Oil Rebounds, Governor Urges Continued Fiscal Restraint
Press Release from Governor Palin:
June 8, 2009, Anchorage, Alaska - Governor Sarah Palin today noted the price of Alaska North Slope crude oil has risen dramatically over the past couple of months. However, while the price of Alaska North Slope crude is higher than expected in the most recent revenue forecast, the state continues to draw on reserves to balance this year’s budget.
“History reminds us that high oil prices are a double-edged sword,” Governor Palin said. “The state treasury may swell, but Alaskans will feel the pain at the pump and the pinch of higher energy prices. History also tells us that oil prices go up and down, sometimes dramatically. Now is not the time to grow government. We must be prudent moving forward and exercise fiscal restraint.”
Governor Palin also tweeted on this today:
Oil prices rise to budgeted estimate; need fiscal restraint now more than ever, prices fluctuate - can't count on big increases.
UPDATE by Daniel: Governor Palin discussed oil prices in her interview with Sean Hannity:
Hannity: Look the price of oil is going up again. It's not quite at one hundred and forty dollars a barrel, but it's certainly on its way up to seventy and eighty.
Governor Palin: Yeah, well, I thank God it's not at a hundred and forty. You know people say, "Hey, Alaska, eighty five percent of your state budget is based on the price of a barrel of oil. Aren't you glad the price is going up?" I say no, the fewer dollars that the state of Alaska government has, the fewer dollars we spend, and that's good for our families and for the private sector. But the dollars that we have, of course, we have to be prudent and wise with.
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11 comments:
Uga,
If oil hits $90-95 later on in the fiscal year as many predict, her state could be in line for a hefty surplus.
Right now, the price of oil would give her a surplus but she wouldn't be able to call it one because she likely wants to forward fund some education dollars. But at $82/barrel, yeah that's a surplus.
Sorry, O/T, but CNN talks about the crowd around Palin's table and camera's all pointing to her!
http://www.cnn.com/2009/POLITICS/06/09/GOP.fundraiser.palin/index.html?section=cnn_latest
Well, the Governor just makes too much sense :)
It will be interesting to see how everything unfolds. But, I certainly trust her to make good decisions as she has continued to do.
I wonder if these oil prices are legit. Are we going see a market correction? I keep hearing about how oil supply stockpiles are pretty high due to low demand.
Why is oil going up?
Did Palin based her budget on $50/barrel?
Oil is going up because a worldwide economic recovery is coming and demand is going to increase.
That much is a given since Obama has borrowed trillions and shoveled it into the furnace. Less certain is what is going to happen to inflation and the impact higher interest rates will have on the housing market.
sooooooo, when the prices go up, and the revenue coffers in Alaska rise, will this mean another ethics complaint against Sarah????
Will the anklebiters claimed she manipulated the price? (sarcasm)
....just sayin :)
Oil is going up because the currency is being driven toward worthlessness by the criminal enterprise called the Federal Reserve.
Not too long ago some of the anklebiters in Alaska, and her enemies in the lower 48 were all crowing about how oil was going to drop below $20 a barrel, and how that would really hurt Gov. Palin, never mind that it would hurt the entire state of Alaska.
I remember in December when she was crafting the FY2010 budget and based it on oil around 60-65 or so... and she was broadly laughed at for thinking oil would rebound so high.
Brian Davidson said...
I remember in December when she was crafting the FY2010 budget and based it on oil around 60-65 or so... and she was broadly laughed at for thinking oil would rebound so high.
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I remember that too, David. She was right again.
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