Palin budget faces declining oil prices
By PAT FORGEY
JUNEAU EMPIRE
Persistently low oil prices are causing Gov. Sarah Palin to propose amending the state’s spending plans,
and is asking departments across state government to make unspecified cuts.
| Department | Change |
| Administration: | 1,652.3 |
| Commerce: | -80.0 |
| Corrections: | 655.8 |
| Education & Early Development: | -2,570 |
| Environmental Conservation: | -390 |
| Fish and Game: | -1,000 |
| Governor: | -648 |
| Health & Social Services: | -20,292.10 |
| Labor & Workforce: | -330 |
| Law: | 1,444.10 |
| Military & Veterans Affairs: | 800 |
| Natural Resources: | -1,057 |
| Public Safety: | 594.90 |
| Revenue: | 404.70 |
| Transportation: | 3,009.20 |
| University of Alaska: | 2,018.20 |
| Alaska Court System: | 423.20 |
| Debt Service: | -7,339 |
| Special Appropriations: | -200,000 |
| Totals: | -222,703.7 |
“The more we reduce now, the less we will have to draw from savings at the end of the year,” she said.
Due to the dramatic decline in oil prices, the state’s estimated $7.5 billion in revenue anticipated last spring is now anticipated to be $5.5 billion.
Palin sent the Legislature a supplemental budget for the current year that includes the changes she’s proposing. It calls for spending $269 million less than had been planned, but most of that is a $200 million reduction in reduced tax credits for the oil industry because of the lower oil prices.
Many other reductions come in what the Palin administration calls “unallocated reductions” in the budget that they expect individual commissioners to find in their budgets.
Senate Finance Committee CO-chair Lyman Hoffman, D-Bethel, said the Legislature would have to hold hearings on the Palin proposal to find out where the cuts were likely to come from.
“An unallocated reduction does not give us that insight,” he said.
Other changes in the budget include typical supplemental budget fare such as unanticipated high fuel costs. The Juneau campus of the University of Alaska is in line for an extra $34,400 due to higher fuel prices and colder temperatures. Fairbanks is in line for $610,400.
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February 3rd, 2009 at 11:48 am
relax OB is in charge
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February 3rd, 2009 at 11:52 am
I would like to see an analysis of the costs to have Sarah Palin as Governor; two different offices, per diem expenses, moving our commissioners/jobs out of Juneau etc..
Also would like to comment on how destructive it has been to have our commissioners out of the Juneau offices. It’s a real burden; there is ongoing lack in communications and information, lack of leadership….what a mess she has made of our office here in Juneau. It was lots better when our commissioner was here in our office.
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February 3rd, 2009 at 12:05 pm
She’ll cut most funding for Sooutheastern AK, including projects like community fire halls, extensions to hospitals, which make Southeast communities a safer place to live. She doesn’t seem to care much for Southeast AK or its future and made that manifest in her vetoes last year. Southeast got hit harder with her vetoes than any other region in the state. She has already essentially moved the Governor’s Juneau office to Anchorage and her Governor residence from Juneau to Wasilla. She wants to move the Capitol to Anchorage as well. So look for most funding projects in Southeastern to be cut/vetoed even moreso that they were last year. It will make her look like a simon-pure conservative come 2012.
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February 3rd, 2009 at 12:11 pm
Anchorage sure seems like the most logical, cost effective location for state government. Doesn’t take much analysis.
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February 3rd, 2009 at 12:19 pm
Let’s thank our lucky stars that the fighting in Gaza erupted when it did to help stabilize oil prices or she (Palin) would be facing the chore of cutting a lot more stuff. Let’s just hope that the Iranians keep stirring things up over there by supplying Hamas with those cheap rockets they can shoot into Israel and piss the Israelis off so they retaliate. That is the only thing that has saved up from 14 dollar a barrel oil to this point.
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February 3rd, 2009 at 12:20 pm
Let’s thank our lucky stars that the fighting in Gaza erupted when it did to help stabilize oil prices or she (Palin) would be facing the chore of cutting a lot more stuff. Let’s just hope that the Iranians keep stirring things up over there by supplying Hamas with those cheap rockets they can shoot into Israel and annoy the Israelis so they retaliate. That is the only thing that has saved up from 14 dollar a barrel oil to this point.
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February 3rd, 2009 at 12:22 pm
Palin predicted only a $450M shortfall 2 months ago. The $1.36B figure is FOUR TIMES as much. How could she be so wrong?
Elsewhere, it’s reported that Palin called her Finance committee co-chair and another official into her office to tell them that she was cutting the $10M budget item for improving the Anchorage seaport, and $5M for roof repair on the museum.
A penny here, a penny there…
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February 3rd, 2009 at 12:41 pm
I’ll give you one guess what Palin is not cutting from the budget….Her per diem!
