Kevin McCabe: Senate Bill 183 wasn’t about transparency — it was about political targeting

By REP. KEVIN MCCABE

In Alaska, where oil and gas taxes are the lifeblood of our economy, you’d think we’d all agree on one thing, making sure we’re getting every dollar we’re owed from our oil. But what should be a straightforward process of oversight and accountability has spiraled into a mess of finger-pointing, political theater, and constitutional overreach.

The ongoing dispute between the Legislative Budget and Audit Committee and the Department of Revenue over oil and gas audit data didn’t start yesterday, and it won’t end with a signature on a bill like SB183. We don’t need more bureaucracy and bills. We need clear communication, mutual respect, and common sense.

This issue didn’t appear out of thin air. It started to heat up in 2019, under former Representative Chris Tuck’s leadership of LB&A. Back then, Legislative Auditor Kris Curtis started raising red flags about Revenue’s provision of audit data. And some staffers, former employees of Gov. Bill Walker, exacerbated the issue; insisting that, instead of clean, formatted reports, the department was handing over raw data files that made analysis difficult.

The 2020 audit ended with a “qualified opinion,” meaning auditors couldn’t verify everything they needed to, because the data was, in their opinion, a mess. Nobody wants to go back to the bad old days of under-collected taxes, but we can’t ignore the reality either: the shift in how data is delivered came about during a time of intense DOR staff turnover, increasing workloads, and a global pandemic. While that’s not an excuse, it does provide context.

SB183, the bill introduced earlier this year to mandate what the auditor desired in formatted audit data from DOR, passed the House and Senate. I voted against it, not because I don’t support transparency or accountability, but because I saw it for what it was: a politically motivated attempt to pin blame on a commissioner who’s become a convenient target. Let’s not pretend otherwise. When you see Democrat senators leading the charge against Gov. Dunleavy’s administration; and when his Commissioner of Revenue, Adam Crum, is being floated as a potential gubernatorial candidate in 2026, it’s hard to ignore the political undertones. That’s not governing, it’s elevating a minor situation into a manufactured crisis and using it as a political opportunity to discredit someone.

Between 2006 and 2011, settlements stemming from audits brought in over $1.3 billion. But between 2020 and 2024, settlement revenues dropped off a cliff, from $281 million to just $3.1 million. That’s not just a number; that’s money that could fund schools, public safety, and infrastructure. Certainly part of that decline, even a large part, may be due to improved compliance by oil companies. But part of it is also due to how difficult it has apparently become for process auditors to analyze tax data effectively when they’re sifting through a haystack looking for needles. And that’s a legitimate concern.

The part conveniently ignored by critics of the administration, is that the Department of Revenue has provided data. In fact, according to Crum’s May 8 letter and formal response, Revenue gave the LB&A Excel files containing everything from taxpayer names to tax years, posting dates, and amounts. The issue isn’t that Revenue is withholding information, it’s that it isn’t formatted to the auditors’ liking. That’s not obstruction; that’s a formatting dispute, and possibly the difference between a process audit and a tax audit.

And let’s not forget the constitutional issues here. SB183 would have allowed the legislative auditor to compel the executive branch to deliver work products in a specific format, under threat of fines. That’s a dangerous precedent which violates the separation of powers enshrined in Alaska’s Constitution. The Governor was absolutely right to veto it. We cannot, and should not, allow one branch of government to dictate the internal operations of another.

Commissioner Crum’s absence from a key hearing was angrily criticized by some in the House Rules Committee hearing. But the reality is that he was attending a legally mandated State Investment Review Meeting to help oversee billions in state assets, including the Alaska Permanent Fund. So it was a scheduling conflict, not a conspiracy. Add in Gov. Dunleavy’s directive for executive branch officials to avoid Juneau during the final days of session and we all see the political picture. If we’re going to accuse someone of obstruction, let’s make sure we’ve exhausted every other reasonable explanation first.

SB183 sought to punish, rather than partner with, a department. There must be a better path forward – a path that respects both branches of government and gets the job done without politics and divisiveness.

• First, we could establish a joint oversight committee made up of LB&A and Revenue staff. Together, they could create mutually agreed-upon data standards that make life easier for everyone. 
• Second, negotiating a memorandum of understanding could lay out expectations for what data is provided, when, and in what format; no threats, no fines, just professionalism. 
• Third, we could bring in a third-party auditor to look at Revenue’s internal processes and suggest improvements. This isn’t about finger-pointing, it’s about getting to the truth.
• Fourth, we need a statutory fix that clarifies LB&A’s oversight authority without crossing into executive territory. 
• And finally, we need to support Revenue with funding and training to manage its data systems and reduce staff turnover.

These aren’t radical ideas. They’re common-sense steps, grounded in the principles of cooperative governance. Let’s remember: the LB&A process auditor can already access raw data. Revenue isn’t hiding anything. The issue is about how that data is delivered and interpreted. That’s a solvable problem if we stop using it as a political football.

As we look ahead to 2026, with the governor’s race already casting a long shadow over every policy debate in Juneau, we must resist the temptation to politicize every disagreement. SB183 may have had good intentions, but it was the wrong tool for the job. We don’t need more laws and bureaucracy, we need more cooperation.

Alaskans deserve a government that works, not one that’s constantly at war with itself. Let’s get back to the table, roll up our sleeves, and solve this problem the Alaskan way — together!

Rep. Kevin McCabe serves in the Legislature on behalf of District 30, Big Lake.