Gov. Palin Proposes 7 Percent Cut In State Spending

Palin proposes 7 percent cut in state spending
Alaska News Service
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.