Republican-Led Legislature Prepares to Gavel In Next Week
Oil taxes at top of agenda -- again
ANCHORAGE - The big oil tax debate resumes on Tuesday, when the Legislature gavels in at the state Capitol.
But the spending side of the ledger also will be under a lot of scrutiny.
It’s round three for Governor Parnell’s push to lower oil production taxes.
After being stymied the past two years by the Senate's former bipartisan majority, the governor now has fellow Republicans firmly in control of both houses of the Legislature.
So some time next week, Parnell will unveil his newest proposal for modifying the tax system known as ACES.
Bruce Tangeman, deputy revenue commissioner, said, "Our resource is second to none, when it comes to North Dakota, Alberta, Texas, California, we're superior to all them with what we have in the ground. It’s the tax problems that are above ground that we're seeing the issues with."
But while the governor is proposing to take in less money, a new report says the state won't have enough revenue to sustain its current level of spending.
The Institute of Social and Economic Research at UAA projects that all cash reserves will be gone in 10 years.
Anchorage Representative Mia Costello (R-Anchorage), a member of the House Finance Committee, said belt-tightening is on the way.
"You know, I think in Alaska right now we're facing some really serious issues that you really have to put your party aside and say what is best for Alaska, what is our future going to be like. And I think the budget, and the throughput, reduction in throughput in the pipeline, the gas line, these are three major issues that we're going to have to come together and come to a consensus on how to move forward."
All in all, it could be a tough 90 days.