Some good budget news: Alaska state debt is declining

JUNEAU — As state lawmakers and Gov. Mike Dunleavy prepare to debate $1.6 billion in cuts to state services, Alaska’s debt manager offered a rare bit of good fiscal news on Monday: The state’s debt is declining.

While the state’s payments on its pension and retirement debt are expected to rise for at least the next decade, the state’s other debt payments started declining in 2018 and will continue declining for at least the next decade, said debt manager Deven Mitchell of the Alaska Department of Revenue. Overall, that means debt payments will continue to decline — along with the amount of debt — if the state does not borrow any additional money.

The decline was expected and is not expected to aid lawmakers as they attempt to balance the budget this year, but it is good news in the longer term.

“I think we’re in a very sound state debt position,” Mitchell said after delivering presentations to the Senate Finance Committee and a bipartisan group of Representatives.

Read more: https://www.adn.com/politics/alaska-legislature/2019/02/05/some-good-budget-news-alaska-state-debt-is-declining/