Governor Sean Parnell today said that the money the state owes for its unfunded pension liabilities is the biggest single expense Alaska has.
He wants to use state savings account money to pay it down.
The governor today unveiled his Fiscal 2015 budget, proposing 1–point–3 billion dollars less in general fund spending than the current year and 150 fewer positions.
Parnell's budget totals 5–point–6 billion in state general funds, which is 18 percent less than the current year.
Parnell said “Eighty seven percent of our recurring revenue comes from oil taxes and royalties. Last spring, the oil tax forecast for the coming fiscal year was 111 dollars per barrel. As you know, the fall revenue forecast released last week said the price will more likely be around 105 dollars per barrel. That is a one billion, 406 million dollar change in revenue, down from what we were anticipating.”