Speaker tells Senate finance panel to raise oil taxes and set enforceable fiscal rules

George Pierce, calling into the Senate Finance Committee from Kasilof, urged lawmakers to pursue a binding fiscal plan that includes a significant oil-tax increase. Pierce said Alaska has experienced erosion in oil cash revenue and criticized using the Permanent Fund or the Permanent Fund Corporation (PSC) as substitutes for broader revenue policies. He asked the Legislature to consider raising oil taxes to 30% and to adopt enforceable spending limits and broader revenue sources to stabilize state finances.

Pierce framed the request as necessary to address structural budget shortfalls and to avoid repeated year-to-year crises. "Why don't we know how much dollar amount lost from the industry?" he asked, urging the committee to consider a fiscal plan with revenue reforms.

Why it matters: Oil revenues and taxation are central to Alaska’s fiscal outlook; proposals to change tax rates would have major implications for state receipts, industry stakeholders and long-term budget planning.

What’s next: This testimony is part of the public record for the Finance Committee as it weighs budget scenarios; no committee response or action occurred during the hearing.