Alaska
At Anchorage town hall, a rallying cry emerges: More taxes, please
Twenty state legislators convened in Anchorage on Saturday for an annual town hall that brings together the delegation representing the state’s biggest city.
Like last year, the town hall was used by education advocates to call for what they say is a desperately needed increase in the state’s education budget, which has not kept up with inflation for years. But speakers at the two-hour meeting had a new addition to their plea: To make education funding possible, impose more taxes.
A third of the Alaska Legislature — including Democrats, Republicans and independents representing every neighborhood of Anchorage — listened to request after request for an increase to the Base Student Allocation, along with laments from students who fear the elimination of beloved theater and sports programs.
Lawmakers on both sides of the political aisle, along with Alaska Gov. Mike Dunleavy, a Republican, have said some amount of education funding increase would be needed this year. But they have also pointed to the state’s dwindling revenue — which comes primarily from oil taxes and Permanent Fund earnings — to reason that an increase that meets the demands of school districts may not be viable this year.
Several Anchorage residents who attended the town hall on Saturday had a ready reply: “Tax me.”
Alaska had a state income tax until 1980, when booming revenue from the oil industry compelled the state’s political leaders to eliminate it. Oil revenue is no longer booming, but political appetite to reinstate a personal income tax — or any new taxes, for that matter — has been slim.
Lawmakers in the Senate this year have floated several ideas that would increase taxes on Alaska’s oil industry and other corporations, but have stopped short of introducing any personal taxes. Republicans in the House last month largely rejected ideas for new taxes on the resource industry. Dunleavy has shown no interest in introducing or signing off on new taxes, ever since he promised in 2023 to introduce a statewide sales tax — and then never did.
[Anchorage School District ‘displacements’ could shutter or shrink 5 high school choir programs]
“I hear some of you are not wanting to tax the people and industries that can afford to contribute — no statewide income tax, no S-corp tax, corporate oil breaks still in place,” Rozlyn Grady-Wyche, an education graduate student, told lawmakers during the town hall. “You have options, you have power. What’s missing is the will.”
“We need a revenue plan — a fair, equitable one that asks for more from those with more,” Grady-Wyche added.
The question of whether — and how — to establish new revenue has long been treated with hesitancy by state lawmakers, amid fears of backlash from voters. But speakers during the packed-to-the-gills town hall meeting often elicited loud cheers and applause from the crowd when they spoke about the prospect of new taxes as a tool to afford new education spending.
“There’s an old adage in business — I don’t know if anybody knows it — revenue fixes everything,” said Ben Kellie, an entrepreneur and former SpaceX engineer who lives in West Anchorage.
“Amen!” someone shouted from the crowd, as others and clapped.
“It’s not enough to throw your hands up and say you can’t do it. Figure it out. Do your jobs,” Kellie said.
Nick Moe, representing thread, a child care nonprofit, told lawmakers that critical child care funding is “at risk if we do not find new revenue and a solution to this budget crisis.”
“The thread board has taken the unprecedented step of supporting new and diverse revenue as a way to fund essential searches, so that’s my message: Please pass new revenue. Pass it now,” said Moe.
Moe said he’s “heard eight good revenue ideas” in the Capitol in Juneau.
“I think you should pass them all,” he said.
Pat Higgins, a member of the Anchorage School Board, excoriated lawmakers for refusing to levy taxes that would allow the state to more easily send the district the funding it says it needs.
“You make up the decisions on where the funds are going to come from. You decide the oil taxes. You decide corporate taxes. I’m willing to pay an income tax. I’m willing to pay a sales tax,” said Higgins.
“I demand to be taxed. Tax me now,” said Erin Dougherty Lynch, an attorney who lives in South Anchorage. “It is patriotic to pay taxes.”
Alaska
State of Alaska Secures Win in Fight for Transparency Around Oil Development
(Bethel, AK) –Wednesday, the Ninth Circuit Court of Appeals issued a favorable opinion for the State of Alaska in ConocoPhillips Alaska v. Alaska Oil and Gas Conservation Commission (AOGCC), agreeing that State laws requiring disclosure of oil well data are not preempted by federal law.
“Alaska relies heavily on our resources and resource development,” said Acting Alaska Attorney General Cori Mills. “We are also stewards of those resources for the citizens of Alaska. Alaska’s law both allows resource development now, and encourages further development and exploration in the future. We’re pleased that the Ninth Circuit recognized that federal law has not overridden Alaska’s balanced approach.”
The Alaska Oil and Gas Conservation Commission regulates oil and gas operations throughout Alaska, including within the National Petroleum Reserve–Alaska (NPR–A). Under Alaska law, companies need permits from the AOGCC to drill and must submit well data. The AOGCC is required to keep well data confidential for 24 months.
ConocoPhillips drilled several wells on lease holdings within the NPR–A and submitted data to the AOGCC. When the 24-month period expired, the AOGCC notified ConocoPhillips of the upcoming well data disclosure. ConocoPhillips sued in federal court to stop the disclosure process claiming that the Naval Petroleum Reserves Production Act, the federal law allowing private exploration in the NPR–A, preempted Alaska’s 24-month disclosure law. The federal district court found Alaska law preempted, and the AOGCC sought appellate review by the Ninth Circuit Court of Appeals.
On appeal, the Ninth Circuit agreed with the AOGCC. The federal Production Act does not preempt state law. The Ninth Circuit therefore reversed the district court’s holding to the contrary.
