ANCHORAGE, Alaska — Alaska Policy Forum (APF) issued the following statement in response to today’s release of the Governor of Alaska’s proposed fiscal year 2021 state budget:
“Last week, the Department of Revenue – Tax Division published a fiscal year 2021 unrestricted revenue forecast of $2.0 billion. Today, the Governor has released his proposed budget for next year, which totals $4.532 billion in unrestricted general fund spending. The huge gap between revenue and expenditures underlines our state’s need for a constitutional amendment to cap spending.
Maintaining this level of spending for another year while revenues continue to wane is irresponsible and unsustainable. The Governor’s proposal relies on drawing down the Constitutional Budget Reserve Fund by nearly three-quarters, leaving just $542 million for future years.
If this budget stands, there will be no funding reserves left to offset the difference between revenue and expenditures. We look to the Legislature and Governor to identify and execute responsible, sustainable reductions to the budget.
If we want to see Alaska flourish, we must allow the private sector to grow by cutting government spending to provide economic stability for job creators. Alaskans—both individuals and families—are expected to keep their spending in line with their incomes; the government must be held to the same standard.”
— Melodie Wilterdink, Associate Director at Alaska Policy Forum
Alaska Policy Forum (APF) is a 501(c)(3) nonprofit think tank dedicated to empowering and educating Alaskans and policymakers by promoting policies that grow freedom for all. APF does not accept any form of government funding. To learn more about APF, visit www.AlaskaPolicyForum.org.