After Governor Palin’s Tenure, AK’s Credit Rating Raised to Aaa

By Stacy Drake

As Nicole Coulter reported last night, S&P has downgraded the nation’s credit rating from AAA to AA+ for the first time in history. While the left desperately tries to convince the country that this is because Obama & Co. haven’t taxed us enough, S&P made clear why they made the decision they made:

The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.

More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

While the country suffers under the current leadership, and the economy continues it’s downward spiral; it should be noted that quite the opposite happened in Alaska after a Palin administration. In November of 2010, Moody’s, another one of the three big rating agencies raised Alaska’s rating from Aa1 to Aaa:

Alaska had its bond rating raised to the highest investment grade by Moody’s Investors Service after the oil-rich state amassed financial reserves of $14 billion.

Moody’s raised Alaska one level to Aaa from Aa1 before a $200 million bond sale by the state, which currently has about $475 million of general-obligation debt outstanding. Alaska joins 14 other states, including Texas and Maryland that have a top rating from Moody’s.

We believe the magnitude of reserves, along with conservative financial management, will lead to enduring fiscal strength under all plausible scenarios over the next five to 10 years,” Moody’s said in a news release today.

While it’s true that this upgrade happened during a Parnell administration, confidence in Alaska from this major credit agency didn’t happen overnight.

Governor Palin served Alaska during a time when oil prices were high, but she put into place measures that allowed the states financial reserves to grow, instead of being grossly mismanaged by undisciplined bureaucrats. She also reduced Alaska’s liabilities by 34.6%, as Whitney Pitcher addressed yesterday. Her forward focused fiscal prudence, in addition to the fact that she addressed Alaska’s financial liabilities, likely gave Moody’s the needed assurance of the state’s fiscal seriousness to increase Alaska’s credit rating.Could we expect the current federal leadership to address liabilities to show rating agencies that America is serious about our fiscal health? Is there any question that the United States government would squander large revenues under the current leadership?

Just imagine if this country opened up energy production, while simultaneously taking bold steps, – such as Governor Palin did in Alaska – to get it’s fiscal house in order. As you can see, it produces exactly the opposite outcome of what we are currently facing today. In the words of Governor Palin, “2012 can’t come soon enough.”

Check out this short clip from the CATO Institute on what it means to have our nation’s credit rating downgraded, in simple terms:

15 Comments

Filed under In The News, Politics, sarah palin

15 responses to “After Governor Palin’s Tenure, AK’s Credit Rating Raised to Aaa

  1. I hold that beltway, legacy media is as much to blame for the downgrade as the Congress or President, if not more so. For example, they fiddled over Palin’s Alaska emails while our economy burned. The Tea Party was talking about the Debt Ceiling even more the 2010 election. The elite punditry class waited until the supposed deadline was looming.

    The Fourth Branch of government is even more odious than the 1st and 2nd in this matter. We need citizen journalists to get the real word out in Palin’s awesome record.

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  3. Joy

    That was a terrific overview, Stacy – and it’s just what’s been going through my own mind as I’ve emerged from another 4 screenings(no kidding!) of The Undefeated (part of my volunteer organizational work for O4P out here in the land of cactii and palm trees….). As I’ve come to understand very well now, Palin’s instinct for fiscal policy – and fiscal SANITY! – was a godsend for Alaska, and her administrative “team,” which, of course, included Sean Parnell, worked very hard together on a number of key projects that resulted in this excellent ratings outcome for AK!

    And when she stepped down from the Governorship (out of necessity – as all of us who admire her totally know and understand!), she left policies and projections in the capable hands of her partner and Lt. Gov., Sean Parnell. It was – from all I understand – a smooth transition, and the Palin imprimatur has been firmly affixed to those policies in the course of the intervening years. Talk about a living example of the RIGHT way to “do business” and run a State government!! How MUCH Palin et al could teach the current administration; but, of course, they would NEVER listen, as commonsense conservatism runs counter to their marxist policies. God help us all!!

  4. qweenmum

    you know, Romney had Mass upgraded to AAA WHILE HE WAS GOV, not after he left.

    Bigger and better accomplishment, if you ask me.

  5. RickC.

    My understanding is that the prime contributor to the Alaska budget surpluses—which were a major factor in Moody’s decision to upgrade the state’s rating—was the fact that Palin greatly increased state taxes on oil company profits at a time when oil prices (and, thus, profits) were rapidly rising. It sounds like asking those who benefit to pay their share. Why does no one here seem to mention that.

    • Gary P

      She didn’t really increase taxes as much as she just forced the oil company to pay fair market price for the oil.

      Alaska is unique in the fact when the constitution was written, it made the Alaskan people the owner of the oil and natural gas. Much like someone in the lower 48 who owns the mineral rights on their own land. As such, every Alaskan gets a yearly dividend check, just like any stock holder would.

      The added benefit to Alaskan’s is there is no state income tax, or even state sales tax.

      What Governor Palin did with ACES is fix a serious corruption problem. You see corrupt lawmakers had made sweetheart deals with Big Oil and Big Oil was buying Alaska oil far below market value. In Alaska the Governor is a true CEO. It’s the most powerful Governor’s office in the nation. As the state’s CEO, Governor Palin was directly responsible for looking after the people’s best interest.

      What ACES does is create a sliding scale. As market prices go up, so does Alaska’s share, as market prices come down, well, you get it.

      BTW, the oil companies fought her on this even though she told them under her plan they would actually make more money and this was a win-win deal for both sides. It didn’t take long after ACES was put in place that the oil companies found out that she was right. The state made more money and the oil companies made more money.

      Sarah Palin is a sharp businesswoman and one hard core CEO. I have no doubt she could run any company in the nation and run it successfully.

      Anyhow, to call ACES a tax is to not understand what ACES is or what it does.

  6. who even gives a crap what this woman did , she is a quitter . if they do her half as bad as prez obama . she and her brood will run for the hills. she is not running . we need to concentrate on people who have a real interest and is serious about what is going on in our country. leave sarah in alaska where she belongs.

    • Gary P

      Obviously you care or you wouldn’t be here commenting, would you.

      BTW, if you’d educate yourself the benefits would be many. You’d learn that no one is more serious than Sarah Palin. You’d learn she was an incredibly effective CEO at both the mayoral and gubernatorial levels. There’s a reason why she had a 90% approval rating in a state where most voters are registered independents.

      Palin inherited a deficit and yet she created a $12 billion budget surplus and cut spending by record amounts, in good times, when her legislature was going nuts and wanting to spend money like those good times would never stop. Governor Plain was years ahead of the curve on what is happening now to the nation.

      Besides, if you’d educate yourself you wouldn’t look so ignorant when you leave comments on the interwebs.

      Avoid future embarrassment and go get educated.

  7. i only wanted to leave a comment , i am not interested in subscribing to anything to do with sarah palin. thank you.

    • Gary P

      Oh come on, subscribe, you know you want to. You might actually learn something.

    • IwjwI

      Commenting with some real knowledge about Sarah Palin would help your comments. It looks like you are just here to spread around lefty talking points that have absolutely nothing to do with the truth about Sarah Palin.
      Just a suggestion: Get some real education on Sarah Palin’s record of accomplishments, then come back to debate why you think the way that you do. Lefty talking points can’t, don’t, and never will
      stand up against the truth about Sarah Palin.
      There are plenty of good sites that you can go to for correct information. Have a mind expanding experience by incorporating ‘truth gathering’ as part of your daily routine.
      Remember, “Garbage in; garbage out,” isn’t just a saying that is applicable to computers. It can be used for your own biocomputer, too.

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