Alaskanomics's Blog Focusing on Alaska's Future- Governor Parnell's Proposed FY15 Budget
Governor Sean Parnell discussed his FY15 budget proposal at this afternoon’s Anchorage Chamber of Commerce luncheon. The Governor outlined his plan to reduce State spending and reduce the burden of the unfunded pension liability payments by making an investment this next fiscal year. There were four guiding principles that were helped shape the Governor’s proposed budget. They are to live within our means, budget for priorities, fix what we’ve got, and finish what we’ve started.
It is no secret that the largest revenue source for the State of Alaska is oil revenue and with the new tax structure, there is more revenue being brought into the system than there would have been under ACES. Governor Parnell stated that Alaska must do as any household must, and live within its means. This is not only important for the current budget, but we must look to the future and make sure that we are not simply pushing our problems to our children and grandchild to solve. The Governor proposes transferring $3 billion from a budget savings account into the state’s retirement trust funds. This will pay down the debt and lower the annual payment for the state, resulting in over $2.1 billion in savings by the year 2036.
The priorities in the Governor’s proposed budget are education, resources and energy, public safety, transportation and infrastructure, and military support. A few highlights include, fully funding and forward funding K-12 education and pupil transportation, increased number of VPSOs, Troopers and investigators, fixing schools, roads and infrastructure, and deferred maintenance. Governor Parnell stressed the importance of strategic investments in Alaska’s future, especially when it comes to resources and energy, infrastructure, education, and public safety.
Governor Parnell thanked the state departments and commissioners for doing a good job at reducing state spending and working within the budgets that they are given. He concluded his presentation noting that he was incredibly optimistic for Alaska’s future. The economy is growing and our fiscal future is solid. The Governor also believed that the state has a unique opportunity to work together to do what is right for Alaskans.
For more information about the Governor’s proposed budget, visit http://gov.alaska.gov/parnell/