Budget

In 2019, the Alaska economy emerged from a 3-year recession after losing more than 11,000 jobs between 2015 and 2018. The recovery has, however, been modest as employment averaged 0.4% or 1,400 more jobs between January and November 2019 relative to the same period last year.  Oil & Gas and Construction have led this growth as they averaged 510 and 720 more jobs, respectively. It is also important to note that the recovery has been uneven. While we only have borough level data until the month of June, figure 1 shows that a considerable number of boroughs/census areas were still losing jobs as of June 2019.

In this brief, we summarize the state’s unrestricted general fund revenues, agency operations spending, and capital budget spending between fiscal years 1975 and 2021. The severe decline in oil prices in 2015 resulted in a significant revenue decline which has then resulted in spending reductions at both the agency operation level and the capital budget. For fiscal year 2021, capital spending per person will be the third lowest since 1975 and Agency Operations will be the sixth lowest in real dollars.

Want to practice balancing the state budget in a variety of ways? Want to see how a particular strategy might play out? At lunchtime on Tuesday, September 29, we will set up the Balancing-Alaska's-Budget game in the ISER conference room so anyone can try balancing what the state spends and how to pay for it. Alaska Common Ground and ISER unveiled the game at a recent forum on Alaska's fiscal and economic future. It explains our current state budget crisis in a hands-on and understandable way, with a spinning wheel, scales, and blocks. There won't be any formal talk, but Cliff Groh, chair of Alaska Common Ground, and Bob Loeffler, visiting professor of public policy at ISER, will be there to help the players. Please join us.

When: Tuesday, September 29, 12 to 1
Where: 1901 Bragaw Street, third floor, ISER conference room

1901 Bragaw Street is about two blocks from the intersection of Northern Lights Boulevard and Bragaw Street. Parking will be limited, because an area of the parking lot is blocked off for construction. Do not park in the adjacent parking lot for East High School; the school district can have your car towed. Call 907-786-7710 if you have questions.

To help Alaskans better understand the big budget problems the state government faces, the new Balancing-Alaska's-Budget Game will be introduced at a free public forum September 19 at UAA's Wendy Williamson Auditorium. The forum, Alaska's Fiscal and Economic Future, is presented by Alaska Common Ground and ISER and will examine fiscal and economic issues in a number of ways. A group of Alaskans will discuss and defend their own budget proposals, and audience members will have the chance to vote on those proposals. There will also be a debate between two Alaskans with different visions of Alaska's likely economic future, and a panel of policymakers will discuss factors influencing future decisions and how the public can have more of a  say in those decisions.

The game will provide a new way for Alaskans to think about budget issues. Using a spinning wheel, giant scales, and blocks, game players will try to balance what we spend with how we pay for it. Please join us at this interesting and innovative forum.

What: A free public forum, Alaska's Fiscal and Economic Future

Where: UAA's Wendy Williamson Auditorium

When: Saturday September 19, 9 to 4.

Download a program (PDF, 535KB). For more information, go to akcommonground.org.