How does the PFD belong to you?

The Alaska Permanent Fund belongs to the people of this state. It does not belong to politicians, agencies, or special interests. It belongs to Alaskans, because it was created to protect our shared resource wealth long after the oil fields decline. I do not care whether you support a full dividend or not. History does not lie, and it is important to remember why the dividend exists and what it has meant to generations of Alaskans.

In 1976, Alaskans amended our Constitution and established what is now protected under Article IX, Section 15. That amendment requires at least 25 percent of certain mineral revenues, including oil royalties, lease bonuses, and rentals, to be deposited into a permanent savings account. The principle was straightforward and deeply conservative. Oil is a one-time inheritance. It is not a revenue stream. It is a fixed asset that, once pumped and sold, is gone forever.

If we spend every dollar today, we leave nothing for the next generation.

None of this happened by accident. In 1969, the Prudhoe Bay lease sale brought in roughly $900 million. Government expanded rapidly and much of that windfall disappeared just as quickly. Alaskans learned a hard lesson: without discipline, resource wealth vanishes into government spending. Leaders like former Governor Jay Hammond insisted we do better. Save a share. Invest it wisely. Let it grow into something permanent.

The Fund began receiving deposits in 1977. In 1980, the legislature created the Alaska Permanent Fund Corporation to manage investments professionally. That same year, lawmakers enacted the first Permanent Fund Dividend statute. After legal challenges and a ruling from the U.S. Supreme Court, the first checks were issued in 1982, tying every resident directly to the Fund’s success.

The dividend was never a handout. It rests on two principles.

First, every Alaskan has an equal claim to our resource wealth. The PFD represents each citizen’s direct share, regardless of income or background.

Second, the dividend serves as an accountability mechanism. If government erodes the principal, the first visible sign is a smaller dividend. That feature was intentional. It protects the principal by making misuse politically costly.

For decades, the statutory formula worked. It relied on a five-year average of net income, allocating roughly half for inflation proofing and government use, and half for equal dividends. It was predictable and transparent, balancing long-term savings with present benefit.

That balance shifted in 2016, when Governor Bill Walker reduced the legislatively appropriated dividend during a budget crisis driven by low oil prices. An expected dividend of about $2,052 was cut to $1,022. The Alaska Supreme Court later affirmed that the dividend is not constitutionally guaranteed and must be appropriated each year. From that point forward, the PFD became subject to annual political negotiation.

In 2018, the legislature adopted a percent of market value draw under SB 26. The state now draws a fixed percentage of the Fund’s total value each year, similar to managing a long-term retirement account. Those earnings fund both state services and dividends. Supporters called it sustainable. It also moved us away from the clear statutory formula and gave lawmakers greater discretion over how much of the annual draw goes to the people versus government.

Since then, the dividend has been a yearly fight. Amounts swing and promises shift. Some in Juneau speak of the PFD as excess cash government can repurpose, as though they know better than Alaska families how that money should be used. In doing so, they ignore the multiplier effect of disposable income and how those dollars circulate through local businesses and strengthen the private sector.

This is not government’s money. It is the people’s money. The Permanent Fund exists because we all own the resources beneath our land and water.

In the 34th Legislature, we are still grappling with this issue. Recently, a House Finance draft budget set the dividend at zero as a procedural step, something we have seen before. Each time it happens, it sends the message that the dividend is optional. I disagree. Public trust is directly tied to how faithfully we honor the Fund’s original purpose, and when the proposed amount is zero, that trust erodes. Every single legislator’s starting position should be for a full PFD.

We need clarity and stability. A constitutional amendment that establishes a predictable dividend while firmly protecting the principal deserves serious consideration. A fifty-fifty split of the annual draw between the people and government offers a clear framework. Remove the annual political fight and restore confidence in the legislature’s ability to govern.

The dividend represents ownership and accountability. It ties every family to the success of the Fund and reminds the legislature of who the true shareholders are. When that connection weakens, fiscal and development discipline weaken with it.

Oil production is declining and fiscal pressures are real. That makes it more important, not less, that we remain faithful to the original purpose of the Permanent Fund. The decisions we make now will shape Alaska’s economic foundation for generations.

The Permanent Fund was built as a shield for the future and a covenant with the people. It deserves to be defended with the same resolve that created it. Stay engaged. Speak up. The Fund was built for you, for Alaskans, and the dividend remains the clearest proof that Alaska’s wealth still belongs to its people.

// Updated 02/23/26