Alaska’s state government could spend $4.5 billion for general expenses this year and every year long into the future, without depleting the state’s petroleum assets. That’s the most recent estimate of sustainable General Fund spending by Scott Goldsmith, professor emeritus of economics at ISER. He began estimating that sustainable spending level in 2012, adjusting it annually with changes in the size of state petroleum assets. He currently estimates those assets (consisting of savings accounts and expected revenues from future petroleum production) at $135 billion.
Download Dr. Goldsmith’s entire paper, Maximum Sustainable Yield: FY 2016 Update and Model (Web Note No. 19) (PDF, 567.9KB). If you have questions, get in touch with Scott Goldsmith at 907-786-7720 or osgoldsmith@Alaska.edu.
ISER publications are solely the work of individual authors and should be attributed to them, not to ISER, the University of Alaska Anchorage, or the research sponsors.