Post by Logan on Apr 10, 2016 17:29:19 GMT -6
JUNEAU, Alaska (AP) — The collapse in oil prices has left oil-reliant Alaska with a multibillion-dollar budget deficit and few palatable options for digging its way out.
With just days left in the legislative session, state political leaders are struggling to get on the same page, with legislators split on options like taxes, the depth of budget cuts and tinkering with the annual dividend most Alaskans receive for living here. Gov. Bill Walker sees a mix of all three as necessary.
Economics professor Gunnar Knapp has told lawmakers that Alaska is probably facing a recession and no matter what they do, the economy will take a hit. He urged significant steps toward reducing the deficit this year.
The state has been using savings stashed away when oil prices were high to help cover costs. But without a plan and barring a dramatic rebound in oil prices, Walker says major reserve accounts could be gone within a matter of years along with the decades-old dividend program.
Read more: hosted2.ap.org/AKKEN/00873362e3ae4101a4238b054d709f4d/Article_2016-04-09-US--Alaska%20Budget/id-425b31ace06549588613f6c829912d37
With just days left in the legislative session, state political leaders are struggling to get on the same page, with legislators split on options like taxes, the depth of budget cuts and tinkering with the annual dividend most Alaskans receive for living here. Gov. Bill Walker sees a mix of all three as necessary.
Economics professor Gunnar Knapp has told lawmakers that Alaska is probably facing a recession and no matter what they do, the economy will take a hit. He urged significant steps toward reducing the deficit this year.
The state has been using savings stashed away when oil prices were high to help cover costs. But without a plan and barring a dramatic rebound in oil prices, Walker says major reserve accounts could be gone within a matter of years along with the decades-old dividend program.
Read more: hosted2.ap.org/AKKEN/00873362e3ae4101a4238b054d709f4d/Article_2016-04-09-US--Alaska%20Budget/id-425b31ace06549588613f6c829912d37