DOI 10.1515/cjpp-2012-0027 Calif. J. Politics Policy 2012; 4(3): 2–38 Research Article Jerry McBeath* and Tanya Buhler Corbin The Outlier State: Alaska’s FY 2012 Budget Abstract: This report discusses the Alaska economy in 2010 and 2011, reviews demographic and workforce changes, and surveys the 2010 primary and general election outcomes. It discusses state issues with federal connections, and then analyzes the FY 2012 budget process (the governor’s requested budgets and legislative responses extending into a special session. The state entered FY 2012 with a substantial budget surplus, unlike most other states. Keywords: Alaska Permanent Fund; natural gas pipe line; oil prices; petroleum production tax (ACES); redistricting *Corresponding author: Jerry McBeath, Department of Political Science, University of Alaska Fairbanks, PO Box 756420, Fairbanks, AK, USA Tanya Buhler Corbin: Department of Political Science, Radford University, PO Box 6945, Radford, VA, USA 1 Introduction Alaska is a non-contiguous state of the American union. Certainly, it differs from all other American states in its revenue sources and expenditures. This paper describes the fiscal policy process explaining the Alaska FY 2012 budget plan, and covers the period from July 1, 2010 until the end of August, 2011. The report begins with a discussion of the state’s economy in 2010 and the first eight months of 2011, provides an overview of the demographic and workforce changes in the previous year, and then surveys the 2010 primary and general election outcomes. Next, we discuss the state issues with federal connections tracked in this report over the last dozen years. Central to this report is an analysis of the FY 2012 budget process, including the governor’s requested budget (operating, supplemental, and capital), legislative responses, and the extension of debate into two special sessions. A special section examines the main fiscal issue of the legislative session – Governor Parnell’s proposed reform of the state’s oil taxation regime. The report presents the final FY 2012 budget, with explanations of changes from the previous year. Alaska entered FY 2012 with a substantial budget surplus, unlike most of the other states. The plan for this year’s expenditures is positive, and no major
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