News from Senator Lyda Green

Alaska State Legislature

Wendy Lindskoog, Senate Majority Press Secretary
State Capitol
Juneau, AK 99801-1182
Phone: 907/465-4582
web site: http://www.akrepublicans.org
Broadcast Actualities: 800/478-6540

For Immediate Release: April 8, 1997 Contact: Senator Lyda Green, 907/465-6600

Friends of the Permanent Fund Endorse SJR 18

"Let the People Protect the Permanent Fund "

Juneau -- Senator Lyda Green welcomes broad public support and endorsement from people who agree that Senate Joint Resolution 18 should be passed calling for a constitutional amendment to protect the dividend and inflation-proofing and requiring a vote of the people before any of the undistributed income could be spent.

Former Governor Jay Hammond, former Fairbanks legislator Dick Randolph, former Ketchikan legislator Oral Freeman and prominent Fairbanks businessman Ralph Seekins have endorsed the effort to require a vote of the people before the Legislature reduces dividends, inflation-proofing or spends the earnings of the Permanent Fund.

Under current law, the legislature by simple majority vote, with the support of the Governor, could cap, reduce or eliminate dividends, reduce or eliminate inflation-proofing, and spend every penny of Permanent Fund earnings on government. SJR18 will simply take the existing formulas for dividends and inflation-proofing and require that any changes be approved by the people, not just the legislature.

Governor Jay Hammond, who was Governor when the Permanent Fund was created and was instrumental in founding the dividend program wrote, "I was delighted to learn of your efforts to enshrine the dividend program into the Constitution and recently wrote [an] article to that effect. I agree it is imperative to get the dividend question off the table."

Oral Freeman, a former Chairman of the Board of the Permanent Fund, was a leader in efforts to protect the dividend from being reduced or spent by the Legislature.

He testified, "I commend the sponsors of SJR18 for bringing forth legislation to write into the constitution the provisions that guarantee the permanent fund dividend and provide for inflation-proofing. [My] fear all along has been that if...the Legislature ever starts spending the permanent fund, it will disappear eventually."

Fairbanks legislator Dick Randolph fought for the original dividend program and led the fight to repeal the income tax. He wrote, "Given the ridiculous situation we rugged individuals of the last frontier find ourselves, i.e., NO private enterprise and a government that owns and/or controls all resources and a $20,000,000,000 plus and growing cash account, it seems a modest proposal...anything that pours a bit more concrete to cement the dividend in place is okay by me."

Ralph Seekins, former Chairman of the Permanent Fund Board, testified before the Senate State Affairs Committee, arguing, "The Legislature and the Governor have in the past [eyeballed], and are continuing to eyeball the earnings reserve...without the dividend program the fund probably would have been spent by now. I am very much in favor of letting the people decide whether or not they want to guard their permanent fund."

These four Alaskans join several hundred more who have also endorsed SJR18. Senator Lyda Green looks forward to a prompt hearing on SJR18 which awaits scheduling in Senate Judiciary, chaired by Senator Robin Taylor. SJR18 was sent to Senate Judiciary on March 14, 1997.

###

Broadcast Note: Radio Actualities are available by calling 800/478-6540.