Updated: 16 minutes agoAlaska residents received assistance with their Permanent Fund Dividend applications at the PFD office in downtown Anchorage on Wednesday. The PFD filing deadline is Sunday, March 31, at 11:59 p.m.
“The same fight — different year,” said Rep. Mike Cronk, a Tok Republican who sits on the Finance Committee. “When are we going to solve the issue?” But budget analysts have been warning that even by following the existing 5% annual draw, the state could face a liquidity crisis in the future. “I couldn’t think of a more irresponsible vote I could take,” said Rep. Bryce Edgmon, a Dilligham independent and fellow co-chair of the Finance Committee who — like Foster — represents a rural district where a large proportion of constituents support a full dividend. “I’m going to help you guys catch the car. I’m going to vote yes and we’re going to see where this is going to go.”
After that amendment passed, the proposal lost support from Edgmon and several Republicans, and ultimately failed in a 3-8 vote. Lawmakers acknowledged that reaching the three-quarters threshold in a floor vote would be unlikely, and that doing so could have dire consequences for the state’s finances.
The ordeal in the House Finance Committee underscores the enduring nature of questions on the Permanent Fund, and the expected lack of action this session on resolving the state’s longstanding structural deficit. A proposal promised by Gov. Mike Dunleavy to increase revenue through a statewidematerialized. Conversations about revenue have been all but crowded up by conversations about education funding and energy supply during the current session.
“In order to pay a statutory dividend, this state either needs to reduce its expenditures on government, or tax people. You have no other options,” he added.