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Today, Governor Parnell will release his budget for Fiscal Year 2015.
Parnell is likely to emphasize spending cuts rather than the massive deficit caused by his Oil Giveaway. A careful review of his claims will be warranted. When Governor Parnell presented his last budget (FY 2014), he claimed it would cut spending and produce $500 million in “surplus revenue.” In fact, that budget has a $1 billion dollar deficit, which Parnell attempted to mask with a $374.1 million transfer from the Alaska Housing Finance Corporation.
Governor Parnell has presided over the most significant deterioration of state finances in Alaska history, turning a $5 billion surplus into a $1 billion deficit. Last week, the Department of Revenue revealed that the state will take in $2 billion less revenue in FY 2014 than previously anticipated, while oil production will decline. At this rate, Parnell is poised to draw down all of Alaska’s savings—set aside during the ACES era–within approximately five years. While administering this transition to deficits, Parnell has taken a $26,000 pay raise for himself and has approved of another pay raise this year.
“With his reckless fiscal policies, Parnell puts the Permanent Fund and the entire Alaska economy at risk,” said Mike Wenstrup, Chair of the Alaska Democratic Party. “The only way to clean up Parnell’s fiscal mess is by repealing his Oil Giveaway and electing Byron Mallott.”
Highlights of Gov. Parnell’s Fiscal Disaster: