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Dunleavy Administration Inherits a $1.6 Billion Deficit

Dec 14, 2018

Friday, December 14, 2018 (Anchorage) – Today the Dunleavy administration submitted the Walker administration’s proposed $11.5 billion FY2020 budget simply to meet the statutory deadline and, to demonstrate its ongoing commitment to be honest with Alaskans about the state’s budget shortfall. The root of the problem with the Walker administration’s budget lies in a single number – its unrealistic projection that oil will sell for $75 dollars per barrel between July 2019 and June 2020.

“The Dunleavy administration is all about truth in budgeting,” said Alaska Department of Revenue Commissioner Bruce Tangeman. “We performed a thorough analysis of the revenue estimates submitted by the previous administration and, it became clear it did not represent the true size of the budget deficit.”

Using a more realistic oil price forecast of $64 dollars per barrel, the deficit balloons to $1.6 billion dollars. That figure will be the starting point for vigorous discussions with state agencies, legislators and the public. The Walker $11.5 billion-dollar spending plan is unsustainable and leaves substantial room for spending reductions and budgetary reforms that reflect the state’s current fiscal situation.

In the weeks ahead, the Dunleavy administration will revise the budget it submitted today to reign in state spending and prioritize the core services and programs that really matter to Alaskans.

“All items of state expenditures are on the table,” said Office of Management and Budget Director Donna Arduin.

Director Arduin went on to say, “The state must learn to live within its means and we get there by making the tough spending choices.”

The Dunleavy administration’s revised budget will be predictable, sustainable and realistic.

Budget documents are now available on the OMB website at and the Department of Revenue’s Fall 2018 Revenue Sources Book is available at: