Even an 'optimistic' oil forecast shows Alaska running out of savings in 2021 [View all]
Even under an “optimistic” forecast, the state of Alaska will run out of available savings by June next year, state legislators learned Wednesday.
Oil prices have plunged amid a worldwide pandemic that has vaporized demand for petroleum products. Crude oil is the second-largest basis of the state budget, behind only investment earnings.
On Wednesday, a barrel of Alaska North Slope Crude was worth $10.08, and a price of $79 per barrel is needed to balance the budget at current production levels.
In a meeting of the House Finance Committee, the Legislature’s leading budget official said the state revenue forecast for the next fiscal year is $815 million lower this spring than it was last fall.
Read more: https://www.adn.com/politics/alaska-legislature/2020/04/22/optimistic-oil-forecast-calls-for-alaska-to-run-out-of-savings-in-june-2021/
(Anchorage Daily News)
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