House Finance Committee advances bill protecting $8 billion of Permanent Fund earnings

Rep. Kreiss-Tomkins: Proposal balances State of Alaska’s immediate, long-term needs

House Finance Committee advances bill protecting $8 billion of Permanent Fund earnings
Rep. Kreiss-Tomkins: Proposal balances State of Alaska’s immediate, long-term needs

JUNEAU – The House Finance Committee on Monday passed House Bill 31, a proposal sponsored by Rep. Jonathan Kreiss-Tomkins (D-Sitka).

If passed into law, the bill will transfer $8 billion from the Permanent Fund earnings reserve account into the constitutionally-protected principal of the Permanent Fund, one part of a broader effort to protect the Permanent Fund for future generations of Alaskans.

For background, two sub-accounts constitute the Permanent Fund. The principal, which has a $46.1 billion balance, is constitutionally protected from appropriation and generates investment-related earnings. The earnings reserve account has an $18.4 billion balance and is subject to simple majority appropriation of the Legislature. HB 31 transfers $8 billion from the earnings reserve into the principal.

“This legislation protects an additional $8 billion for future generations of Alaskans, while maintaining a reasonable cash balance in the earnings reserve account for PFDs and public services,” Representative Kreiss-Tomkins said.

CONTACT
Kevin McGowan
Office of Representative Jonathan Kreiss-Tomkins
(907) 465-6791
Austin.Baird@akleg.gov