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Senators introduce SB109 proposing 75/25 split for Permanent Fund withdrawals
Summary
At a weekly Senate press availability, Alaska senators said Senate Bill 109, proposing a 75/25 split of Permanent Fund percent-of-market-value (POMV) withdrawals, will receive its first hearing this week; sponsors say the change aims to keep a dividend while addressing long-term fiscal sustainability.
At a weekly Alaska Senate press availability, Senate President Stevens and members of the majority caucus said the Senate Finance Committee introduced Senate Bill 109, a proposal to change the Permanent Fund percent-of-market-value withdrawal formula to a 75/25 split; the bill is slated for its first hearing this week.
The bill, described by senators at the briefing as a way to keep some form of the Permanent Fund Dividend (PFD) while addressing the state's structural budget shortfall, reflects an ongoing caucus effort to “come up with a responsible, long term solution that provides stability for our budget,” Senate President Stevens said.
Senator Hoffman, a sponsor and member of Senate Finance, said the Senate has passed versions of 75/25 before and that proponents believe the current formula is unattainable under present fiscal conditions. "I believe that the dividend has been a part of this state's long history and the people of Alaska appreciate it," Hoffman said, adding that in rural parts of the state the dividend "helps them heat their homes, feed their families, buy new clothes, spend it on transportation such as snow machines and outboards, and helps them live the subsistence way of life."
Senator Stedman and other finance committee members said they will continue discussions with the Senate Finance Committee as the budget and capital lists are developed. No committee vote or floor action on SB109 was reported at the briefing; sponsors said the measure will be heard in committee this week.
Background and next steps: proponents described SB109 as an effort to reduce the share drawn for dividends in order to preserve fund stability, but they also acknowledged the proposal would not by itself create new revenue. The Senate majority said it will continue committee hearings and deliberations; a first hearing for SB109 was announced but no formal vote or final outcome was recorded at the press availability.
Ending: Senate leaders said they expect continued committee work on SB109 and other budget measures in the coming days and weeks.
