The State of Alaska faces persistent budget challenges resulting from declining oil prices and production. Because current major revenue sources—petroleum and the Permanent Fund (POMV)—are not explicitly tied to internal economic activity, there is an "Alaska disconnect" between state growth and public revenue.
ISER researchers evaluated 11 primary fiscal options + three variations. These included changes to state spending, broad based taxes, and businesses taxes. Nine of these options were selected to match those ISER evaluated in 2016. In addition, ISER modelled two new options related to business taxes. ISER also evaluated three variations of these options.
Any options implemented will have impacts on the Alaska’s economy and people both in the short and long run. Those impacts include changes in the number of jobs, income, and the state’s value added activities. Further, impacts might be felt differently for higher and lower income households.