Ahead of first-draft state budget, oil prices are driving a tighter Alaska fiscal picture

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Ahead of first-draft state budget, oil prices are driving a tighter Alaska fiscal picture
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The lowest crude oil prices of the year are coming at a bad time for Alaska. Via AlaskaBeacon

are coming at a bad time for Alaska.

With Dunleavy preparing to release his first draft for the budget for the 12 months starting in July 2023, preliminary indications are that the state will have less than $7 billion to spend, a significant decrease. The governor’s draft proposal will be released Dec. 15, and Dunleavy said without specificity that he intends to introduce revenue-generating legislation. During his first term in office, the governor adamantly opposed new taxes without a statewide vote and studied the legalization of gambling in Alaska.

Most of the state’s general-purpose revenue continues to come from the earnings of the Alaska Permanent Fund, and for FY24 that figure is solid: $3.5 billion, according to the Alaska Permanent Fund Corp.

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