Governor says state’s fiscal future is rosy, again pushes extra PFDs

With a projected $1.6 billion state budget surplus over the next two years Gov. Mike Dunleavy is again asking the Legislature to fund larger Permanent Fund dividends, or PFDs. The governor proposes a spring payment of $1,250 and a payment in the fall of 2,500. The combined payment would be $3,750 for eligible Alaskans including children.

“With inflation at a 40-year high, recent studies indicate that inflation costs Americans up to $3,500 per year,” the governor said Thursday in a briefing for reporters.

“With Government finances improving, Governor Dunleavy is encouraging the Legislature to help the everyday Alaskans who need the PFD to help offset high costs of fuel and food,” said a statement prepared by the governor.

With a big budget surplus it may be difficult for legislators, almost all who are running for reelection this year, to turn down the governor’s proposal. t is also running for reelection.

“This financial plan continues the trend of less state spending while investing in essential services like public safety and schools,” the governor’s statement said.

“This budget (proposed for next year) begins to rebuild Alaska’s infrastructure, restore Alaskans’ fair share of oil revenues (through the PFD and invests long-term in Alaska’s most vulnerable,” the statement said.

“My administration continues to prioritize funding for core services and efforts that will grow Alaska’s economy,” Dunleavy said. “

“We are ramping up support for public safety, fully-funding education, providing some local governments 100 percent of school bond debt reimbursement, gaining momentum behind the G.O. (general obligation) bond proposal, and committing to a full “50/50” PFD that Alaskans expect and deserve. The truth is this budget is balanced with a significant revenue surplus,” the governor said in the statement.

Duneavy said he is pleased to see the G.O. bond proposal getting some support in the Legislature. “It will invest in transportation, while improving safety and creating jobs,” the governor said.

The bond package includes things that the federal infrastructure bill will not pay for.

Miles Baker, the governor’s infrastructure coordinator, said much of the of the federal bill spent through the state involves expansion of existing programs or is channeled to Alaska through other entities, such as tribes and municipalities.

There are some important new programs, however, such as in broadband and cyber-security.

“Alaska is perfectly positioned for the G.O. Bond package because the cost of borrowing is less than the state’s average annual returns (on its investments) and debt service costs are affordable right now,” Dunleavy said.

“This is a real opportunity,” the governor said.