Recently-elected Alaska Governor Bill Walker sent out letters to state commissioners late last month, asking them to identify potential cuts in their departments by this Saturday. Walker took office Dec. 1 following November’s general election.
Heading into a new session this month, state legislators will be have to confront a $3.5 billion budget deficit for the 2015 fiscal year. Falling oil prices late last year have contributed to the problem, leading to an expected $2 billion revenue shortfall for Alaska.
On Dec. 23 the House and Senate leadership submitted a letter to the new governor, asking that he take immediate steps to address the state’s financial situation.
In his letter, Walker requested that state agencies plan for and begin implementing operating cost reductions for the rest of this fiscal year, and to examine the potential effects of a five- and eight-percent cut from former Gov. Sean Parnell’s 2016 Work-in-Progress budget released Dec. 15.
In a two-part process, he said the state would begin looking more long-term at what level of government services would be appropriate, taking into consideration the needs of Alaskans and financial sustainability.
Walker also asked commissioners to assess items such as fee structures and programs not required by state law, and to look for opportunities to privatize service delivery or otherwise share costs with local governments. Walker further requested a list of capital project funding that could be redirected toward other needs.
The governor has also asked that state employees weigh in through an anonymous survey to identify inefficiencies. To be sent separately, a screenshot of that survey is available to view at http://gov.alaska.gov/Walker_media/documents/20141226-employee-survey-screenshot.pdf.
The public is invited to weigh in, as well. A survey website has been set up to allow Alaskans to voice ideas for cutting the budget, at http://gov.alaska.gov/Walker/press-room/budget-survey.html.
Those submitting the top five suggestions will be given the opportunity to share a private lunch with Walker and Lt. Gov. Byron Mallott.
“This is a challenging task, but I’m confident that with teamwork and creative thinking, we can streamline state services and cut spending,” Walker said in a media release. “I look forward to seeing the suggestions.”
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