Dunleavy's budget vetoes would pull Alaska back into a recession, economist says
Alaska’s economy stands to lose about 4,200 jobs in the short-term wake of Gov. Mike Dunleavy’s vetoes to the state budget, and the state will be pulled back into a recession if those cuts stand, an economist said Monday.
Long-term consequences of the vetoes could be even more pronounced for the state economy, which has seen modest job growth in recent months after three years of a downturn, University of Alaska Anchorage economist Mouhcine Guettabi told a room full of business leaders.
He spoke to members of the Anchorage Chamber of Commerce at the Dena’ina Civic and Convention Center on the same day that the Alaska Legislature convened in a historic special session, with some lawmakers meeting in Wasilla and some meeting in Juneau. House and Senate leaders announced they’ll consider overriding Dunleavy’s budget vetoes in a joint session Wednesday at 11:30 a.m.
Of the estimated loss of 4,200 jobs, about 2,000 would be tied to the massive budget cuts to the University of Alaska system, according to a UAA economic analysis released Monday on which Guettabi was one of the authors. Those figures take into account both direct employment losses, such as university layoffs, and indirect losses, such as reductions in spending by people and organizations affected by the cuts.
Read more: https://www.adn.com/business-economy/2019/07/09/dunleavys-budget-vetoes-would-pull-alaska-back-into-a-recession-economist-says/
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