Governor Walker proposes reduced state capital budget amid falling oil prices

Governor Bill Walker discussed his FY2016 (July 1, 2015 – June 30, 2016) budget proposal at yesterday’s Anchorage Chamber of Commerce luncheon.  Having been in the office only two weeks, Governor Walker submitted a $5.3 billion operating budget developed by his predecessor, former Governor Sean Parnell. Walker has not endorsed this budget and his administration is working on its own version. The Walker administration did announce a capital budget of $106 million, pared down from the $220 million capital budget Parnell submitted. With oil prices lower than expected, Walker hopes the decrease in the capital budget will help stretch the state’s dollar and weather a projected $3.5 billion budget deficit for FY2015. Even with the lower capital budget, the state is looking at a similar budget deficit for FY2016, assuming oil prices remain low. Walker, however, pointed out oil prices do swing and is optimistic about the future of Alaska and the opportunities ahead. “We live in one of the most resource-rich states and one of the wealthiest countries in the world,” said Walker. “We don’t have a resource problem. We have a distribution problem. We need a distribution system in place to get our resources to Alaskans and the world market.”

Governor Walker’s team will spend the next few weeks reviewing all capital projects and the operating budget before submitting its final revisions by February 18. At the luncheon, Walker requested the public’s involvement during the budget process. The administration plans to solicit public input on ways to prioritize spending, cut waste and address any inefficiencies as it puts budget plans together.

“I’m confident that together, we Alaskans can manage our way through it,” Governor Walker said. “We need to develop a smart plan so that our children and grandchildren can have stability 30 years from now. We want a plan in place that will not just get us over the hump now, but provide a strong future for decades to come.”

For more information about the Governor’s proposed budget, visit https://omb.alaska.gov/html/budget-report/fy-2016-budget/work-in-progress.html

Comments

[Dave Harbour - Publisher - Northern Gas Pipelines]

Good report, Caroline. This issue will have obvious impact on energy, mining and other private and government services and enterprises associated with energy use. Therefore, we have reprinted your work today: http://www.northerngaspipelines.com/content/12-17-14-alaska-tightens-its-budget-belt