Anchorage Chamber of Commerce Fall 2014 Revenue Forecast Discussion

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Presentation transcript:

Anchorage Chamber of Commerce Fall 2014 Revenue Forecast Discussion Alaska Department of Revenue December 15, 2014

Revenue Categories 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

FY 2014 Total State Revenue, by restriction and type 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

Rethinking Oil Price Forecast for Last Half of FY 2015 Actual Estimate

Recommended ANS Revenue Forecast Prices FY 2015 & FY 2016 are from an internal DOR probabilistic pricing model. FY 2017 and beyond are from the Fall 2014 price forecast session held on October 7, 2014.

ANS Oil Production Forecast 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

Unrestricted Revenues and Budget 2015-2024 Using proposed Fall 2014 Revenue forecast   2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ANS WC Oil Price ($/bbl) 76.31 66.03 93.18 102.81 112.00 117.36 121.14 123.87 129.04 134.39 Total ANS Production (State + Federal) (MMbbls/day) 509.5 524.1 534.1 503.5 473.2 435.8 400.4 368.5 342.9 314.7 Deductible Lease Expenditures ($ millions) 7,049 7,273 7,096 6,569 6,087 5,734 5,654 5,291 4,959 4,642 General Fund Unrestricted Revenues ($ millions) 2,551 2,197 3,657 4,292 4,808 4,853 4,628 4,556 4,548 4,473 General Fund Expenditure from OMB ($ millions)* 6,106 5,684 5,600 Budget Surplus/Deficit ($ millions)* (3,533) (3,487) (1,943) (1,308) (792) (747) (972) (1,044) (1,052) (1,127) Source: Department of Revenue - Revenue Sources Book Fall 2014; preliminary FY 2016 10-year plan * Expenditure and surplus / deficit information are based on preliminary FY 2016 10-year plan numbers. FY 2015 surplus / deficit calculation includes $21.5 million in carry-forward revenue. Budget estimates subject to revision. 7

Depletion of Savings Accounts Fall 2014 Revenue Forecast ($ millions) Source: Department of Revenue - Revenue Sources Book Fall 2014; preliminary FY 2016 10-year plan * Expenditure and surplus / deficit information are based on preliminary FY 2016 10-year plan numbers. FY 2015 surplus / deficit calculation includes $21.5 million in carry-forward revenue. Budget estimates subject to revision. 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

FY 2015-2017 General Fund Unrestricted Revenue, with Price Sensitivity 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

Questions? 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

Alaska North Slope Crude West Coast Price 12/31/2018 3:24 AM AKSTATECS\2009.03.06 Rating Presentation\AK Financial Update March 6 2009_v2.ppt

Total Revenue Forecast – FY 2015 & 2016 ($ millions) Actual Fall 2014 Forecast Revenue Type FY 2014 FY 2015 FY 2016 Unrestricted General Fund Oil Revenue 4,755.3 2,019.2 1,636.1 Non-Oil Revenue* 508.5 502.3 528.2 Investment Revenue 130.2 30.0 32.4 Total Unrestricted Revenue 5,394.0 2,551.5 2,196.7 Designated General Fund 289.6 323.1 322.1 66.3 20.4 35.8 Subtotal 355.9 343.5 357.9 Other Restricted Revenue Oil Revenue (Restricted royalties, CBRF settlements, etc) 927.6 512.9 465.6 Non-Oil Revenue (Taxes, licenses, fines, etc)* 183.9 229.2 230.4 Investment Revenue (Permanent Fund, CBRF, etc) 7,861.4 3,322.2 3,549.8 8,972.9 4,064.3 4,245.8 Federal Revenue 6.8 5.0 Federal Receipts 2,511.9 3,126.4 2,518.7 3,131.4 Total State Revenue 17,241.5 10,090.7 9,931.8 *Except Federal and Investment 12 Source: Department of Revenue - Revenue Sources Book Fall 2014