Achieving Fiscal Certainty Alaska was faced with a budget deficit of $3.7 billion when the Walker Administration took office. Through smart cuts and sustainably re-structuring Permanent Fund earnings, the gap between revenues and expenditures has been cut by $3 billion while still providing for a healthy and growing PFD. The Permanent Fund restructure (SB26) guarantees the longevity of the Permanent Fund and a robust dividend program by making draws from the fund structured and sustainable. It is the most significant piece of Alaska’s fiscal solution and puts a stable economy within reach. Over the past three years, portions of the permanent fund dividend calculation were left in the fund instead of paid out as dividend checks. None of the money withheld from dividends has been spent on State services. The approximately $2 billion remained in the fund instead of paid as dividends producing $100 million in income for the State in perpetuity. These earnings will continue to fund State services each year while securing the future of the dividend program. How do we finish the job? Alaska’s Fiscal disconnect Alaska’s economy keeps growing and diversifying, but the state’s revenues have not. This disconnect cannot be addressed in a sustainable manner by further cuts or by increasing the share paid by the oil and gas sector. Alaska needs a more mature tax structure to reflect our more developed economy. A diversified tax base is necessary to afford the services and infrastructure Alaska’s modern economy requires.