As oil prices rise, Alaska projects $1 billion-plus in extra state revenue

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As oil prices rise, Alaska projects $1 billion-plus in extra state revenue
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High oil prices may deliver more than $1 billion in unexpected revenue to the state of Alaska in the current fiscal year

JUNEAU — , and both the Alaska Legislature and Gov. Mike Dunleavy are beginning to debate whether they should save that money or spend it.

The Alaska Legislature built its budget around those amounts, but through the first six months of the fiscal year, oil has been worth significantly more. Oil isn’t the state’s leading source of revenue — an annual transfer from the Alaska Permanent Fund is larger — but the extra money promises to make a big difference.

Now, the expectation is $6 billion in revenue, and the state would have more than enough normal revenue to fill the deficit. It would be the first time in 10 years that the state has not had a deficit, according to the finance division.

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