Governor's budget relies on high oil prices, federal aid

Gov. Mike Dunleavy last week outlined what he called a responsible budget proposal that doesn’t dip into savings, bolsters law enforcement and calls for direct payments of about $3,700 to residents amid an unsettled dispute with lawmakers over the future of the state’s dividend program.

But the budget relies on high oil prices to help pay the bills and is heavily dependent on one-time federal pandemic aid dollars to help cover the cost of public services usually paid out of state funds, such as the Alaska Marine Highway System.

The budget plan, a starting point for lawmakers to consider when t...