a
sounder fiscal future, including putting in place a
sustainable budget. I will work to make sure the
investment climate in Alaska supports those goals,
which includes creating a favorable fiscal climate
for citizens and companies investing in our
economy.”
– Candidate Bill Walker on fiscal responsibility
12
13. What is a “sustainable”
budget …
A calculated revenue and
spending level which, if
adopted now, can be
maintained consistently
long into the future,
adjusted for inflation and
population growth
Based on both current and
projected revenue streams
and asset levels
13
14. What is the current
sustainable level …
NEST EGG
Nest egg draw $ 5.4 B
PFD payment (1.4)
Net revenues $ 4.0 B
UGF non-petroleum
revenues $ 0.5 B
UGF Sustainable
Revenues $ 4.5 B
SUSTAINABLE UGF REVENUE
Financial Assets $66.2 B
NPV of Future Oil/Gas 68.9*
TOTAL NEST EGG $135.1B
Real rate of return
(5%)minus population
growth (1%) 4%
Nest egg draw
($135.1 x 4%) $ 5.4 B
14
* Based on oil prices projected in DOR Fall 2014 Revenue Sources Book, plus
production assumptions beyond RSB forecast reflected in “middle case” (p. 9).
15. Sustainable budget …
Results …
Treats all generations
equitably
Encourages investment
and growth by providing a
stable, long term fiscal
structure
Smooths the revenue curve
even during turbulent times
Encourages and facilitates
state support for resource
development
Requires …
Fiscal discipline to limit
current spending to
sustainable level (or enact
supplement revenues)
Treating all current savings
and reserves as long term
investments (“NEST EGG”)
15
16. Each generation can add
revenues …
Sustainable budgets provide each generation with a base
level of revenue with the flexibility to supplement if desired
16
If desired
spending level
is ($oil/b) …
Sustainable
Revenue
level is …
And required
supplemental
revenue is …
Supplemental
revenue
per Alaskan
$6.0 B ($120) $4.5 B $1.5 B $2,050
$5.5 B ($114) $4.5 B $1.0 B $1,400
$5.0 B ($109) $4.5 B $0.5 B $690
*For reference, 2015 PFD was $2072; average L48 state
sales/income tax level: $1800/resident
17. The costs of delay …
Spending above sustainable levels offsets the short
term economic impact of current spending
reductions but reduces the nest egg and as a
result, future sustainable revenue levels
17
Costs of delay
MSY
FY 2012: $6.2 B
FY 2013: $6.4 B
FY 2014: $5.5 B
FY 2015: $5.0 B
FY 2016: $4.5 B
$7.0
$7.8
$7.2
$6.2 $5.2$6.2 $6.4
$5.5
$5.0
$4.5
2012 2013 2014 2015 2016
$Billion
Fiscal year
Actual v. Sustainable Spending Levels
(FY 2012 - 2016 (est.))
Actual Spending Sustainable Spending Level
18. Going forward options &
costs …
Future Sustainable Budget Levels @ Overspend Above $4.5 B
Transition Period $500 M $1 B $1.5 B
1 year $4.47 B $4.45 B $4.43 B
2 years $4.45 B $4.41 B $4.36 B
3 years $4.43 B $4.36 B $4.29 B
4 years $4.40 B $4.31 B $4.22 B
18
A four year transition reduces
the sustainable spending level
between 5 and 10% (e.g.,
overspending $4.5 B by $1.5
B/yr for four years reduces the
sustainable level to $4.22 B)
19. The FY2016 Budget…
Operating Budget:
Formula: $2.1 B
Non-Formula: $2.0
Debt Repayment: $ .2
O&G Credits $ .5
PERS/TRS $ .3
Total (rounding) $5.1 B
Capital budget: $ .1
Total $5.2 B
19
FY 2016 Unrestricted General Fund (UGF) Budget
FY 2016 ($5.2 B) – Sustainable Budget ($4.5 B) =
$700 Million overspend
20. Making FY 2017 budget
more sustainable …
Capital Budget is already
minimal
Attention will need to turn to
the big drivers in the
Operating Budget (FY2016):
DEED/ K-12 ($1.3 B)
DHSS/Medicaid ($1.2 B)
O&G tax credits ($.50 B)
University ($.35 B)
Corrections ($.28 B)
Personnel count and cost
20
Or, supplement revenue to avoid
impact of overspend on future
generations
21. A Comment on Potential
New Revenue Sources
Sustainable budget already incorporates income from
Permanent Fund not used for PFD & inflation proofing
Material new revenue sources
PFD cap (incorporating remainder into UGF)
Broad based taxes (state sales and income)
Issues
Significant regional and socio-economic disparities
Effect on local government, private sector and Alaska’s
competitiveness
21
22. Other Suggested Solutions
Squeeze oil harder
Manage Permanent Fund like a Hedge Fund
Tax other Natural Resources
Tax SIN
Economic Diversification
Value Added
Invest MORE in infrastructure
Renewable Resources
22
23. Achieving a long term,
sustainable solution …
Sustainable budgets provide a stable, long term solution
which:
Smooths revenue and spending even during turbulent times
Treats all generations equitably (provides each generation
with an equitable, base level of revenue which they can
choose to supplement or not)
Encourages investment by providing a stable fiscal structure
But requires fiscal discipline in order to avoid adversely
affecting future sustainable levels
Limit spending – or adopt supplemental revenue measures
– to the sustainable level
23