Latest news with #PermanentFund
Yahoo
13-06-2025
- Business
- Yahoo
Amid bleak state revenue forecast, Alaska Gov. Dunleavy vetoes millions in education funding
Alaska Gov. Mike Dunleavy talks to reporters during a news conference on Monday, May 19, 2025. (Photo by James Brooks/Alaska Beacon) Gov. Mike Dunleavy vetoed more than $122 million from Alaska's annual budget plan before signing it into law Thursday. The governor's vetoes fell heaviest on education, as Dunleavy eliminated more than $50 million from the state's per-student education funding formula and tens of millions intended for school maintenance. It's the first time in state history that a governor has failed to fully fund the education formula, a precedent-breaking act akin to former Gov. Bill Walker's decision in 2016 to veto part of the Permanent Fund dividend, which until then had been decided by a previously sacrosanct formula. Dunleavy also vetoed budget language designed to prevent excess spending from the state's Higher Education Investment Fund, which is ordinarily intended to pay for high school students' scholarships. The governor chose to take money from the fund rather than the reserves of the state's investment bank, the Alaska Industrial Development and Export Authority. The governor announced his vetoes without a news conference or lengthy statement, instead releasing a prerecorded video earlier on Thursday stating that the vetoes, which cover both the state's annual operating budget bill and the capital budget bill, were required by the state's fiscal situation. Oil prices have fallen significantly over the past year, leading to dwindling state revenue. The governor's vetoes relied on a new state revenue forecast unavailable to lawmakers when they drafted the budget. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
12-06-2025
- Politics
- Yahoo
Mat-Su mayor files to run as a Republican for Alaska governor
Jun. 12—Edna DeVries, mayor of the Mat-Su Borough, announced on Thursday that she is running as a Republican to be Alaska's next governor. DeVries, 83, has been mayor of the Mat-Su since 2021. She moved to Palmer in 1969 and was mayor of the city for over five years. She served two years as a state senator in the 1980s. In a Thursday interview, DeVries said there are many issues facing Alaska and that she wants to focus on "listening to people, transparency in government and limited government." DeVries, a conservative, said that she feels "very strongly" about election integrity and touted a 2022 ban on voting machines in the Mat-Su borough. She said that she supports following a statutory Permanent Fund dividend, and said Alaska needs to "rein in spending" to address its fiscal challenges. "We need to live within our means. And I don't see the state doing that right now," she said. DeVries said that she is a supporter of school choice. She was critical of a substantial education funding boost approved by the Legislature this year. She said that "we need to have some accountability." DeVries on Thursday filed a letter of intent with the Division of Elections to run as governor next year. That is the first step in launching a campaign, allowing the candidate to raise and spend money. DeVries said filing that letter is "sort of a testing of the waters." "Let's see what the response is out there, and get out and talk to the people to see if they see the same needs in our state as I do," she added. Alaska Gov. Mike Dunleavy, a Republican, is in the penultimate year of his second term. The Alaska Constitution forbids governors from holding office for a third consecutive term. Three other Republicans have filed letters of intent to run for governor in the November 2026 election: Lt. Gov. Nancy Dahlstrom, former Fairbanks Sen. Click Bishop, and business owner Bernadette Wilson.
Newsweek
30-05-2025
- Business
- Newsweek
Some Americans to Receive $1,702 Direct Payment in June: Are You Eligible?
