A meandering blog with no clear topic. You will find me talking about knitting, building, kids, social and economic issues, Alaska, and lots of other stuff.

Thursday, July 9, 2009

alaska's in the top 10! Whoohoo!

Except it's not something to be excited about:

Budget Nightmare: 10 Most Broke States

Basically, the Alaska state government gets close to 90% of its revenue from oil royalties and taxes. Not only is production decreasing steadily, but now the price of oil is much lower than it was last year.

Problem was, budget people forgot that even if the longterm trend in price of a commodity is up, it can always have dips, and if you make a budget without taking that into account, it will hurt.

If you fail to plan, you plan to fail.

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