The Legislative Finance Division has released a sobering report on Alaska’s budget situation.
The report says that if spending next fiscal year matched that of the current year, there would be a deficit of $920 million.
The price of oil would have to be an estimated $105 a barrel for the governor’s proposed new budget to balance. As recently as fiscal year 2010, the break-even price of oil was $64 a barrel, according to the report.
Alaska’s Revenue Department is forecasting an average oil price of around $109 a barrel for fiscal year 2014.
The Legislative Finance report is an overview of Gov. Sean Parnell’s budget request for the next fiscal year. It comes a day before the start of the new legislative session.