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Thousands of Alaska residents will soon receive a $1,702 direct payment from the state as part of the annual Permanent Fund Dividend program, a uniquely Alaskan initiative that redistributes a share of the state's oil wealth directly to its citizens. Why It Matters The Permanent Fund Dividend is an annual payment made to qualifying Alaska residents, drawn from the state's Permanent Fund, which was established in 1976 to invest a portion of the state's oil revenue. The fund invests in a diverse portfolio of assets, including stocks, bonds, real estate, and other investments to generate returns for residents and preserve the state's vast oil wealth. The fund has grown to over $81 billion and distributes a portion of its earnings, usually giving out in excess of $1,000 to eligible residents of the Last Frontier State. Payments vary from year to year, with the highest ever payment being $3,284. Some 600,000 Alaskans are expected to benefit this year. Stock image/file photo: Person holding several $100 bills. Stock image/file photo: Person holding several $100 bills. GETTY What to Know According to the Alaska Department of Revenue, the next wave of payments will be issued on June 18, benefiting eligible individuals who applied by the deadline and whose applications have been approved for the 2024 Permanent Fund Dividend. For the 2024 dividend, the payment amount is $1,403.83 with an additional $298.17 Energy Relief Payment, bringing the total to $1,702. It is roughly $400 more than last year's, which was $1,312. The largest payout occurred in 2022, when each eligible Alaskan received $3,284. This amount included a record-high base dividend of $2,622, along with a one-time energy relief payment of $662. Eligibility Criteria To qualify, individuals must: Be Alaska residents for the entire calendar year prior to the payment year. Intend to remain in Alaska indefinitely. Not be convicted or incarcerated for any felony or misdemeanor crimes in the state. Have filed an application by the annual March 31 deadline. According to the official PFD site, individuals with an "Eligible-Not Paid" status as of May 8 will receive their payments on June 18, assuming no issues arise with their applications. The income is also considered taxable by the state and the federal government. What People Are Saying Department of Revenue Commissioner Adam Crum said in a statement: "This is the 43rd year Alaskans have received their share of the state's natural resources and investment earnings. The 2024 PFD will create an economic opportunity across all of our local communities." What Happens Next The Alaska Legislature continues to debate the future structure of the PFD, especially as oil revenue becomes more volatile and investment returns fluctuate. Discussions have included capping the dividend, changing the formula, or implementing new taxes to offset budget shortfalls.
Yahoo
28-05-2025
- Business
- Yahoo
Alaska state budget and other bills head to Gov. Mike Dunleavy
The Alaska State Capitol is seen on the last week of the 2025 session on May 19, 2025 (Photo by Corinne Smith/Alaska Beacon) The three pieces of legislation that make up Alaska's annual state budget are on Gov. Mike Dunleavy's desk. According to legislative records, the state's operating, capital and mental health budgets were transmitted to the governor on Tuesday, giving the governor until June 19 to veto the bills or sign them into law. The governor has the ability to use a line item veto to reduce or eliminate specific items within the budget, and Dunleavy has previously indicated that he may reduce funding for public schools below the amount prescribed by a formula in state law. State legislators voted to raise that formula in the session's last days, overriding Dunleavy's decision to veto the bill containing a $700 increase to the base student allocation, the core of the state's school funding formula. If Dunleavy reduces education funding below what's called for by the formula, it would be unprecedented and akin to former Gov. Bill Walker's decision in 2016 to veto part of the Permanent Fund dividend: Since the education funding formula was created, every governor has followed the law. Two policy bills also were transmitted to the governor on Tuesday. The first, House Bill 75, cleans up some state laws pertaining to the Permanent Fund dividend and was uncontroversial in the House and Senate. The second, Senate Bill 183, would require the executive branch to deliver reports in the form requested by the Alaska Legislature's auditor. Under the Alaska Constitution, the Alaska Legislature has audit authority over the executive branch, but since 2019, lawmakers have been unable to analyze the performance of the section of the Alaska Department of Revenue that audits tax settlements with large oil companies. Lawmakers say the Department of Revenue has switched policies and no longer provides a report that once allowed them to examine the section's work. Members of the department testified that they have turned over raw data, but the legislative auditor testified that her department lacks the information and capability to turn that data into actionable information on the state's oil revenue. The bill was transmitted to the governor's office with a letter from the Speaker of the House Bryce Edgmon, I-Dillingham and Senate President Gary Stevens, R-Kodiak, asking Dunleavy not to veto it. 'This letter accompanies the bill not as a routine legislative communication, but as a reflection of the extraordinary nature of the circumstances we face,' it read. 'The ongoing obstructions by the DOR must not be allowed to become a precedent for future administrations. We must reinforce, not erode, the norms of oversight and accountability that are vital to Alaska's republican form of government.' If Dunleavy does veto a bill, the Alaska Legislature is not expected to consider an override until January, when lawmakers reconvene in regular session.
