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Palin To Campaign In Georgia As Oil Prices Plummet November 25, 2008

Posted by roothogreport in Executive.
Tags: , , , , , , ,

This morning brings news that Sarah Palin will travel to Georgia next week to campaign for threatened Republican senator Saxby Chambliss in his runoff election against Jim Martin.  I can’t remember the last time a losing vice-presidential candidate was called on for support in such a pivotal race (well, unless you count Joe Lieberman in this year’s presidential election, but I’d argue he didn’t help much).

This, ordinarily, would all be well and good.  Sarah is obviously very popular with a good percentage of the GOP’s base, and as she is a savvy politician it would be unrealistic to expect that she curtail opportunities to keep her name in the national spotlight.  In this case, though, I worry that she doesn’t have Alaska’s best interests at heart.

Why am I concerned?  Well, in short, it comes down to a dollar figure: $44.53.

That’s the cost, as of the close of business last Friday, of a barrel of Alaska North Slope crude oil.  I had the opportunity to listen to Lt. Gov. Sean Parnell talk on the state’s economic future a few weeks back, and he threw out another number: $62.  That’s the average cost per barrel of North Slope crude the state needs to balance its budget.  Do some simple math, and if oil prices were to stay where they are now for the whole fiscal year, we’d be looking at a 28% budget shortfall.

Obviously, it’s unlikely that oil prices will stay in the $45 range for the whole year, but in the current economic climate, it’s possible that the picture will get even worse before it gets better.

Bottom line: Alaska is in a budget crisis that has the potential to derail the state’s short-term economic security.  Our governor has more important considerations than stumping for a senator in peanut country.



1. State Budget: We’re Screwed « The Roothog Report - December 4, 2008

[…] Tags: budget, crude, North Slope, oil, Sarah Palin, We’re Screwed trackback So remember here, where I argued that Sarah Palin might want to stay home from campaigning in Georgia and deal with […]

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