![Page 1: Handout from SB 21 Debate with Dr. Steve Haycox (3.28.2014)](https://reader036.vdocument.in/reader036/viewer/2022080210/554d69dcb4c905f6388b5674/html5/thumbnails/1.jpg)
“Right now, the state is on a path it can’t sustain. … Reasonable assumptions … suggest we do not have enough cash in reserves to avoid a severe fiscal crunch soon after 2023, and with that fiscal crisis will come an economic crash.” (Analysis based on revenue projections under ACES)
“What can the state do to avoid a major fiscal and economic crisis? The answer is to save more and restrict the rate of spending growth. All revenues above the sustainable spending level of $5.5 … would be channeled into savings.”
The problem But a large part of the problem is spending
“… institution of a broad based tax, and use of a portion of the earnings of the Permanent Fund”
Source: University of Alaska‐Anchorage, Institute of Social and Economic ResearchMaximum Sustainable Yield: FY 2014 Update Web Note No. 14 • January 2013
Alaska’s Current Fiscal Situation
![Page 2: Handout from SB 21 Debate with Dr. Steve Haycox (3.28.2014)](https://reader036.vdocument.in/reader036/viewer/2022080210/554d69dcb4c905f6388b5674/html5/thumbnails/2.jpg)
Alternative revenue futuresOil Decline Curves Net Present Value
Source: Testimony of Barry Pulliam, Econ One, before House Finance Committee, April 9‐10, 2013.