The Senate Finance Committee has released a draft proposal calling for an annual draw from the Alaska Permanent Fund earnings that will allow for a $1,000 dividend for the next three fiscal years.
The annual draw from earnings would be 5.25 percent of the average market value of the fund for the first five of the preceding six fiscal years.
Dividends would be funded by a portion of that draw, equal to 20 percent of resource royalties.
Finance Committee co-chair Anna MacKinnon says she considers the proposal Alaska’s best option to close the budget gap without imposing taxes on residents.
Revenue Commissioner Randall Hoffbeck says he is happy to have a plan from lawmakers on how they’d like to use permanent fund earnings but says solutions must continue being generated beyond this session.
