Politics

State budget director retires weeks before Walker's first budget due

JUNEAU -- Gov.-elect Bill Walker has to submit his first state budget by Dec. 15, and he won't have the help of the state budget director to craft a document as the state faces a $3 billion deficit because of falling oil prices.

Karen Rehfeld retired as of Friday, Sharon Leighow, a spokeswoman for current Gov. Sean Parnell, said in an email Monday to The Associated Press. Walker will be sworn in to office on Dec. 1.

Then-Gov. Sarah Palin appointed Rehfeld as Office of Management and Budget director in 2007, a post she's held through the Palin and Parnell administrations. Leighow says Rehfeld retired after 35 years with the state.

"The governor is expected to announce the new budget director this week," Walker spokeswoman Grace Jang said in an email to The Associated Press on Monday.

Parnell will turn over his own budget proposals to Walker on Monday through the transition process.

It will include "hundreds of millions of dollars in proposed reductions ... as a starting point for the Walker-Mallott administration," a release from Parnell's office said.

During the campaign, Walker promised a 16-percent decrease in spending across the board in the budget.

"I'm a fiscal conservative," Walker said during a debate in Juneau last September. "Yeah, I'm proud of my statements (about the budget) ... I know it's uncomfortable for some to talk about, but I'll continue to talk about it."

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