The House Finance Committee was shown a sobering demonstration of the state’s budget outlook today.
Legislative Finance Division Director David Teal depicted economic impacts worse than those saw in Alaska’s 1980’s crash based on cuts needed for a sustainable state budget.
In his interactive presentation Teal showed a variety of scenarios, including oil prices, budget cuts, and sizable new taxes to be imposed on Alaskans, and how those scenarios would impact budget and reserves.
House Finance Committee co-chair Steve Thompson said the alternatives looked at should not be seen as ideas that were advocated and Teal acknowledge his model is not predictive.
The presentation did showcase the challenge of tackling the state’s projected multibillion-dollar deficit and how Alaska’s constitutional budget reserve could be depleted in a couple years.