Governor Parnell Responds to Spring Revenue Forecast, Sets Expectation to Control Spending and Save Surplus
April 6, 2011, Juneau, Alaska - The Department of Revenue released the spring revenue forecast today that reflects a $3.4 billion increase in revenue over projections released in late 2010.
"Higher oil prices result in increased revenue for Alaska," Governor Parnell said. "With a large surplus, government's appetite for spending grows. While higher oil prices result in increased revenue for the state, the Legislature has not passed any plan to increase oil production. I am asking the Legislature to join me in controlling spending this session and to save the rest for Alaska's future.
"Last year's capital budget was one of the largest in the past decade. We will again have a robust capital budget for next fiscal year but I do not intend for the capital budget to exceed last year's. And, I expect that we will put a significant amount into savings."
The governor has called on the Legislature to deposit at least $2.5 billion into savings.