With high oil prices expected to boost state revenue by $700 million, Alaska Gov. Sean Parnell Monday submitted a supplemental budget request for the current fiscal year, saying he wants most of the money saved.

The state derives almost all of its general fund revenue from oil taxes, and the state is now projecting a $2.2. billion surplus for the current fiscal year, up from $1.5 billion a few months ago.

Parnell said he wants to deposit $1.1 billion of that into the state’s Public Education Funds, to fund K-12 education for the following fiscal year, and also appropriate $402 million for the state’s Constitutional Budget Reserve fund.

“My guiding principles for the budget include maintaining fiscal discipline by limiting state agency growth and promoting economic opportunity for Alaskans,” Parnell said in a news release.

“Legislators have been very clear in their desire to fully repay and save more money in the Constitutional Budget Reserve. I also have made a priority to forward-fund K-12 education,” he said. “The improved revenue forecast, based on continuing high oil prices, shows that we can do both in this fiscal year.”

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