The recent legislative session has ended, but tensions continue to rise between Republican Governor Mike Dunleavy and state lawmakers.
In late May, legislative leaders took a significant step by sending Governor Dunleavy a letter that criticized the Department of Revenue.
The letter accused the department of obstructing the Legislature’s access to crucial information regarding oil and gas taxes.
Lawmakers are particularly concerned about whether the state is receiving the tax revenue it is owed.
A review conducted by the state legislative auditor revealed that for the period from 2006 to 2011, more than a billion dollars in taxes were owed to the state, and this review, which was completed in 2018, has been the subject of renewed scrutiny under Dunleavy’s administration.
Since taking office, Governor Dunleavy’s administration has declined to provide the same tax information that was previously shared willingly by past administrations.
The Anchorage Daily News reported on these developments through the insights of reporter Iris Samuels, highlighting that this issue has persisted throughout Dunleavy’s tenure.
Samuels pointed out that the lack of basic information raises concerns, especially as the legislative auditor emphasized the need for transparent access to data on oil and gas taxes.
This situation is exacerbated by the legislative practice of the Department of Revenue, which has shifted from providing this information freely to now requiring legislation to enforce compliance.
In response to the ongoing issue, lawmakers introduced a bill aimed at reinforcing the existing powers of the legislative auditor.
The bill does not grant additional powers to the legislative auditor but seeks to clarify and underscore the authority already defined in the state Constitution.
The goal is to compel the governor’s administration to comply with requests from the legislative auditor more effectively.
In conjunction with the bill, the legislative leaders’ letter served as a message to Governor Dunleavy not to veto this legislation, indicating their concern about the administration’s willingness to cooperate.
Casey Grove, another reporter, noted the unusual nature of the letter’s delivery, describing it as rare for presiding legislative officers to communicate directly with the governor in such a manner regarding legislation.
The letter emphasizes the necessity for cohesive collaboration between the legislative branch and the administration, asserting that both entities should work together for the benefit of Alaska’s residents rather than as adversaries.
As the situation unfolds, concerns persist regarding the state potentially missing out on crucial tax revenue from oil and gas companies.
The recent actions from both the legislature and the governor’s office stress the importance of transparency and communication within state government operations.
However, due to the lack of information from the Department of Revenue, it remains unclear whether the state is currently executing audits effectively or collecting the necessary revenue.
Amid this uncertainty, Senate President Gary Stevens expressed his concerns, noting that there is ambiguity surrounding whether the problems stem from incompetence or an inability to fulfill the required tasks.
In an effort to seek clarity, Samuels reached out to the Department of Revenue for answers but did not receive a response.
Notably, the Department of Revenue has seen a turnover of high-ranking officials under the current Commissioner, Adam Crum, who is the third individual to hold that position during Dunleavy’s administration.
Crum has not been vocal regarding the ongoing issues and previously declined an invitation to speak at a legislative committee hearing when the Legislature was still in session, leading to frustration among House members.
Legislative leaders intended to hold discussions about the reasons behind the lack of transparency, assuming there might be valid explanations for the current situation.
As lawmakers and constituents await further developments, the emphasis now shifts to the expectations surrounding the potential veto of the recently passed legislation.
Ultimately, the outcome of this legislative maneuvering may significantly influence the transparency and efficiency of the Department of Revenue in the forthcoming fiscal interactions.
The political dynamic continues to evolve as both sides assess the implications of the current standstill.
For the moment, the situation remains tense as stakeholders maintain a watchful eye on developments from the governor’s mansion and the legislative chambers.
image source from：https://alaskapublic.org/news/politics/alaska-legislature/2025-06-04/alaska-legislative-leaders-call-on-governor-to-end-obstruction-by-revenue-department
