Both sides should be watching for effects of oil tax change

  • Saturday, August 23, 2014 3:28pm
  • Opinion

The dust is starting to settle on Tuesday’s primary election, with voters narrowly rejecting a referendum to repeal the oil tax law passed by the Legislature in 2013.

While interpreting voters’ intent in any given election is a bit like reading tea leaves, there should be at least one takeaway for state lawmakers in just how close the results on Ballot Measure 1 were. The “no” vote won by just 6,880 votes out of 154,136 ballots cast, or 52.23 percent to 47.77 percent. While Alaskans agree that changes to the state’s oil tax structure were necessary, it also seems that we don’t entirely trust the motivations of the oil industry or the state government.

Just as opponents of the new tax law barely waited for the ink to dry on the bill before promising a referendum, they wasted little time in vowing to track the promises made by proponents of the tax change — and to take action should the new tax law not live up to expectations.

Our response to that rhetoric is this: Those on both sides of the oil tax debate should be closely tracking the effects of the legislation. In fact, for those in the Legislature and the administration, that’s what we elected or hired you to do.

In this region, we’ve seen the boost that increased investment by the oil industry brings to our economy. To us, the jobs created as that money cycles through our community are as important, if not more so, as the revenue going into state coffers.

That’s a part of the issue that should be examined further. Roughly 90 percent of our state budget is dependent on oil. Our state’s economy is frequently described as a three-legged stool, with oil and gas being one of the legs. We’re heavily dependent on a robust oil and gas industry.

There is optimism that the oil and natural gas will flow for decades to come, but the state would be wise to take steps to diversify our economy. As hard as the state has worked to attract new investment in the oil and gas industry, it should be doing the same for other industries. For example, with burgeoning aerospace and high-tech opportunities across the state, now is the time to invest in the state university system to train the people who will work in that field.

Of course, much of the argument around the oil tax referendum has been about which structure is better for the state’s long-term economic health, and would therefore enable that type of investment. We agree that changes to the old tax structure were needed, and we too will be watching closely for results — not just for the state’s bottom line, but for the other opportunities a healthy, diverse economy can provide.

More in Opinion

A silver salmon is weighed at Three Bears in Kenai, Alaska. Evelyn McCoy, customer service PIC at Three Bears, looks on. (Photo by Jeff Helminiak/Peninsula Clarion)
Opinion: Will coho salmon be the next to disappear in the Kenai River?

Did we not learn anything from the disappearance of the kings from the Kenai River?

Jonathan Flora is a lifelong commercial fisherman and dockworker from Homer, Alaska.
Point of View: Not fishing for favors — Alaskans need basic health care access

We ask our elected officials to oppose this bill that puts our health and livelihoods in danger.

Alex Koplin. (courtesy photo)
Opinion: Public schools do much more than just teach the three Rs

Isn’t it worth spending the money to provide a quality education for each student that enters our schools?

Gov. Mike Dunleavy speaks to reporters at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire file photo)
Letter to the Editor: Law enforcement officers helped ensure smooth, secure energy conference

Their visible commitment to public safety allowed attendees to focus fully on collaboration, learning, and the important conversations shaping our path forward.

Laurie Craig / Juneau Empire file photo
The present-day KTOO public broadcasting building, built in 1959 for the U.S. Army’s Alaska Communications System Signal Corps, is located on filled tidelands near Juneau’s subport. Today vehicles on Egan Drive pass by the concrete structure with satellite dishes on the roof that receive signals from NPR, PBS and other sources.
My Turn: Stand for the community radio, not culture war optics

Alaskans are different and we pride ourselves on that. If my vehicle… Continue reading

U.S. Sen. Dan Sullivan (R-Alaska) delivers his annual speech to the Alaska Legislature on Thursday, March 20, 2025. (Jasz Garrett / Juneau Empire file photo)
Opinion: Sullivan, Trump and the rule of lawlessness

In September 2023, U.S. Sen. Dan Sullivan established his own Alaska Federal… Continue reading

UAA Provost Denise Runge photographed outside the Administration and Humanities Building at the University of Alaskas Anchorage. (courtesy photo)
Opinion: UAA’s College of Health — Empowering Alaska’s future, one nurse at a time

At the University of Alaska Anchorage, we understand the health of our… Continue reading

U.S. Rep. Nick Begich III, R-Alaska, address a joint session of the Alaska Legislature on Thursday, Feb. 20, 2025. (Mark Sabbatini / Juneau Empire file photo)
Opinion: A noncongressman for Alaska?

It’s right to ask whether Nick Begich is a noncongressman for Alaska.… Continue reading

Boats return to the Homer Harbor at the end of the fishing period for the 30th annual Winter King Salmon Tournament on Saturday, March 23, 2024 in Homer, Alaska. (Delcenia Cosman/Homer News)
Opinion: Funding sustainable fisheries

Spring is always a busy season for Alaska’s fishermen and fishing communities.… Continue reading

Gov. Mike Dunleavy holds a press conference on Monday, May 19, 2025, to discuss his decision to veto an education bill. (Jasz Garrett / Juneau Empire file photo)
Opinion: On fiscal policy, Dunleavy is a governor in name only

His fiscal credibility is so close to zero that lawmakers have no reason to take him seriously.

Sen. Jesse Bjorkman, R-Nikiski, speaks in support overriding Gov. Mike Dunleavy’s veto of House Bill 69 at the Alaska Capitol in Juneau, Alaska, on Tuesday, April 22, 2025. (Mark Sabbatini/Juneau Empire)
Capitol Corner: Finishing a session that will make a lasting impact

Sen. Jesse Bjorkman reports back from Juneau.