= Drue Pearce, 175 K = Drue Pearce, 192 KNews from the
Senate Majority
Alaska State Legislature
Wendy Lindskoog, Senate Majority Press
Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540
Media Advisory
Please call 800/478-6540 to hear the Senate Oil Report
For Immediate Release: February 18, 1998.
Juneau – During Wednesday’s Senate session, Senator Drue Pearce, Co-Chair of the Senate Finance Committee, announced that today’s opening oil price was $12.96 per barrel. Pearce explained the implications dropping oil revenues will have on Alaska’s budget and fiscal gap.
To hear Senator Pearce’s report, please call the Senate Majority actuality line at 800/478-6540 and go to boxes one and two. Excerpts from her report are included below:
"Let me point out for those who are not aware, oil closed last night at $12.96 per barrel for ANS crude West Coasts Markets. The last time it fell below the thirteen dollar mark was in March 1994 when it fell to $12.91."
"We can make indisputable conclusions in terms of what will happen to Alaska’s revenues from our largest industry that provides more than 80 percent of state revenues. These revenues are going down and are going down quickly. They have not only dropped for this fiscal year, they are down below the ten year average and there is no reason to expect that they should go back up."
"The budget that was put on the table by the administration was based on oil prices over $17 dollars a barrel. In its winter 1998 report, Cambridge Energy Research Associates (CERA) is telling us we should expect a mid case prediction of the low $14 dollar a barrel. By anyone’s estimation, you can add at least another $300 million dollars to the state deficit for fiscal year 1999 in the budget that the Governor put on the table. He has also brought to us a supplemental budget which would increase spending over the $13.5 million he told us he was going to put on the table in December. The Governor’s request is now over $60 million in additional spending and climbing. We need to be vigilant in terms of making our decisions on the supplemental, but we also need to stick to the Five Year Plan, and continue trying to close our State’s deficit spending."
"We are now in a position that, if we don’t act with a high degree of caution, we could spend one third of our state savings account in just one year to balance the budget."
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= Drue Pearce, 175 K = Drue Pearce, 192 K