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Begin New Search Topic Fiscal Policy Political Geography Alaska

1. Muddling Through: Alaska’s Budget Process in 2021

Author:
Glenn Wright
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
In 2021, the State of Alaska faced substantial challenges due to the public health and economic impacts of COVID-19. COVID damaged Alaska’s state revenues by driving down global oil prices. COVID also harmed the state’s economy more broadly, with substantial impacts on some extractive industries and tourism. However, Alaska’s budgetary problems—high expenditures and low revenues—long predate COVID and are related to Alaska’s historical dependence on fossil fuel extraction for state revenue. Alaska’s budget situation has improved somewhat through 2021 as oil prices have risen globally, though this may also complicate budgetary debates in Spring 2022.
Topic:
Fiscal Policy, Public Health, Pandemic, and COVID-19
Political Geography:
North America, Alaska, and United States of America

2. Alaska: Arctic Groundhog Day

Author:
Glenn Wright and Tasha Elizarde
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
California Journal of Politics and Policy
Institution:
Institute of Governmental Studies, UC Berkeley
Abstract:
Since the early 1980s, Alaska has relied on oil taxes for almost all of its state government revenue. Like many resource-based economies, including many of the Western states, the result is a boom and bust economy. With production declining and the price of Alaska’s North Slope crude around $75 per barrel, the state is in a bust cycle, with a large state government deficit. Although Alaska is experiencing a somewhat improved revenue outlook compared to 2017, the state’s executive and legislative branches continue to wrestle with unpopular political choices; do we implement a state income tax, tap the state’s Permanent Fund sovereign wealth fund (and thereby reduce or eliminate Alaska’s annual Permanent Fund Dividend payment to Alaskan residents), or some combination of those two approaches? In Spring 2018, the Alaska State Legislature—supported by Independent Governor Bill Walker—chose the first of these options, tapping Alaska’s Permanent Fund to fund state government operations for the first time. The result is a dramatically improved fiscal position for 2019, and although the state remains in deficit, chances of a balanced budget are much improved. Use of the Permanent Fund has not been popular, however; a number of incumbents who supported the use Permanent Fund earnings were defeated in November 2018 by opponents who campaigned on the issue. At the moment, Alaska’s fiscal future remains in doubt.
Topic:
Governance, Budget, Economic Policy, and Fiscal Policy
Political Geography:
United States and Alaska