Voting ‘no’ will ensure a better long‐term future for us all

The time is now for Alaskans to think about their future in this great state. Oil production has been declining for six years while the rest of the U.S. enjoys an oil production boom. As a longtime Alaskan and local businessperson, I know how critical the oil industry is to our quality of life. A quality of life that makes living and working in Alaska so rewarding. Our schools, teachers, roads, airports, parks are all supported in some way by taxes on oil. Ninety percent of all state government revenues come from the oil and gas industry. Whether you work directly for an oil company or not, their presence in Alaska affects your family.

My wife and I own a small construction and lumber company called Builder’s Choice based in Anchorage and the Mat-Su. We employ more than 200 people. Our employees live in local communities and their paychecks are invested back into our local economies. When the oil companies slow down or stop producing, we cut back. That means many of those employees see their hours cut back and their paychecks reduced or, worse, they get laid off.

Last May the Legislature passed Senate Bill 21, a new law designed to spur oil production in the state by reforming the oil tax structure.

Within weeks of its passage, my wife and I saw a boom in our own local business. Oil companies were once again investing in new oil production on the North Slope and that means they needed my company and my employees to build them manufactured offices and housing that could be trucked north. We were able to hire new people, buy more local products, and make plans for the growth of our own company.

Unfortunately, an effort to repeal that law puts this progress at risk. The threat of repeal means uncertainty for companies who want to invest in our state, who now question whether Alaska will be a good place to do business. We know there is a lot of oil left to produce in Alaska, and we know plenty of Alaskans are ready for good jobs.

We also know that won’t happen unless we create a good investment climate that will lead to that prosperous future.

Whether you work in a family business, like mine, or work in a restaurant or a local doctor’s office, all of our livelihoods in Alaska are improved when companies are doing business in our state.

Alaska is now ranked fourth behind California for oil production. Our state’s remote geographic location and Arctic conditions make it a costly and difficult place to produce oil. Add to that the fact that, until a few weeks ago, Alaska had one of the world’s highest oil taxes, and can we really be surprised that we have fallen to fourth?

There is good news. We have the ability keep oil tax reform working for all of us. We need to give it a chance to succeed and secure Alaska’s future.

This issue will be on the August 19 primary ballot. Make sure you understand Ballot Measure 1 and why voting No will ensure a better longterm future for us all.

Mark Larson is President of Builders Choice Inc.