Author’s note: This is an entirely imaginary discussion between Clem Tillion and Jay Hammond, arguably the most ardent supporters of the Permanent Fund Dividend in Alaska history. I took it from some ADN editorials that Clem wrote, and from the KTOO “Pioneers” series on Jay Hammond. I thought it would be entertaining to see how they would react to the state of the PFD today. This is total fiction – only loosely based on these two great Alaskan pioneers. The words are almost entirely my own unless there are quotes around them.
Clem Tillion: Jay, you old son of a gun. Suppose you could see this mess today. Fund’s sittin’ at nearly 90 billion dollars! Ninety! We saved 25 cents on the dollar, and it grew like a king crab. But they’re still handin’ out a measly thousand bucks for 2025 and arguin’ over whether folks get $500 or $1,400 this fall. Politicians are treatin’ your dividend like it’s their personal slush fund again.
Jay Hammond: Clem, you old halibut pirate. I told you this would happen. Remember when I said the dividend was the only real bulletproof vest on that fund? “Give every Alaskan a direct, discernible equity stake,” I said. “Make ’em owners of Alaska, Inc.” Without that skin in the game, who’s gonna’ care when the legislature reaches in and helps itself? Bull feathers on this “PFD is separate” nonsense they’re spoutin’ in Juneau right now. It ain’t separate, it’s the whole damn point!
If your dividend goes down while they’re blowin’ the money on pet projects,” I said, “the public will rise up in outrage.” Where’s the outrage, Clem?
Tillion: You convinced me back then. I was one of the skeptics, but you said as long as every man, woman and child gets an uncapped share straight from the earnings, the voters would protect the corpus forever. Well, they’ve decoupled it, just like I warned in my 2018 piece. They shorted folks thousands of dollars, called it “budget balancing,” and now they’re actin’ like the dividend is optional charity. It’s the people’s money, Jay. We only let ’em play with three-quarters of the oil revenue and they blew that. This last quarter was supposed to be sacred.
Hammond: Sacred? Hell, they’re treatin’ the earnings like it’s the rainy-day account I never once mentioned. I said bull feathers on that even back in ’04. We put the principal in the constitution, so they’d need a vote of the people to touch a nickel of it. But the earnings? I figured the dividend would keep ’em honest. “If your dividend goes down while they’re blowin’ the money on pet projects,” I said, “the public will rise up in outrage.” Where’s the outrage, Clem? They’re still doin’ it – $89 billion in the bank and folks gettin’ crumbs while the legislature fights over how much to keep for themselves.
Tillion: Exactly. I wrote it plain in 2020: without the dividend, the Permanent Fund won’t be permanent. It’s not welfare. It’s not a government piggy bank. It’s the firewall. Every time they cap it or zero it out in a budget draft, they’re stealin’ from every widow in Emmonak and every millionaire in Anchorage the same; $1,400 here, $1,400 there. That’s the most regressive tax you can invent, and they dress it up as “fiscal responsibility.” I told ’em back in ’17 we’d shove it back down their throats with a 2-by-4 if they tried. Well, they tried, and they’re still tryin’. Where’s my 2-by-4?
ALASKA WATCHMAN DIRECT TO YOUR INBOX
Hammond: Damn right. I signed that income-tax repeal in ’82 against my better judgment – thought it was downright stupid, but the recall mob had me over a barrel. Severed the link between what the public pays and what the politicians spend. Spending went to the stratosphere, just like I warned. Now here we are, fund bigger than we ever dreamed, and they’re usin’ the earnings to plug the hole instead of cuttin’ the fat or taxin’ transients fair and square like I wanted. The dividend was supposed to be the people’s direct ownership stake. Make it constitutional, Clem. Lock the original formula in the constitution, or at least a protected 50-50 split so they can’t keep playin’ games every session.
Tillion: I’ve been hollerin’ for that since 2018! Full constitutional protection for the PFD, just like the principal. Put it beyond the graspin’ hands of special interests and spendthrift legislators. You and me and Hugh Malone and Oral Freeman – we built this thing so future generations would get a piece of the oil wealth we inherited. Not so politicians could treat it like their bonus pool. Alaskans still believe in it, Jay. They know it’s their share. We just gotta remind ’em it’s time to rise up again.
Hammond: Well, partner, if I were still kickin’ I’d be right beside you, stumpin’ from Ketchikan to Barrow: “This is Alaska, Inc. – not Juneau, Inc.!” Tell the young ones the truth. The fund’s proof that we did one thing right. The dividend is proof that we almost did it perfectly. Now they just gotta finish the job we started and nail that protection in the constitution before the next bunch decides the people’s money looks better in their budget.
Tillion: Amen to that, Governor. From Halibut Cove to the hereafter… we’re still fightin’ for the same damn thing.
The views expressed here are those of the author.
