The House Finance Committee has released its proposed state budget, which includes funds for an energy relief check for every eligible Alaskan. The proposal comes from high and continuously rising energy costs, a concern that I have heard from you. Alaskans are paying significantly more at the gas pump and for home utility costs.
The state has been in a dire fiscal situation for multiple years, and our restrictive budget has reflected this. However, with the sudden increase in the price of oil, there is a bump to state revenue. The Legislature will receive an updated revenue forecast later this month with more accurate assumptions and a longer-term outlook.
This is a one-time check that is possible because of our newly increased revenue forecast and because of the skyrocketing cost of gasoline and oil to Alaskans. There was a similar state energy assistance program in 2008, when the price per barrel hit $120. Likewise, the price per barrel exceeded $120 earlier last week. I hope that the additional funds will help all Alaskans deal with current fiscal difficulties.
It is my goal to use the additional state oil revenue for the one-time energy relief check and also to bolster our capital budget, which has been minimal in past years.
Funding a larger capital budget will address ongoing state maintenance costs, one-time projects that will benefit municipalities, and most importantly will open up more jobs for Alaskans during this critical time. Oil prices are volatile and the increase in revenue is assumed to be temporary, but the benefits could be long-term through additional local jobs.
Rep. Dan Ortiz
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