BUDGET UPDATE
Governor Walker's New Sustainable Alaska Plan

Dear Friends and Neighbors,

Happy Holidays!

Last week Governor Walker introduced his proposal for the 2017 fiscal year budget.  The “New Sustainable Alaska Plan”, or NSAP, illustrates how he believes the legislature should approach closing the state’s multibillion dollar deficit by 2018.

Governor Walker and his team have done a tremendous job in engaging the people of Alaska in the ongoing conversation about how to address the state’s budget deficit, which has been caused by the sudden drop in oil prices.  The governor’s budget proposal is a responsible approach, but it may not be the best path for Alaskans, especially those in the northern region.

The New Sustainable Alaska Plan includes cuts to government like early education and snow removal, as well as implementing at 1.5% income tax and cap on the Permanent Fund Dividend.  This ambitious budget shifts the burden of paying for state government from the oil and gas industry, to working Alaskans.

The current system of oil tax credits is broken and must be fixed.  Money managers are behind the wheel, with Alaskans seeing little or no return for the state.  It is important that the legislature thoroughly examine the proposed changes in the upcoming 29th Alaska Legislature, which is quickly approaching.