Alaska Budget Q & A
Why do we always talk about the General Fund if it’s only half the money?
- It’s a lot of the money! It is used to account for all financial resources except those required to be in another fund
- It is the state’s primary operating fund – the source of funding for basic government services..
- It’s flexible. Lawmakers can make decisions about how the fund is spent. General fund revenue can be spent on any state activity so long as it is allowed under the State constitution. Nearly all the state’s other revenue must be used for specific purposes. For example, federal money is designated for programs such as Medicare or for specific infrastructure projects. If the state does not provide those services or build those projects the money must be returned to Washington.
- We can save it. If we are going to save more for the future, it will be by setting aside money from the general fund.