"Alaska Permanent Fund"

Permanent fund dividends used to be calculated using a formula set out in a 1982 law.  But after oil prices fell five years ago, things changed.

Gov. Mike Dunleavy proposed introducing a state lottery, calling it an “innovative new approach to revenue” for the state.

The state of Alaska could eliminate funding for much of what it does, and it still wouldn’t cover the projected $1.5 billion budget gap.

A working group created last June to make recommendations on the Alaska Permanent Fund decided against proposing a specific change to the formula for setting PFDs.

Dunleavy did not repeat the call he made last year for spending cuts. Instead, he said he would look to Alaskans and the Legislature to work on how to close the gap between how much the state spends and what it brings in.

Alaska Gov. Mike Dunleavy released a new state spending plan Wednesday that retreats from some of his aggressive budget-cutting proposals, while still pushing for larger permanent fund dividends.

The problem could happen if there are poor results from fund investments, like stocks.

The new filings appear to contradict a press release from Alaska Attorney General Kevin Clarkson’s office Friday that said there is no one else “similarly situated” to the plaintiff.

As the Alaska Legislature’s chief budget analyst, David Teal has been the go-to source for nonpartisan information on state spending and revenues. That will end next month, when he retires. And budget experts say Teal’s work will be missed.

One tense moment came at the end of the forum, when House Speaker Bryce Edgmon asked Alaska Chamber members to “be more informed.”