This will be a regular feature of Headlamp, published as necessary.

We offer the following corrections from a piece recently printed in the Alaska Dispatch.

  1. The Governor’s proposal to use a portion of the Permanent Fund earnings to close our budget gap and flatten out our economy’s highs and lows “takes not one penny from the oil industry…”

Fact: The oil industry will continue to give trillions of pennies to the permanent fund – just as they have done since its inception. 25% of the royalties paid by the oil industry to the state are deposited into the Permanent Fund.  In addition, and in an ironic twist, oil producers are paying out more in taxes under the new tax law than the old one. If Alaskans had taken the anti-industry side’s sage advice to repeal the new law, Alaska would be in an even worse fiscal situation, by hundreds of millions of dollars.

  1. The oil industry told us if we slashed oil taxes – we’d get all this new oil—million barrels per day according to Gov. Sean Parnell.

Fact: Neither the oil industry nor Governor Parnell  ever promised that we’d get a million barrels per day as a result of passing SB 21. Governor Parnell stated that his personal goal was to achieve that milestone.  In addition, new oil is now being pumped from the 2S drill site at Kuparuk, as well as the National Petroleum Reserve-Alaska, into the pipeline.

  1. The oil industry and the Chamber of Commerce are lining up to take your PFD’s.

Fact: The Governor has put forth a proposal that may cap your PFD – not take it. The Alaska State Chamber of Commerce and at least 15 other statewide business associations support a similar plan because they acknowledge at this time, unlike in decades past, oil can’t save us.  Governor Walker’s own commissioners have stated that the state needs an “all of the above” approach, including spending cuts and responsible use of the Permanent Fund. The oil companies have nothing to do with the PFD – other than paying for it.