Lower oil prices push state into a deeper deficit

The Alaska Department of Revenue forecast on March 12 that the state will see a bigger budget deficit in the next fiscal year due to lower oil prices.

Oil prices have dropped about $10 a barrel since early January as the market reacts to risks of U.S.-instigated trade wars, a weakened global economy and new oil supplies exceeding demand.

Oil taxes and royalties are the second-largest source of general fund revenue for the state budget, behind only Permanent Fund earnings.

The Alaska Legislature is facing a combined $650 million shortfall over two fiscal years based on status quo spending, prom...

 
 

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