Economic and Demographic Systems Analysis, North Slope Borough

Abstract

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.