Permanent Fund Dividend
The Alaska Permanent Fund is a state investment fund that was established in 1976 to invest a portion of Alaska's oil revenue for future generations. Each year a portion of the earnings from the fund are distributed to eligible Alaska residents in the form of the Permanent Fund Dividend (PFD). Although the amount in the Governor's budget was more than what was appropriated, it was important to provide a PFD that was sustainable now and for future generations. State Statutes dictate that we are only allowed to use 5% of the Permanent Fund’s earnings reserve. Half of that is for services and the other half is for a PFD. I recognize that there are many of you who depend on the annual PFD for reasons such as paying bills, buying needed food and clothing, or medicine. But, if the statutory PFD was provided, the result would have been fewer services that would include senior and disability services, Medicaid, and more in addition to an unbalanced budget which is not allowed.
We really need to address changing the PFD formula so that it is more aligned with reality today in 2023 and not 1980. Hopefully, that will happen during the next Legislative Session which starts on January 16, 2024.
Although there are some who aren't very pleased with the $1,312 PFD, I’m proud of the budget both the Senate and the House approved because it provided funding for services including much-needed childcare grants, school funding, Medicaid, and more. It also provided for a sustainable PFD and a budget surplus of $84M instead of a deficit.
