Sen. Bill Wielechowski knows the state needs to balance its budget. The Anchorage Democrat just wants to make sure that Alaskans\u2019 Permanent Fund Dividend isn\u2019t a price of that balancing act.<\/p>\n
For the third consecutive Legislature, Wielechowski is proposing a constitutional amendment that would guarantee the dividend for good.<\/p>\n
In proposing dividend-focused legislation, Wielechowski won\u2019t be alone this time. Sen. Mike Dunleavy, R-Wasilla, will introduce a measure to restore the $1,000 per-person payment vetoed by Gov. Bill Walker last year. Rep. David Eastman, R-Wasilla, will pre-file a companion bill in the House.<\/p>\n
\u201cI\u2019m going to prefile the PFD Restoration Act,\u201d Eastman said.<\/p>\n
The dividend was a touchy topic last session as lawmakers pondered a cap on dividend payments alongside a diversion of some Permanent Fund proceeds to state government. The cap was considered necessary to maximize the amount of money available to state services.<\/p>\n
In the end, Senate Bill 128 failed to gain House approval and died at the end of the Legislature.<\/p>\n
After the session ended, Walker cut $600 million from the $1.2 billion appropriation for the dividend, effectively reducing the per-person payout from $2,000 to $1,000.<\/p>\n
As lawmakers prepare to readdress plans to use Permanent Fund revenue for state expenses, Wielechowski says a dividend guarantee is critical to build popular support.<\/p>\n
\u201cI think if the Legislature wants to restructure the Permanent Fund \u2026 probably the only way you could get people to support it is if you can ensure they continue to get a dividend,\u201d Wielechowski said. \u201cIf you guarantee the dividend, then I think that\u2019s a big selling point for a lot of Alaskans.\u201d<\/p>\n
In 2013, Wielechowski proposed SJR 13, which never received a hearing. In 2014, it was SJR 1, which passed out of the Senate State Affairs Committee but never passed out of the Senate Judiciary Committee.<\/p>\n
When Gov. Bill Walker vetoed half of the Permanent Fund Dividend in 2016, Wielechowski sued and lost in superior court. The case is still pending on appeal.<\/p>\n
Wielechowski said the proposed constitutional amendment \u2014 which would set in stone the formula used to calculate the 2015 dividend \u2014 follows the strategy he\u2019s been following for a long time.<\/p>\n
But does Wielechowski\u2019s idea make sense if \u2014 as will be discussed this year \u2014 the Legislature enacts a statewide sales tax or income tax?<\/p>\n
After all, if that tax passes and so does Wielechowski\u2019s amendment, the state\u2019s government would effectively be taking from one hand and giving from another.<\/p>\n
Wielechowski doesn\u2019t see it that way. In fact, he doesn\u2019t think a sales or income tax is necessary at all \u2014 if the state restores oil taxes to their historic average.<\/p>\n
\u201cIf you simply restructure the oil taxes to get our historic 30 percent, it brings in $4.2 billion,\u201d Wielechowski said. \u201cYou just about completely eliminate the deficit.\u201d<\/p>\n
Raising oil taxes would be a tough sell in the Republican-led Senate and even in the House, where a coalition majority rules.<\/p>\n
\u201cI can\u2019t have it unless I try,\u201d Wielechowski said.<\/p>\n
While Wielechowski is looking at future dividends, Dunleavy is looking at the past. In October, he announced that he will file a bill to restore the half of the 2016 dividend vetoed by Walker.<\/p>\n
\u201cThe bill will be pre-filed as soon as possible,\u201d he said at the time, \u201cand I will ask for an expedited hearing when the Legislature convenes on Jan. 17, 2017.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Sen. Bill Wielechowski knows the state needs to balance its budget. The Anchorage Democrat just wants to make sure that Alaskans\u2019 Permanent Fund Dividend isn\u2019t a price of that balancing […]<\/p>\n","protected":false},"author":503,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[216],"class_list":["post-23623","post","type-post","status-publish","format-standard","hentry","category-news","tag-state-government"],"yoast_head":"\n