The oil party is over
Alaskan governor Bill Walker is proposing a personal income tax for the first time in 35 years in order to cover a multi billion budget deficit.
The state benefits from the oil wealth with 90% of legislative money coming from oil industry. That is down to 75% currently on lower oil revenue
Typically the state also pays an annual dividend to residents from the Alaska Permanent Fund. Earnings generated from the fund go toward paying the dividend. A dividend will still be paid according to reports, but 2016 payouts are expected to be $1000 less than last years $2072. That payment was made to 645,000 people and was the largest ever. The fund is kept sacred from budgetary shortfall purposes.
The Governor also proposes:
- Adding a $0.10 to every drink and
- $1 to a pack of cigarettes.
I gotta think those two are gonna be painful especially during those cold winter nights when a drink or two (and maybe a smoke) might take some of the chill off.
Seriously though, the news is indicative of the pain from lower oil prices.
