Alaska is grappling with a projected budget deficit of over $200 million, potentially reaching $300 million with increased spending. The looming shortfall has raised concerns about dipping into the state's savings, the Constitutional Budget Reserve. Legislators are seeking ways to balance the budget without resorting to that option, but the challenge is significant due to low oil revenue forecasts.
that a status quo spending plan would see a $200 million-plus deficit. Added spending in areas like state firefighting could see the deficit balloon to well over $300 million, according to forecasts.
House Speaker Bryce Edgmon, a Dillingham independent, discussed crafting this year’s budget on Thursday and said that “it really is gonna be challenging.” In addition to being used as a savings account, the Constitutional Budget Reserve, or CBR, is used as a cash management tool by the state. Under that formula, the dividend this year would be roughly $1,440. The cost to the state would be $950 million.
Alexei Painter, director of the Legislative Finance Division, said Tuesday that oil company deductions are expected to cost the state $800 million this fiscal year, and $450 million next fiscal year.
State News BUDGET DEFICIT ALASKA SAVINGS OIL REVENUE PERMANENT FUND
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