JUNEAU, Alaska—
Gov. Sean Parnell said he plans to cut at least $400 million in state spending from the $3.2 billion capital budget lawmakers sent him.Parnell provided no specifics during a question-and-answer period following a Rotary Club speech in Anchorage. But he said the record-level cuts will allow Alaska to have a "healthy" capital budget while also living within its means.
Parnell said the state needs to be responsible in light of declining oil production, a slumping national economy and state obligations that include soaring Medicaid costs and $11 billion in unfunded pension liabilities.
Parnell has until next week to finish his work on the budget. He said the administration's review continues.
