Alaska facts: The last two years the legislature has passed and the Governor has signed back-to-back the two largest deficit budgets in state history. In the process the legislature and Governor have drained over a third of the states unrestricted savings. The current budget -- which already is $1.6 billion in the red -- is based on an assumption of $105/bbl oil. If, as many increasingly predict, the current price of $95/bbl becomes the new normal the budget deficit will grow by roughly an additional billion. At that level, continuing the current rate of spending (which the most recent Parnell 10-year plan predicts will continue) will drain the states remaining unrestricted savings in four short years. Beyond that, the University of Alaska - Anchorage Institute of Social and Economic Research (ISER), the states best economic think tank, predicts the future will be characterized by the institution of a broad based [income or sales] tax, and use of a portion of the earnings of the Permanent Fund just to maintain minimal levels of state government. The current Governor -- and most incumbent legislators -- discuss none of that in their current stump speeches. Based on that: My nomination for official incumbent campaign theme -- whistling past the graveyard (urban slang df., to enter a situation with little or no understanding of the possible consequences). My nomination for official incumbent campaign song -- Bobby McFerrins 1988 classic, Dont worry, be happy.
Posted on: Sun, 21 Sep 2014 16:04:03 +0000
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