Latest State Revenue Forecast Predicts $3.4 Billion More Than Expected

Dave Donaldson, APRN – Juneau

The Department of Revenue says the state will have more money this year than it anticipated last fall.

Wednesday morning, Governor Parnell 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 by the legislature this year,  and he’s setting limits.  He says the details are negotiable.

Senate Finance leaders Tuesday announced that they had already saved $1.4 billion using the lower revenue estimates.  House finance Co-Chair Bill Stoltze said that savings is a matter of definition.

The state already has about $10 billion in a savings account.

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