JUNEAU, Alaska (AP) – The Alaska Legislature is considering a proposal to borrow up to $1 billion from global markets to cover a debt it owes to oil and gas companies.

The Juneau Empire reports that Gov. Bill Walker’s administration says the borrowing could be a way to reduce that deficit at the expense of some longer-term risk.

Revenue Commissioner Sheldon Fisher and tax division director Ken Alper presented the plan on Wednesday to the Senate Resources Committee.

The state promised billions of dollars in tax credits to smaller oil and gas companies between 2003 and 2017. But when petroleum prices plunged, the state could no longer afford the program.

The state has been paying only the minimum amount on what it owes for the past several years.

The proposal remains in the Senate Resources Committee.

Information from: Juneau (Alaska) Empire, http://www.juneauempire.com

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