Public testimony on the governor’s oil tax proposal began yesterday before the new state senate committee on TAPs throughput decline. Parnell outlined, some if the impact that the oil industry has on the state coffers..
Gov. Parnell: “Alaskans’ oil drives the economic engine of our state. Oil exploration and development fuels our private sector economy. And oil revenue provides nearly 90 percent of Alaska’s unrestricted government funds. That money helps fund our schools, energy and infrastructure projects, ferries, and health clinics. While Alaska’s treasury reaps the benefit of high oil prices today, the status quo also guarantees production decline. We need to better protect Alaskans against this decline and focus our tax regime on production. If we do nothing and continue with the status quo, we will be left with fewer jobs and far fewer opportunities for Alaskans.”
Parnell said that his bill will help to being new production, as well as, protect Alaskan interests during periods of low oil prices.