Last week I heard one person ask another what their definition is of a “fiscal plan.” As more people begin to realize the state’s fiscal situation, I anticipate we will hear the term more.
One entity defines a “fiscal plan” as “[a]n outline of the government’s revenue and expense projections.” In Alaska, however, that definition is only partially complete. There are two other elements that I believe are important to a complete defintion here. One is is achieving a balance between revenues and expenses. The second is long term. Put together, a fiscal plan is “[a]n outline of the government’s long term revenue and expense projections, designed to achieve balance.” Continue reading
The Next in the Alaska Business Monthly series: “Oil Reform Requires Fiscal Reform” (from the September 2012 Alaska Business Monthly)
Most Alaskans are familiar with efforts by Governor Parnell the last two years to reform Alaska’s current oil tax structure. The most recent effort ended earlier this year, when the Governor withdrew the revised oil tax reform bill that he had submitted at the beginning of the special legislative session.
What many are not aware of is something that happened at the end of the special session, immediately before the Governor withdrew the bill.
The Office of Management and Budget is the state agency responsible for preparing and administering the state budget. In an appearance before the House Resources Committee, the head of OMB, Karen Rehfeld, testified that if the Governor’s tax reform bill passed, the reduction in revenues could cause the state budget, which otherwise was projected by OMB to run a surplus for several more years, to turn to a deficit virtually immediately. Continue reading →
Share this:
Like this:
1 Comment
Posted in Published Commentaries, The Monthly Lead/Alaska Business Monthly, Thought Pieces