Juneau, Alaska (KINY) The state could borrow $1 billion to pay off debts to oil and gas companies.
The Senate Resources Committee heard from Revenue Commission Sheldon Fisher and Tax Division Director Ken Alper last week.
The state had promised billions of dollars in tax credits to smaller oil and gas companies but when the oil prices dropped, they could no longer afford those payments. The state currently owes $806 million in credits with more expected this year.
Fisher said several companies have indicated a willingness to work with the state on the program.
Sitka Senator Bert Stedman (R) said he didn't think the plan solved the debt problem and simply pushed it into the future.