From the Washington Post:
Alaska Gov. Frank H. Murkowski yesterday ordered a state-government hiring freeze and worried over whether the state has enough heating oil or funding for social services as Alaskans braced for an economic crisis brought on by the sudden shutdown of oil production in Prudhoe Bay.
Oil company BP ceased most operations Sunday after a heavily corroded pipeline was discovered dripping oil. The closure is costing the state $6.4 million a day in tax revenues and royalties, and some officials estimate it could be six months before 16 miles of pipes are repaired and the pipeline is running at full capacity.
Nearly 90 percent of the stateâ€™s revenue comes from the oil fields, and Alaskaâ€™s revenue commissioner says the state can operate for about two months before running out of money.
90% of revenue from oil fields! There is no way that they couldnâ€™t forsee this scenario occuring one day.
When I lived in Alaska, we got a “Permanant Fund Dividend” from the reserves that were left after all the bills had been paid. One year, I received over $1800! I guess that will go bye the bye….they might even have to start paying (GASP!) state taxes…