Dunleavy upbeat on legislative session; asks lawmakers to approve “fair” PFD

Alaska Gov. Mike Dunleavy gave a relatively upbeat assessment of the 2022 state legislative session in a briefing to reports last Thursday, April 28. With the state treasury benefiting from new oil revenues, the Legislature is moving to address the needs of Alaskans.

The governor asked the Legislature to prioritize a “fair” Permanent Fund Dividend amount, to place surplus into State savings, and to take action on the People First Initiative bills introduced earlier this session. Dunleavy spoke to reporters April 28.

“I ask the Legislature to pay every eligible resident a Permanent Fund Dividend this year of at least $3,700. We have this tremendous opportunity to provide a “50/50 PFD” while having enough to place into savings,” the governor said. The “50/50”dividend splits the annual payment made to support the state budget from Permanent Fund earnings.

Dunleavy’s estimate is that a 50-50 dividend would result in a check paid to eligible citizens of about $3,700.

“The more money in the hands of Alaskans, the better it will be for everyone. These are dire times for Alaskans who are paying at the pump while the government benefits from high oil prices. We need to be putting the money back in our constituents’ pockets.”

In March, Dunleavy projected an estimated $3.4 billion increase to the budget over this year and the next because of higher oil prices.

The governor said the PFD should be “as high as possible,” and that he still favors the “full” dividend paid according to a 1980s-era statute on the books. A full LFD paid this year would result in a dividend check over $4,000, according to estimates by the Legislative Finance Division, the Legislature’s nonpartisan fiscal analysis group.

“There is so much uncertainty in the world, from the disruptions in Europe to supply chain issues. We need to use the tools we have (to reassure Alaskans,” particularly the PFD,” Dunleavy said.

In addition to the dividend, the administration’s priority is to rebuild savings with the surpluses in the range of $11 billion over 10 years, based on a conservative forecast of $70 plus per barrel to 2031.

“We should save as much of this as possible,” the governor said in his briefing Thursday. “Oil prices are volatile, and we all know that while prices can go up they also come down,” he said.

According to estimates from Bloomberg Economics, the average American household can expect to pay an extra $5,200 this year – $433 per month – compared to last year due to inflation rising at a historic rate.

“Low income Alaskans are being hit the hardest, where they do not have a cushion of savings to protect them from rising prices,” the governor said. “We have the resources we need to make this PFD happen, so we wait on the Legislature to make their decision.” He said.

“Rural Alaska is going to see, potentially, $17-per-gallon of oil in some places. Alaskans should benefit from the state’s resources.”

Dunleavy has also addressed sex trafficking, sex offenses and victim protection with Senate Bills 189, 187 and 188 in the 2022 session. The bills are part of his People First Initiative, which includes five topics: Domestic violence and sexual assault; missing and murdered indigenous persons, human sex trafficking, foster care and homelessness.

“April is Sexual Assault Awareness Month, this week is National Crime Victims’ Rights Week, and yesterday was Denim Day,” said Governor Dunleavy. “Sexual assault awareness should not only matter during one month of the year. I call upon the Legislature to act on my administration’s People First Initiative bills—modernizing the definition of consent and protecting Alaskans from sexual assault. These are common-sense reforms to close loopholes, increase penalties for perpetrators, and improve our system to protect victims’ rights.

“Alaskans deserve to feel heard and safe in their communities. We will see a change happen in Alaska, but there’s still more work to be done, and it’s up to the Legislature to decide,” the governor said.

Dunleavy also gave a pitch for the so-called “reading bill,” that has passed the Senate and is now in the House. The legislature, in Senate Bill 111 sponsored by the Senate Education Committee, has bipartisan support in the Legislature and is also widely supported by educators.

It would expand pre-Kindergarten programs for children and also provide a new focus on reading instruction in grades one through four, as well as new tools to help young readers who are struggling. “Passage of this bill not only makes a statement but it will have real impact in lifting reading scores among young Alaska children, which are the lowest in the nation,” Dunleavy said.