Sober up and be real careful.
We can't overlook the obligation we owe Tier 1 Public Employees. This is the old pension system that was closed decades ago in July of 1986. Throughout their entire careers deductions were taken from every paycheck to pay for their free medical and monthly stipends upon retirement at age 55.
As Alaskans we owe our retired pensioners this inescapable debt that now totals approximately $15 billion and is a debt that WILL be paid. Federal Law mandates this with State of Alaska's CBR/Perm Fund as collateral.
It's a constitutionally binding debt that Juneau (and all of us) will have to pay with any and all funds, state income taxes, sales taxes and copays from current Tier II (7/1996) and Tier III (7/2006) workers.
The Feds oversee all state pensions with numerous compliance agencies to guarantee there is no bankruptcy, no escape hatch, no defaulting.
This total is more than all of our savings or a quarter of the Permanent Fund's current value.
Stings don't it?