Alaska is facing a fiscal crisis. When oil prices fell, the state lost roughly 80% of its annual revenue. Since 2013, we’ve spent nearly $10 billion in savings to cover the resulting budget deficits, and that isn’t sustainable into the long term. We need a comprehensive fiscal plan to solve the fiscal crisis and fix Alaska.
Any comprehensive fiscal plan has 3 key components:
- Reducing Spending
- Generating New Revenue
- Building and Growing Alaska’s economy.
Spending reductions alone won’t solve fiscal crisis; we’ve cut spending 44% since 2013, and still have a $2.5 billion budget deficit. However, the Administration has made major efforts to identify efficiencies and savings in government. These are some examples of what’s been done.
What is the Right Size of Government?
Read the Office of Management and Budget’s analysis of Alaska’s Per Capita Budget (pdf). You can also view a more complete list of state cuts and closures to date. Click on the graphics below to view the pdf versions.
Closed State Facilities