Gov. Sarah Palin is calling for more state spending on children's health insurance, preschool and other programs, even as Alaska oil prices and state revenues plunge. Cash flow into the state is shrinking as oil prices drop below $40 a barrel, the lowest level in nearly four years. Most state general fund money comes from taxes and royalties the state makes from oil. But Palin said the state can afford more than $5 million in new spending on areas like Head Start, obesity prevention, a test program of half-day preschool, and expanded Denali KidCare insurance.
