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Oil's Plunge Trouble for Palin

By the Associated Press

Posted Feb 17, 2009 8:37 AM CST

(AP) – Sarah Palin's first two years as Alaska's governor were a time of milk, honey, and crude, with sky-high oil prices pumping wealth into the state. The second half of her term isn't looking so rosy. The rapid decline of oil prices has left the state with a looming budget shortfall of up to $1.5 billion. That could have political repercussions for the former Republican vice presidential hopeful, who must stay visible in the Lower 48 if she's to have a hope in a 2012 presidential bid.

"Given these bad times, she's going to have a much more difficult time traveling outside Alaska," said one politics professor. "When times are good, people will let their governor roam. In bad times, citizens expect their governor to stay home and work." Palin bills herself as a fiscal conservative, and has called for reducing state spending by $268 million, but lawmakers say her proposal won't actually cut spending or reduce the deficit at all.

In this Feb. 26, 2008, file photo, Alaska Gov. Sarah Palin speaks on behalf of victims of the Exxon Valdez oil spill at a news conference at the National Press Club in Washington.
In this Feb. 26, 2008, file photo, Alaska Gov. Sarah Palin speaks on behalf of victims of the Exxon Valdez oil spill at a news conference at the National Press Club in Washington.   (AP Photo/J. Scott Applewhite/File)
In this Feb. 11, 2009, photo, Alaska Gov. Sarah Palin listens to a question during a news conference in Juneau, Alaska.
In this Feb. 11, 2009, photo, Alaska Gov. Sarah Palin listens to a question during a news conference in Juneau, Alaska.   (Chris Miller)
Alaska Gov. Sarah Palin answers a question during a news conference, in Juneau, Alaska Wednesday, Feb. 11, 2009.
Alaska Gov. Sarah Palin answers a question during a news conference, in Juneau, Alaska Wednesday, Feb. 11, 2009.   (AP Photo/Chris Miller)
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COMMENTS
Showing 3 of 18 comments
Doctor-Zaius
Feb 18, 2009 6:05 AM CST
I would think her biggest problem is that she's dumber than a sack of rocks.
Doctor-Zaius
Feb 18, 2009 6:04 AM CST
Bingo! You're the smartest kid in class.
Doctor-Zaius
Feb 18, 2009 6:02 AM CST
I'll quit bashing conservatives when they realize they lost two straight elections for a reason. The policies of the Republicans for the last 30 years have led us down this path and they need to shut up and get the hell out of the way while the rest of us clean up their mess.

Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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