Alaska’s Oil Crisis and the Future of the Permanent Fund

• Main Author: Spurlock, Abigail Brooke
• Format: Others
• Published: Scholarship @ Claremont 2017
• Subjects: Alaska; Permanent Fund; Economy; Oil; Other Economics
• Online Access: http://scholarship.claremont.edu/cmc_theses/1555; http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=2768&context=cmc_theses

Alaska’s state government has long relied on oil revenue as its primary source of funding. In recent years, however, a combination of decreasing oil production and low oil prices has drastically reduced how much revenue Alaska can obtain from taxing oil. As a result, Alaska currently faces severe budget deficits. In order to close this funding gap, there have been numerous proposals for new ways to generate revenue. This thesis analyzes the main proposals, with particular attention given to the role the permanent fund and the permanent fund dividend plays in Alaska’s current funding structure and its future. This thesis concludes by advocating that in the long-term it will be necessary to alter the way the permanent fund functions in order for Alaska to have a sustainable future.