At this time, no less than 25 bills have been introduced by legislators wishing to “tinker” with the Permanent Fund.  Before we begin looking at the latest Permanent Fund raids it should be noted that with record high oil prices the legislature is awash in “extra” money which is being spent with reckless abandon on every “Delta Barley” type project one can imagine.  With all that “extra” money that could be spent for schools, paying back loans from the CBR, etc., why raid the Permanent Fund?  Good question!  Well let’s take a few minutes and do a quick review so everyone can see who’s doing what down in Juneau this session.  It is the People’s business being conducted after all.

First up is HB 28 the municipal dividend program sponsored by Representative Carl Moses, Democrat from Unalaska.  This bill would take $250 per person from the Permanent Fund earnings reserve account (source of PFD’s) and give it to municipalities.  Minimum amount for smaller villages would be $40,000.  This would help pay the high cost of local governments that were created or expanded during the oil money boom years.  Many municipal governments do not have a sustainable tax base to support themselves and rather than face that reality insist they must be paid from the Permanent Fund.  Leading that charge is the Alaska Municipal League, an organization using membership fees (our tax dollars) to lobby the legislature for bills like good old HB 28.

Then along comes HB 38 dealing with the Amerada Hess portion of the Permanent Fund sponsored by Representatives Eric Croft and Harry Crawford, both Democrats from Anchorage.  This bill would treat earnings of the Amerada Hess portion of the Permanent Fund like all other earnings, therefore available for distribution as a dividend.  The way it is now, this money is a target for legislative spending.  Governor Murkowski is leading the charge to spend this money for his new jet and a new multi-million dollar road from Juneau to Canada.  Those interested in keeping state government boondoggle spending OUT of the Permanent Fund should embrace HB 38 as a good piece of legislation.

Next up is HB 52 which is touted as a “long-range fiscal plan”.  Sponsored by Representatives Gruenberg, Harris, Wilson, Anderson, Cissna, Foster, Guttenberg, Joule, Kapsner, Kott, Lynn, McGuire, Moses, Thomas, Salmon, a mixed bag of Democrats and Republicans from around Alaska.  Take a closer look and you see a bill full of “wiggle words” that make people think something wonderful is going to happen, but in reality are nothing more than a carefully crafted way to say, “let’s spend the Permanent Fund earnings (source of PFD’s) whenever we need the money to cover our overspending policy”.  Don’t get that warm and fuzzy feeling when thinking about HB 52 or you will be disappointed!

Then along comes HB 143 which was written as a revenue shortfall policy and introduced by the House Ways & Means Committee, Chaired by Representative Bruce Weyhrauch Republican from Juneau and members Representatives Rokeberg, Samuels, Seaton, Wilson, Gruenberg, and Moses.  This bill would allow a 50/50 split between the Earnings Reserve Account (source of PFD’s) and the Constitutional Budget Reserve Fund (legislator’s Permanent Fund) to balance the legislature’s future over-spending budgets.  The legislature can see their Permanent Fund running out of money and now want ours!  HB 143 gives them justification!

Since the 1999 advisory vote most Legislator’s are nervous about raiding the Permanent Fund after 83% of Alaskans said “Don’t use the Permanent Fund for government spending without a vote of the people” for fear of losing their next election.  HB 144 is the authorization requested in the 1999 election that will allow the legislature to spend up to $150 million in Permanent Fund earnings each year.  This money would be distributed to every municipality or village with more than 25 residents.  Incorporated municipalities would receive $50,000 each and unincorporated communities would receive $25,000 each.  HB 144 was sponsored by Representative Bill Thomas, Republican from Haines. 

HB 186 will give anyone eligible to receive a Permanent Fund dividend the option of quarterly payments.  The first payment in October of the current dividend year and January, April and July of the next.  HB 186 is sponsored by Representative Jay Ramras a Republican from Fairbanks.

Next up is HB 187 which would withdraw $424,399,000 from Permanent Fund earnings and deposit that money plus all future earnings of the Amerada Hess settlement into a new capital projects slush fund.  Requested by Republican Governor Frank Murkowski, HB 187 is another end run on the public that would allow construction of expensive capital projects without first obtaining voter approval as required by the Alaska State Constitution.

Talk about fishy, HB 255 sponsored by Representative Jay Ramras, Republican from Fairbanks, would withdraw $30 million from the Permanent Fund if the Amerada Hess earnings become available as a result of changes made by HB 187 above, to build, repair, and maintain sport fish hatcheries in Anchorage and Fairbanks.  

