Big Budget Presentation at 10am today. OMB Director Pat Pitney will present to Senate Finance today on the status of the state budget – with a 10 year budget scenario. “The Office of Management and Budget has developed a ten year budget scenario to complement the Department of Revenue’s preliminary revenue forecast. While the Governor’s budget will be released in December, this budget scenario is intended to aid the legislature as it considers the Governor’s proposed revenue measure. This budget scenario merely reflects the cost of the current level of services. It does not represent the Governor’s FY2019 budget but provides a forecast of the cost if the current legislatively approved state funded services are extended for the next ten years.” Click here for all pertinent documents for today’s presentation.
Mexico “hedges” bets on oil prices for a cool 24 billion. Mexico spent about 24 billion pesos ($1.25 billion) to lock in prices of oil exports for next year, or more than 21 percent what it paid to hedge crude a year ago, according to Finance Ministry data. The cost for buying put options on the market as of the end of the third quarter came to more than the $1.03 billion spent last year to protect against a drop in oil revenue, according to data released in the quarterly budget balance. In recent years, Mexico has spent an average $1 billion buying the hedges. Deputy Finance Minister Vanessa Rubio said in mid-October that Mexico completed its annual oil hedge for 2018. Mexico buys put options from a small group of investment banks each year in what’s considered Wall Street’s largest — and best-concealed — annual oil hedge. Mexico Finance Ministry proposed a 2018 public budget in September projecting oil exports revenue at $46 per barrel. Lawmakers increased that assumption earlier this month to $48.5.
Murkowski attempting to restore Bering Sea Climate Resilience Area. When President Trump in April signed a series of executive orders that overturned Obama-era environmental protections, one initiative that was eliminated was aimed at helping safeguard the northern Bering Sea from climate-change impacts. For standing approvingly in the White House by Trump as he axed the months-old Bering Sea Climate Resilience Area — a designation that was the product of years of work by the region’s leaders — Alaska Sen. Lisa Murkowski was harshly criticized by the people who had invested time and effort into creating it. Now Murkowski is promising to use legislation to resurrect a core part of Obama’s Bering Sea executive order — the requirement that policies be vetted by the region’s tribes and that analysis consider traditional indigenous knowledge. In a speech to the Alaska Federation of Natives annual convention in Anchorage, Murkowski said she met with the Bering Sea Elders Group, the organization behind Obama’s order, and is working with the elders on a bill to that end. “We’ve all seen that executive orders, they can come and they can go,” she said in her Oct. 21 speech to the convention. A better approach, she said, is to ensure that the tribal and indigenous knowledge roles are “anchored in law.”
Mexico Spent About $1.25 Billion on the World’s Biggest Oil Hedge
Bloomberg, Nacha Cattan, October 31, 2017
Sen. Murkowski is working to restore parts of an Obama executive order on the Bering Sea that Trump overturned
Arctic Now, Yareth Rosen, October 31, 2017