Alaska Gov. Bill Walker is proposing reinstituting a state income tax for the first time in 35 years as Alaska struggles with a multibillion-dollar budget deficit amid chronically low oil prices.
His proposal includes budget cuts, increases in various taxes and using the fund that provides annual checks to most Alaskan to generate a stream of cash for state government. His plan would change how dividends are calculated, and mean a check next year that's about $1,000 less than this year's.
The independent Tax Foundation says Alaska is one of seven states without a personal income tax. It hasn't had such a tax since lawmakers repealed the last one in 1980.
The oil-dependent state has been using savings to help balance its budget. Officials have been warned the state's bond rating could be lowered if it doesn't do more to address the deficit.