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February 3rd, 2009 at 1:01 pm
Ich Rauche: ‘Thank our lucky stars that Gaza erupted when it did’?? Do you actually consider what you’re saying before you open your mouth and let that slop fall out of it? Pathetic.
How ’bout recalling Palin for incompetency prior to the 2010 elections? There may not be enough votes to kick her our, but certainly enough signatures to get it on the ballot in ’09. The very effort may be worth it if we can get rid of her in 2010. That way she could devote 100% of her time toward 2012 – Ha!
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February 3rd, 2009 at 1:06 pm
Its just the Great White Hype getting ready for her 2012 match.
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February 3rd, 2009 at 1:28 pm
One thing she obviously isn’t cutting…….freedom of speech, thats a lot better then the dems in congress want to do…….well, I guess I’m only partially right, its the free speech rights of Conservatives and Repulicans they want to deny.
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February 3rd, 2009 at 2:03 pm
You are Tired – maybe you should take a nap. Don’t you ever get “Tired” of the same old “everyone’s out to get us poor conservatives” boo-hoo line? Even when you were in charge you cried about it. Tune out Limbaugh and re-join society – there’s a place even for you, once you’re over being so Tired.
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February 3rd, 2009 at 2:04 pm
Wolf,
What else do you think stabilized the oil prices? It sure wasn’t anything clever that Sarah did. Alaska and Iran both depend on oil. That’s the bottom line. Live with it pal. The price of oil was falling like a rock when that whole mess blew up. Suddenly oil prices sort of leveled off. What else caused this to happen.
Bliss-ninnies like you make me laugh.
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February 3rd, 2009 at 2:17 pm
Did somebody say recall Palin?? Where do I sign??
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February 3rd, 2009 at 2:30 pm
She needs to get rid of the State travel office talk about a waste of money. If the procurement office was negotiating contracts for the state on airfare hotel and car rental there is no need for this department.
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February 3rd, 2009 at 2:33 pm
[...] Juneau Empire’s blog is reporting that Gov. Sarah Palin sent the Alaska legislature a supplemental budget request today that slashes [...]
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February 3rd, 2009 at 2:35 pm
I’ll Sign! So will the wife, and about 30 republican friends from the great state of Wasilla too!
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February 3rd, 2009 at 2:49 pm
Get rid of the state travel office? How would the family be able to ride on the state’s dime then?
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February 3rd, 2009 at 3:16 pm
Sorry Ich
It isn’t Gaza that is “stabilizing oil prices”. For one, I wouldn’t call oil prices stable when they are dipping into sub-$40. It is the down world economy and a lack of demand that is holding prices so low. Until the economy starts to recover and demand starts to rise we can look forward to prices staying in the toilet.
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February 3rd, 2009 at 3:39 pm
Hey Ich good try but with everyone coming out of UAS they’ll never get your point. $12 oil and lots of it; no need for ethanol,solar,wind,tide etc. Why not tax the carbon when it comes out of the ground if you think there’s a CO2 problem.It’s all about $$$$$ for both the enviros and Exxon!
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February 3rd, 2009 at 4:00 pm
[...] Juneau Empire’s blog is reporting that Gov. Sarah Palin sent the Alaska legislature a supplemental budget request today that slashes [...]
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February 3rd, 2009 at 4:09 pm
Look at the chop on the Health and Social Services budget. Wonder whose hide that is going to come out of?
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February 3rd, 2009 at 4:15 pm
Dems follow Obama like lemmins off a cliff. And that, I’m affraid is where he is leading us all. I for one am not to tired to drag my feet. So follow blindly you liberal socialist.
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February 3rd, 2009 at 4:44 pm
I have an idea, why doesn’t the Governor cut back on her high paying commissioners salaries, and she pay back the per diem that she owes and cut back the Legislation salaries as well! Let’s not forget we still have a hefty reserve that has not been touch.
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February 3rd, 2009 at 4:54 pm
Palin pushes for road to Nome
Project would cost $3 million to $4 million a mile. Not just Palin but others who are on her side really need to rethink this whole thing. While our economy is hurting, Palin Administration are still wanting to spend more money on a road to Nome.
I would like to see the money to spend on real issues like updating our Ferries that is still being needed by coastal communities in Alaska. Pot holes in the roads are creeping up every where once again. List goes on and on that Palin has not surpported the best interest for Alaska communities.
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February 3rd, 2009 at 5:03 pm
We can all blame Sarah for our problems. I don’t like her either. However, last summer she had a great approval rating. Then, the economy went into the toilet, she made her run at national office and said a few dumb things, also the price of oil(on which Alaska’s economy depends) took a nosedive. The fighting in Gaza served to slow things down. Look at the graphs. You people are a bunch of morons to blame everything on Sarah. This whole world economic mess is in no way her doing.
