Alaska Governor Palin Unveils Permanent Fund Savings Plan

By newsdesk - Posted on December 6th, 2007

$2.4 billion deposit to PF principal

December 5, 2007, Anchorage, Alaska – Alaska Governor Sarah Palin today proposed to deposit $2.4 billion from the Permanent Fund earnings reserve to the Permanent Fund principal.

“This would be the largest single year deposit into the Permanent Fund,” Governor Palin said. “This will have a direct impact on every single Alaskan.”

The proposal would increase the constitutionally established fund, now worth more than $41 billion, that distributes annual payments to qualified Alaskans. More than $2 billion would remain in the earnings reserve.

The announcement was included in the details of a two-year $7.1 billion savings plan that reaffirmed the governor’s commitment to save for the future.

Governor Palin also released the results of the Voices Across Alaska survey, an online survey where Alaskans shared opinions on how the state surplus should be saved and invested. More than 10,000 participated in the web survey.

“We are celebrating a milestone in Alaska’s history – an opportunity to save for the future and work toward a more predictable budget that will help every Alaskan deal with the very real challenges of living in our Great Land,” said Governor Palin.

Using the survey results as a general guideline, the two-year savings plan calls for:

• Investing $2.6 billion in the Education Fund to help fund public education in the future.

• Governor Palin also proposes to deposit $2.4 billion from the Permanent Fund earnings reserve to the Permanent Fund principal.

• Creating a $1 billion fund whose earnings would be used for future transportation infrastructure.

• Depositing $450 million in funds from the FY08 surplus into TRS to reduce the unfunded liability and provide future savings in the State’s required contributions to TRS. • Replenishing the Constitutional Budget Reserve with $379 million.

• Investing $250 million in an alternative energy fund. This fund would be used for energy projects recommended by a strategic energy plan, which could include hydroelectric, wind, geothermal, biomass and tidal power.

The FY 09 Operating and Capital Budgets will be released in Anchorage next week.

Source: Alaska Governor

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