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Public Statements

Governor Proposes 5-Year Fiscal Plan


Location: Juneau, AK

Governor Sean Parnell today proposed a 5-year fiscal plan to manage Alaska's reserve funds wisely and limit government spending. The governor also proposed a spending cap of $6.78 billion for fiscal year 2014. The governor's spending limit reflects a 15 percent decrease from the current fiscal year.

"Our 5-year fiscal plan ensures that as revenues decline, Alaska's budget reserves aren't depleted and that we act in the long-term best interests of Alaskans," Governor Sean Parnell said. "Much like Alaska's families manage their household budgets and spend less when they take in less, the State must spend less when its revenues decrease.

"Throughout this session, I have worked regularly with legislative leadership to reduce state government spending, and asked them to work with me on a 5-year fiscal plan. Those discussions have been productive. We all agree that decreased oil production means lower revenues for the State, but with a competitive tax climate we expect new production to come online. We will be responsible with the people's money and prudently manage budget reserves until the Trans-Alaska Pipeline System is moving more oil.

"We remain committed to stepping down the levels of spending over the next five years as we drive economic growth and opportunity for Alaskans through lower taxes and a more streamlined regulatory policy."

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