Compass: Alaska schools gain by oil tax reform of Senate Bill 21

Compass: Alaska schools gain by oil tax reform of Senate Bill 21

By NATASHA VON IMHOF
February 19, 2014

Over the last two months, the state of Alaska has made more money under the new oil tax structure, Senate Bill 21 (SB21), than it would have under the previous oil tax structure called ACES. Why? Because oil prices are falling, and oil production has reached such a low point where prices would have to reach record highs in order to generate any significant revenue for our state.

Unfortunately, high oil prices appear to be a thing of the past. With shale oil technology exploding in the Lower 48, more oil is being produced in the United States than ever before; plenty of supply keeps prices lower.

So, people are asking, if the state is making more money right now from SB 21, then why are things like education being cut so much?

Click here to read the rest of Von Imhof’s Compass piece from the Anchorage Daily News.

 

Author: Renee Limoge Reeve

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