Investor Presentaiton
The "Alaska Disconnect"
Alaska's fiscal structure-specifically the fact that Alaskans do not pay
any significant broad-based taxes-leads to a problem which has
become known as the "Alaska Disconnect."
If economic developments creates more jobs, Alaska's population
grows. As the population grows, Alaskans need more schools and
teachers for their children and the other services that state and local
governments provide.
Although the new Alaskans pay local sales and property taxes which
support local services, they don't pay broad-based state taxes to cover
the cost of state-funded services such as education and roads.
The new jobs create new costs for the state but not corresponding new
revenues. As a result, except for oil development (which pays high state
taxes), many kinds of economic development make the state's financial
situation more difficult.
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