Bills filed to restore PFD payout cut by governor

JUNEAU — Bills that would restore the portion of Alaskans’ oil wealth checks that were cut by Gov. Bill Walker last year were filed Monday, ahead of the start of the new legislative session.

The legislation to restore dividends was proposed by Republican Sen. Mike Dunleavy of Wasilla and incoming Republican Rep. David Eastman of Wasilla. Democratic Sen. Bill Wielechowski of Anchorage revived a proposal he has pushed previously with little success which he said would enshrine the current dividend formula in the state Constitution.

The Alaska Permanent Fund is a state nest egg of sorts born of oil wealth and grown through investments. The fund’s principal is constitutionally protected, but the fund’s earnings can be spent, if lawmakers choose. For years they’ve been reluctant to do so, for fear of being accused of raiding the fund. Dividends currently are drawn from fund earnings.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

A major debate raging as Alaska struggles with a multibillion-dollar budget deficit is whether to use fund earnings to help pay for state government and change how dividends are calculated, as Walker has proposed.

Walker last year cut the dividend, citing legislative inaction on his plan to address the deficit, which also included tax measures. Wielechowski and others challenged his veto, but a judge found Walker acted within his authority. The case is being appealed.

In an interview last month, Dunleavy said people get “up in arms” when politicians meddle with the fund.

“It certainly impacts their dividend. But for a lot of folks that are conservative, the last thing they want is to give government access to billions of dollars to either maintain or grow government,” he said.

The bills to restore the permanent dividend funds were among more than 50 measures released Monday, with another round scheduled for release Friday. Monday’s batch included a bill that would provide survivor benefits for families of peace officers and firefighters, a version of which faltered last year.

Also proposed were bills that would let voters post selfies with their marked election ballots and bar state or municipal agencies from helping implement any federal directive to create registries based on race or religion.

Another bill would cut off legislative salaries and daily allowances if the Legislature does not pass a fully funded operating budget within the first 90 days of a session. Pay under the bill, proposed by Wielechowski, would resume once a budget passes.

While voters approved regular legislative sessions of 90 days, lawmakers in recent years have taken longer to finish their work. The constitution allows for regular sessions of up to 121 days, with an option to extend for up to 10 days.

“I think this would certainly put some pressure on legislators to get the job done,” Wielechowski said.

Incoming Republican state Rep. George Rauscher of Sutton has proposed putting a spending limit in the constitution. For any of the constitutional-change proposals to go before voters, they first will need two-thirds support in both the House and Senate.

Majority Senate Republicans will look at proposing some kind of spending limit in state law and the potential use of permanent fund earnings, incoming Senate President Pete Kelly said Monday.

The legislative session begins next Tuesday.

More in News

Member Tom Tougas, far right, speaks during a meeting of the Kenai Peninsula Borough Tourism Industry Working Group in Soldotna, Alaska, on Wednesday, Dec. 18, 2024. (Jake Dye/Peninsula Clarion)
Tourism working group rejects bed tax, recommends seasonal sales tax adjustment

The document includes a section that says the borough could alternatively leave its tax structure exactly as it is.

The rescued sea otter pup looks at the camera in this undated picture, provided by the Alaska SeaLife Center. (Kaiti Grant/Alaska SeaLife Center)
Stranded otter pup rescued from Homer beach

She is estimated to be around 2 months old and was found alone by concerned beach walkers.

Kenai Peninsula College Director Cheryl Siemers speaks to graduates during the 55th commencement ceremony at Kachemak Bay Campus on Wednesday, May 7, 2025, in Homer, Alaska. (Delcenia Cosman/Homer News)
Kenai Peninsula College leadership sees temporary transitions

KPC Director Cheryl Siemers is serving as interim UAA chancellor, while former KBC director Reid Brewer fills in her role.

Ash-Lee Waddell (center) of Homer is one of six recipients of the 2025 First Lady’s Volunteer Award at the Governor’s Residence in Juneau, Alaska, on May 13, 2025. Photo courtesy of the Office of the Governor
First lady honors Alaska volunteers

Volunteers from Homer and Nikiski were recognized.

The front of the Kenai Police Department as seen on Dec. 10, 2019. (Photo by Brian Mazurek/Peninsula Clarion)
Update: Middle schooler reported missing found after 24-hour search

The student was seen leaving Kenai Middle School at around 10:30 a.m. Wednesday.

The Oceania Riviera stands out against a bluebird sky at the Homer Harbor on Wednesday, May 7, 2025. Over 1200 passengers from aboard the boat explored Homer throughout the beautiful day. (Chloe Pleznac/Homer News)
Homer tourism season kicks off with arrival of cruise ships

The first cruise ship of the season arrived April 28 with 930 passengers.

tease
‘Tomorrow — remember you are still a learner’

Kachemak Bay Campus graduated 49 students during its 55th annual commencement hosted on May 7.

Mt. Redoubt rises above Cook Inlet and the Anchor River drainage as fireweed is in bloom, as seen from Diamond Ridge Road on Friday, July 22, 2022, near Homer, Alaska. (Photo by Michael Armstrong/Homer News)
Native plants provide lifeline for local songbirds

Shorebird Festival talk highlights importance of native plants.

Sterling Elementary School students collect trash from the banks of the Kenai River near Bing’s Landing in Sterling, Alaska, during the 10th Annual Kenai River Spring Cleanup on Wednesday, May 14, 2025. (Jake Dye/Peninsula Clarion)
Cleaning up the mess that’s left behind

Students from six local schools combed for litter during the 10th Annual Kenai River Spring Cleanup.

Most Read