Gov. Sean Parnell wants to tinker with Alaska’s cash cow, offering lower tax rates on petroleum production in the hope of attracting more investment from oil companies.
The lion’s share of Alaska’s general fund revenue comes from oil taxes. High oil prices have helped the state squirrel away some $14 billion in reserves, helping it land an upgrade to Aaa from Moody’s Investors Service in November. The state has AA-plus rating from Standard & Poor’s and Fitch Ratings.