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DOI 10.1515/cjpp-2013-0019 Calif. J. Politics Policy 2013; 5(3): 319–342 Jerry McBeath* Planning Amid Abundance: Alaska’s FY 2013 Budget Process Abstract: This report describes the fiscal policy process relating to the develop- ment of Alaska’s FY 2012–2013 budget. Alaska entered FY 2013 with a substantial surplus and with hefty financial reserves. The report explains the origin of these conditions, which distance Alaska from most of the other western states; it also provides information on the threats to Alaska’s fiscal stability represented in its extreme dependence on depleting oil reserves and on federal government support. Keywords: Alaska; budget; FY 2012–2013; governor; legislature; West. *Corresponding author: Jerry McBeath, Professor of Political Science, University of Alaska Fairbanks, Fairbanks, AK, USA, e-mail: gamcbeath@alaska.edu 1 Introduction This paper describes the fiscal policy process explaining the Alaska FY 2013 budget plan. It covers the period from the most recent Alaska report (McBeath and Corbin 2011) in late August, 2011 to December 2012. The report begins with a discussion of the Alaska economy from the third quarter of 2011 through most of 2012 and briefly treats the redistricting process after the 2010 census, which set the parameters for the 2012 state elections. Next, we discuss state issues with a federal connection tracked in the Alaska reports over the last dozen years. The core of the paper is analysis of the FY 2013 budget process, including the governor’s requested budget (operating, supple- mental and capital), and legislative responses. A special section examines the main fiscal issue of the 27th Alaska Legislature: Governor Parnell’s proposed reform of the state oil taxation regime, followed by a report on the 2012 special session. The last section of the report presents the final state budget, with analysis of revenues, the capital, supplemental and operating budgets for FY 2013, and reserve funds. Alaska entered FY 2013 with a substantial surplus (variously estimated from $2 to $3.7 billion) and with hefty financial reserves. The report explains the origin of these conditions, which distance Alaska from most of the other western states;