This report describes current and projected economic conditions in
the North Slope Borough and discusses possible impacts of OCS
development upon the Borough's revenues and expenditures as well as
on Inupiat employment. We use a simulation model of the North Slope
Borough's economy to examine these impacts.
The North Slope Borough receives substantial revenues from its taxes
on oil and gas property. Following our examination of the factors
affecting borough revenues, we conclude that OCS development will
not substantially increase borough revenues due to state-imposed
property tax revenue limits. Other factors, however, can be
expected to cause the borough to begin to curtail its construction
program and, thereby, reduce local employment opportunities.
Our review of Inupiat employment patterns and projected borough
employment opportunities suggests that reduced Inupiat employment,
rather than increased Inupiat involvement in petroleum activities,
may best characterize the coming decade unless there are spec if i c
efforts to reduce constraints to Inupiat employment associated with
petroleum development. These constraints include job rotation
schedules, work crew composition, hiring location, and training
opportunities.Department of the Interior, Minerals Management Service, Alaska Outer Continental Shelf Region in the interest of informational exchange. Contract number 29058Ye
