…THAN TO REMOVE ALL DOUBT
A former high school teacher who represents Ketchikan in the Alaska House of Representatives admits he is a newcomer to tax policy.
During Monday’s House Finance Committee, Rep. Daniel Ortiz, who taught economics at Ketchikan High School before having an out-sized influence over the state’s oil tax policy, struggled with basic economics terms.
During a presentation by oil and gas consultant Rich Ruggerio on the different factors that influence investment decisions in the energy sector, Ruggerio used the terms “cap ex” and “op ex,” which brought the question:
“Another greenhorn question: Cap ex and op ex. Tell me what they are and how they relate to this picture.” Ortiz asked Ruggerio.
After a short pause, Ruggerio responded:
“Cap ex is short for capital expenditures. Op ex is short for operating expenditures.”
To further understand “capital” and “operating,” and other basic economics terms important to understanding tax policy as it impacts oil in the pipeline, Must Read Alaska has found a handy set of flash cards.