They need to put $2.5 bil dollars in from the constitution budget reserve (CBR and this should be good for 3 years) and leave that pfd alone for that yearly shot to the economy during the beginning of the slower months.
They need to impose a state income tax, tax all the renewable and non-renewable natural resource extractions and give pink slips to at least half of the state employees (any state employee don't like this, they can look for work under the private sector or leave).
They need to cut wages, benefits and retirement packages.  People will say it will cause a recession - rural Alaska was already in a recession for years - so tighten your belts because the real Alaskans will ride this out, not run away from the problems mostly made by people who just moved to this state and are making Alaska broke.