It’s coming

The next legislative session, depending on who is elected to office next month, likely will devolve into a knock-down-drag-out affair over the budget. For Alaska, the wolf is at the door in a fiscal sense.

Alaska House of Representatives Speaker Bryce Edgmon underscored that when he warned the Alaska Federation of Natives annual convention of the upcoming budget battles.

“We have arrived at the proverbial crossroads,” Edgmon told attendees.

The state’s savings accounts have been depleted, oil prices remain low and the state is facing increased fiscal challenges.

A full, statutory Permanent Fund dividend – and a flat budget – would leave the state $2.4 billion in the red.

There are pots of money that could be raided, such as the $1 billion Power Cost Equalization fund, or perhaps lawmakers will levy a variety of taxes, but whatever they do, there surely will be a fight.

It is something to begin thinking about now, with January a few months away. In the meantime, we are left to wonder who in their right mind would want to run for office nowadays. The days of saying “yes” in government are long over.

One Response to It’s coming

  1. Marlin Savage October 16, 2020 at 12:14 pm

    https://www.activistpost.com/2020/10/us-budget-deficit-triples-to-record-3-1-trillion-in-2020-as-us-spends-90-more-than-it-collects.html

    And the Federal Government leads the way:

    US Budget Deficit Triples To Record $3.1 Trillion In 2020 As US Spends 90% More Than It Collects

    Fiscal 2020 which ended on Sept 30, the US spent $6.552 trillion and collected just $3.420 trillion, which also means that outlays were a record $3.1 trillion, 91% higher than receipts, which also includes the $9.7BN received last month and $81.9BN YTD in deposits of earnings by the Fed.

    Reply

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