03/24/2025 09:00 AM Senate FINANCE

                 SENATE FINANCE COMMITTEE                                                                                       
                      March 24, 2025                                                                                            
                         9:02 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:02:35 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 9:02 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Mike Cronk                                                                                                              
Senator James Kaufman                                                                                                           
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Liz Harpold, Staff, Senator Donnie Olson; Deven Mitchell,                                                                       
President and CEO, Alaska Permanent Fund Corporation;                                                                           
Representative Justin Ruffridge; Senator Cathy Giessel.                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SJR 14    CONST AM: PERMANENT FUND; POMV; EARNINGS                                                                              
                                                                                                                                
          SJR 14 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SENATE JOINT RESOLUTION NO. 14                                                                                                
                                                                                                                                
     Proposing amendments to the Constitution of the State                                                                      
     of Alaska relating to the Alaska permanent fund and to                                                                     
     appropriations from the Alaska permanent fund.                                                                             
                                                                                                                                
9:03:38 AM                                                                                                                    
                                                                                                                                
LIZ  HARPOLD,  STAFF,  SENATOR DONNIE  OLSON,  reviewed  the                                                                    
resolution. She  stated that the resolution  would amend the                                                                    
state's  constitution  to   consolidate  the  principal  and                                                                    
earnings reserve into one fund,  and limit the draw from the                                                                    
fund to a percent of  market value (POMV). This action would                                                                    
establish a reliable endowment-style fund.                                                                                      
                                                                                                                                
9:05:01 AM                                                                                                                    
                                                                                                                                
DEVEN  MITCHELL, PRESIDENT  AND CEO,  ALASKA PERMANENT  FUND                                                                    
CORPORATION, referred to the letter  from the Permanent Fund                                                                    
Corporation stating  that there  would be  no impact  on the                                                                    
process  for  appropriating  money for  the  permanent  fund                                                                    
dividend (PFD) as a result of the resolution.                                                                                   
                                                                                                                                
Co-Chair  Hoffman stressed  that  the public  would be  very                                                                    
concerned about how the resolution would affect the PFD.                                                                        
                                                                                                                                
Co-Chair   Stedman   queried   the   process,   should   the                                                                    
legislature desire to draw more than the 5 percent rate.                                                                        
                                                                                                                                
Mr. Mitchell  replied that the  resolution had a  strict cap                                                                    
of 5 percent.                                                                                                                   
                                                                                                                                
Co-Chair Stedman asked  how there would be  a workaround the                                                                    
5 percent cap.                                                                                                                  
                                                                                                                                
Mr. Mitchell  responded that it would  require an additional                                                                    
constitutional amendment.                                                                                                       
                                                                                                                                
Co-Chair   Stedman   stressed   that   it   would   take   a                                                                    
constitutional amendment, which meant  that it would require                                                                    
a vote of the people through the general election.                                                                              
                                                                                                                                
Co-Chair  Hoffman felt  that there  needed to  be additional                                                                    
input from legal counsel on the subject.                                                                                        
                                                                                                                                
Senator Kaufman  wondered whether there were  other modeling                                                                    
of constructs that might be more beneficial to the fund.                                                                        
                                                                                                                                
9:10:12 AM                                                                                                                    
                                                                                                                                
Mr. Mitchell replied that there  was work in 2018, which was                                                                    
the time  of the statutory  POMV creation. He  remarked that                                                                    
the discussion about the rate was a policy issue.                                                                               
                                                                                                                                
Co-Chair Hoffman OPENED and CLOSED public testimony.                                                                            
                                                                                                                                
SJR 14 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:13:12 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:13 a.m.