Legislature(2003 - 2004)
2004-06-22 House JournalFull Journal pdf
2004-06-22 House Journal Page 4445 HJR 102 HOUSE JOINT RESOLUTION NO. 102 by the House Rules Committee by request of the Governor: 2004-06-22 House Journal Page 4446 Proposing amendments to the Constitution of the State of Alaska relating to and limiting appropriations from the Alaska permanent fund based on an averaged percent of the fund market value and relating to permanent fund dividend payments. was read the first time and referred to the Judiciary and Finance Committees. The following fiscal note(s) apply: 1. Zero, Dept. of Revenue 2. Fiscal, Office of the Governor The Governor's transmittal letter dated June 21, 2004, follows: "Dear Speaker Kott: Under the authority of article III, section 18, of the Alaska Constitution, I am transmitting a resolution proposing amendments to the Alaska Constitution relating to and limiting appropriations from the Alaska Permanent Fund based on an averaged percent of the fund's market value. Passage of this resolution by the Legislature gives Alaskans a voice on the issue of a long-term fiscal plan. Voters would have the ability to approve the resolution and bring certainty to Alaska's fiscal future for themselves and future generations of Alaskans. The resolution outlines a long-term fiscal plan that 1) changes the structure of the Alaska Permanent Fund to an endowment model; 2) limits the annual payout from the Alaska Permanent Fund to five percent of the fund's value; 3) allocates the annual payout of 50 percent to dividends, 45 percent to public education, including K-12 and the University, and five percent to communities. Individual dividends would be guaranteed to be at least $1,000 or 50 percent of the annual payout, whichever is higher. I believe that these allocations reflect the priorities of a majority of the public for the use of the Alaska Permanent Fund. The resolution is based on provisions of CS House Joint Resolution 26(FIN), which passed the House during the second session of this 2004-06-22 House Journal Page 4447 Legislature. Under the provisions of this resolution, the Alaska Permanent Fund is converted to the Percent of Market Value or "POMV" endowment model. An annual payout of five percent of the value of the fund is set. POMV is an accepted method for managing funds. Anchorage, Fairbanks, the North Slope Borough, and Sitka residents have voted to use the POMV model for their municipal trust accounts. Private foundations like the Ford Foundation and about 83 percent of colleges use some form of a POMV payout method. These allocation provisions have a ten-year "sunset" to allow the Legislature and the voters an opportunity to revisit them to ensure that the allocations continue to meet state needs. I urge your prompt and favorable action on this legislation. Sincerely yours, /s/ Frank H. Murkowski Governor"