Latest State Revenue Forecast Predicts $3.4 Billion More Than Expected

Dave Donaldson, APRN – Juneau

There’s more money on the way.   Governor Parnell Wednesday morning presented the Department of Revenue’s newest financial forecasts that show– during this year and next – the state will take in 3.4 billion more than was expected at the time of last fall’s forecast.  Parnell says the prices reflect higher oil prices – with the per-barrel estimate now between $12 and $14 higher than projected in the fall.

Parnell says he hopes the money doesn’t trigger higher spending in this year’s budget.  And he’s setting limits.

“I think this year we can have a robust capital budget and still put substantial sums in savings,” Parnell said. “The principles of budget discipline that I will ask the legislature to uphold with me include  – one – to limit capital spending to no more than last year’s robust capital budget;  and – two – to save at least two and a half billion dollars for the future.

Senate Finance leaders announced Tuesday that they had already saved $1.4 billion using the lower revenue estimates.