Guest Editorial: There's more to state finances than oil

Most Alaska state budget watchers follow oil prices, fully realizing that they can bounce around like a small plane on a windy day, creating that same stomach-churning queasiness when they drop.

The estimated difference between Alaska North Slope crude averaging $70 per barrel over the next fiscal year is $650 million less in state general fund revenue than at $80. That’s close to 10% of the general fund budget and enough to either leave a gaping hole in the spending plan or add some extra money to savings.

Oil down at $60 per barrel means an additional $500 million loss in state dollars.

It’s...

 

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