As part of plans to reduce the US$3 billion budget deficit, Gov. Bill Walker鈥檚 administration has put forward a Permanent Fund budget proposal into which would go all of the state鈥檚 oil and gas revenue. The information was given at a briefing on 28 October for lawmakers who were invited to discuss the Alaskan LNG gas line. Walker鈥檚 administration expects that this plan could generate approximately US$3.3 billion/y. In order to prevent against stock market drops, a portion of the fund鈥檚 annual growth would go to the fund鈥檚 earnings reserve, which would act as a buffer.
鈥淚t is now clear that, barring a change in the economic environment, that our financial wealth assets will generate substantially more income than petroleum revenues in the future,鈥� said Attorney General, Craig Richards on Wednesday morning.
Royalty Dividends would be linked to Alaska鈥檚 oil production, though if the construction of a natural gas pipeline does take pace, this could offer a boost.
Further details of Walker鈥檚 administration鈥檚 budget plan are expected to be released in January.
Edited from sources by
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