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Parnell Wants Reduced Spending in Next Budget

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Gov. Sean Parnell says he'd like to see state spending well below current levels for the upcoming fiscal year. Parnell is expected to release his budget proposal next week. He says revenues are expected to be lower because of lower oil prices and declining production. The Legislature earlier this year passed an oil tax cut aimed at spurring more production. Critics said the cut could put the state treasury at risk but Parnell says the revenue coming in under the new tax will be comparable to that of the old system at current prices. He says he wants to address one of the biggest drivers of the budget: the nearly $12-billion unfunded pension liability. He also wants a capital budget focused on maintaining state infrastructure and finishing projects already started.


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