During the 1980s Alaska's state and local governments spent two to three times more per capita than governments in other states but taxed individuals and businesses only about half as much. They were able to do this because high petroleum revenues paid most government expenses. Petroleum revenues began declining in the 1980s, and by the year 2000,…

Alaska faces a problem that is easy to explain but hard to solve: state government is spending more than it collects. The budget crisis looms because oil production, which supplies 85% of the state's general fund revenues, will soon begin to fall as the Prudhoe Bay oil field is depleted. This paper examines the potential deficit and the effect it…

Providing a basis to help Alaskans determine future spending levels and priorities, this report traces how the state spent more than $26 billion in general funds from fiscal years 1981 through 1986 before oil prices crashed and brought state revenues tumbling down with them. Figures indicate that cumulative general fund expenditures over the…