State visiting soldiers of the
Alaska National Guard, July 24, 2007.Palin followed through on a
campaign promise to sell the
Westwind II jet purchased (on a state government credit account, against the wishes of the Legislature) by the Murkowski administration for $2.7 million in 2005. In August 2007 the jet was listed on
eBay; although with no buyer found on eBay, it was later sold for $2.1 million through a private brokerage firm to a campaign contributor. She also canceled a contract for the construction of an gravel road outside Juneau to a mine, reversing a decision made in the closing days of the Murkowski administration. In June 2007, Palin signed into law a $6.6 billion operating budget—the largest in Alaska's history. At the same time, she used her veto power to make the second-largest cuts of the construction budget in state history. The $237 million in cuts represented over 300 local projects and reduced the construction budget to nearly $1.6 billion. In 2008 Palin vetoed $286 million in funds for 350 projects from the FY09 capital budget, or 13% of the total budget. The
Anchorage Daily News said the cuts "may be the biggest single-year line-item veto total in state history." In response to criticism for taking the
per diem, and for $43,490 in travel expenses for the times her family accompanied her on state business, the governor's staffers said that these practices were in line with state policy, that Palin's gubernatorial expenses were 80% below those of her predecessor, Frank Murkowski, and that "many of the hundreds of invitations Palin receives include requests for her to bring her family, placing the definition of 'state business' with the party extending the invitation." In response, the commission dropped the recommendation.
Matanuska Maid Dairy In April 2007, the state Board of Agriculture and Conservation (BAC) approved a request for $600,000 for a review of the operating expenses of the Matanuska Maid Dairy, an unprofitable state-owned business, and forwarded the request to the state legislature for funding. The Alaska Creamery Board, which oversaw the dairy and made the request, met in May and discussed privatizing or possibly closing the dairy. It subsequently voted to close the dairy and, on June 13, rejected Palin's public request that it keep the dairy open, saying it stood by its decision to close the dairy plant as July 7. On June 18, Palin replaced the entire membership of the BAC, which then installed itself as the Creamery Board, and voted to keep the dairy open for 90 days while reviewing options. On August 29, 2007, Palin announced that the business could not be made profitable and would be offered for sale. She said that the board could use the $600,000 approved by the legislature in June to help with the transition to a private operator. In November, the dairy received the $600,000 legislative funding. On December 7, with a required minimum bid of $3.35 million for the dairy, no bids were received, and all dairy operations were scheduled to close later that month. In August 2008, the Anchorage plant portion of the dairy was purchased for $1.5 million, the specified minimum bid. The new owners said that they planned to convert it to heated self-storage units. The sale of the company's bottle-making facility in
Palmer was under consideration as of early September.
Bridge to Nowhere In Palin's 2006 gubernatorial campaign, she supported the building of the proposed
Gravina Island Bridge, which had been nicknamed the "Bridge to Nowhere" because the island had only 50 residents. The bridge was intended to provide access to
Ketchikan International Airport Members of the Alaskan congressional delegation, particularly Representative
Don Young and Senator
Ted Stevens, were the bridge's biggest advocates in Congress, and helped push for federal funding. The project encountered fierce opposition outside of Alaska as a symbol of
pork barrel spending.
Congress stripped the specific earmark allocation of federal funds for the two bridges, without changing the amount of money allocated for use by Alaska. As a result, the money previously earmarked for this and another controversial project, the
Knik Arm Bridge, a total of $442 million, was to be made available for transportation projects generally. The proposed Knik Arm Bridge is officially named "Don Young's Way" after Alaska Congressman
Don Young, in the original legislation. The next year, Palin ran for Governor on a "build-the-bridge" platform, arguing that it was essential for local prosperity. Her switch allowed the state to use the federal money for other transportation projects. Palin did, however, continue construction of an access road on Gravina Island, which would have linked to the bridge but now goes only to an empty beach; federal money for the access road, unlike the bridge money, would have otherwise been returned to the federal government. According to
Reuters, Palin's decision to cancel the bridge "earn[ed] her admirers from earmark critics and budget hawks from around the nation. The move also thrust her into the spotlight as a reform-minded newcomer."{{cite news ==Judicial appointments==