As the Alaska Legislature gathered for its third special session of the year, Gov. Mike Dunleavy said Aug. 16 that Alaskans are running out of patience for lawmakers to address the state’s long term financial outlook, including how to solve structural budget deficits, options to protect the Permanent Fund and annual dividend payments, and potential new revenues and spending reductions.
While legislators are expected to deal with how to increase revenues for the state, the governor said he did not think this was necessary, and any revenue increases must include constitutional spending limits. His main priority, however, is to address the PFD payments to Alaskans and to install a constitutional spending limit for government.
Earlier this year, Dunleavy vetoed the paltry $525 dividend that the Legislature approved, which means there is currently no dividend payment slated for 2021. If the Legislature had followed Alaska law, the statutory dividend would be roughly $3,700 this year.
For 34 years, the amount of each payment was based upon a five-year average of the Permanent Fund’s performance. In 2016, then Gov. Bill Walker abandoned the longstanding statutory PFD, and the Legislature has since engaged in an annual debate about how much they should provide for the PFD payments. Last year’s dividend payment was just $992 – the eighth smallest over a 39-year period.
The Permanent Fund has seen extraordinary growth over the past year, growing by more than $18 billion.
Despite campaigning on the promise of restoring a full statutory dividend, Dunleavy has been met with strong opposition from the majority of legislators and is now willing to accept a compromise. The governor has proposed a $2,350 PFD for 2021 if the Legislature will agree to give Alaskans a chance to vote on protecting the PFD with a constitutional amendment that would guarantee the government can’t spend more from the Permanent Fund than what is given to Alaskans through the annual PFD payments.
“The question is, is there going to be the political will,” Dunleavy said during his Aug. 16 press conference. “Everyone wants to put this to bed.”
Dunleavy said he looks forward to seeing what legislators come up with but said Alaskans “expect us in Juneau to get this resolved.”
The governor’s proposal, HJR 7 and SJR 6, would protect PFD funds within the state’s constitution and ensure what he says is a “fair and equitable annual PFD.” Also before the Legislature is Dunleavy’s proposed constitutional amendment to establish a state spending cap (HJR 6, SJR 5).
Dunleavy wants to use $3 billion from the now $82.4 billion Permanent Fund Reserve to help bridge funding gaps while also paying out a dividend to all eligible Alaskans.
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The Permanent Fund has seen extraordinary growth over the past year, growing by more than $18 billion. Some of that money, the governor said, should be used to help Alaskans during a time of great need.
He took issue with legislators who want to turn the PFD payments into an annual appropriations debate which legislators argue over each year. That approach, he said, presumes that the government can make better decisions that ordinary Alaskans about how to use their PFD money.
“Alaskans have individual issues that they deal with on their own,” he said.
When asked if he’d be willing to call legislators back into a fourth special session if they fail to deal with the PFD, he said “I’m not planning on a special session, because I’m hoping everything gets done over the next 30 days.”
15 Comments
There is a corporate bylaw on the books they took an oath to uphold. They need to obey the bylaw that applies directly to them or quit or be fired regarding disbursing the PFD.
It’s time for a person that knows how be a governor no crappy former school teacher or people that doesn’t even know what means serve the people
Folks remember the Governor zeroed out the PFD. That rest with him.
And you want me to vote for you again, not Happening are you crazy.
Your not standing tall your under a rock hiding.
It’s the law to give a full PFD. What don’t you under stand it’s our money not the government.
.While legislators are expected to deal with how to increase revenues for the state, the governor said he did not think this was necessary, and any revenue increases must include constitutional spending limits. His main priority, however, is to address the PFD payments to Alaskans and to install a constitutional spending limit for government.
Now you want us to pay taxes too and get your greedy little hands on the PFD for yourself to spend
more craziness.
Please drop out Now. Let’s get someone in there who has the guts to stand tall.
The legislature owns the failure to pay a full PFD and give a measly $525 to the people. Governor Dunleavy vetoed this measly PFD to force the legislators to pay a full PFD. Your PFD is now being used to pay government workers’ salary/benefit increases. There is where your argument is.
Yes the PFD is an appropriation made by the legislature. Yes I can tell you Dunleavy did approve wage and benefit increases for some State employees this year.
I want to see a real change.. I have no expectations for those who are currently in our local government.
Its a circus… individual citizens have to follow laws and abide by the rules.. yet they aren’t held to the same if not a higher standard!? The clowns took control of the tent. . .
We need a disruptor. A hell raiser.
Not a mild mannered school teacher.
We need someone who isn’t afraid to go to the people through social media – and call the scalawags out.
Traditional media channels to communicate with the populace are outdated at best.
Get with the program Dunleavy – your base has pretty much abandoned you.
We need a Trump
Restore the PFD, Senator’s voted $525.00 are Peter Micciche, Bert Stedman, Natasha Von imhofi, David Wilson, Gary Stevens, Josh revak, Lyman Hoffman, Tom Begich, Evil Gray Jackson, Click Bishop, Jesse Kiehl, verified by Michey Mouse need to change 12 Senator’s,
Those twelve senators believe obeying corporate bylaws is optional after they swar an oath to obey the (by) law that applies to them. That is grounds I believe to demand they are removed immediately and our executive appoint replacements until a elections are held. This law applies directly to them.
Dunleavy, what a mouse. He’s watched Trump. He’s seen Abbot. He’s witnessed Christi Noam.
He obviously refuses to learn! Go away mike and take your peons Stiren and Smolden with you
Who is the presiding officer failing to perform duties? Have the public instructed the legislative body to introduce a bill for the statutory amount? Why have they not done it? They cannot prevent or refuse to perform their duties. We cannot pay them a stipend for refusing to perform. This should have been done early in the 90 days. It is now August. Inability or refusal to perform their duties has the same effect of suspending the ordinary functions. Perhaps a different presiding officer should be selected. Who is the Sargeant of Arms? Who is the successor? It is a general principle of parliamentary procedure that the appointing authority has the right to remove a chair or committee member. Let’s not be defacto.
Sometimes mainstream news media in Alaska lately has been very limited in reporting on the legislative activity. Glad for social media sources.