News from the Alaska State Legislature, the Office of Senator MacKinnon
For Immediate Release: May 08, 2018

Legislature Votes to Protect Permanent Fund

MacKinnon_stamp.jpgSenator Anna MacKinnon
  ~ Send Email
  ~ Web Site

JUNEAU — The Alaska Legislature today took the single most important step to stabilize Alaska’s economy and protect the Permanent Fund for generations.

The Legislature approved Senate Bill 26, which limits the use of the Permanent Fund’s earnings and ensures Alaskans continue to benefit from a healthy dividend program.

“Today, legislators from across the political spectrum came together for a historic vote to protect Alaska’s Permanent Fund,” said Sen. Anna MacKinnon (R-Eagle River), co-chair of the Senate Finance Committee. “This bill stabilizes our revenue stream, providing reliable funding for Alaskans who rely every day on state troopers, educators and heath care providers.”

The bill adopts an endowment management approach that limits the amount of money legislators may withdraw each year from the Permanent Fund Earnings Reserve Account and keeps the original dividend formula intact. A structured annual draw will give the Alaska Permanent Fund Corporation the stability it needs to make prudent investment decisions necessary to grow the fund and maintain a healthy dividend program.

“Failure to act would have jeopardized the survival of the dividend,” said Sen. Hoffman (D-Bethel), co-chair of the Senate Finance Committee. “This bill establishes a responsible draw from the earnings reserve to preserve the dividend program, while helping fill our budget gap during these difficult fiscal times.”

Specifically, the bill:

  • Limits, for three years, the annual draw from the Permanent Fund to 5.25 percent of the fund’s market value for five of the last six fiscal years (effectively 4.35 percent this year), a draw rate the Permanent Fund Corporation has testified is sustainable. After three years, the draw decreases to 5 percent;
  • Removes the statutory split and annual dividend amount in previous versions of SB 26; and
  • Maintains the statutory dividend calculation in existing law.

SB 26 passed the Senate by a vote of 13 to 6 and the House 23 to 17, for a combined vote of 36 to 23. The bill now goes to the governor’s desk to be signed into law.  

For more information, contact Senate Majority Press Secretary Daniel McDonald at (907) 465-4066.


icon-facebook.png Share Share this on Twitter Tweet

News & Videos more >

Senator Pete Kelly

Senate Adjourns Sine Die

JUNEAU – The Alaska Senate today adjourned the second session of the 30th Alaska Legislature, sine die.  Full Story >>

Senator Pete Kelly

Legislature Restores Private Property Rights in Dalton Highway Corrido

JUNEAU – The Alaska Legislature today passed a bill to restore access rights to private homesteaded property owners in the James Dalton Highway corridor.  Full Story >>

Senator Anna MacKinnon

Legislature Votes to Reform School Curriculum

JUNEAU – The Alaska Legislature today passed legislation providing students across Alaska access to the best curriculum in the world.  Full Story >>

Senator Pete Kelly

Legislature Helps Deliver Natural Gas to Interior

JUNEAU – The Alaska Legislature today took another step toward clean and affordable natural gas in Fairbanks and North Pole with the passage of legislation extending the bonding...  Full Story >>

Senator Lyman Hoffman

Legislature Approves State Operating Budget

JUNEAU – The Alaska Legislature today concurred with the final version of the state operating budget for Fiscal Year 2019, totaling $3.1 billion in unrestricted general funds (UGF) for...  Full Story >>

Senator Cathy Giessel

Senate Approves Program to Pay Outstanding Tax Credit Debt

JUNEAU – The Alaska Senate today approved a program to resolve nearly $1 billion owed to small oil and gas companies and reinvigorate work in the state’s oil patch....  Full Story >>

Senator Peter Micciche

Legislature Provides School Districts with Tool to Fill Vacancies

JUNEAU – The Alaska Legislature this week passed a bill allowing school districts to temporarily fill vacancies with qualified retired teachers.  Full Story >>

Senator Peter Micciche

Legislature Supports Better Policy for Alaskans with Disabilities

JUNEAU – The Alaska Legislature this week provided Alaskans with disabilities greater flexibility to receive those services best suited for their needs instead of standard service...  Full Story >>

Senator Kevin Meyer

Senate Passes Crime Package, Votes to End 'Catch and Release'

The Alaska Senate today passed a wide-ranging crime package that provides judges and law enforcement with the tools they need to effectively fight crime.  Full Story >>

Senator Peter Micciche

Micciche Opposes Cut to Serving Sizes for Breweries & Distilleries

JUNEAU – Today, Sen. Peter Micciche (R-Soldotna), Majority Leader of the Alaska Senate, withdrew his request for a House Finance Committee hearing on SB 76 following the adoption of an...  Full Story >>

Find your Senator full map