Will it be Alaska's least appreciated legislation?
Northern Gas Pipelines
A state that has an unpredictable tax and spend policy is not attractive to investors--so said the ant to the grasshopper.
Today, Alaska is deficit spending, while:
- it considers when it will be able to pay tax credits owed to investors, and
- it continues to spend millions on a non-competitive LNG project, and
- the credit rating agencies are looking for signs of prudence and sustainable government budgeting, and
- it has a history of wanting to keep government programs and positions whole at the expense of the private sector.
While its fiscal challenges are many, it has the tools to balance its budget. Most lawmakers seem dedicated to doing that this session.
A bright light of budget predictability leading to investor confidence is the introduction last Friday of an amendment to Alaska's weak Constitutional spending limit. If an effective spending lid passed, new confidence in future investments could significantly brighten Alaska's outlook.
Read about Alaska's 35-year history in attempting to control spending. You won't find these links anywhere else.