Earlier this week, the Alaska House of Representatives passed legislation sponsored by Representative Justin Parish (D-Juneau) to modernize the $675 million Public School Trust Fund to generate millions of dollars a year more for public education in Alaska. House Bill 213 restructures the fund and allows an annual percent of market value (POMV) draw based on the total value of the fund while protecting its inflation-adjusted value.
Rep. Justin Parish: “The Public School Trust Fund would be nearly twice as large today if my bill had been law when it was established. At the same time, it would have paid out more than twice as much for public education. Those are the Department of Revenue’s findings. This sort of management is the industry standard for a reason,” said Rep. Parish. “This is a simple bill with a considerable upside for the state, especially our schools.”
The changes in HB 213 are based on recommendations from the House Education Finance Subcommittee and the work of the Senate Education Committee. The Alaska Department of Revenue estimates that a yearly 4.75 percent draw from the Public School Trust Fund will result in $8.2 million in additional, available education funding in Alaska. The Department of Revenue reports that there would be no additional administrative or investment costs as a result of the passage of HB 213.
“We still have a multi-billion dollar budget deficit. This is a way that we can be smarter with our money,” said Rep. Parish. “I’m also very glad that the additional millions raised are dedicated to education.”
House Bill 213 passed the Alaska House of Representatives Monday on reconsideration by a vote of 21-18. The bill has been transferred to the Alaska State Senate for consideration. It was referred to the Senate Finance Committee.