Legislature(2021 - 2022)

2021-08-20 House Journal

Full Journal pdf

2021-08-20                     House Journal                      Page 1397
HB 3003                                                                                                                       
HOUSE BILL NO. 3003 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
     "An Act making an appropriation from the general fund to the                                                               
     Department of Education and Early Development for the payment                                                              
     of educational programs; making an appropriation from the                                                                  
     earnings reserve account for the payment of permanent fund                                                                 
     dividends; making an appropriation from the earnings reserve                                                               
     account to the budget reserve fund; and providing for an effective                                                         
was read the first time and referred to the Finance Committee.                                                                  
The Governor's transmittal letter dated August 19 follows:                                                                      
"Dear Speaker Stutes,                                                                                                           
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting an appropriation bill pursuant to the                                                           
implementation of a comprehensive fiscal plan for the State of Alaska                                                           
and in support of recommendations made by the Alaska State                                                                      
Legislature’s Comprehensive Fiscal Plan Working Group.                                                                          
The Alaska Permanent Fund Corporation closed its fiscal year June 30                                                            
at an all-time high of $81.1 billion following a 29.7 percent annual                                                            
return, a record strong performance. The earnings reserve account                                                               
alone totaled $21.0 billion at year end. With its strong performance                                                            
and exceptional management team, the Permanent Fund is critical to                                                              

2021-08-20                     House Journal                      Page 1398
Alaska’s long-term fiscal stability and near-term recovery from the                                                             
devastating impacts of the COVID-19 pandemic.                                                                                   
This bill includes two appropriations critical to helping the legislature                                                       
finalize a structured fiscal solution for our state and to providing                                                            
Alaskans with an equitable distribution of the state’s resource wealth.                                                         
The first item is a $1.53 billion appropriation for the payment of the                                                          
2021 Permanent Fund Dividend. This appropriation is 50 percent of                                                               
the FY22 percent of market value draw from the Permanent Fund and                                                               
would provide a dividend estimated to be $2,350 per eligible Alaskan.                                                           
The second item is a one-time $1.47 billion transfer from the earnings                                                          
reserve account to the budget reserve fund which leverages a small                                                              
portion of the Permanent Fund’s recent earnings windfall to provide                                                             
bridge funding while all the components of a comprehensive fiscal                                                               
solution are fully implemented.                                                                                                 
The third appropriation item in this bill funds the Alaska Performance                                                          
Scholarship Award, Alaska Education Grant, and WWAMI Medical                                                                    
Education programs. Each of these programs are a strong investment                                                              
in young Alaskans and critical for the healthy future of our state.                                                             
I recognize there may be other appropriation items the Legislature will                                                         
want to address as we work collaboratively to finalize the fiscal year                                                          
2022 budget during the special session.                                                                                         
Mike Dunleavy