Federal aid, rising oil price ease Alaska's budget crunch
March 25, 2021
Legislators started the session in January amid a shortage of revenues and debate whether the state could even afford a dividend this fall unless it exceeded its annual limited draw from the Permanent Fund. Significantly higher oil prices and more than $1 billion from this month's federal pandemic aid package may fix both problems, though only temporarily.
The Alaska Department of Revenue told legislators last week that higher oil prices could produce an additional $790 million in revenues this year and next fiscal year, close to a 10% boost in total state general fund revenues.
At the same...