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flag Alaska faces a $200 million budget deficit in 2025 due to falling oil prices, prompting tax policy changes.

flag Alaska faces a significant budget deficit due to lower oil prices, a major source of state revenue. flag The Department of Revenue forecasts $6.23 billion in revenue for the 2025 fiscal year, down $30 million from previous estimates, leading to a $200 million deficit. flag For 2026, the forecast is $6.13 billion, a $70 million drop. flag Governor Mike Dunleavy's proposed budget has a $1.64 billion deficit, prompting legislators to explore alternatives, including reducing tax credits for oil companies and taxing online businesses.

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