Senator Dyson Presents Economist’s Report
Calls for Record Breaking Savings to Match Record Breaking Revenue

Juneau – Sen. Fred Dyson, R – Eagle River, presented a report at the Senate Republican Caucus press availability today that was prepared by Dr. Scott Goldsmith, an economist and director of the Institute of Social and Economic Research.

“We’ve been asking thoughtful and knowledgeable people around the state for their opinion about what we should be doing with this record breaking revenue year, and specifically how much Alaska should have in its rainy day fund,” Dyson said.  “Dr. Goldsmith responded with a thorough and thoughtful answer.  I’m presenting his paper in the hope that his analysis will give guidance to our colleagues as they move through the process of considering the state’s capital and operating expenses for the coming year.”

The state’s capital and operating budgets are under consideration this week and next in house and senate committee hearings.  Senator Dyson, a member of the Senate Finance Committee, asked for the Goldsmith study.

“For years Alaskans have been asking us for a long term fiscal plan,” Dyson said.  “The general consensus is that Alaska will experience a deficit before it begins to enjoy a revenue stream from the gas line.  We need a plan that imposes rational restraints on spending and encourages substantial savings to assist us through those lean years.”

Every member of the Senate Republican Caucus has either introduced or co-sponsored a bill addressing this citizen request for a rational fiscal plan that includes spending caps and savings.  All but one of these bills was introduced in 2007.  All are still being held in the Senate Finance Committee.

Issuance of the Goldsmith opinion came out in the same month as Governing, a magazine published by Congressional Quarterly Inc., Saint Petersburg, Florida.  The magazine contains a report, “Governing: Measuring Performance; the State Management Report Card for 2008,”  that gives the State of Alaska a grade of C- in the area of money, a category that includes: long-term outlook, budget process, structural balance, contracting and purchasing, and financial controls and reporting.  Both documents were presented to the public and press at today’s press availability.