Pay PFD now, make long-term fiscal plan for Alaska

The Ship of State, our government, has lost direction.

  • By Clem Tillion
  • Tuesday, May 19, 2020 11:36pm
  • Opinion

Alaska is in a perfect political storm of trouble. We all know it’s due to the COVID-19 attack, oil and investments bottoming out, and people struggling with losses. Paying a PFD now in this financial hardship is the fastest and most efficient way to get money into Alaskans’ hands. But politicians haven’t approved this urgently needed lifeline. Instead of addressing fiscal problems for the public good, most of our leaders — elected to help — are making them worse.

The Ship of State, our government, has lost direction. It has been drifting for years not addressing problems of deficits and declining revenues with reforms. The legislators failed to cooperate and act to make a sustainable fiscal plan. Instead of working together for solutions they are hijacking easy money, taxing the people’s PFD and savings. This endangers the Alaska Permanent Fund and our state. We urgently need a course correction from politicians. Our state is dangerously close to shipwreck on the fiscal cliff ahead in 2021.

In the current legislative session there is strong support for paying the PFD now to help Alaskans and our economy. But, legislative leaders chose to defeat this vote. They said other benefits are on the way. However, with over 40,000 Alaskans filing for unemployment, the system is overwhelmed. The State will not be able to immediately help all who apply. News stories report that Federal CARES money will not quickly reach all who apply, if at all. The feds will not immediately provide aid for job losses and businesses closed by government mandates to protect public health.

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

Some legislators say, “We can’t afford to pay the PFD,” as if the fund earnings are entirely for government. That is not the sole purpose of the permanent fund, established and owned by citizens. When Gov. Jay Hammond and I, along with others, founded the fund, it was intended for savings to grow for future generations. The PFD was set up as a direct, equal benefit for Alaskans by law when earnings are available. Hammond said that if money was needed for services, government can “claw it back in taxes and fees,” not confiscate the PFD. The connection between the fund and the people is maintained by the PFD. Policy leaders, like Dave Rose, former director of the Alaska Permanent Fund Corp., have said the PFD is the reason why the fund has grown, and not been looted and destroyed already. We can’t afford to not provide and protect the PFD.

The Spring PFD payment is not a partisan issue. Both former U.S. Sen. Mark Begich (D) and former Gov. Sean Parnell (R) joined forces in the media recently to call for the PFD payment now.

The truth is that paying the PFD is possible right away! The funds are available. There is a simple, ready process available to pay a minimum $1,300. Legislators can vote through the online teleconferencing system. The 2019 PFD applications can be used to distribute funds for the most efficient and direct way to get money to residents.

Why are voters reelecting politicians who are damaging our wealth and trust? Many leaders refuse to consider every fiscal option on the table and involve the public in approving a fiscal plan. As savings are disappearing politicians will have to stop stalling. Start holding hearings and statewide surveys on all the options including: cuts, taxes, government efficiencies and consolidation, fair PFD formula, other new revenue, spending cap and constitutional amendments. The people of Alaska must approve what services are needed and how to pay for them. Spending down too much from savings accounts on government is theft from future generations and must stop.

I’ve been on boats most of my life, from enlisting in the Navy at 17 with the Seabees in WWII in Guadalcanal to captain on commercial fishing vessels. And now at 94, ferrying my 65’ tugboat to Homer for a U.S. mail contract for Halibut Cove. Any seafarer wants to survive a storm and find a safe harbor. That desire for security is shared by many Alaskans who are struggling in these difficult times. Legislators, do what’s right. Pay the PFD now to help Alaskans get through this COVID crisis. Then, turn the Ship of State on a straight course to economic safety with a long-term fiscal plan, including reconnecting the PFD to the fund in the Constitution to protect Alaskans.

Clem Tillion is a retired commercial fisherman, a former 18-year Alaska state legislator and past chair of the North Pacific Fishery Management Council. He is currently chairman of the Permanent Fund Defenders. (www.pfdak.com)


• By Clem Tillion


More in Opinion

Alex Koplin. (courtesy photo)
Opinion: Public schools do much more than just teach the three Rs

Isn’t it worth spending the money to provide a quality education for each student that enters our schools?

Gov. Mike Dunleavy speaks to reporters at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire file photo)
Letter to the Editor: Law enforcement officers helped ensure smooth, secure energy conference

Their visible commitment to public safety allowed attendees to focus fully on collaboration, learning, and the important conversations shaping our path forward.

Laurie Craig / Juneau Empire file photo
The present-day KTOO public broadcasting building, built in 1959 for the U.S. Army’s Alaska Communications System Signal Corps, is located on filled tidelands near Juneau’s subport. Today vehicles on Egan Drive pass by the concrete structure with satellite dishes on the roof that receive signals from NPR, PBS and other sources.
My Turn: Stand for the community radio, not culture war optics

Alaskans are different and we pride ourselves on that. If my vehicle… Continue reading

U.S. Sen. Dan Sullivan (R-Alaska) delivers his annual speech to the Alaska Legislature on Thursday, March 20, 2025. (Jasz Garrett / Juneau Empire file photo)
Opinion: Sullivan, Trump and the rule of lawlessness

In September 2023, U.S. Sen. Dan Sullivan established his own Alaska Federal… Continue reading

UAA Provost Denise Runge photographed outside the Administration and Humanities Building at the University of Alaskas Anchorage. (courtesy photo)
Opinion: UAA’s College of Health — Empowering Alaska’s future, one nurse at a time

At the University of Alaska Anchorage, we understand the health of our… Continue reading

U.S. Rep. Nick Begich III, R-Alaska, address a joint session of the Alaska Legislature on Thursday, Feb. 20, 2025. (Mark Sabbatini / Juneau Empire file photo)
Opinion: A noncongressman for Alaska?

It’s right to ask whether Nick Begich is a noncongressman for Alaska.… Continue reading

Boats return to the Homer Harbor at the end of the fishing period for the 30th annual Winter King Salmon Tournament on Saturday, March 23, 2024 in Homer, Alaska. (Delcenia Cosman/Homer News)
Opinion: Funding sustainable fisheries

Spring is always a busy season for Alaska’s fishermen and fishing communities.… Continue reading

Gov. Mike Dunleavy holds a press conference on Monday, May 19, 2025, to discuss his decision to veto an education bill. (Jasz Garrett / Juneau Empire file photo)
Opinion: On fiscal policy, Dunleavy is a governor in name only

His fiscal credibility is so close to zero that lawmakers have no reason to take him seriously.

Sen. Jesse Bjorkman, R-Nikiski, speaks in support overriding Gov. Mike Dunleavy’s veto of House Bill 69 at the Alaska Capitol in Juneau, Alaska, on Tuesday, April 22, 2025. (Mark Sabbatini/Juneau Empire)
Capitol Corner: Finishing a session that will make a lasting impact

Sen. Jesse Bjorkman reports back from Juneau.

Courtesy/Chris Arend
Opinion: Protect Alaska renewable energy projects

The recently passed House budget reconciliation bill puts important projects and jobs at risk.

Rep. Justin Ruffridge, R-Soldotna, speaks in support of debating an omnibus education bill in the Alaska House Chambers on Monday, Feb. 19, 2024 in Juneau, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Capitol Corner: Choosing our priorities wisely

Rep. Justin Ruffridge reports back from Juneau.