Issue Position: No Senate Bill 21

Issue Position

I join Sitka Republican Senator Bert Stedman in opposition to Senate Bill 21(Oil Company tax cut bill) in its current form and strongly support the voters of Alaska voting on the law in August of 2014. For the first time in recent history our state had a budget deficit this past fisca year and we were forced to dip into budget reserves. While there were problems with ACES bill and the solution to the state budget problems is not a return to it, SB 21 is a significant "overeach" and needlessly leaves significant state revenue "on the table".

I fully understand the reasons for and against this law that will impact all Alaskans. I understand that Alaska is and has been experiencing a decline in oil production and that there are reasons to create incentives for new oil exploration, and production and thus tax revenue. However I do not agree that Alaska needs to cut oil taxes on the sale of oil from existing legacy oil fields, which is what SB 21 does. The AK state budget department is forecasting a 2 billion dollar revenue short fall in the first budget year of SB 21's enactment. I am committed to represent the views of the people however, and while I plan to vote yes on repealing SB 21, I will play close attention to the vote of the Alaskan people. If, in the end, the people southern Southeast vote no to the repeal of SB 21, I will honor and support that vote as an Alaskan Legislator.

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