State Budgets: Alaska Modestly Cuts Spending; Budget Assumes Oil Price Rebound

Alaska Gov. Sarah Palin (R) has proposed a 7 percent spending cut in the $11.2 billion budget to close a $402 million shortfall (the comparison does not count $746 million in checks mailed out last year from windfall profits tax proceeds). Alaska’s general fund derives much of its revenue from oil revenue and taxes, and the budget assumes the price of oil in 2009 will be $64 and the following year $74.41. (The current price of oil is about $45.)

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