House Bill 209 would be a game changer for our Permanent Fund dividends. The overarching impact of the bill, offered by Anchorage Rep. Zack Fields, would be to transform the PFD — your annual share of Alaska’s oil wealth — into a targeted entitlement program.
When the dividend program was envisioned by Gov. Jay Hammond, it was never intended to be any such thing. Gov. Hammond envisioned a mechanism through which all Alaskans would become enfranchised participants in the benefits of our state’s resource development.
This bill would restrict qualification for a PFD check only to individuals who don’t file federal taxes or who make $50,000 or less in annual income. Additionally, the bill would cap the PFD at $1,000 permanently, regardless of the performance of the Permanent Fund. Also, the PFD would not be inflation proofed.
The PFD is not a handout. It is a dividend paid to you for your share of Alaska’s resource wealth. If you own shares of stock in General Motors and your shares pay a dividend, does GM call you and say, “Sorry, but your income disqualifies you from receiving your money”? Obviously not. Yet, HB 209 would have this be the ‘new normal’ for Alaskans.
Achieving a fiscal balance while confronting declining state revenue continues to be paramount. However, disenfranchising tens of thousands of Alaskans from a program established for all Alaskans is not the way to do it.
Rep. DeLena Johnson represents District 25, including Palmer, Butte, Lazy Mountain, and the Walby Lake area.
