- Associated Press - Tuesday, October 25, 2016

JUNEAU, Alaska (AP) - Gov. Bill Walker says the state will not proceed with plans to sell bonds to help pay for Alaska’s pension obligations at this time, citing lack of support from Senate lawmakers.

In a statement Tuesday, Walker said administration officials discussed the proposal with the Senate Finance Committee but did not get buy-in for the idea.

The state considered selling up to $3.3 billion in bonds to help pay for pension obligations despite a rating agency’s warning that this could hurt Alaska’s credit rating.

The administration was pursuing the idea after lawmakers earlier this year expressed concern with the bonds.

The administration maintains the benefits of issuing pension obligation bonds far outweigh the risks.

Walker says a “collaborative relationship” with lawmakers will be needed for a long-term fiscal plan for the state, which faces a multibillion-dollar budget deficit.

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