leadership anchorage debate with vic fischer (5.3.2014)
TRANSCRIPT
“Right now, the state is on a path it can’t sustain. … Reasonable assumptions … suggest 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.” (Analysis based on revenue projections under ACES)
“What can the state do to avoid a major fiscal and economic crisis? The answer is to save more and restrict the rate of spending growth. All revenues above the sustainable spending level of $5.5 … would be channeled into savings.”
The problem A large part of the problem is spending
“… institution of a broad based tax, and use of a portion of the earnings of the Permanent Fund”
Source: University of Alaska‐Anchorage, Institute of Social and Economic Research,Maximum Sustainable Yield: FY 2014 Update, Web Note No. 14 • January 2013
Alaska’s Current Fiscal Situation
What is the role of SB 21Move the Decline Curve ISER SB 21 Analysis
Source: Testimony of Barry Pulliam, Econ One, before House Finance Committee, April 9‐10, 2013.
Source: UAA ISER, Alaska’s Oil Production Tax: Comparing the Old and New, Web Note No. 17 • May 2014