Recommendations for Use of Permanent Fund Earnings

DATE STUDY OVERALL SUMMARY ASSUMPTIONS RECOMMENDATIONS CHAIRS

May 1999 Permanent Fund Earnings--Phase II: A Cornerstone for Fiscal Certainty Recommends uses of Permanent Fund earnings in the context of total state fiscal needs 1. The earnings of the Permanent Fund must be considered part of Alaska's total fiscal package.
2. Current general fund revenues are insufficient to balance the general fund budget.
3. The Constitutional Budget Reserve will run out in three years at current levels.
4. Use of PF earnings must be addressed immediately. 1. Add unrealized gains, realized gains and a portion of the earnings reserve account into the corpus of the PF.
2. Define earnings as 5% of the five-year trailing average of the total value of the PF.
3. Use 40% of earnings to continue the PFD.
4. Use 30% of earnings to support state government.
5. Use 20% for a Community Dividend Plan.
6. Use 10% for statewide capital expenditures. Max Hodel, Joe Griffith

Commonwealth North Reports

Commonwealth North

DATE	STUDY	OVERALL SUMMARY	ASSUMPTIONS	RECOMMENDATIONS	CHAIRS
May 1999	Permanent Fund Earnings--Phase II: A Cornerstone for Fiscal Certainty	Recommends uses of Permanent Fund earnings in the context of total state fiscal needs	1. The earnings of the Permanent Fund must be considered part of Alaska's total fiscal package. 2. Current general fund revenues are insufficient to balance the general fund budget. 3. The Constitutional Budget Reserve will run out in three years at current levels. 4. Use of PF earnings must be addressed immediately.	1. Add unrealized gains, realized gains and a portion of the earnings reserve account into the corpus of the PF. 2. Define earnings as 5% of the five-year trailing average of the total value of the PF. 3. Use 40% of earnings to continue the PFD. 4. Use 30% of earnings to support state government. 5. Use 20% for a Community Dividend Plan. 6. Use 10% for statewide capital expenditures.	Max Hodel, Joe Griffith