Budget Passes After Fight

Alaska’s Legislature has passed an operating and capital budget after a drawn-out fight over energy projects and oil taxes.

Lawmakers passed a $9 billion operating budget and a $4 billion capital budget, according to the Anchorage Daily News.

However, the new capital budget may come up against Gov. Sean Parnell’s veto. Parnell had hoped for a much smaller capital budget, according to the newspaper.

The passage of the budget comes after an extended debate.

During the impasse, the Republican governor used his special constitutional powers for the first time ever to adjourn the Legislature after its session hit a voter-mandated 90-day limit. He then called a special session.

The main sticking point between Parnell and the Senate was over proposed oil tax cuts. The Senate had put language in the budget bill that would kill funding for all proposed energy projects if the governor vetoed a single one.

The governor had threatened vetoes to the capital budget, which is packed with energy projects, if the Senate didn’t pass an oil tax cut.

Parnell wanted to cut taxes on oil companies to help increase production and thus economic activity in the state. Some oil executives and politicians have expressed fears that the Alaskan oil pipeline could shut down in the near future without more petroleum production.

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