JUNEAU, Alaska (AP) — Gov. Sean Parnell is proposing putting $3 billion from a state savings account toward paying down Alaska's roughly $12 billion pension shortfall.
The state is currently on a payment schedule that calls for increasing payments over the next 15 years, on a pace expected to exceed $1 billion before dropping. The payment for the current fiscal year is $629 million and scheduled to be $703 million next year, according to Parnell's budget office.
While Parnell previously supported staying on that schedule, he said he's become convinced, in part from feedback from ratings agencies, that that option isn't sustainable and will put too much pressure on the state budget. He said his plan is "the right way to go."
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