State surplus higher than predicted

Petroleum News Alaska Staff

High oil prices and booming corporate profits will give the state of Alaska a larger than expected budget surplus, according to a report released by the Revenue Department in July. The state expects to collect $2.37 billion in general unrestricted revenue. That will leave Alaska with an $87 million surplus in the budget year just ended. State officials predicted a $16 million surplus in April.

State government will collect 81 percent of its general revenue from oil royalties and taxes this year. The current budget surplus is only the second in seven years, according to the Revenue Department. Oil production is less than half its peak in 1987. Since then, prices averaged about $18 a barrel, according to the state. Last budget year, which ended June 30, prices averaged $27.92 a barrel.