As Oil Drops, Alaska's Budget Problems Grow
SEAFOODNEWS.COM [Washington Post] By Becky Bohrer - January 19, 2015 -
JUNEAU, Alaska, After years of being flush with oil money, Alaska now faces drastic budget cuts and having to dip into well-stocked savings to offset unprecedented deficits exacerbated by an unexpected plunge in oil prices.
When lawmakers left Juneau last April, the price of North Slope crude, Alaska's economic lifeblood, was $107 a barrel. On the eve of a new legislative session, starting Tuesday, the price had dropped by more than half.
Gov. Walker has yet to propose any specific cuts or new sources of revenue, but the bare-bones infrastructure budget he put forth as a placeholder after taking office last month set the tone. He also halted new spending on six megaprojects but has yet to officially nix any.
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