Revenues are increasing in the way of the continued growth of investment earnings and savings. Both are coming from the Northwest of the North American continent. Also, there is encouragement that there are promising signs the region’s revenue shortfall is maybe temporarily. It is correcting itself because of the latter. Therefore, the state’s pension system is going to result in what is going to seem like “extra” funding for the state.
Plus, the second round of American Rescue Plan Act funds are going to be releasing for the fiscal year 2023. In fact, there is a major likelihood of federal infrastructure investments.
Revenues and One-Time Expenditures
Although this windfall can help to benefit Alaska the most as one-time expenditures. Instead, it does seem there is the opportunity to reconsider some of the reductions. That is made to the budget over the past seven years. In fact, they can be used to refilling the revenues that adequately do funding state programs. In fact, this is a chance to avoid budget cuts and vetoes. They are making in the name of the fiscal gap. Moreover, it is a chance to fully fund commitments that have fallen to the wayside and to prioritize.
In fact, there are some additional projecting revenues. They have given Alaska some room to breathe than to continue working toward an expansive fiscal plan.
There is a phased-in, a step-wise approach that is put in place over time is the plan. All aspects can then remain in place. This would include stabilizing the Permanent Fund dividend. Also, putting in place a broad-based tax and a spending cap. It would ensure a workable and sustainable Permanent Fund, working toward reductions. They make sense and address the state’s constitutional obligations, infrastructure gap, and a balanced budget.
This is increased revenue which can be viewing as a “back to baseline” approach. Therefore, it can provide the state with the revenue it needs to bring its budget. It is unrestricted general fund spending that is specifically a back to a baseline consistent with its responsibilities. That means that the state can really afford to fully pay for commitments. This includes oil tax credits and school bond debt reimbursement. Also they fully capitalize Community Assistance and reimbursing communities for harbor debt. Also, in addition, offer an adequate level of funding for school construction and major maintenance grant and matching bonds program.
