1. Present by Bella, Jessie, Kaitlin Evaluation of Fiscal Tools for Alaska: A Comparison of Alaska’s Tool Scores and Ways to Improve Evaluation of Fiscal Tools for Alaska: A Comparison of Alaska’s Tool Scores and Ways to Improve

2. Where Alaska Falls : 5.5

3. Introduction Methodology Tools Summary of Finding Recommendation

4. Schick and The Tools Planning: A Map for the Future Control: Professional and Credible Estimates Management: Ways to Stay on Course

5. Methodology

6. 5.5 7.0 6.5 5.5 7.0 7.5 Methodology

7. General sales and gross receipts taxes Individual income taxes Corporation net income taxes Severance taxesDocumentary and stock transfer taxes AlaskaXX630,9414,016,9660 OregonX6,260,161459,74423,3053,564 Nevada3,637,356XX290,44859,261 Texas26,127,421XX4,647,8480 Washington11,122,868XX38,656577,389 Wyoming702,623XX867,9330 Totals for Selected State Government Tax Collection: 2013 (in thousands of dollars) Methodology

8. A Map For The Future 1. Muti-Year Forecast of Revenue and Spending 2. Fiscal Notes with Multi-Year Projections 3. Current Service Baseline

9. Tools #1 Muti-Year Forecast of Revenue and Spending Revenue Forecast Extends Past Budget Year Revenue Forecast is Detailed Spending Forecast extends past budget year Spending forecast is detailedTotal Alaska 10100.5 Washington 11101 Washington’s independent Economic and Forecast Council develops forecast and must publish methodology, under statute for 6 years Findings

10. Tools #2 Fiscal Notes with Multi-Year Projections Estimates costs for more than one year Estimates costs for 5 years or more Score Alaska111

11. Tools #3 Current Service Baseline Has a Current Services Baseline Baseline Extends Beyond Current Budget Regular Part of Governor's or Enacted Budget Baseline Is Accessible and Assumptions Are Clear Estimates Provided at Detailed Level Score Alaska111111

12. Professional and Credible Estimates 1. Independent Consensus Revenue Forecast 2. Legislative Fiscal Office 3. Pension Oversight

13. Tools #4 Independent Consensus Revenue Forecast Consensus Group Estimates Official Forecast Forecast is Binding Consensus Forecast is required by Statue Forecasting Group Includes Non- government Experts Deliberations are accessible to the public The Forecast is Published and made easily availableTotal Alaska0000000 Washington1110111 Washington’s statute establishes the independent Economic and Forecast Council Alaska statute only stipulates legislative review Findings

14. Tools #5 Legislative Fiscal Office Has An Independent, Non-partisan Fiscal Agency or Agencies There Is Only One Fiscal Agency That Serves Both Houses of the Legislature Score Alaska111 Alaska Legislative Budget and Audit Committee, established under statute Findings

15. Tools #6 Pension Oversight Regular Experience Study Conducted Regular Actuarial Audit Conducted Experience Study Required by Statute Actuarial Audit Required by Statute Score Alaska10100 Texas11111 Despite study, Alaska Statute and state report show that Actuarial Audits are conducted every 4 years **Texas conducts annual financial audits.** Findings

16. Ways to Stay on Course 1. Well-Designed Rainy Day Fund 2. Oversight of Tax Expenditures 3. Pension Funding and Debt Level Reviews 4. Budget Status Reports

17. Tools #7 Well-Designed Rainy Day Fund Has a Rainy Day Fund No Cap or Cap 15% or More of General Fund Deposit Required by Law No Rule Requiring Replenishment by Set Time No Limit on Use Legislature Can Approve Use with Simple Majority Score Alaska1110111 ProvisionsConstitutional FundStatutory Fund DepositResource RoyaltiesAllocations RepaymentImmediateNone Alaska Funds Findings

18. Tools #8 Oversight of Tax Expenditures Mandatory Sunset Provision on Tax Expenditures Tax Expenditure Report Regularly Published and Available Online Report Covers all Major Taxes Report Shows Cost To Localities Separately Report Includes Current Data Report Includes Description and Rationale Score Alaska0000000 Oregon1111111 Oregon transparency laws allow expenditure reports available to the public – this may be in relation to the tax revenue. 2014 Alaska statute requires expenditure reports be made available to the legislature – but they are not available to the public. Findings

19. Tools #9 Pension Funding and Debt Level Reviews Have No Restrictions on Making ARC Made 95% ARC on Average Have an Independent Investment Council Guidelines for Debt or Debt ServiceTotal Alaska10010.5 Nevada01011 Wyoming01011 The Alaska Retirement Management Board MAY appoint independent council (and currently does) Wyoming has statutory formula that requiring employee actuary costs and portfolio assumptions for council guidelines Wyoming and Nevada have Constitution Debt Ceilings while Alaska’s is Policy Findings

20. Tools #10 Budget Status Reports Revenue Forecast Updated at least once per year Publishes Expenditure Report that compares actual and budgeted spending Publishes Monthly Revenue Report that Compares Actual and Budgeted RevenuesTotal Alaska1000.5 Nevada1011 Washington1011 Nevada’s implementation of Priorities and Performance Based Budgeting requires agencies to report activity on a monthly basis in relation to core government functions Findings

21. Summary of Findings Forecasting Transparency Fund management

22. Recommendation Policy changes and implementations 1.Establishing an independent economic and forecasting body. 2.Transparency policies to increase public access and knowledge. 3.Policy amendment to add provisions of repayment to the statutory Budget Reserve Fund. 4.Pension Fund formula for payment requirements and establish a minimum fund ratio. Additional Research 1.Global perspectives on other governments with petroleum industry reliant revenue.

23. References McNichol, E. C., Palacios, V., & Johnson, N. (2014). Budgeting for the Future: Fiscal Planning Tools Can Show the Way. Center on Budget and Policy Priorities. WestLawNext. (2015). WestLawNext. (T. Reuters, Producer) Retrieved 03 31, 2015, from https://1.next.westlaw.com/Document/N3402BF00B12F11E19C66EA17DA687673/View/ FullText.html?originationContext=documenttoc&transitionType=CategoryPageItem&conte xtData=(sc.Default) State of Alaska Division of Legislative Audit. (2013). State of Alaska Division of Legislative Audit. Retrieved April 1, 2015, from State of Alaska Division of Legislative Audit: http://legaudit.akleg.gov/ Schick, A. (1966). The Road to PPB: The Stages of Budget Reform. Public Administration Review, 26 (4), 183-190.

24. Thank You Any Questions?