A deep and prolonged drop in oil prices is increasingly squeezing tax collections in energy-producing states, fueling calls for tax increases and cuts to schools, road projects and other government services. Political fights are brewing in Oklahoma and Louisiana, where the governors want to overhaul the tax code to take in more money and replace falling revenue tied to oil and natural gas. Alaska Gov. Bill Walker in December proposed reinstating a personal income tax in the state most dependent on oil production. States also are draining reserve funds, shelving new spending proposals and making cuts. As Oklahoma stares down a projected $900 million shortfall, some school districts may switch to four-day weeks and reduced bus service. North Dakota Gov. Jack Dalrymple this past week ordered state agencies from colleges to the highway patrol to cut spending by 4%, while largely draining a budget savings account. New Mexico lawmakers […]