They probably used a very advanced programme at the time as they spent a lot on it. Also Akira when you blur an image it looks more Balto screenshot like , even if you just rendered it on paint it also stops art theives as if it isn't so stand out like you can't recouler it without it being noticable.
Example :
paint made (c) Kiarafiregirl http://www.animationsource.org [...] rs/pic_detail4c7f94180ff17.png
now lets blur it : http://www.iaza.com/work/101029C/iaza18593368953000.png
it looks better and it's harder to recouler

A professional animation studio would not use computer programs like Photoshop. They have elaborate techniques and equipment, and programs, for use in creating cartoons. And since Balto was a 2-D cartoon, it was probably done in traditional animation style (cel animation). Computers may have been used for some aspects of the animation process, but they certainly would not limit themselves to programs commonly available to the general public.

Akira--> honestly, to me it just looks like she (sofiel) put a light blur on her render part, probably to keep people from taking it and re-coloring.

There are many animation programs out there too, I don't think we would really accurately be able to just guess only going on what's popular today. The first film, atleast, was made a while ago remember. That would be a great interview question though.

If you allow me to post my oppinion here..
I think balto has been drawed by programs with a gimp similar technique, i don't think it could be colored / drawed by photoshop, as in the movie is seen, figures, coloring, some shadding also... isn't seen photoshop technique

Let's see some examples,

Here is a screenshot from the movie Balto (Image (c) Universal 1995)

http://www.freewebs.com/balto/Balto15.JPG

Here is a rendered screenshot with photoshop ( Image (c) Akira)

http://www.animationsource.org [...] _and_Boris/9.html&numart=16101

Can you notice the difference? In the original screengrab, Balto has silouet kinda "smooth" and in the other one, the render looks more hard, also can say depends on the way you draw / render there are other rendering styles like the one more realistic and the vector one, but they are different in photoshop that if its made in GIMP, let's see the difference

http://www.animationsource.org [...] mage/sofiel__/sofiel__206f.png (Image (c) Sofiel)

This is made with gimp, doesn't this look more close to balto style drawed?, anyway feel free to correct me if i wrong i would really appreciate it

hope this helped at least a bit

Most likely photoshop. Each frame of the movie was drawn on paper and then digitally colored. Now don't ask what version was used, as I would have no idea. Not that it matters anyway.

I think Universal used photoshop for the movies, but I'm not so sure.