A major PFD raid is proposed in HJR 2, which is sponsored by Representative Mike Hawker, Republican from Anchorage.  HJR 2 would allow creation of a new Permanent Fund for all new gas revenues.  This new gas Permanent Fund specifically does NOT pay a dividend to residents of Alaska.  Fortunately HJR 2 is a constitutional amendment that will require a public vote to approve.

Speaking of Permanent Fund raids, HJR 11 is Republican Governor Frank Murkowski’s favorite POMV scheme.  Adoption of the POMV scheme would remove the current constitutional protection of the Permanent Fund’s principal and makes no reference to how earnings will be distributed.  If HJR 11 is adopted by the legislature, the public will get to vote on this stinker and future legislative elections too!  We know how to vote on PFD raid schemes even if the legislature doesn’t!

SB 27 is the X – Y = Z Permanent Fund raid formula sponsored by Senator Ben Stevens, Republican from Anchorage.  This bill would transfer all earnings in excess of $250 million after inflation proofing of the fund’s principal from the earnings reserve account (source of PFD’s) to the CBR for legislative spending.  If SB 27 is adopted, future PFD’s would split a maximum of $250 million pot, not the almost $1 Billion today!  Easy choice for the public, much tougher for the legislature to figure out.

SB 88 is the senate version of HB 143 described above.  Sponsored by Senators Gary Wilken, Republican from Fairbanks and Con Bunde, Republican from Anchorage, SB 88 would allow a 50/50 split between the Earnings Reserve Account (source of PFD’s) and the Constitutional Budget Reserve Fund (legislator’s Permanent Fund) to balance the legislature’s future over-spending budgets. 

SB 104  is the senate version of HB 187 which would withdraw $424,399,000 from Permanent Fund earnings and deposit that money plus all future earnings of the Amerada Hess settlement into a new capital projects slush fund.  This raid was requested by Governor Frank Murkowski.

SB 155 is an excellent example of using Permanent Fund earnings for “goodies” that should be paid out of the windfall oil cash rich general fund.  Real boondoggles gobbling most of that pot of money and not enough left for things like education?  If this $337 million spending spree is really needed, then it should come from the general fund!  SB 155 is sponsored by Republican Senators Ben Stevens, Gary Wilken, John Cowdery, Ralph Seekins, Lyda Green, Con Bunde, Gary Stevens and Tom Wagoner.

Talk about sneaky, SJR 4 would make it easier for the legislature to spend the constitutional budget reserve (CBR) and better yet, remove constitutional re-payment requirements.  Sponsored by Senator Fred Dyson, Republican from Eagle River, SJR 4 will be an easy one for the public to figure out.  Fool us once shame on you, fool us twice, shame on us!

SJR 8 is the senate version of HJR 11.  SJR 8 is Republican Governor Frank Murkowski’s favorite POMV scheme.  Adoption of the POMV scheme would remove the current constitutional protection of the Permanent Fund’s principal and makes no reference to how earnings will be distributed.  It will not take a rocket scientist to figure out how the public will vote if this measure makes it past the legislature!

Of course we plan to share this information with all our friends around Alaska.  The more the merrier when it comes to keeping track of legislative tinkering with the Permanent Fund!  It may be time to circulate a state wide initiative that will lock up Permanent Fund earnings without a public vote.  Then we can all breath a little easier while the legislature is in session! 

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NEW PFD "HOT BUTTON" ON HOME PAGE

Due to the high level of legislative activity surrounding the Permanent Fund, AK Voters have put a new "Hot Button" on the web site home page.  This will make it easy for everyone to send a quick message to the Governor and entire legislature.  This message can be sent as written, or modified with your personal message.  Click here for a direct link to the Permanent Fund message.  Make sure your family, friends and neighbors send their own letter too!

The Alaska Voters web site Links Page contains a good list making it easy to contact your legislators, send a letter to the editor, or make comments to local radio or TV.  Also listed are links to the state constitution, statutes, administration, and several helpful agencies. 

Letters to the editor are already addressed and subject line filled in.  All you need to add is a message and push the send button.  If your issue is of statewide importance, consider sending to every newspaper in Alaska.  It's fast, efficient and VERY effective!

Secure electronic transfers from your bank account or credit card are available using the PayPal button above.  If you prefer to send check, bank draft, or money order, please make them payable to the Alaska Voters Organization;  and mail to PO Box 3293;  Kenai, Alaska;  99611-3293.