Chamber of Commerce Hears about State Deficit

Submitted by Staff Reporter on 02/14/2017 - 17:33.

The Alaska legislature continues looking at ways to overcome or pay down the current deficit that has risen to over 3 and a half billion for the state.

Pat Pitney is the director for the office of management; and today (TUE) at the weekly chamber of commerce luncheon, she addressed a full capacity crowd on the current situation.

Pitney said there are many ideas being kicked around as solutions -- from income tax, to transfers from the permanent fund to erase a portion of the debt.

But she added the bottom line is that the situation is dire.

She told us "Two things: number one - state spending has been reduced, significantly. Secondly it's a revenue problem -- when your revenue drops about eighty percent, you've got a problem. You can kind of cut and cut, but twenty percent... cutting down to twenty percent [of] what you are used to... pretty impossible in any environment."