Now that the 2020 #AKelect is Over ...
Open on
November 4, 2020
… What the Winners Should Know

10 -Year Outlook is bleak ...
● Under current law,
FY22 deficit equals
$2.4 billion (50% of
projected spending)
● Cumulative deficit
FY22-29 equals $18.5
billion (average $2.3
billion/yr)
● The “rainy day
savings” are gone

Will require a broad, “all the above” solution ...
● Even a 15% ($700
million) spending cut
still leaves a $1.7
billion deficit
● Even implementing
Gov. Dunleavy’s
2019 plan ($1 billion
in combined cuts +
diverted revenues)
still leaves a $1.4
billion deficit

A “glide path” approach taxes future gens ...
A 5% per year glide path (using the ERA to
fill) ...
… results in a $7.5 billion reduction in the
future Permanent Fund investment base.

Distributional effects are critical ...
● Who pays is critical
● Impacts economic
effect: using PFD cuts
have the “largest
adverse impact” on
the overall economy
(ISER 2016)
● Impacts equity: why
should mid & lower
income Alaska
families bear more of
the burden