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The Operating budget: A 23% increase!

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On December 10, 2007 Governor Sarah Palin introduced her administration's proposed fy09 operating budget. The administration  touted their plan to hold operating state operating expenses to just a 4 percent increase,

According to the press release:

Prior to the Palin administration, Alaskans had seen growth in government spending averaging 14 percent a year.

Even with skyrocketing costs such as energy prices, health care and retirement costs, the Palin administration is committed to find way to slow the growth.

It has changed direction by proposing a 1 percent increase in agency operations and a 4 percent increase in total General Fund Spending.

However when Palin's budget proposal was analyzed by the legislative finance division, the administration's budget was found to be a 15 percent increase in spending, not the 4 percent as was originally advertised.

On Saturday, the legislature passed the final version of the fy09 operating budget which will end up being 23 percent higher.

Will the governor sign off on a 23 percent increase in state operating expenses when she promised to hold growth to 4 percent? 

To see the official press statement about the governor's fy09 budget:

http://gov.state.ak.us/archive.php?id=788&type=1


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Correction

I think the 23% number on the operating budget is wrong. If I remember correctly it appears to be 23% because of the $1 billion put into CBR in the operating budget. The increase is still significant and completely unsustainable but I'd encourage you to check the numbers. I always appreciate this blog and Andy because he presents the facts. Understandingly the numbers are complicated and hard to figure out, but I'd encourage you to double check.

Andrew's Response:

Thanks for bringing attention to that fact. I've emailed a finance committee member and asked them to verify. I'll post a note as soon as I get the answer.


Will the governor sign off

Will the governor sign off on a 23% increase? No way... she'll hold it to 4%. You watch. And right after that, monkey's might fly out of my butt. We are so screwed.


Da Gov

While all Alaskans would love to see monkeys fly out of Debbie Doubter's bum, I have to agree with her. To qoute Family Guy, "No Friggin Way." 23% and climbing. Really, all this does is screw Mr. Halcro when he's elected our next governor, and is stuck cutting spending due to decreased pipeline flow.


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