Gas and oil taxation big topics in Juneau

Published on March 10th, 2010

By SEN. GARY STEVENS

Hello again from the Capitol. Lawmakers are back at work after a brief recess so that members of the House and Senate could attend last week's Energy Council meetings in Washington D.C. The coming weeks will be active as we work toward April 18th's scheduled adjournment.

As always, discussion on the operating and capital budgets will drive much of the discussion during the final days of the session. This week, the House of Representatives is expected to hold a floor debate on the FY '11 operating budget. While we won't know for sure what the House numbers will be until the floor vote, it is expected to be somewhat less than the governor's recommended $10.5 billion budget, which includes $4.7 billion in state general funds, an $8.6 percent increase in state general fund spending.

As was the case in the House, the Senate Finance Committee will be holding public hearings on the budget bill, I encourage you to offer your thoughts into the record. Please contact the Legislative Information Office (LIO) in your community for more information on the public hearing schedule.

Gas and Oil Taxation

Recently, the Senate Finance Committee took a thorough look at the state's oil and gas tax structure in advance of May 1, when under state law, the tax structure could be locked in for the first 10 years that natural gas flows through the proposed gas pipeline. What we have found is that the state could lose up to $2 billion in revenue a year if we do not change the law. The Senate Finance Committee has introduced SB 305 and SB 306 to address this critical issue by decoupling the oil and gas taxes so that low gas prices do not drive down the taxable value with high-priced oil. With oil revenue accounting for nearly 90 percent of the state's general fund revenue, it's imperative we get this right.

Constituent Teleconferences

Please contact my office, or the Legislative Information Office in your community for more information on how to participate in our next teleconference.

The Legislative Information Office (LIOs) in your community is a valuable resource for helping you follow bills and resolutions, contact lawmakers, offer testimony to the various Senate and House committees and more.

In Kodiak, the LIO can be reached at 486-8116.

Seward's LIO can be reached at 224-5066.

The Homer LIO's number is 235-7878.

Ombudsman's Office Can Help

No matter where you live in Alaska, you can contact an office that investigates complaints against state government agencies and employees. The Alaska Legislature created the Office of the Ombudsman to make sure that government follows the rules and treats all citizens fairly and reasonably.

The ombudsman is a non-partisan, neutral fact-finder and takes no sides in a dispute. If the ombudsman finds a problem, they will confront the agency and recommend a solution.

To reach the ombudsman by phone, dial 1-800-478-2624 toll-free anywhere in Alaska. You can also contact the office through its Internet web site at www.state.ak.us/ombud, by writing to P.O. Box 102636, Anchorage, 99510-2636, or fax at (907) 269-5291.

Visitors

Among the recent visitors to my Juneau office were Dorene Lorenz, Al McCarty, Jeff Hettrick and Peter Finn of Seward; John Velsko, Nina Allen and Susan Drathman of Homer; Mary Hostetter of Igiugig; Virginia Glasheen, Desiree Manues, Nancy Nelson, Cisco Penamora, Betty Walters of Kodiak; and Angie Christiansen of Old Harbor;

Please drop by my office, Room 111 of the Alaska State Capitol, if you will be in Juneau prior to the end of session.