Alaska Legislators Override Veto, Compelling Release of Information on Oil Company Settlements

Strategic Insights -

On Saturday, August 2, 2025, Alaska legislators voted 43-16 to override Governor Mike Dunleavy's veto of Senate Bill 183, which aims to compel the executive branch to provide information about settlements paid by oil companies to the state of Alaska, in order to resolve tax disputes with the Alaska Department of Revenue. This vote was overshadowed by an education funding veto override, but the override on SB 183 could be more significant for state revenues in the long run.

Since 2020, lawmakers have attempted to audit the Department of Revenue's audit division to determine whether the state has been settling tax disputes with oil companies for "pennies on the dollar." Senate Bill 183 requires the executive branch to provide information on these settlements, which could lead to significant underpayments to the state.

Key Takeaways:

  • The override of Governor Dunleavy's veto on Senate Bill 183 is a significant step towards compelling the release of information on oil company settlements with the state of Alaska.
  • Since 2020, lawmakers have attempted to audit the Department of Revenue's audit division, but were unable to do so due to lack of cooperation from the department.
  • Legislative Auditor Kris Curtis hopes to restart her audit under the new law, but is prepared to issue subpoenas if the department does not comply.
  • The audit could reveal significant underpayments to the state, potentially hundreds of millions of dollars.
  • The new law also makes it possible for state officials to face criminal charges if they refuse to comply.
  • Commissioner Adam Crum is scheduled to resign on August 8, and it is unclear whether the new commissioner will cooperate with the audit.
  • The timeline for the audit is uncertain, but Curtis estimates it will take a few months to complete, pending receipt of necessary information.

Statistics:

  • The total amount brought in by education funding vetoes since 2025 is $50.6 million.
  • The audit of the Department of Revenue's work is currently stalled due to lack of cooperation from the department.
  • The value of settlements paid by oil companies to the state of Alaska in the past few years is estimated to be tens or hundreds of millions of dollars.
  • 43-16 is the vote margin by which Senate Bill 183 was passed.
  • 2012 is the year Kris Curtis became Legislative Auditor.
  • The signed engagement letter for the joint House-Senate Legislative Budget and Audit Committee is the planned route to issue subpoenas to compel the department to release information.

Sources:

  • "Alaska legislators override governor's veto of oil industry settlement bill" (https://www.alaskabeacon.com)
  • Alaska Legislature (https://www.akleg.gov)
  • Legislative Audit (https://legaudit.akleg.gov)
  • Alaska Department of Revenue (https://alaska.gov/revenue)