Vote ‘no’ on 1

Alaska has been good to my family for more than 70 years. As many of you know, my grandfather started Usibelli Coal Mine, Inc. in 1943. Usibelli has provided jobs and a stable energy supply to Alaska ever since. In 2012, Usibelli spent about $72 million in Alaska with local businesses to support our mining operations. While this is something to be proud of, it pales in comparison to the more than $50 billion the oil industry has spent developing North Slope and Cook Inlet infrastructure.

I do not normally step out on political issues, but I believe that Alaska will face one of its most important decisions in history on Aug. 19. Alaskans are being asked to vote on Ballot Measure 1 to repeal the current oil tax system. Friends, please join me in voting no.

You may be asking me, “Joe, you’re a coal miner, why do you care about the oil industry?” The answer is simple: I care about Alaska, our way of life, our economy and prosperity, and the future of our state for my daughter and the children of my employees. I care about the oil industry because without oil, Alaska’s economy would be half the size it is today. A healthy and competitive oil and gas industry is vital to Alaska’s economic wellbeing. Every single Alaskan should want a healthy oil industry. Alaska’s current oil tax system is working to increase oil production. For the first time in over a decade, oil production has stopped declining and is poised to increase.

Voting “no” on Ballot Measure 1 is important for job creation in all segments of our economy. This ballot measure is not about the oil companies, political parties, or political celebrities. This is about determining the strength of Alaska’s economic future.

In Fiscal Year 2013, 92 percent of unrestricted state general fund spending came from the oil and gas industry. That equaled $6.4 billion paid by the industry to the state of Alaska to help pay for schools, roads, public safety and social services. If Alaska’s oil industry shrivels up, where will the shortfall in the state budget come from? It’s possible that other industries would experience a tax increase, or perhaps Alaska would implement a personal income tax, but neither of those funding sources could possibly make up for lost revenue from the oil industry.

Today, business activity across the private sector is up sharply, resulting in hundreds of new jobs throughout Alaska. A recent McDowell Group economic analysis estimates that, for every direct oil and gas job created, 20 additional jobs are created in our economy by industry spending. A vote against Ballot Measure 1 will make new Alaska projects more competitive with industry opportunities elsewhere, resulting in more production, more jobs, and more long-term revenue to the state.

The outcome of Ballot Measure 1 will affect your daily life: your home equity, the quality of your child’s school, our roads, social services, and public safety. Please join me in “Voting No on 1” on Aug. 19 in the Alaska primary election.

Joe Usibelli Jr. is president of Usibelli Coal Mine.