The govenor announces "Our state is bankrupt" and that he is raising taxes 52%. Hooterville responds by blowing up the bridge over the swamp and forming their own kingdom, headed by King Oliver the I. King Oliver is wearing a crown because he ate the oleo margerine.

Ralph wants Hank to ask her to the Carpenter's Ball, but he comes up with feeble excuses to avoid going. Planning to get the two together at the event, Lisa asks Hank to be her date to the party. In no time, Hooterville is convinced that the Douglases' marriage is on the rocks and that Lisa and Hank are running off to Acapulco.