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Description
The State of Alaska faces persistent budget challenges resulting from declining oil prices and production. Because current major revenue sources—petroleum and the Permanent Fund (POMV)—are not explicitly tied to internal economic activity, there is an "Alaska disconnect" between state growth and public revenue. ISER researchers evaluated 11 primary fiscal options + three variations. These included changes to state spending, broad-based taxes, and business taxes. Nine of these options were selected to match those ISER evaluated in 2016. In addition, ISER modelled two new options related to business taxes. ISER also evaluated three variations of these options. Any options implemented will have impacts on Alaska’s economy and people in both the short and long run. Those impacts include changes in job numbers, income, and the state’s value-added activities. Further, impacts might be felt differently for higher- and lower-income households.
Publication Date
Winter 1-1-2026
Keywords
Alaska state fiscal policy, taxes, Permanent Fund Dividend, economic impacts
Recommended Citation
Watson, Brett, "Alaska's Fiscal Options" (2026). ISER Reports. 1858.
https://scholarworks.alaska.edu/uaa_iser_reports/1858
Comments
The Alaska Department of Revenue provided licensed access to the REMI model. SER’s preparation of this report was supported with funding from the Office of Governor, State of Alaska.