You can make the case for or against the $74 price. We'll see what happens. Do I think it's optimistic? Yes. Do I think she won't hesitate to chop expenses further if necessary. Yes. Is that poor planning? Probably not if there is a good enough rationale behind the revenue forecast. I'm certainly not smart enough to know what the price of oil will be from mid-2009 through mid-2010. The Alaska budget will be balanced one way or the other. They have no choice. I will say this, my opinion of Gov. Palin's fiscal responsibility will certainly change if she ever entertains the notion of dipping into the Permanent Fund.
There was an agreement by the producers signed just before she came into office. She threw it out. In my opinion, she set the process back 2 years.
There have been lots of promises made over 30 years that haven't materialized. She felt Alaska was out of time to harbor more broken promises. In light of the immediate prospect of declining oil production, she made a tough choice. I happen to agree with it.
Show me one other example of any agency or group with any track record of predicting oil prices beside the Alaska Department of Revenue using a price for this above $70.
Probably not if there is a good enough rationale behind the revenue forecast.
The only rational given was based upon out of date numbers. This estimate is old and should be updated, now.