Elton warns of effect of falling oil price

A state senator says the downward trend in crude oil prices could have State of Alaska budget writers figuring how to make ends meet next session.

Juneau Democrat Kim Elton, a member of the Senate Finance Committee, says the price of Alaska crude oil needs to be about $75 to $80 per barrel to cover current state spending.

The price Oct. 17 fell below $70 per barrel.

State lawmakers set aside $5 billion of a projected surplus last session that Elton says was in anticipation of a potential rainy day.

He says he now sees thunder clouds on the horizon.

Elton says the last session was spent deciding how to spend a huge surplus but the next session may be a throwback, with a discussion of a fiscal plan.

—The Associated Press