Alaska officials expect lower oil prices to increase deficit

ANCHORAGE, Alaska (AP) — A drop in global oil prices will likely add $300 million to Alaska’s current year budget deficit, state officials said.

A state Legislative Finance Division official told lawmakers the state could experience a $600 million revenue reduction in the 2021 fiscal year starting July 1, The Alaska Journal of Commerce reported Friday.

Oil price forecasts in the range of $60 per barrel now appear optimistic, officials said.

Prices began falling in early February as traders reacted to lower demand forecasts from China due to the country’s reaction to the outbreak of the COVID-1...