Tough budget decisions remain in Alaska. It took two special sessions for Alaska legislators to agree to a budget after a crash in oil prices contributed to a severe reduction in the state’s available revenue. Barring a huge rebound in oil prices, things aren’t expected to get much easier next session.
Gov. Bill Walker signed the operating and capital budgets late Monday, spokeswoman Katie Marquette said by text message Tuesday. The new fiscal year starts Wednesday.
Legislators this year focused on cuts and reducing the size of government in this oil-reliant state before beginning talks in earnest about ways to raise revenue.
In early June, Walker began that discussion with the public. Walker hasn’t settled on a specific revenue solution, Marquette said by email. The governor plans to continue talks with the public about building fiscal stability for Alaska and with the Legislature, to gauge its interest in the appropriate time to introduce revenue legislation, she said.
With the budget cuts, it’s expected state workers will be laid off. The state plans to take advantage of retirements and attrition as much as possible to address position cuts across departments, Marquette has said. But up to 200 people could be laid off. The number was being finalized.
University of Alaska spokeswoman Kate Wattum did not have an immediate estimate of layoffs within that system. Nearly 170 executive-level staff would be taking unpaid furloughs of five, seven or 10 days with the start of the fiscal year, she said.
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