Proposing amendments to the Constitution of the State of Alaska relating to the permanent fund and to payments to certain state residents from the permanent fund.

Posted: March 1, 2000

House Joint Resolution 47, if passed by the legislature and approved by the voters in the 2000 general election, will amend the constitutional provision relating to the Alaska Permanent Fund. Section 15 of Article 9 will be amended to require all realized income from the Permanent Fund principal to be deposited directly into the general fund. It allows the income to be used for any public purpose except for any program that provides dividends or other payments to all Alaska residents. This terminates the Permanent Fund dividend program as it is today and allows the earnings to be used to inflation-proof the Permanent Fund principal and to fund state services.

The resolution also provides for the payment of $25,000 to each individual eligible to receive a 2001 Permanent Fund dividend (PFD). This is equivalent to more than 10 years of Permanent Fund dividends. It provides an opportunity for citizens to manage their own funds and make decisions that are best for their families. By requiring an individual to be eligible to receive a PFD in 2001, it removes the incentive for an influx of people coming to the state in the hopes of receiving the payment. Applicants would have needed to establish residency by January of 2000.

House Joint Resolution 47 sets the stage for another balanced budget proposal. It is a huge step towards addressing the budget deficit. It takes the constant debate over the permanent fund dividend program off the table. With that debate removed, the legislature can concentrate on dealing with the state's essential needs without being distracted by the effects of withdrawals from the earnings reserve account on the PFD program.

House Joint Resolution 47 offers an opportunity to expand the Permanent Fund's purpose: to utilize revenue from non-renewable resources to assist funding state government services now that oil production and revenues are declining and new revenues are needed.