These articles were written as a public service as part of an effort to educate Alaskans on the financial matters facing our State.
A barrel of Alaska North Slope (ANS) crude oil was selling for $22.47 at the time this article was written. That’s down 67% from the beginning of the year. In terms of the state’s royalty oil, that price swing represents a reduction of almost $3 million per day. For the producers, it means that they[…]
Alaska is blessed with natural beauty and natural resources. In many ways, our State is the envy of governments around the world. People from outside spend thousands of dollars to enjoy what we see every day. Meanwhile, we pay no income or sales tax, plus receive a dividend check each year. Unfortunately, that last sentence[…]
March was a crazy month. It’s almost unbelievable how quickly the world changed in response to the COVID-19 pandemic. Here are some quick highlights about how Alaska’s finances and economy were impacted by the pandemic. The Stock Market Collapsed March began with the Dow at 26,703. By the end of the month, it was down[…]
At this point, you’ve probably heard more about the COVID-19 than you can stand. I feel you. And I don’t want to pile on to the discussion about the disease itself. But, the measures to protect public health will have economic consequences. While doing a full analysis of that economic damage is more work than[…]
Welcome to this month’s round-up of what happened in Alaska’s finances. It was a tough month for oil and equities, mostly due to the panic around the novel coronavirus. That’s making our already difficult financial situation even more challenging. The Permanent Fund Gave Back Its Earnings The Alaska Permanent Fund Corporation website reports total asset[…]
Around the globe, there are two basic systems governing the ownership of oil. In the first, resources are owned and controlled by the government. In the second, personal property rights extend all the way down to the core. The difference between the treatment of subsurface mineral ownership has far reaching implications. And, Alaska finds itself[…]
The Department of Revenue puts out a forecast of state revenues each December, which serves as a companion to the budget. The latest numbers are a few months old now, and an update should be released next month. However, the Spring update usually focuses more on adjusting the budget year than the long-term outlook. The[…]
Many Alaskans have probably heard something about the oil tax initiative called the “Fair Share Act.” You may have been asked to sign a petition while shopping, or you may have read something about it in one of the media outlets. You are likely to see it on the ballot when you vote this November.[…]
Here is your monthly update on some of the things that impacted Alaska’s finances and economy. The Legislature Gaveled In on January 21st The primary responsibility of the legislature is to appropriate the money needed to run the state government. Unlike last year, the House Finance Committee got right to work. The subcommittees are currently[…]
I wrote a piece a few weeks back about how Alaska’s current investment earnings laws don’t work together. They create a paradox in which the budget deficit gets smaller if investment earnings get worse. In the extreme, we could balance the budget by losing $7 billion in the stock market. Because that makes absolutely no[…]