House Joint Resolution 7 would require the State of Alaska pay the annual Permanent Fund dividend according to a formula in statute, rather than by the “what’s leftover” process, which is what the Legislature now uses.
The House will take it up on Monday during the floor session.
There is a statutory formula for the dividend, of course, but the Legislature ignores it, and has since 2017.
“The trust between the government and the people of Alaska was broken in 2016 when Governor Walker vetoed a portion of the annual dividend and the Alaska Supreme Court ultimately determined that dividends were subject to the annual appropriations process. While the legislature could choose to follow the law and appropriate the dividend according to statute and separate it from the budget, they have not done so. Instead, the permanent fund dividend has been subjected to the budget process, where the dividend competes with government spending and often becomes the deficit reduction solution,” wrote Rep. Ben Carpenter, the sponsor of the resolution.
“Neglecting to constitutionalize the PFD would permit lawmakers to continue avoiding their obligation to address the shortcomings of Alaska’s fiscal and economic planning, placing the Permanent Fund at risk. Constitutionally enshrining the Permanent Fund Dividend will provide for the maximum benefit of all Alaskans and ensure the prosperity of the Permanent Fund for generations of Alaskans to come,” Carpenter said.
The House will gavel in at 11 am.
