Post by Logan on Jan 21, 2016 2:11:16 GMT -6
JUNEAU — The Alaska Legislature’s chief budget adviser has added his voice to calls for financial reform, saying in a report to his bosses that the state’s “free ride” of oil revenue has ended and that Gov. Bill Walker’s proposed fix for a $3.8 billion budget deficit “indisputably takes a large step in the right direction.”
In his annual review of Walker’s budget request, released this week, the adviser, David Teal, calls Alaska’s financial system “broken.” Relying on oil revenue to pay the state’s bills won’t work when both prices and production are low, he said.
Using earnings of the Permanent Fund to help pay for government, like Walker has proposed, “is the most painless and sustainable way to fill deficits,” Teal said, even though the state has “pretended” for years that those earnings are “sacrosanct.”
The analysis comes as lawmakers are beginning their dissection of Walker’s budget plan during their annual session in Juneau. Many have been critical of Walker’s proposal, which would reduce Alaskans’ Permanent Fund dividends and create an individual income tax, but Teal’s report offers lawmakers political cover to give more serious consideration to uncomfortable measures like taxes or smaller dividends.
Continued at www.adn.com/article/20160120/budget-expert-lawmakers-free-ride-over .
In his annual review of Walker’s budget request, released this week, the adviser, David Teal, calls Alaska’s financial system “broken.” Relying on oil revenue to pay the state’s bills won’t work when both prices and production are low, he said.
Using earnings of the Permanent Fund to help pay for government, like Walker has proposed, “is the most painless and sustainable way to fill deficits,” Teal said, even though the state has “pretended” for years that those earnings are “sacrosanct.”
The analysis comes as lawmakers are beginning their dissection of Walker’s budget plan during their annual session in Juneau. Many have been critical of Walker’s proposal, which would reduce Alaskans’ Permanent Fund dividends and create an individual income tax, but Teal’s report offers lawmakers political cover to give more serious consideration to uncomfortable measures like taxes or smaller dividends.
Continued at www.adn.com/article/20160120/budget-expert-lawmakers-free-ride-over .