Alaskans aren't confident with the direction the state is headed, a recent poll has found.
According to the Rasmuson Foundation, which has been polling Alaskans for five years, concern about the economy is at a four-year high. The poll shows that the number of Alaskans who say they are extremely concerned about the budget shortfall has grown significantly since July of 2015.
Only 25 percent of Alaskans rate the economy as excellent or good, which is down from 37 percent in July 2015. Additionally, 72 percent of respondents consider the economic conditions to be fair or poor, which has increased from 61 percent in July. Perhaps even more telling, is that 50 percent of Alaskans predict that the state economy will be worse one year from now.
"When you say, 'What's the most important issue for our elected officials to deal with?' two-thirds of [respondents] say the budget, deal with the budget," Diane Kaplan, president and CEO of Rasmuson Foundation said. "And what they feel is, if there's not a solution soon, this uncertainty will continue to plague Alaska and make it a very unfavorable environment for people to feel good about spending money, investing money."
State lawmakers are faced with two big challenges this year: agree on policies that address the almost $4 billion spending deficit and looming fiscal crisis, and then live with the consequences of the solution that ultimately wins out.
Rasmuson is one of the many organizations watching closely as the lawmaking session unfolds and has invested hundreds of millions of dollars in a variety of initiatives all over Alaska, Kaplan said. The foundation is behind an effort to make sure that a "comprehensive" fiscal solution is passed this year.
Due to legal and tax reasons, Rasmuson cannot advocate specific policies and is instead limited to providing educational materials. That includes building a website called Plan4Alaska.com and writing papers that call for consideration of additional government cuts, new taxes, and use of excess Permanent Fund earnings.
Additionally, the Anchorage Economic Development Corporation says already there are signs of a slow down in restaurant and hotel spending, although that could be blamed on a low snowfall, which caused fewer people to travel here for winter activities.
AEDC says the housing market does not appear to have slowed down. "What we're seeing is this concern that is being driven by bad news in the oil patch," said AEDC president and CEO Bill Popp. "Unfortunately any kind of bad news right now gets headline treatment in any forms of media even if it's a small thing, and that kind of constant push is undermining confidence to a degree. But the big uncertainty factor is state government."
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