Gov. Mike Dunleavy is proposing an economic stabilization dividend, which would be the rest of the 2020 Permanent Fund dividend of approximately $1,900, a full statutory PFD for 2021, for a total of a $5 billion recovery package delivering nearly $5,000 to each eligible Alaskan.
Today, Dunleavy said that 40,000 Alaskans are now on unemployment, businesses are in trouble and many are closing their doors, and Alaska is in the middle of a 100-year crisis, with oil prices, tourism, fisheries, and a pandemic creating a perfect storm.
He said the Permanent Fund has grown by more than $1 billion per month during the pandemic, (and is now at over $72 billion.) Dunleavy is proposing to use half of the growth on recovery.
“This year has presented Alaskans with challenges unlike any we’ve experienced in this lifetime. The widespread global pandemic led to economic devastation for every sector of Alaska’s economy. In the face of this, Alaskans adapted and overcame many hurdles, successfully completing a construction season and a safe fishing season. The state and federal government partnered to distribute $2.3 billion of Federal CARES Act funds to Alaska businesses, $1.3 billion to Alaskan workers, and $568.6 million in community assistance,” he said in a statement.
More details of his budget are at this link.
Dunleavy is proposing the first bond proposal in 10 years of $300-$350 million for roads to resources, renewable energy, infrastructure. It would leverage $54 million in state funding for a $1.4 billion capital budget.
The savings accounts are all gone, he said, calling once again for the three constitutional amendments he wanted for the past two years, which got no traction in the Legislature:
- A cap on government spending
- Require a vote of the people to pass new taxes
- Constitutionally protect the Permanent Fund and the Dividend
