Governor says oil checks at risk without action

The plan, paired with a price anger proposal, is geared towards closing a $three.5-billion-dollar deficit the state is carrying. Crude oil prices have been hovering at seven-year lows, and earlier this week, they dipped to $37 a barrel.

With the state’s budget crisis nearing a breaking point, Van Vactor argued the proposal was unavoidable. Immediately, Alaska is the one state in that doesn’t have a state sales tax or personal revenue tax.

The governor warned that if the state stays on its current track, drawing down on savings, the dividend is in danger of ending in 2020.

The state is heavily dependent on oil revenue. Officials have been warned the state’s bond rating could be lowered if it doesn’t do more to address the deficit.

After decades of saving a share of its oil revenues, the state has about $65 billion in the bank.

In a report released Tuesday, the state Revenue department said production taxes for fiscal year 2015, which ended June 30, totaled almost $390 million.

Republican lawmakers, who control the state’s Legislature, said were willing to work with the governor, although taxes wouldn’t be high on their agenda.

“With the addition of a proposed state income tax, a working family of four making $50,000 can expect to lose a full 10 percent of their income, whereas a family of four making $10 million dollars loses only 2 percent”, the Democrats wrote.

He says he hopes Alaskans realize the severity of the situation and he’s happy to take any heat associated with his plan.

A Republican House leader says he doesn’t want to ask Alaskans to pay an income tax unless it’s absolutely necessary.

“Basically what I’m hearing from people is, “Show me the cuts first”, said Mike Porcaro, an advertising executive and radio talk-show host in Anchorage.

Senate Minority Leader Berta Gardner says she agrees with Walker’s sense of urgency to make a sustainable budget plan. She and Sen. Bill Wielechowski, D-Anchorage, called for further changes to the state’s oil tax system.

Fatih Birol, executive director of the IEA, which represents oil-consuming nations, told a news conference on the sidelines of the U.N. climate conference in Paris: “When we look at 2016, I see very few reasons why we can see growth in the prices”.

The Alaska Permanent Fund grew with investments and is now worth about $52 billion. It is constitutionally protected and can be used only for income-producing investments.

Permanent Fund earnings now fund Alaskans’ Permanent Fund dividends.

But, of course, right now, the permanent fund earnings go into PFD checks.