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    Economic Impacts of the Vetoes on the Alaska Economy

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    Author
    Guettabi, Mouhcine
    Klouda, Nolan
    Keyword
    economy
    fiscal policy
    Metadata
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    URI
    http://hdl.handle.net/11122/11098
    Abstract
    On June 28, 2019 Governor Mike Dunleavy announced line-item vetoes totaling $409 million from the State of Alaska budget for Fiscal Year 2020. These vetoes include significant cuts to the University of Alaska, Medicaid, payments to local governments, public assistance programs, state personnel headcounts, and numerous other categories. The full consequences of these cuts on the state economy, fiscal health, population, and policy outcomes will take years to develop. In this paper, we provide the short term impacts of the cuts, how they interact with the current state of the economy, and a descriptive outlook of the some of the future effects. We find the cuts will result in more than 4,000 jobs lost in the short run and will therefore return the Alaska economy into recession. While the short term losses represent a considerable negative shock to the economy, the consequences of these cuts on long term development could be even more pronounced.
    Date
    7/8/2019
    Publisher
    Institute of Social and Economic Research, University of Alaska Anchorage
    Type
    Report
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