According to Alaska’s constitution, the state government must deposit 25 per cent of all mineral revenues into its fund each year.
Total government revenue is expected to be $1.3 billion higher than projected in the province's budget.
The province’s debt as a share of the economy is projected to more than triple by 2046.
The province's net government debt has increased by more than 18 per cent since 2019.
The mining industry plays a central role in the province's economic growth and job creation.
The logic is simple—save resource revenue during good times to cover the shortfall during bad times.
According to the provincial budget, debt will rise from $16.5 billion last year to $17.1 billion this year.
Despite the most difficult fiscal position in Canada, the province increased program spending in nine of the last 10 years.
Ottawa has added new subjective criteria to the regulatory process.
When the province's resource revenues declined by roughly 22 per cent, the government did not commensurately reduce program spending.