State Budgets: Alaska Modestly Cuts Spending; Budget Assumes Oil Price Rebound January 3, 2009 Joseph Bishop-Henchman Joseph Bishop-Henchman 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.) More on Alaska here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Alaska Tags State Tax and Spending Policy