We can balance the state budget without a destructive state income tax if we get control of the run-away state spending.  We need to return to the number of state employees we had 15 years ago (plus 15% for population increase).  After all, the state was able to deliver state services 15 years ago without any trouble.  To avoid a shock to the system, we should cut 5% of state employees annually for about ten years until we are down to a level we can afford.  To balance the budget we should reduce / eliminate the PFD and use 4% of the Permanent Fund balance.  We may need to borrow a little bit of money from the Constitutional Budget Reserve (CBR) if oil prices stay under $50 per barrel.  If the price of oil goes up we may be able to add a little money to the CBR.