As Alaska stands at a fundamental crossroad, the decisions made today regarding the Permanent Fund Dividend (PFD) will profoundly influence the state’s economic, cultural, and social landscape. The expected vote this week on the House floor of HJR 7 heralds a critical opportunity to help secure a prosperous future for Alaskans.
Following the unsettling 2016 decision that placed PFDs within the legislative appropriations process, HJR 7 aims to amend the state constitution to safeguard an annual dividend payment to Alaskans in lieu of the private subsurface rights forfeited at statehood. This resolution is a bold step toward preventing legislative circumvention of PFD payments, ensuring that the fund’s benefits are maximized for all Alaskans and protected for future generations.
Passage of the resolution by the legislature would put the question on the ballot for voters to decide whether to amend our state constitution to require PFDs be issued each year according to whatever the formula is in statute – rather than the PFD amount being a debatable and politically determined amount each year.
A Call to Action
Understanding the nuances of the PFD’s impact on Alaska’s economy and society is crucial. Whether one supports or opposes the PFD in its current form, the imperative to steer Alaska toward a thriving future is undeniable.
As we contemplate the impact of HJR 7, it’s essential to recognize that our actions today will shape the Alaska of tomorrow. Engaging with these legislative proposals is not just about whether or not to preserve an immediate financial benefit but is actually much more about securing a long-term, solid fiscal foundation for the state.
If the legislature, with the public’s vote, settles the PFD issue in the constitution, we will have successfully settled one of the four components needed for state budget predictability and stability which is essential for strong economic growth in the private sector and thriving communities. Work on the other three components (adjusting the spending cap in the constitution, stabilizing revenues, and instituting an auditing/right-sizing process for state entities) will be triggered via passage of HJR 7.
Together, these four components – once all in place – will provide the state fiscal certainty desperately needed for a strong Alaska and a bright future.
If the House is brave enough to take up this measure and pass it, the Senate should not shy away from also taking this step.
