A Critical Political Season Could Decide if Alaska Is a Failed ‘Petrostate’

Submission statement:

For nearly 50 years now, Alaska has levied no taxes on state residents, relying primarily on the Permanent Fund which was established in the 70s to be funded by oil revenues from production in the North Slope. The article is pretty surface level overall, but scratches the surfaces on failing public services and a faltering state economy (not in the article, but of relevance, GDP per capita has declined here in the last decade) that are both in crisis mode as the state has refused to levy taxes on residents or spend necessary money from the Permanent Fund to protect the Permanent Fund Dividend, a payment given to all eligible, full-time Alaska residents from the Permanent Fund. Almost all state funding comes either from the Permanent Fund or federal funding, which has declined significantly with Trump.

The war in Iran’s effect on oil prices is increasing revenue for the state, but the windfall will likely only cover the basics that the state has been unable to cover.

Mike Dunleavy is terming out and there’s a crowded race to replace him. If we have another Republican governor who copies his strategy, the state is likely facing a public service death spiral.

!ping USA-AK