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December 18, 2008
Gov. Palin Proposes 7 Percent Cut In State Spending
Palin proposes 7 percent cut in state spending
ANCHORAGE, Alaska
Gov. Sarah Palin released her proposed budget for next year, and if the Legislature follows her lead, the state will be spending less money.
Palin's $4.9 billion budget proposes an overall 7 percent cut in state spending, although state agencies would see a slight increase in the operating budget.
The governor is proposing cuts in capital projects to achieve the decrease in spending. Palin, surrounded by her budget staff and state commissioners, made the announcement Monday morning in Juneau.
With oil revenues on the decline, she says the state is forced to adjust the way it spends money.
"We of course are going to be prudent," Palin said. "We're going to live within our means. We don't want any Alaskans to assume that government is the answer to all of the challenges and issues and problems that any individual faces."
The governor's budget cuts state spending for capital projects like roads and schools by 57 percent. But her operating budget for state agencies calls for a 2 percent increase.
In total, it's a 7 percent decline, and she expects to have money left over.
"Based on the fall revenue forecast, the spending level we propose in (fiscal year 2010) would result also in a surplus, about a $388 million surplus," she said.
The governor's proposed budget is only where the conversation starts. The real budget will emerge from the Legislature after months of hearings.
"We can't act as we're broke," Speaker of the House John Harris said. "We certainly aren't broke, but if we're going to spend money we need to invest it in things that are good long-term for the state of Alaska."
Some lawmakers fear the administration's oil price forecast is overly optimistic, which could increase the downward pressure on state spending.
"I am very uncomfortable with the numbers the Department of Revenue came out with for projected oil prices," said Rep. Mike Hawker, co-chair of the Finance Committee. "That's going to be one of our first projects -- evaluating what we should be using as a proper number."
And some lawmakers say slashing capital projects could accelerate a decline at a time the economy is showing signs of strain.
"With federal spending likely to be trailing off you have to look at what the private sector is doing, and the oil industry and the tourism industry, and so forth," Sen. Hollis French, D-Anchorage, said. "And you want to make certain you're not adding to a problem when you could be helping the economy by spending a little bit more."
But lawmakers are neither critical of, nor applauding, the governor's proposed budget, because they know it is only a beginning.
Palin is proposing the same level of revenue sharing for cities and municipalities, $60 million.
Outgoing Anchorage Mayor Mark Begich applauded that move, although he says he is somewhat concerned about the shrinking capital budget.
Wild Thing's comment.......
Sarah is wonderful, conservatives are the best!!
"We of course are going to be prudent," Palin said. "We're going to live within our means. We don't want any Alaskans to assume that government is the answer to all of the challenges and issues and problems that any individual faces."
Yessssss, thank you Sarah, I wish the rest of the country would listen to you.
She doesn’t just talk our principles, she displays them in life and career.
Posted by Wild Thing at December 18, 2008 04:44 AM
Comments
One of the many reasons we love Sarah.
Posted by: James M at December 18, 2008 06:16 AM
Caroline Kennedy isn't qualified to hold Sarah's snowshoes, yet she is being catipulted into the Senate seat in NY.
Then there's Biden, whom she in her infinite wisdom, helped Obama select for VP running mate from her work as his VP candidate vetter.
Seriously..that's just proof right there she's not qualified for librarian, let alone senator. Plagarism, anyone?
And you compare Biden's integrity to that of Sarah's and there is no contest, she wins hands down.
Posted by: Eden at December 18, 2008 09:32 AM
Sarah Palin doesn't just talk conservatism, she lives it. Her fiscal responsibilities are a good example. She cuts state spending because she realizes oil revenues may be less in 2009. Even wyth the spending cuts Sarah tries to plan on a surplus to cover unseen contengencies.
Meantime our Federal government is falling all over itself going trillions of dollars further in debt to bailout banks and corporations that have failed because of incompetance and insane Federal regulations. The Feds never cut spending. They just tax more.
Posted by: TomR at December 18, 2008 10:59 AM
Excellent once more Chrissie.
Reason in a land of insanity, thank you Sarah Palin for setting such a wonderful national example.
As for Caroline Kennedy. Following in her Uncle's foot steps has robbed her of my respect and has established her stature, I know it's a broad brush madam, but certain other social faux pax's are greeted less harshly. We know your motives now but not the price.
To think that once I found the punk band and their name 'The Dead Kennedy's' offensive and disrespectful, Ted has lived up to all offensive expectations of a corrupt and morally bankrupt family.
Posted by: Jack at December 18, 2008 01:31 PM
James M. I agree, she truly is a conservative. It sure makes a differnce and since there are so few it makes being a conservative stand out even more. I am proud of her.
Posted by: Wild Thing at December 18, 2008 08:14 PM
Eden, LOL good one....
"Caroline Kennedy isn't qualified to hold Sarah's snowshoes".....
Posted by: Wild Thing at December 18, 2008 08:15 PM
Tom..... I agree. She could even use this as a motto over her door. giggle. I agree sooo much.
"Sarah Palin doesn't just talk conservatism, she lives it"
Posted by: Wild Thing at December 18, 2008 08:17 PM
Jack thank you. I really want to try and keep posting things about Sarah when I see them. Keep her in the news kind of thing. giggle.
LMAO love how you said this...... hahaha
"To think that once I found the punk band and their name 'The Dead Kennedy's' offensive and disrespectful, Ted has lived up to all offensive expectations of a corrupt and morally bankrupt family"
I know just how you feel. I am so sick and tired of the kennedys getting away with things. Ted should have been punished for so many things and yet he remains a Senator. sheesh.
Just like now the pattern has been set. So Barney Frank, Rangle and others just never pay for their crimes or corruption either.
Posted by: Wild Thing at December 18, 2008 08:20 PM
