Since Governor Walker vetoed the statutory PFD almost a decade go, there has been an ongoing battle over paying a statutory PFD. Many legislators make a great deal of noise about the formula, which worked for decades until that veto.
State government is growing – don’t believe the hype to the contrary. A primary reason we can’t pay a statutory PFD is state spending has continued to grow and the supply of money to spend has not kept pace. Under the 50/50 plan, 50% of the permanent fund earnings (draw) would go to the government and the other 50% would go to the people’s PFD. We aren’t. This year, a statutory PFD could have been approximately $4,000. The appropriated PFD total is $1,600 – $1,700. Where is the other money? Spent on government. There was some inflation-proofing of the fund, but Senator Myers points out we are way ahead on that, and it wasn’t necessary.
The legislature can’t allow the narrative to shift, so the PFD was a smaller amount; and then an “energy” rebate was included for the “total” PFD amount. By the legislature’s own numbers, this year’s actual PFD ($1,360) is the “25% plan”.
In other words, the state took 75% of the permanent fund earnings (draw) and left 25% for a PFD. In real math that means the state takes and spends well over 90% of ALL income it gets in every form.
Don’t be food – unless something changes like a pro-resource development administration in D.C. so Alaska experiences and economic boom, we are likely just a few years away from a situation where all of the permanent fund earning will be used for government. The PFD will be relegated to the dustbin of history. Gone.
Keep i mind, that’s before returning to expensive defined benefits for state workers, unsustainable increases to education spending, and many other legislative “dreams”. We have no fiscal policy to keep our spending in check. None.
Even in light of that, some legislators continue to espouse their support for the PFD, especially in an election year. Buyer beware. There were three democrats in the senate who “were” PFD supporters while thy were in the minority. But these last two years when they had a chance to grab power and join a bi-partisan super-majority, they all voted against the statutory PFD 100% of the time. Even voting against the 50/50 PFD. They still voted for the budget which was “balanced” by taking it from the people via a smaller PFD. Many republicans fall into the same category. As reference, every single reduction to government spending I have proposed, and there have been many, have always been voted down in the senate. Spend more? No problem. Reduce government spending? A bridge too far.
Three years ago, as we were exiting the worst of the covid debacle, I put in a budget amendment for a statutory PFD. I have done this every year, or in agreement with a handful of other pro-PFD legislators we would have several amendments we split up and offered for varying levels of the PFD. Starting with the statutory PFD, then a 50/50, and finally whatever was left in the budget. We always got outvoted. On that amazing day, my full statutory PFD passed! As a bonus, an energy supplement passed on top of it. We had the excess money due to the price of oil spiking. Coming out of covid, the people and our economy needed the help, so it made sense to try.
Here’s the kicker. About $5,500 PER ALASKAN went to the House for a concurrence vote. If it passed, it was a done deal and would have gone to the governor for his signature. Except it didn’t pass. Three House republicans voted “no”, joining the democrat-led majority, and the statutory PFD died – again. And died at the hands of republicans who said they supported the PFD, but when “push came to shove”, they abandoned that position for something else. Two of those three were republican House members from the Mat-Su. Arguably one of the most pro PFD areas of the state.
That was nearly a BILLION dollars that didn’t go into the private sector because of three votes. It doesn’t really matter what the other issue was, there’s always “something”. But you should know that what a legislator says, and what they do, are often diametrically opposed. Don’t be fooled by election-year “word salad” and very well thought out political spin. Ask the hard questions. Know the data. Don’t accept “squishy” answers that can be spun in any direction. Demand a “yes” or “no” form your elected officials and candidates. You deserve nothing less.
And finally – hold them accountable! If you don’t, as the saying goes, “you get what you vote for”.
