Alaska House of Representatives debates constitutional amendment to guarantee Permanent Fund dividend payments

The Alaska House of Representatives is considering an amendment to the state constitution that would guarantee permanent fund dividends to residents according to a set formula each year. The House began floor debate on the bill on Wednesday.

As it stands, the PFD amount is set annually by Congress. This situation has continued since the then-governor took office in 2016. Bill Walker vetoed some of his dividends. The Alaska Supreme Court upheld the veto, holding that PFDs are subject to the same appropriations and budget processes as other state spending.

Previously, dividends were paid according to a state law formula based on the net income of the Endowment Fund. Although no longer in use, this formula remains on the books as state law. The amendment would require states to use the old method unless lawmakers adopt a new one.

The constitutional amendment’s sponsor, Ways and Means Committee Chairman Rep. Ben Carpenter (R-Nikiski), said in a statement attached to the proposal that it would prevent dividends from competing with other budget priorities. said.

But opponents say the amendment would require states to pay dividends that cannot be paid under the outdated formula. A dividend of about $3,500 under the existing formula would cost the state about $2.3 billion this year, about one-third of the state’s general purpose revenue.

Two-thirds of the House and Senate must vote in favor of the resolution before it can go to voters. A final vote on the bill is expected within the next few days.