Parnell Responds to Critics of Oil Tax Reform, Education Policy

January 19, 2012|By Jason Lamb | Channel 2 News

JUNEAU, Alaska — Gov. Sean Parnell took on critics in the state Legislature about his plans for both oil tax reform and education policies during a press conference on Thursday.

Parnell once again urged the Legislature to pass oil tax reform in the form of the bill he backs: House Bill 110. He says reduced taxes for oil companies would spur development on the North Slope. The bill passed the House last year, but stalled in the Senate -- with some Democrats referring to the bill as an oil company giveaway.

Despite the apparent uphill battle Parnell's bill faces in the Senate, he says he still has hope.

"I think HB 110 is very much alive in the committee process, I'm calling on (the Senate) to hold hearings on House Bill 110, to move it," Parnell said. "If they have a meaningful way to impact investment, I'd really like to hear it."

In response to similar comments Parnell made during his State of the State address Wednesday night, those in the Senate majority say passage of the governor's bill is not likely.

"I'm pretty certain you'll see a piece of legislation move through the Senate," said Senate President Gary Stevens (R-Kodiak) during a press conference after the governor's speech. "It will probably not be HB 110. I think there are a lot of concerns with that, the governor's bill."

Parnell responded to that comment Thursday.

"That's like me saying right now I'm going to veto every bill," Parnell said. "I mean, you never say never in these hallways on day three of the session."

Thursday, Parnell also addressed concerns from House Democrats about his stance on education.

"While I may agree with the governor on many things, I've got to tell you that the Democratic caucus in the House places education way higher on the list," said Rep. Beth Kerttula, the house minority leader.

Each year, the state gives school districts money based on how many students the districts have. Some Democrats want Parnell to increase that per-student amount -- known as the Base Student Allocation -- and change it each year, based on a formula.

Parnell says that could financially tie down the state for years to come.

"I have concerns about that approach," Parnell said. "I've also explained that I'm open to dealing with it -- the true needs, the increased fixed costs -- on a case by case, and year by year basis."

Parnell calls the Democrats' concerns about his education priorities simply "politics."

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