• Simple Fiscal Outlook Model for Rural Alaska Communities

      Colt, Steve (Institute of Social and Economic Research, University of Alaska., 1999)
      The Northwest Arctic Borough (NAB) faces a growing population and increased demands for education and public services. At the request of the Assembly, I have prepared a fiscal planning model that can be used to explore what might happen to the Borough's revenues and expenses over the next 20 years. The model looks at both general government and the NAB School District (NABSD). The model allows us to ask "what if....?" questions and get quick answers about how things might change. These cases demonstrate that if the Borough issues new debt that is considered to be "in lieu" of existing cash contributions to the School District for deferred maintenance, then it can cause a large decrease in foundation funding to the School District and would require significant additional school budget cuts. (The case presented already assumes continual tightening of the instruction budget.) Obviously there are variations on the assumptions presented here for Case 3 (new bonds) that would improve the foundation funding amounts. However the overall picture that seems to emerge is that without a continuation of local revenues passed through to the School District, the new bonds are not fiscally sustainable.