Alaska state budget (2009-2010)
The steep decline in oil prices, the state’s dominant source of revenue, ended their historical annual surplus requiring dipping into its special reserve fund of approximately $8 billion.[1] The Alaskan oil forecast for FY09 was 0.689 mbd at $65.70 per barrel; the FY2010 forecast was 0.655 mbd at $58.29/bbl.[2]
Alaska revised surplus projections for fiscal year 2009 and faced a $360 million budget deficit.[3] Fiscal year 2009 budget revenue was $5.87 billion and fiscal year 2010 enacted budget revenue is $3.21 billion, a 45.3% decrease from 2009.[4]
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[edit] Budget Background
Alaska does not have a state income tax or statewide sales tax. 82% of Alaska’s estimated state revenues for 2010 are from oil taxes, royalties and fees.[5] Alaska has the lowest tax burden of all 50 states.[6]
Alaska's fiscal year runs from July 1 to June 30 of the following year, with year-end accruals made through August. Every state agency submits requests and statistics on the revenue and spending before the Governor releases a recommended budget to the Legislature by December 15. The Legislature convenes on the third Tuesday in January. Once the House and the Senate approve and make any necessary changes to the budget bill, the bill is passed back to the Governor. If an appropriation bill is transmitted to the governor after session, the governor has 20 days to review the bill and exercise line item veto power.[7]
See Alaska state budget (2008-2009) for more information.
[edit] Accounting Principles
Article IX, Section 14 of the Alaska State Constitution provides that "The legislature shall appoint an auditor to serve at its pleasure. He shall be a certified public accountant. The Auditor shall conduct post-audits as prescribed by law and shall report to the legislature and to the governor.”[8]
The Legislative Budget and Audit Committee is responsible for overseeing the Division of Legislative Audit. The Committee is composed of five members from the Senate and five members from the House of Representatives.[9]
Audits are performed by the Division of Legislative Audit in order to ensure that Alaska state administrators comply with financial regulations and adequately manage their state programs and are published on their Web site. Pat K. Davidson has served as Legislative Auditor since 1997.[9]
| Credit Rating | Fitch | Moody's | S&P |
| Alaska[10] | AA | Aa2 | AA+ |
The Institute for Truth in Accounting (IFTA) rates Alaska “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Alaska’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[11] Alaska’s Department of Administration, Division of Finance is responsible for filing the CAFR, which are published on their Web site. Kim Garnero is Division Director.[12]
[edit] Budget transparency
Alaska currently has partial transparency, because of its Checkbook Register Online.
- See also: Evaluation of Alaska state website or sample transparency legislation at the Sunshine Standard
[edit] Economic Stimulus Transparency
- The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[13]
- It is estimated that Alaska will receive approximately $930.7 million from the economic stimulus package.
- The economic recovery website for Alaska is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[14][15]
In Alaska, the ARRP shows it sent money to 13 fictitious Districts, though it only has the at-large, 00 District.[16]
[edit] Independent transparency sites
None.
[edit] See Also
[edit] External links
[edit] Additional reading
- State of Alaska,"Gov. Sean Parnell - State of the State Address 2010," January 20, 2010
- News Miner,"House committee to address state’s long-term financial future," January 20, 2010
- Gov. Sarah Palin,"2009 State of the state address," January 22,2009
- Fairbanks Daily News-Miner,"Alaska Legislature considers uncoupling oil and natural gas taxes to boost state revenue," March 13,2009
[edit] References
- ↑ Alaska Journal of Commerce, “Parnell says he'll tackle state budget planning with care,” September 18, 2009
- ↑ Alaska FY 2010 Budget, August 18, 2009
- ↑ Center on Budget & Policy Priorities, “New Fiscal Year Brings No Relief From Unprecedented State Budget Problems,” September 3, 2009
- ↑ Alaska FY 2010 Budget, August 18, 2009
- ↑ Reuters, “Alaska sees $1.25 billion budget gap on oil price drop,” February 19, 2009
- ↑ Tax Foundation "Monday Maps: State and Local Tax Burdens vs. State Tax Collections" May 2010
- ↑ State of Alaska, "Life cycle of a budget," retrieved October 7,2009 (PPT)
- ↑ Alaska Division of Legislative Audit Web site, retrieved October 7, 2009
- ↑ 9.0 9.1 Legislative Budget & Audit Committee Web site, retrieved October 7, 2009
- ↑ California State Treasurer, “Comparison of Other States’ General Obligation Bond Ratings”
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ Alaska Division of Finance Web site, retrieved October 7, 2009
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Alaska, Watchdog.org, November 17, 2009
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