If you guys think that the oil states in the Mddle East are beyond underhanded tactics to stablize oil prices, you are way out of touch. The Iranians are masters of brinksmanship. Also, they have the scruples that make John Gotti look like a cub scout. If you think they supplied Hamas with those cheap rockets out of ideologic love you are sorely mistaken. If they really wanted Hamas to be able to do any damage, they’d give ‘em the good stuff.
We in piddly Alaska are forced to flow helplessly in the stream of world events. Like I said, I don’t like Sarah either. But, the best thing for Alaska right now would be a major brew-ha in the Middle East. And, those kinds of things are out of even Sarah’s control.
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February 3rd, 2009 at 5:05 pm
Response to Tired.
Quit mopping and whining about the Dems this or that, you don’t know what Obama can really do, until he succeeds with the stimulus plan. Republicans have no great ideas either; except more tax cuts which is their only plans. We have seen for eight years under the Bush Administration…cut taxes, unregulated banks, corrupted corporate companies under his watch.
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February 3rd, 2009 at 6:06 pm
Ich–An Iranian nuke would do a lot to improve Alaska’s economic status. Maybe even save the PFD!
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February 3rd, 2009 at 6:51 pm
Saddam didn’t let the UN come in and check to see if he had nukes which gave Bush an excuse to invade. Saddam’s main reason for balking on the inspections was that he feared the Iranians much morethan the USA. He was trying to scare them into not attacking him.
If the Iranians were to just pretend they had a nuke, it would do wonders for Sarah’s popularity. I agree on the PFDs.
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February 3rd, 2009 at 8:04 pm
Hey she could stop paying her taxes and get a job with Obama;) You don’t realize how good you’ve got it with a governor like Palin. There are probably 40 governors that are way worse than her. Try living with a Charlie Crist before you start complaining.
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February 3rd, 2009 at 8:21 pm
Sarah Palin has been great for Alaska. We in the lower 48 are now paying attention to the beauty and natural resources of your state. Your revenue from
vacationers will increase dramatically I suspect. I wish we had her in Illinois instead of the corruption we consistently face. Those of you who bash her have no clue…to me, you are acting like you are jumping on the “I hate Sarah” bandwagon left over from the crazy media types who worship at the Obama altar.
Your quotes sound like they are from either the Huffington or Andrew Sullivan
hatemongers.
Unfortunately, when someone like Sarah Palin captivates the national interest,
whacko idiots come out of the woodwork to defame her.
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February 3rd, 2009 at 9:00 pm
Amanda, we were aware of Sarah Failin long before she went on SNL. She’s been our GOVERNOR. We’re not bandwagon haters, we’ve hated her before YOU even knew she existed! And you’re right, “whacko idiots” have come out of the woodwork to defend her!
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February 3rd, 2009 at 9:20 pm
Reading all these anti-Palin posts reminds me of the shock a lot of folks in downtown Juneau have gotten throughout the years in regards to the results of statewide elections. They fail to realize that Starr Hill is NOT the bellweather for Alaskan politics.
Sarah might not be all that popular now. I don’t like her myself. However, remember that where somebody stands in the polls at mid-term doesn’t mean squat. What is important is how they do in the election. November 2010 is still a long way off.
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February 3rd, 2009 at 10:14 pm
Ich, not so sure the PFD will benefit. Its value isn’t based on oil, but on the rest of the world economy. And I can’t see how that would improve if oil went to $150 after Iran blew off its nuke.
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February 4th, 2009 at 1:26 am
Defense related stocks would fly through the roof!!!
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February 4th, 2009 at 2:03 am
I hope she redesigns government to return to commerce, charity and the individual their rights and responsabilities. It is evident that subsidies, grants and tax credits can have an anti-competitive effect as can government intrusion in education, housing, energy and “private/public parnetships, supplanting the private sector and the banking industry. We are seeing how destructive that is.
With unemployment rising and it looks like social services roles, the best thing to do is cut government AND taxes. The tax reduction would have an immediate benefit to the consumer, investor and taxpayer.
Privatizing Head Start to University where the money follows the income qualified child to any accredited school they can get into would also improve performance, reduce costs and increase options for parents and children.
Republicans have plenty of ideas but they are fought against by Democrats who have a straglehold on government, unions and other taxpayer funded interests.
It’s no wonder there is such a virulent strain of “opposition”. Parasites fighting for scraps have a tendency towards viciousness as demonstrated here.
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February 4th, 2009 at 3:23 am
[...] more important what they do with the money, and by all accounts, Palin is also looking for ways to trim the state budget and make it run more effectively. So like, there’s [...]
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March 19th, 2009 at 6:07 pm
Every time i come here I am not dissapointed, nice post
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