Yahoo
21-05-2025
- Business
- Yahoo
Alaska Legislature passes budget with $1,000 dividend and adjourns for the year
Rep. Ashley Carrick, D-Fairbanks, hugs Rep. Jamie Allard, R-Eagle River, after the Alaska House of Representatives adjourned its session on Tuesday, May 20, 2025. (Photo by James Brooks/Alaska Beacon) The Alaska Legislature adjourned its regular session on Tuesday, one day earlier than expected, after passing a 'maintenance level' state budget that contains a $1,000 Permanent Fund dividend. Legislators do not expect a special session this year. 'I would like to thank all of you for getting to this point: a day early, and before midnight. Pretty remarkable,' said Senate President Gary Stevens, R-Kodiak. Legislators adjourned hours after overriding Gov. Mike Dunleavy's veto of a major education bill. During the time in between, they passed a series of bills, including a ban on payday lending, changes to tax collection for Turo, and policies for prisoners' use of tablet PCs, among others. This year, the first of the two-year 34th Alaska State Legislature, 32 bills were passed by both the House and the Senate. After the House ended its formal work for the year, legislative aides began celebrating with music and pizza, filling the Capitol's fourth floor with singing and cheering. During the session, legislators contended with falling oil revenue. Legislators didn't pass any tax increases, instead adopting significant budget cuts. The Alaska House navigated partisan divisions that left its majority coalition — 14 Democrats, 5 independents and 2 Republicans — with only a one-vote margin over a 19-person House Republican minority. That coalition majority, and a similar one in the Senate, had to negotiate with a governor who has significantly different policy views from the coalitions. Speaker of the House Bryce Edgmon, I-Dillingham, said the early adjournment is something to be proud of. 'I'm pretty pleased that we achieved it,' he said. It was the first time since 2018 that the Legislature did not reach the constitutional limit of 121 days to complete the session, though the 2020 session was interrupted by a seven-week break due to the COVID-19 pandemic. 'In a year where the House was sharply divided in terms of numbers, oil prices sank, we did our best to work with the governor, who, at many times, was not seemingly here in the building, and we put it all together,' Edgmon said. House Minority Leader Mia Costello, R-Anchorage, said her caucus wasn't satisfied with the result. 'I think we're disappointed that we didn't address more issues related to energy and the challenges we have and the opportunities that we have with resource development and energy and dovetailing with the president and our congressional delegation,' she said. 'So we wanted more legislation in that area. But as far as adjourning, it is what it is, and we're just going to gear up for next year.' One of the Legislature's final acts before adjournment was to pass the state's operating budget for the fiscal year that starts July 1. 'You could say that both the operating and the capital budget, the two main budgets, were maintenance-level budgets,' Edgmon said. The capital and operating budgets, including money for next fiscal year and changes to the current fiscal year, spend $6.2 billion, when looking only at general-purpose state spending. If federal funding and things like fees, college tuition and other money is included, the budget bills spend $16.3 billion. General-purpose state spending is down significantly. The enacted budget bills from last spring totaled more than $6.5 billion. Legislators started the budget-drafting process with the expectation that North Slope oil prices would average $68 per barrel in the next fiscal year. By the end, that expectation had dropped to $64, and the federal government — which pays for about 40% of the combined budget bills — had begun cutting its contributions. As revenue projections declined, legislators slashed programs from the budget, including things like new state troopers for the Matanuska-Susitna Borough. A relative handful of budget increases made it through the process — money for mental health treatment in Anchorage, early childhood education programs, and child advocacy centers, which help the survivors of child sexual abuse. Those increases — and all other parts of the budget — are subject to approval by the governor, who has the power to veto individual line items. Every year of his term, Dunleavy has vetoed significant amounts from the budget. In the House, legislators failed to pass one part of the budget — a roughly $200 million draw from the state's principal savings account, the Constitutional Budget Reserve, in order to pay for a deficit in the current fiscal year, which ends June 30. Conditional language in the budget says that if the CBR vote fails, the state will instead take up to $100 million from the accounts of the state's investment bank — the Alaska Industrial Development and Export Authority — and the state's higher education investment fund. The vote failed after members of the House Republican minority opposed it. Thirty votes are required to spend from the reserve. 'I wasn't comfortable going into savings,' said Costello. 'I felt like we could have done more work on the budget and involved our House Finance Committee team, which has a lot of experience, so I just wasn't willing to give my CBR vote to go into savings.' Costello said she feels that other members of the minority felt similarly. Next year, legislators expect that they will need to spend heavily from the CBR in order to balance the budget. In addition, legislators are expected to pass major policy bills, including a revival of the state's pension program for public employees, and election reform bills. 'Hold on to your hat, Nellie, for next session, because it could be much more challenging, as we all know,' Edgmon said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
