Alaska's Permanent Fund as a Counter-Cyclical Force

DATE STUDY OVERALL SUMMARY ASSUMPTIONS RECOMMENDATIONS CHAIRS

February 1988 Using the Permanent Fund as a Positive Counter-cyclical Force in the Alaskan Economy Meant to be considered in conjunction with the Alaska Development Board proposal, this study states that the earnings of the Fund should be used in two ways. First, in good times, the earnings should be placed back in the Fund. Second, in the event of a fiscal need, the earnings should be appropriated directly into municipal and state government expenses. 1. The Permanent Fund was created to remove a portion of Prudhoe Bay revenues from the appropriations table.
2. There is no consensus on how to use the Fund's earnings, except for the dividend program. 1. Permanent Fund earnings should be used as a positive counter-cyclical force in the Alaskan economy.
2. Fund earnings should be appropriated directly to municipalities on a per-capita basis as needed.
3. The Legislature should create an Alaska Development Board which will research and recommend to the Legislature major revenue generating in-state investments to expand and diversify the state's economy.
4. The Legislature should establish an Alaska Development Fund by using a portion of the PF's Earnings Reserve Account.
5. The Permanent Fund Dividend should be capped.
6. Use of the Fund's earnings to "inflation proof" the Fund should be in proportion to the health of the state's economy.
7. The Fund's earnings should be used for state government operations only in dire emergencies.
8. Strategies for using Fund earnings should be written in statute. Dave Chatfield, Julius Brecht

Commonwealth North Reports

Commonwealth North

DATE	STUDY	OVERALL SUMMARY	ASSUMPTIONS	RECOMMENDATIONS	CHAIRS
February 1988	Using the Permanent Fund as a Positive Counter-cyclical Force in the Alaskan Economy	Meant to be considered in conjunction with the Alaska Development Board proposal, this study states that the earnings of the Fund should be used in two ways. First, in good times, the earnings should be placed back in the Fund. Second, in the event of a fiscal need, the earnings should be appropriated directly into municipal and state government expenses.	1. The Permanent Fund was created to remove a portion of Prudhoe Bay revenues from the appropriations table. 2. There is no consensus on how to use the Fund's earnings, except for the dividend program.	1. Permanent Fund earnings should be used as a positive counter-cyclical force in the Alaskan economy. 2. Fund earnings should be appropriated directly to municipalities on a per-capita basis as needed. 3. The Legislature should create an Alaska Development Board which will research and recommend to the Legislature major revenue generating in-state investments to expand and diversify the state's economy. 4. The Legislature should establish an Alaska Development Fund by using a portion of the PF's Earnings Reserve Account. 5. The Permanent Fund Dividend should be capped. 6. Use of the Fund's earnings to "inflation proof" the Fund should be in proportion to the health of the state's economy. 7. The Fund's earnings should be used for state government operations only in dire emergencies. 8. Strategies for using Fund earnings should be written in statute.	Dave Chatfield, Julius Brecht