Post on 13-Apr-2017
>AKFUTURE.ORG 1
>AKFUTURE.ORG
Alaska’sFuture
WEARE: AstatewidecoalitionofAlaskans joinedtogether topromoteasolutiontothebudgetdeficitthatthreatens Alaska’sfuture.
WEAGREE: Everyconceivablesolution toAlaska’sbudgetdeficitrequires usingPermanent Fundearningstosupportessentialpublicservices.
OURMISSION: Cultivate thebroadbasedpublicsupportnecessary toconvincetheLegislatureduringthe2016legislative session tousePermanentFundearnings tosignificantlyreduce thedeficit, supportessentialpublicservices and maintainasustainabledividendandahealthy Permanent Fund.
Thisisthefirststeptowardastableeconomicfoundation forAlaska.
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>AKFUTURE.ORG
Alaska’sFutureCo-Chairs
• EleanorAndrews(AndrewsGroup)• VinceBeltrami(AKAFL-CIO)• RonDuncan(GCI)• GovernorTonyKnowles• SophieMinich (CIRI)• SteveFrank(FormerStateSenator)• Helvi Sandvik (NANA)
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>AKFUTURE.ORG
AlaskaOilRevenues
Dependence=Vulnerability
• In197860%ofAlaskaRevenuescamefromoil.
• From2005to2014,oilrevenuesaveraged90%ofGeneralFundrevenues.
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>AKFUTURE.ORG
StatusQuoIsNotSustainable
Evenat$50/Barrel• Constitutional BudgetReserverunsoutbySeptember2018.• WillthenhavetousethePermanent FundEarningsReserve andthe
Permanent FundDividendwillcease.• Shortlythereafterthemoneywillbegone! Thiswillnotonly
jeopardize ourjobs,economy, education,andhealthcare system,itwill jeopardize thePermanentFunditself,and,withit,theprosperityofourchildrenandgrandchildren.
• Beforewerunoutofsavings,thestatewill beinarecession,Wewillhavelowercreditratings,reducedinvestment, joblosses,limited lending, andadepressedhousingmarket.
• Wewon’tbeabletofund thegasline.
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
RisingOilPricesWon’tSaveUs
Pricewouldhavetoriseto$109/barrelforAlaskatobreakeven.
“Wemuststoppretendingthatoilcanpayforeverything.”
– FranUlmer,AlaskaBusinessMonthly,June2015
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>AKFUTURE.ORG
SpendingVastlyExceedsRevenues
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
DeficitsWillQuicklyConsumeSavings
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
DeficitExceedsTwoLargestStateExpenditures
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
NewRevenuesAreHardtoComeBy
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
Ifwedonothing:Savingsaregoneinlessthan30months
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
BudgetCutsAloneDon’tMovetheNeedle
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
Cuts&Revenuesof$500Meachin2016...Don’tDoMuch
$500Million EachinCutsandNewRevenuesAdopted in2016Session
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
EarningsfromthePermanentFund…MakeaDifference
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
EarningsPlusCutsandRevenuesof$500M...GoaLongWay
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
Governor’sPlanClosestheGap
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
WhenDoSavingsReachZero?
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
WeCanKeepaSustainableDividendKeepingthecurrentdividendformulaischoosingtoend thedividendinthreeyears
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
The Price of Inaction in 2016 is Huge
• Burninganother$3-4billionofsavingslimitsoptionswehavetodayto:
– Preserve the Permanent Fund
– Preserve PFD checks
– Fund essential state services going forward
• Nocombinationofcuts/taxes alonewillfillthebudgethole
• Currentlyoutspending revenues bymorethan$300millionpermonth
• Waitingtoactsquanders ourbestopportunitytoensureAlaska’sfutureandprotectAlaskajobs
Source:UAAInstituteofSocial&EconomicResearch,StateofAlaskaDepartmentofRevenue,AnalysisNorth
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>AKFUTURE.ORG
Whatcanyoudo?
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>AKFUTURE.ORG
JoinAlaska’sFuture
• Registeratwww.akfuture.org• Shareinformation• Speakup• SubmitaPermissionSlip
• ACTNOW!
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