Financial Assistance
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The Fiscal Gap

Economists and others have been predicting for many years that state finances have been too dependent on declining petroleum revenues. Several conferences and forums held during the 1990s focused on this problem and possible solutions. For a long time, however, little progress was made in dealing with this problem, mostly because oil revenues have been larger than predicted. Time now appears to be running out, and Alaskans are increasingly aware of the need to get state finances on firm ground.

• What is it? —A summary of the problem.
• New Revenues —How powerful is our unused tax base?
• Principles —Rules for comparing different plans to close the fiscal gap.
• A Generic Fiscal Plan — A possible road map for a solution.
• Other Proposals— Major plans suggested in prior years.
• Bogus Solutions —A list of suggestions that won't work.

Fiscal Policy Papers