Legislature(2021 - 2022)

2021-08-23 Senate Journal

Full Journal pdf

2021-08-23                     Senate Journal                      Page 1357
SB 3001                                                                                                                       
SENATE BILL NO. 3001 BY THE SENATE 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 date."                                                                                     
was read the first time and referred to the Finance Committee.                                                                  
Governor's transmittal letter dated August 19:                                                                                  
Dear President Micciche:                                                                                                        
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.                                                                          

2021-08-23                     Senate Journal                      Page 1358
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                                                              
Alaska’s long-term fiscal stability and near-term recover 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