One of the hot issues that will be before the Legislature this session is whether or not oil taxes or ACES need to be revised.  The Governor and several legislators have introduced bills to address this issue. 

I am concerned because if there is no new development, then we will not be replacing the declining amount of barrels of oil that are flowing through the pipeline.  Should this happen, at a 8% declining rate of production, we simply will not have enough revenue to fund programs that so many Alaskans rely on.  I am concerned that we should worry about keeping Alaskans working, rather than ensuring more revenue for the state.  Whether we like it or not, oil provides about 88% of our state revenues and without further development, at least I believe, we will be heading for a hard fall and other tax revenues from you and me will have to be implemented. Even then, we cannot tax people enough to replace lost oil revenue. 

In my opinion, the current oil tax does not encourage development of both new and old fields.  Without that new development and investment, our future is not very bright.

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This will be my first entry for the new session.  I have attempted to keep each of you up to date on the issues that will be affecting us during our sessions.  First I believe it is important to let you know that I again have been honored by my colleagues to serve as the Speaker of the House for the 27^th Alaska State Legislature.   I expect House members to conduct themselves in a manner that will serve the people of the State of Alaska well.  I also hope we set a positive tone by conducting ourselves in a friendly, bi-partisan manner that will earn the respect of our state residents whose lives we will be effecting during these next ninety days. 

There will many issues before us in 2011, none bigger, at least in my mind, than bringing spending under control, reviewing oil taxes, in-state gas, education and responsible development of our resources.  I am not going to elaborate on each of these at this time, however, I plan on keeping you updated as the session moves along. 

There have been some controversies confronting us before the start of session, particularly pertaining to two members who decided to walk out of caucus.  These two members were not allowed by the House Majority caucus to rejoin the caucus but were given a committee assignment and several House Finance subcommittee assignments in order to give them an opportunity to work their way back into our caucus. 

The House and the Legislature has its work cut out for them.  I will be posting as much as possible in order to keep you in the loop this session.

Please contact my office anytime with your concerns, thoughts or comments at any time.  My Juneau office number is 1-800-469-3779.  My Kenai office number is 283-7223 or you can e-mail me at representative_mike_chenault@legis.state.ak.us.

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State of the State Address

Governor Sean Parnell

Presented to the 27^th Alaska Legislature

January 19, 2011

 

Mr. Speaker, Mr. President, Lieutenant Governor Treadwell, fellow Alaskans, thank you for joining us. The State of the State address is a time to take stock of the progress we’ve made together. In 2010, while other states faltered, Alaska grew stronger. By most measures, we have made impressive strides together and strengthened our quality of life. Tonight is also the time to chart a course for the important work ahead.