The People vs. the PFD
So why didn’t we finish the budget during the regular session? Late-breaking rules on how to use federal COVID relief funds didn't help. But the big reason this year was the big reason since 2017: the PFD.
The Senate passed a roughly $2300 dividend Wednesday night. That’s more than we can afford. The debate about it got weird, too. There was a lot of talk about ‘the people versus government.’ That makes as little sense as ‘the people versus the PFD.’
The Alaska Constitution starts out "We the people," just like the U.S. Constitution. But ours goes farther just two sections later: "All political power is inherent in the people. All government originates with the people, is founded upon their will only, and is instituted solely for the good of the people as a whole." To paraphrase Walt Kelley's Pogo: "We have met the government and he is us."
Paying for government means paying for essential services Alaskans count on. Schools, troopers, ferries, biologists, and the PFD are all ‘for the people.’
Rather than propose either cutting those services or raising any taxes, those who voted for the very large PFD decided to fund it by spending about 7% of the value of the Permanent Fund this year. They argued the markets are up, so the cash is handy. But if you burn through more than 5% in the good years, you won't have enough value to use 5% in the lean years. Pulling out 7% this year means the real value of the Fund won't stay permanent.
Because the House version of the budget deferred the PFD question, the size of this year’s check is up for debate this special session. Any number between $0 and $2300. I support a PFD Alaskans can count on. But we need one our grandkids can depend on, too—without shutting down what Alaska's people need from our government.
