Thursday, March 21, 2019 (Juneau) – Today Governor Michael J. Dunleavy released his State of Alaska Fiscal Plan for FY20-FY29. The plan is based on projected revenues from the spring 2019 revenue forecast, the administration’s proposed balanced budget, and the enactment of the administration’s legislative package to create a permanent and sustainable fiscal plan.
“We can’t continue to spend more money than we have. My plan represents a vision of a smaller State government, with more money in the pockets of Alaskans while laying the foundation for new private sector investment and the new jobs that come with it,” said Governor Dunleavy. “While reductions in State services are understandably difficult choices to make. Alaska must implement a permanent fiscal plan to get the economy moving again.”
The ten-year plan also contains three alternative approaches to solving the State’s fiscal problem. The additional scenarios do not reduce the size of government. Instead, those alternatives make up the revenue shortfall over the next decade through PFD cuts, emptying reserve accounts, or imposing broad-based taxes that take billions of dollars from Alaskan families and the private sector economy.
“These alternatives clearly demonstrate there is no easy, simple solution to addressing the State’s budget deficit. Every option comes at a cost. I believe the plan my administration put forward is what the people voted for when they elected me,” Governor Dunleavy said.
- The FY20-FY29 10-year plan is now available on the Office of Management and Budget’s website at omb.alaska.gov.
- To watch a media availability with OMB Director Donna Arduin, Chief Economist Ed King and Commissioner of Revenue Bruce Tangeman to discuss the State of Alaska Fiscal Plan for FY20 – FY29, click here.