Alaska Gov. Mike Dunleavy speaks during a news conference on Wednesday, May 12, 2021, in Juneau, Alaska, with a number of state legislators around him. Dunleavy discussed a proposed constitutional amendment dealing with the Alaska Permanent Fund and the Permanent Fund dividend. (AP Photo/Becky Bohrer)

Alaska Gov. Mike Dunleavy speaks during a news conference on Wednesday, May 12, 2021, in Juneau, Alaska, with a number of state legislators around him. Dunleavy discussed a proposed constitutional amendment dealing with the Alaska Permanent Fund and the Permanent Fund dividend. (AP Photo/Becky Bohrer)

Dunleavy proposes new changes to Permanent Fund

The changes are an amendment to updates he proposed earlier this year.

Gov. Mike Dunleavy announced during a press conference with state lawmakers on Wednesday new changes to a constitutional amendment to the Alaska Permanent Fund.

The changes, which amend adjustments to the fund that he introduced earlier this year, include putting the PFD formula into the Alaska Constitution and establishing that formula as a 50/50 split of revenue between PFD payments and state services. The changes would also deposit Power Cost Equalization endowment revenue into the Permanent Fund’s principal balance, meaning it could not be spent by the Legislature for other uses.

Dunleavy said Wednesday that there is “a chance” that the Legislature will be called back for a special session later in the year, during which they could address federal funds coming into Alaska via the American Rescue Plan as well as further PFD legislation.

Several lawmakers who joined Dunleavy during Wednesday’s press conference praised the changes as a good “first step,” in addressing gaps in Alaska’s finances, including Sen. Peter Micciche, R-Soldotna, who also serves as Senate president.

“This isn’t a partisan issue. It’s not a ‘which body you’re in’ issue, or whether or not you’re in the executive branch,” Micciche said. “We need to come together as Alaskans because until we solve a fiscal plan beginning with a Permanent Fund dividend solution, we are stuck in neutral. This is a clutch that will allow us to put the vehicle in gear and move to the next step.”

Rep. Ben Carpenter, R-Nikiski, thanked Dunleavy for his “leadership” on the issue and said that one of the reasons he sought a seat in the Legislature was to help address Alaska’s financial issues.

“It’s been frustrating over time knowing that we keep kicking the can down the road,” Carpenter said. “So this right here is what not kicking the can anymore looks like. I’ve been saying for a number of months now that we’ve got to address a political problem, not just a fiscal problem.”

Because the legislation would amend the Alaska Constitution, it would need to pass with a two-thirds majority in both the Alaska House and the Alaska Senate before ultimately appearing on Alaskans’ ballots in the November 2022 general election.

The Permanent Fund was created through an amendment to the Alaska Constitution in 1976 by voters, who wanted to put at least 25% of money generated from anticipated revenue from the trans-Alaska pipeline into a dedicated fund. That’s according to the Alaska Permanent Fund Corporation (APFC), which was created in 1980 by the Alaska Legislature to invest and manage the assets of the Permanent Fund.

The Permanent Fund is divided into parts. The nonspendable principal balance can only be used for investments that produce income, per the Alaska Constitution, while the spendable Earnings Reserve Account is available for appropriation, per Alaska State Statute. APFC is responsible for investing the Permanent Fund’s principal balance, while the Alaska Department of Revenue’s Permanent Fund Dividend Division determines the eligibility of people who apply to receive an annual payment that comes from the investment earnings of mineral royalties.

As of March 31, the total value of the Alaska Permanent Fund was $76,320,600,000, including about $59 billion in the principal balance and about $17.3 billion in the Earnings Reserve Account.

Dunleavy’s full press conference can be viewed on his Facebook page.

Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.

More in News

Shrubs grow outside of the Kenai Courthouse on Monday, July 3, 2023, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Anchor Point man indicted for 3 shootings at Homer family planning clinic, recovery center

The grand jury returned 12 counts total for the three shootings

The entrance to the Kenai Chamber of Commerce and Visitor Center is barricaded on Overland Avenue in Kenai, Alaska, on Thursday, Nov. 21, 2024. (Jake Dye/Peninsula Clarion)
Citing dangerous drivers, Kenai closes one entrance to visitor’s center

The barricade will be removed temporarily on Friday for Christmas Comes to Kenai festivities

A Kenai Peninsula Food Bank truck in the Food Bank parking lot on Aug. 4, 2022 in Soldotna, Alaska (Jake Dye/Peninsula Clarion)
Food bank seeks turkey donations as Thanksgiving nears

The local food bank is calling for donations of $25 to “Adopt-A-Turkey” for a local family in need

Seward City Hall is seen under cloudy skies in Seward, Alaska, on Thursday, Nov. 7, 2024. (Jake Dye/Peninsula Clarion)
Seward budget hearing covers bed tax, wages, emergency medical services

The Seward City Council on Nov. 12 considered a series of legislative items connected to 2025 and 2026 budget

The results of ranked choice tabulation show Sen. Jesse Bjorkman, R-Nikiski, winning reelection in the race for Senate District D. (Screenshot/Gavel Alaska)
Bjorkman, Vance win reelection after tabulation of ranked choice ballots

An effort to repeal ranked choice voting and the open primary system was very narrowly defeated

Jacob Caldwell, chief executive officer of Kenai Aviation, stands at the Kenai Aviation desk at the Kenai Municipal Airport on Thursday, Sept. 13, 2022, in Kenai, Alaska. (Jake Dye/Peninsula Clarion)
Kenai Aviation, Reeve Air submit proposals to bring air service back to Seward

Scheduled air service has been unavailable in Seward since 2002

Erosion damage to the southbound lane of Homer Spit Road is seen on Monday, Nov. 18, 2024, following a storm event on Saturday in Homer, Alaska. (Delcenia Cosman/Homer News)
City, DOT work to repair storm damage to Spit road

A second storm event on Saturday affected nearly a mile of the southbound lane

Kenaitze Indian Tribe Education Director Kyle McFall speaks during a special meeting of the Kenai Peninsula Borough School District’s Board of Education in Soldotna, Alaska, on Monday, Nov. 18, 2024. (Jake Dye/Peninsula Clarion)
Charter school proposed by Kenaitze Indian Tribe given approval by school board

The application will next be forwarded to the State Department of Education and Early Department

Suzanne Phillips, who formerly was a teacher at Aurora Borealis Charter School, speaks during a special meeting of the Kenai Peninsula Borough School District’s Board of Education in Soldotna, Alaska, on Monday, Nov. 18, 2024. (Jake Dye/Peninsula Clarion)
Aurora Borealis charter renewal clears school board

The school is seeking routine renewal of its charter through the 2035-2036 school year

Most Read