Alaska State Legislature
News from the Senate Majority

Wendy Lindskoog, Senate Majority Press Secretary
716 West 4th Avenue, Suite 510
Anchorage, Alaska 99501
Phone: 907/269-8184
http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

What’s the State of Alaska’s Budget?

Senator Drue Pearce to Discuss Alaska’s Financial Outlook on Friday

For Immediate Release: November 18, 1998 Contact: Senator Drue Pearce at (907) 258-8185.

Alaska’s economy is good. The State’s bond rating is up. Unemployment is low. Is there something to be concerned about?

Anchorage – Senator Drue Pearce, Co-chair of the Senate Finance Committee and Senate President Elect, will discuss Alaska’s financial outlook in a speech to the Resource Development Council and Alaska Support Industry Alliance at a Friday morning breakfast meeting. The meeting will take place November 20th in the main ballroom at the Sheraton Hotel from 6:45 to 7:45 a.m.

"Alaska’s economic picture isn’t as rosy as many people might believe," said Pearce. "Both the state and national economies are strong. Most people have jobs. Consequently, Alaskans have lost sight of the very real crisis in funding for state government. Despite responsible budget cuts and adherence to the Republican Majority’s Five-Year Budget Plan, depressed worldwide oil prices and production declines have created a huge fiscal gap."

In her speech, Pearce will review the State’s current financial status, discuss the implications of continued low oil prices and production, and outline the many challenges facing legislators as they head to Juneau with a FY 99 $800 million budget shortfall.

"Our State’s budget and fiscal situation needs serious attention. Alaskans must recognize the severity of the problem. The governor and legislature must find workable, politically possible solutions," Pearce said.

"Our Five-Year Plan was an important first step. That plan, however, was created when oil prices were projected to average $17.97 per barrel in FY 99 and $18.64 per barrel in Fy00. It is time to reassess and revise the plan," said Pearce.

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Media Note: Media representatives are invited to attend (no charge).