Legislative Agenda Proposal

Responsible Annual Budgeting, Budget Surplus, Budget Transition Period, Long-term Fiscal Plan, Permanent Fund, Nonrenewable Resources, Reserves Potential, Fiscal Stability, Fiscal Certainty, Fair Oil Tax, Fair Gas Tax, Alaska Large Diameter Gas Pipeline, Alternatives to a Large Diameter Gas Pipeline, Cook Inlet Gas Requirements, Interior Alaska Gas Requirements, Southeast Energy Requirements, Rural Energy Requirements, Alaska’s Gas for Alaskans, Point Thomson, what do all the items in the above list have in common? They, along with many other issues, must be considered in the context of each other to arrive at a comprehensive strategy to move the State of Alaska forward in the coming years.

A stable long-term fiscal strategy that does not require short-term changes to oil and gas taxes to balance the budget goes a long way to create the fiscal stability the oil and gas industry requires to invest in Alaska.

A fair tax on oil and gas that is fair at low prices and high prices, that is fair for marginal prospects robust prospects, that is fair for remote prospects as well as close-in prospects creates an investment climate that encourages explorers to test Alaska waters.

An annual budget that shows fiscal restraint and forethought about the future encourages business to invest because they are not concerned that they will be the ones called upon to supply the funds necessary to balance the budget now or in the future.

Examining those actions the state can take to encourage a large diameter gas pipeline may result in identifying certain steps that actually helps the pipeline move forward.

Getting existing development back on track encourages a business climate where industry can once again believe in fair treatment in the regulatory process.

Understanding the difference between meeting Alaska’s energy needs with “Alaska’s Gas” and meeting Alaska’s energy needs with the most economic energy alternative, for the short-term and the long-term is essential prior to making major funding decisions regarding energy projects.

Understanding and encouraging exploration to capture Alaska’s reserves potential while basing budgets on known resources is essential to sound decision-making.

Understanding that the Permanent Fund must play some part in the future of Alaska, more than just paying Permanent Fund dividends, is essential in developing a viable long-term financial plan.

The State’s obligation is to create a fiscal environment whereby business is secure and willing to take the investment risk necessary to succeed. It’s time to create that fiscal environment.

The above list is long and many complex issues are included, but it is one that can be accomplished. It’s time to get started. It is time to establish a plan. It’s time to lead. My hope is that the governor and the newly elected legislature are up to the task.