“The Alaska Oil and Gas Conservation Commission is pleased with the court’s decision upholding Alaska law,” said AOGCC Commissioner Jessie Chmielowski in a declaration filed in the litigation court. “Alaska’s balanced approach to well data confidentiality leads to increased exploration activity, not less. Alaska law allows for a two-year confidentiality period on exploration well data to leverage a company’s investment in drilling. Thereafter, making the data public has incentivized exploration on the North Slope. Placing well data in the public record allows competing companies to evaluate different exploration concepts or interpretations based on seismic data that, without well data, are just educated guesses.”
# # #
Alaska
Opinion: A governor’s race for Alaska’s next generation
Alaska needs change. That’s why I’m running for governor: to bring new energy and a new generation of leadership to the governor’s office.
For 13 years in a row, more Alaskans have left our great state than have moved here. Prices are rising, schools are closing and Alaskans are getting left behind.
This year, those planning to leave Alaska include Ben and Catherine Walker, both recipients of Alaska’s Teacher of the Year Award. They can’t justify staying in the place they grew up in and love because of our failure to invest in the fundamentals, such as our schools.
The problem is personal. I’m 37. Many of those leaving Alaska are my age — debating whether there’s a future for us here or not. It’s a challenge we must solve.
I love challenges.
Back in 2012, I dropped out of college to challenge an entrenched Republican incumbent legislator who was running unopposed to represent my home region of Southeast Alaska. I launched a scrappy, grassroots campaign and focused on the kitchen table issues that matter to every Alaskan: good schools, getting our fair share of oil revenues, lowering costs, protecting our fisheries. I won — by 32 votes.
When I was sworn in, I was baby-faced and bushy-tailed, just 23 years old. It was the beginning of a decade-long tenure in the Legislature. A lot happened in those 10 years.
Among the most important: We formed the House Bipartisan Coalition in 2016. While I have a “D” next to my name, I believe strongly in working across party lines. That’s what the Bipartisan Coalition was, and is, all about: Democrats, moderate Republicans and independents, all working together to do what’s best for Alaska.
I want to bring that same bipartisan, vigorous problem-solving spirit to the governor’s office, where it has been nonexistent the last eight years.
As governor, I want to work hand in hand with the Legislature to deliver some desperately needed wins for Alaska that will make our lives better and get our state back on track:
• Reinvest in our public schools. Our school districts are in battlefield triage mode, but instead of amputating limbs, our school boards are forced to choose which sports to cut, which electives to discontinue and which neighborhood school to close. Enough already. Get school funding back up to par.
• Forward fund our schools. Our school districts shouldn’t have to guess how much education funding will end up being appropriated in end-of-session legislative haggling.
This circus forces school districts to prospectively fire teachers, then rehire them a month or two later, when they find out the final education funding number. It’s awful for all involved. We should fix it by forward funding.
• Close the Hilcorp corporate income tax loophole. Hilcorp should pay their fair share in taxes just as ConocoPhillips, and nearly every other major corporation in Alaska, already does.
• Lower the cost of energy. Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association and Matanuska Electric Association operate about 1,700 megawatts in power generation capacity. Peak Railbelt winter demand is half that: about 850 megawatts. Guess who pays for the nearly gigawatt in underused and unused power plants? You, on your power bill. The governor should force the co-ops to work together, reduce redundancies and diversify energy sources, including renewables, in order to reduce the sky-high cost of energy for Alaskans.
• Lower the cost of childcare. Alaska has inadvertently created a system of childcare permitting and licensing that effectively amounts to death by a thousand pieces of paperwork. It’s creating scarcity and cost. We need to fix it.
• Lower the cost of housing. Cut red tape to make it easier and cheaper to build more homes of all kinds — from tiny homes and ADUs to manufactured and modular housing, to apartments and condos, to traditional single-family homes. More housing of all kinds, faster.
• Rein in bottom-trawl bycatch. I will nominate Alaskans to the North Pacific Fishery Management Council who will make sure that Alaska and Alaskans — not Seattle and Lower 48 industry interests — foremost benefit from our fisheries.
• Responsibly develop our resources. Support projects that have regional buy-in and support, such as Pikka on the North Slope, which just produced first oil this month, while saying “no” when the risks are too great and those in the region are opposed, as is the case with Pebble.
• Grow our tourism economy. And let’s crack the code on winter tourism while we’re at it. If Iceland can do it, we darn well can, too. Fairbanks is having burgeoning winter tourism success. Let’s follow their great lead.
• Make Alaska an awesome place to live. Let’s build dozens more public-use cabins. Let’s build an alpine hut-to-hut system like they have in New Zealand and the Alps. Let’s build the Alaska Long Trail. Let’s make Anchorage a world-class winter city.
Does this sound like the kind of Alaska you want to live in? Then I have great news: We are the governor campaign for you. And if what you just read gives you indigestion, you’ll be relieved to know you have 17 other options.
I have more great news: I can win.
After beating an entrenched Republican incumbent, I spent a decade representing a swingy district that voted for Donald Trump.
In those 10 years, I recorded some of the highest margins of crossover support from Trump voters of any Democrat in Alaska. I ran 12% ahead of Hillary Clinton in 2016 and 15% ahead of Joe Biden in 2020.
Here’s the simple truth: Whoever becomes our next governor will need to win with the support of significant numbers of independents and moderate Republicans, in addition to Democrats. I’ve done that. And I’ll do it again. Will you join me?
Former state Rep. Jonathan Kreiss-Tomkins of Sitka is a candidate for governor of Alaska.
• • •
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Alaska
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