Citing declining oil prices, Alaska Gov. Sarah Palin Wednesday submitted a package of amendments to her fiscal 2010 budget proposal that she said would reduce general fund spending by $445.5 million.

The general fund budget is almost entirely dependant on revenue from taxes on oil production. The state Department of Revenue issued an interim revenue forecast Wednesday that assumed an average oil price per barrel of $57.78, down from its previous fall forecast of $74.41. The result is estimated general fund revenue of $3.18 billion in fiscal 2010, down $2.1 billion from the fall forecast.

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