ISER Research Matters No. 51: How Much Should Alaska Save?
ISER Research Matters is our effort to quickly let Alaskans know about research findings from the Institute of Social and Economic Research (ISER), at the University of Alaska Anchorage.
Research Matters No. 51.
How Much Should Alaska Save?
February 15, 2011
How much of current petroleum revenues can Alaska afford to spend today and still ensure a strong fiscal future, in light of falling petroleum production? A new analysis by Scott Goldsmith, professor of economics at ISER, suggests one way to think about this important question. It offers an answer based on the current value of our financial assets and future projected petroleum revenues, using the most recent Alaska Department of Revenue forecast. The study finds:
• The state could spend as much as $5 billion annually from petroleum wealth and still conserve the value of that wealth for future generations.
• But the state is spending more than $5 billion per year, so we are gradually eroding the value of our petroleum wealth-and passing a fiscal burden on to future generations of Alaskans.
Web Note 7: How Much Should Alaska Save? - http://www.iser.uaa.alaska.edu/Publications/webnote/webnote7.pdf
For questions, e-mail (firstname.lastname@example.org) or call (907-786-7720) Scott Goldsmith
Watch for future ISER web notes addressing other Alaska economic and fiscal issues, funded by a grant from Northrim Bank.