There are several ways that come to mind.

Lowered property values would produce lower property tax without a reduction in student population. Same expense, less income.

Reduced tourism would produce reduced sales taxes without a reduction in student population. Same expense, less income.

Fewer tourists would mean less income for tourism related workers. they in turn would spend less money and pay less sales taxes. The folks they bought from would have less money to spend and pay in sales taxes and the people THEY bought from would have less money to spend and pay in sales taxes and the . . .

Income from seafood harvests would also drop, same as above.

They hope to make up the difference by sticking it to BP but aren’t sure if that will work or when the money would come rolling in.

David explaining as best I understand