Gov. Bill Walker halted spending on six major projects in Alaska Friday, citing the state's $3.5 billion budget deficit as the reason, The Washington Post reported.
Oil prices are at a five-year low and other states have also cut spending for projects. Officials said that more cuts could be necessary if oil prices remain low.
Walker has halted a small diameter gas pipeline project from Alaska's North Slope, a bridge over the Knick Arm, the Susitna-Watana hydroelectric dam, the Juneau access road, the Kodiak rocket and missile launch complex and Ambler road, according to Alaska Dispatch News.
These projects have been criticized as too expensive for the state's budget because Alaska relies heavily on oil as part of its revenue.
When Walker issued the order Friday, he told state agencies to stop signing contracts, hiring new employees or committing any new funding from the federal government or other sources.
The order also wants each agency working on projects to submit a report that shows personnel costs, operating costs and spreadsheets that break down the different types of project spending in January, ADN reported.
State legislature will review the spendings and will decide between Jan. 20 and Feb. 18 if the projects should continue to receive funding.
Voters elected Walker, an independent, into office in November. He won the race over incumbent Gov. Sean Parnell (R.).
