ERIC Number: ED329392
Record Type: RIE
Publication Date: 1990-Oct
Reference Count: 0
Alaska's Dependence on State Spending. ISER Fiscal Policy Papers, No. 5.
Goldsmith, Scott; And Others
Alaska will face a large fiscal gap and growing budget deficits in the near future. The timing of such fiscal gap open hinges on the joint effect of state budget growth and the oil price change. This paper explains Alaska's dependence on state spending and offers policy options addressing the fiscal gap. State spending: (1) supports nearly one in two local government jobs (including school district jobs); (2) supports more than one in four private sector jobs; (3) accounts directly or indirectly for nearly one in three of all jobs; and (4) accounts for three dollars in ten dollars of all personal income. State cash payments to individuals or state payments under medical aid programs are financed by 1 out of every 13 dollars of personal income. State spending effects regions of Alaska differently; however, the Southeast and Rural Interior are particularly dependent upon state spending for economic activity. Policy options addressing the fiscal gap are described in terms of job effects, income effects, and public spending effects. Options are proposed for dealing with the problem, namely: (1) across-the-board cuts; (2) reduce employee costs; (3) income tax; (4) increase return on Permanent Fund; (5) use dividends in general fund; (6) combine sustainable options; (7) no inflation proofing. This paper contains numerous tables, graphs, and charts. (KS)
Descriptors: Economic Factors, Finance Reform, Financial Policy, Financial Problems, Fiscal Capacity, Income, State Aid, State Government, Taxes
University of Alaska Anchorage, Institute of Social and Economic Research, 3211 Providence Drive, Anchorage, AK 99508.
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: ARCO Alaska, Anchorage.
Authoring Institution: Alaska Univ., Anchorage. Inst. of Social and Economic Research.
Note: Gray paper and shaded graphs may affect reproducibility.