Tuesday, February 17, 2009

Sarah Palin's black gold nightmare

The AP wonders if there will be political blood in Alaska, as the state prepares for an estimated $1.5 billion shortfall in June's fiscal year end.

It's a long way from Palin's early tenure.... the hugely popular governor got the state to give $1,200 to most Alaskans in a one-time fuel relief payout that totaled about $740 million. That payout was on top of a record $2,069 dividend from the state's oil royalty investment program, which distributes checks annually.

Maybe that's why the House GOP warned against one-time payouts - They're one time.

But Palin says Alaska's prepared:

The state has socked away $1 billion in an education fund for the next school year and education officials say another $1 billion is expected go into the fund this year for future use. More billions went into state savings as well, Palin said.

"We're more prepared than other states because of the prudence there.... We crossed that first hurdle."