Associated Press: Oil Unease: Alaska Faces Tough Budget Decisions

Carl Davis, research director with the Washington, D.C.-based Institute on Taxation and Economic Policy, said cutting the dividend is regressive, hitting lower-income families particularly hard. He sees no conflict between paying a dividend and taxing residents.

While some Democrats want to debate oil taxes and whether companies are paying enough, Dunleavy has focused on cutting a budget he considers unsustainable. Read more