Alaskan Budget Choices: Insights from 2,008 Residents
An insightful report captures the responses of 2,008 Alaskans on budget choices, outlining geographic distribution, spending priorities, and perspectives on Permanent Fund Dividend spending. Key findings include preferences for maintaining current funding in certain sectors and varied opinions on the Permanent Fund Dividend allocation strategy.
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Budget Choices-- What Alaskans are Saying Report on Responses from 2,008 Alaskans Report to CWN Fiscal Policy Study Group April 16, 2021 Cheryl Frasca, Co-Chair 1
About the Responses About the Responses GEOGRAPHIC DISTRIBUTION OF 2,008 RESPONSES Other Areas 14% Anchorage 41% Southeast Alaska 21% Mat-Su 6% Kenai Peninsula 5% Fairbanks/North Pole 13% 2
Spending Choices . . . Spending Choices . . . Maintain current funding Early learning Medicaid Senior Benefits and Pioneer Homes Mental Health & Substance Misuse and Children s Services Public Safety Prosecutors & Public Defenders and Court System Fish and Game and Natural Resource Management Reduce funding Governor s office Legislature 3
More Spending Choices . . . More Spending Choices . . . K-12 funding 31% said maintain current funding 35% said to increase 35% said to decrease University 39% proceed with planned $20 million cut 35% said reinstate some of the cuts 25% maintain current funding Transportation 31% Transition ferry to self-sustaining model 29% maintain current funding 4
Spending Choice: Permanent Fund Dividend Spending Choice: Permanent Fund Dividend Use statutory formula Spend $1.2 billion Pay last 3 years of dividends Spend $2.2 billion Pay out same amount next year No change Suspend dividends for now Save $680 million 5
What Alaskans Are Saying . . . Spending: Permanent Fund Dividend Responses in Percentage % 50 47 44 44 45 42 41 40 35 34 34 35 33 31 29 30 27 27 26 25 23 23 22 20 16 16 15 15 14 15 12 12 11 11 10 10 6 5 0 All Anchorage Fairbanks/North Pole Kenai Peninsula Mat-Su Southeast Alaska All Others Use statutory formula to pay dividend Pay last 3 years of dividends Pay out same amount next year; no change Suspend dividends until State can afford 6
Revenue Choices . . . Revenue Choices . . . Maintain current tax structure Corporate income, commercial fisheries taxes OK with varying level of increase Mining license Oil and gas production Excise Fuel OK with a lottery 39% said no Combined 61% okay with various forms of games Also asked about: Income tax Sales tax Permanent Fund earnings 44% maintain; 55% ok with varied increases 43% maintain; 58% ok with varied increases 39% maintain; 61% ok with varied increases 41% maintain; 59% ok with varied increases 7
Revenue Choice: Income Tax Revenue Choice: Income Tax 2% flat tax no exemptions + $440 million 4% flat tax no exemptions + $880 million 10% progressive tax + $350 million 20% progressive tax + $700 million No income tax No additional revenue 8
What Alaskans Are Saying . . . Revenue: Income Tax Responses in Percentage % 60 57 54 54 50 48 47 45 43 40 30 26 24 21 21 20 20 18 18 16 15 14 13 13 12 12 12 11 11 10 9 9 9 10 8 8 6 5 4 3 2 0 All Anchorage Fairbanks/North Pole Kenai Peninsula Mat-Su Southeast Alaska All Others 9 2% flat tax 4% flat tax 10% Progressive tax 20% progressive tax No Income tax
Revenue Choice: State Sales Tax Revenue Choice: State Sales Tax 1% sales tax + $250 million 2% sales tax + $500 million 4% sales tax + $1 billion 6% sales tax + 1.5 billion No sales tax No additional revenue 10
What Alaskans Are Saying . . . Revenue: Sales Tax Responses in Percentage % 60 55 52 50 44 43 40 40 38 37 33 30 27 24 20 20 20 19 19 19 20 18 17 16 15 13 13 11 11 10 10 9 10 8 7 7 6 6 5 4 1 0 All Anchorage Fairbanks/North Pole Kenai Peninsula Mat-Su Southeast Alaska All Others 11 1% sales tax 2% sales tax 4% sales tax 6% sales tax No sales tax
Revenue Choice: Permanent Fund Earnings Revenue Choice: Permanent Fund Earnings Take additional 0.5% + $300 million Take additional 1% + $600 million Take additional 1.5% + $900 million Follow existing payout formula No additional revenue 12
What Alaskans Are Saying . . . Revenue: Permanent Fund Earnings Payout Formula Responses in Percentage % 80 68 70 67 59 58 60 56 54 51 50 40 30 22 19 19 19 20 17 17 16 14 14 14 14 13 13 12 11 11 11 11 9 10 7 7 0 All Anchorage Fairbanks/North Pole Kenai Peninsula Mat-Su Southeast Alaska All Others Take additional 0.5% of earnings Take additional 1% of earnings Take additional 1.5% of earnings Follow the existing payout formula 13
