Alaska Budget Office Explains State's Budget Choices if Balanced Budget Isn't Passed

Alaska Budget Office Explains State's Budget Choices if Balanced Budget Isn't Passed

The Alaska Office of Management and Budget has released a report on the state's budget choices if legislative action is not taken to implement a balanced budget, noting that the constitutional budget reserve will be completely depleted by fiscal 2018.

Governor's press release <a href="//s3.amazonaws.com/pdfs.taxnotes.com/2016/2016-14557-1.pdf" title="PDF: 2016-14557"><img src="//s3.amazonaws.com/binary.taxnotes.com/image/etl/pdficon_small.gif" width="14" height="14" border="0"/></a>. Prior coverage <a href="/lr/resolve//2d0p"> <img src="//s3.amazonaws.com/binary.taxnotes.com/image/etl/doclink.gif" border="0" alt="2016 STT 119-4: News Stories"/></a>.

A View of Alaska's Budget Choices if . . . . . . there is no action by the Legislature or if only the permanent fund restructure (SB128) is passed but no taxes

The Alaska Office of Management and Budget has released a report on the state's budget choices if legislative action is not taken to implement a balanced budget, noting that the constitutional budget reserve will be completely depleted by fiscal 2018. If no legislative action is taken, the budget would be one-third of the current fiscal 2017 budget, school funding and local government agency operating budgets would be reduced, many health programs would be shut down, and state employment would decrease by about 12,000 employees. However, if the permanent fund restructure bill (SB 128 <a href="//s3.amazonaws.com/pdfs.taxnotes.com/2016/2016-12670-1.pdf" title="PDF: 2016-12670"><img src="//s3.amazonaws.com/binary.taxnotes.com/image/etl/pdficon_small.gif" width="14" height="14" border="0"/></a>) is passed without a tax plan, the budget would be 78 percent of the current fiscal 2017 budget, many health programs' funding would be reduced by 25 percent, and state employment would only decrease by about 2,000 employees.

The Alaska Office of Management and Budget has released a report on the state's budget choices if legislative action is not taken to implement a balanced budget, noting that the constitutional budget reserve will be completely depleted by fiscal 2018. If no legislative action is taken, the budget would be one-third of the current fiscal 2017 budget, school funding and local government agency operating budgets would be reduced, many health programs would be shut down, and state employment would decrease by about 12,000 employees. However, if the permanent fund restructure bill (SB 128 ) is passed without a tax plan, the budget would be 78 percent of the current fiscal 2017 budget, many health programs' funding would be reduced by 25 percent, and state employment would only decrease by about 2,000 employees.