Gov. Parnell Outlines Five Year Fiscal Plan

Lawmakers throughout the state are returning home from their ninety-day stint in Juneau. Today, Governor Sean Parnell was a guest on KSRM’s “Sound Off” and praised the efforts of Peninsula legislators for their work on oil tax reform, instate gas legislation  as well as, their work with the rest of the legislature to reign in state spending. Parnell also outlined his five-year fiscal plan for the state of Alaska.


Gov. Parnell: “We have dropped the band of spending, that level of spending to $6.8 billion this year from, gosh, close to $8 billion. That was not a sustainable level of spending, at $6.8[billion] I still intend on ratchet things down for the next four-years by about $25 million a year, so we’ll stay within that $6.7 to $6.8 billion band. What that means across five-years, is at least $5 billion in savings of Alaskans money, that would otherwise be spent out there.”


Parnell, however, did say that there is one caveat to this plan


Gov. Parnell: “If we continue to move forward and build a gasline, so if there is a statewide project  that will benefit to all Alaskans, that would be outside the spending limit I’ve set. What that means, a five-year fiscal plan, is that we reduce spending by that 15% this year, we’re going to continue reducing it in increments of about $25 million across the next five-years, that means Alaskans will save at least $5 billion in five-years.”

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