That is exactly what is going on. The blade is off more than 1/32" off. So, as I was preparing to move the thing back into place I noticed that the blade popped back into position when I removed the belt from the motor. I would think that means that maybe the bearings are going bad. But, I can give that blade a little spin and it will spin true, without noise and for a good long time.
The first rule of table saw setup is to align both the blade/trunnion assembly AND the fence parallel to the miter slots. NO ifs ands or buts. The miter slot is the "reference standard" because it is milled in at the factory and is not adjustable, unlike the trunnions or the fence.
Fix the blade to slot issue first and then simply adjust the fence to be parallel to the slot by sliding it over and feeling until there is no offset. The trunnions which hold the blade arbor have 3 bolts in the front and 3 in the rear which you will loosen slightly. You can shift the entire assembly until your blade is parallel to the miter slot.
The biggest problem will be measuring or checking it while at the same time reaching underneath or having to lay on your back. I have done this set up procedure many times and found that by tipping the saw on it's back you can easily see and reach all the parts and measure at the same time.
For machine setup, use the fence to miterslot, and I don't care what then number says on the steel rule or dial indicator, I use the "touch" method by aligning the fence right over the slot and feel for an offset or not. For the blade to slot, I use a combination square resting in the slot and one marked tooth. I don't care what the number is on the rule, I go by the sound and feel as it "kisses" the tooth or not.