As part of plans to reduce the US$3 billion budget deficit, Gov. Bill Walker’s administration has put forward a Permanent Fund budget proposal into which would go all of the state’s oil and gas revenue. The information was given at a briefing on 28 October for lawmakers who were invited to discuss the Alaskan LNG gas line. Walker’s administration expects that this plan could generate approximately US$3.3 billion/y. In order to prevent against stock market drops, a portion of the fund’s annual growth would go to the fund’s earnings reserve, which would act as a buffer.
“It is now clear that, barring a change in the economic environment, that our financial wealth assets will generate substantially more income than petroleum revenues in the future,” said Attorney General, Craig Richards on Wednesday morning.
Royalty Dividends would be linked to Alaska’s oil production, though if the construction of a natural gas pipeline does take pace, this could offer a boost.
Further details of Walker’s administration’s budget plan are expected to be released in January.
Edited from sources by Angharad Lock
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/30102015/gov-walker-alaskan-permanent-fund-1680/