Alaska s Future. during the. This is the first step toward a stable economic founda2on for Alaska. >AKFUTURE.ORG
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2 Alaska s Future WE ARE: WE AGREE: OUR MISSION: during the A statewide coali.on of Alaskans joined together to promote a solu.on to the budget deficit that threatens Alaska s future. Every conceivable solu.on to Alaska s budget deficit requires using Permanent Fund earnings to support essen.al public services. Cul.vate the broad based public support necessary to convince the Legislature 2016 legisla2ve session to use Permanent Fund earnings to significantly reduce the deficit, support essen.al public services and maintain a sustainable dividend and a healthy Permanent Fund. This is the first step toward a stable economic founda2on for Alaska. 2
3 Alaska s Future Co- Chairs Eleanor Andrews (Andrews Group) Vince Beltrami (AK AFL- CIO) Ron Duncan (GCI) Governor Tony Knowles Sophie Minich (CIRI) Steve Frank (Former State Senator) Helvi Sandvik (NANA) 3
4 Alaska Oil Revenues Dependence = Vulnerability In % of Alaska Revenues came from oil. From 2005 to 2014, oil revenues averaged 90% of General Fund revenues. 4
5 Status Quo Is Not Sustainable Even at $50/Barrel ConsRtuRonal Budget Reserve runs out by September Will then have to use the Permanent Fund Earnings Reserve and the Permanent Fund Dividend will cease. Shortly thereaxer the money will be gone! This will not only jeopardize our jobs, economy, educa.on, and healthcare system, it will jeopardize the Permanent Fund itself, and, with it, the prosperity of our children and grandchildren. Before we run out of savings, the state will be in a recession, We will have lower credit ra.ngs, reduced investment, job losses, limited lending, and a depressed housing market. We won t be able to fund the gas line. 5
6 Rising Oil Prices Won t Save Us Price would have to rise to $109/barrel for Alaska to break even. We must stop pretending that oil can pay for everything. Fran Ulmer, Alaska Business Monthly, June
7 Spending Vastly Exceeds Revenues 7
8 Deficits Will Quickly Consume Savings 8
9 Deficit Exceeds Two Largest State Expenditures 9
10 New Revenues Are Hard to Come By 10
11 If we do nothing: Savings are gone in less than 30 months 11
12 Budget Cuts Alone Don t Move the Needle 12
13 Cuts & Revenues of $500M each in Don t Do Much $500 Million Each in Cuts and New Revenues Adopted in 2016 Session 13
14 Earnings from the Permanent Fund Make a Difference 14
15 Earnings Plus Cuts and Revenues of $500M... Go a Long Way 15
16 Governor s Plan Closes the Gap 16
17 When Do Savings Reach Zero? 17
18 We Can Keep a Sustainable Dividend Keeping the current dividend formula is choosing to end the dividend in three years 18
19 The Price of Inaction in 2016 is Huge Burning another $3-4 billion of savings limits op.ons we have today to: Preserve the Permanent Fund Preserve PFD checks Fund essential state services going forward No combina.on of cuts/taxes alone will fill the budget hole Currently outspending revenues by more than $300 million per month Wai.ng to act squanders our best opportunity to ensure Alaska s future and protect Alaska jobs 19
20 What can you do? 20
21 Join Alaska s Future Register at Share informa.on Speak up Submit a Permission Slip ACT NOW! 21
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