Sen. Dave Donley State Capitol, Room 508 Juneau, AK 99801-1182 Phone: (907) 465-3892 Fax: (907) 465-6595

Sen. Pete Kelly State Capitol, Room 518 Juneau, AK 99801-1182 Phone: (907) 465-2327 Fax: (907) 465-5241

Study Would Determine PFD's Effects on Alaska

(JUNEAU) - The Alaska Senate passed legislation today creating a study of the Permanent Fund dividend's social and economic effects on Alaska, including whether the dividend acts as an incentive for people to move to the state.

"Many Alaskans have wondered how many people move to our state because they've heard of the dividend that we receive each year," said Sen. Pete Kelly (R-Fairbanks), co-chair of the Senate Finance Committee. "I have always been afraid that people would be attracted to Alaska for the wrong reasons, not because they want to be here and be a productive part of the community, but simply for what they see as a handout."

The courts have ruled it unconstitutional to require a two-year residency in order to receive a Permanent Fund dividend under the equal protection clause. However, the court left the door open to explore the possibility of a two-year residency requirement if the state could prove the dividend was attracting people to the state.

Senate Bill 193 initiates a study to determine why people want to move to Alaska, and what role the dividend plays in their decision. The study would include an analysis of any economic or social problems that could be alleviated if a two-year residency was required to receive the dividend, as well as the demographic effect of seasonal employment on Alaska.

"If the efforts to bring Alaska's natural gas to market are successful, it will create another boom like the one we had in the 1970's, bringing scores of people in from outside looking for work," said Kelly. "Any problems created by allowing people who have recently moved to our state to receive a dividend will be magnified under a boom scenario. It is important to determine now what those problems might be and address them in time."

SB 193 directs the Departments of Community and Economic Development, Health and Social Services, and Labor and Workforce Development to assist in the study and to provide the Legislature with a report outlining the scope of the study and the conclusions reached by January 15, 2002.

The bill passed with the Senate with a vote of 18 - 1 and a notice of reconsideration was given.

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Attachments:

• Sponsor Statement for SB 193
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 80 K

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