22nd Alaska State Legislature
News from the Senate Finance Committee
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair

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Sen. Dave Donley
State Capitol, Room 508
Juneau, AK 99801-1182
Phone: (907) 465-3892
Fax: (907) 465-6595

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Sen. Pete Kelly
State Capitol, Room 518
Juneau, AK 99801-1182
Phone: (907) 465-2327
Fax: (907) 465-5241

Study Would Determine PFD's Effects on Alaska

For Immediate Release: April 28, 2001
Contact: Senator Dave Donley at (907) 465-3892
Senator Pete Kelly at (907) 465-2327

(JUNEAU) - The Alaska Senate passed legislation today creating a study of the Permanent Fund dividend's social and economic effects on Alaska, including whether the dividend acts as an incentive for people to move to the state.

"Many Alaskans have wondered how many people move to our state because they've heard of the dividend that we receive each year," said Sen. Pete Kelly (R-Fairbanks), co-chair of the Senate Finance Committee. "I have always been afraid that people would be attracted to Alaska for the wrong reasons, not because they want to be here and be a productive part of the community, but simply for what they see as a handout."

The courts have ruled it unconstitutional to require a two-year residency in order to receive a Permanent Fund dividend under the equal protection clause. However, the court left the door open to explore the possibility of a two-year residency requirement if the state could prove the dividend was attracting people to the state.

Senate Bill 193 initiates a study to determine why people want to move to Alaska, and what role the dividend plays in their decision. The study would include an analysis of any economic or social problems that could be alleviated if a two-year residency was required to receive the dividend, as well as the demographic effect of seasonal employment on Alaska.

"If the efforts to bring Alaska's natural gas to market are successful, it will create another boom like the one we had in the 1970's, bringing scores of people in from outside looking for work," said Kelly. "Any problems created by allowing people who have recently moved to our state to receive a dividend will be magnified under a boom scenario. It is important to determine now what those problems might be and address them in time."

SB 193 directs the Departments of Community and Economic Development, Health and Social Services, and Labor and Workforce Development to assist in the study and to provide the Legislature with a report outlining the scope of the study and the conclusions reached by January 15, 2002.

The bill passed with the Senate with a vote of 18 - 1 and a notice of reconsideration was given.

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Related Links

Study Would Determine PFD's Effects on Alaska

Fiscal Responsibility Bills First Step in Developing Long Range Fiscal Plan

Alaska's Permanent Fund Dividend Program

Alaska's Permanent Fund Corporation

HB 3 : Deposits to the Permanent Fund

HB 17 : Capital Projects Fund/Distribution of Permanent Fund Income

HB 35 : Distribution of Permanent Fund Income

HB 126 : Removal of Members of the Permanent Fund Board

HB 304 : Permanent Fund Income

HB 314 : PFD Eligibility for Peace Corp. Volunteers

HB 398 : Disposition Of Permanent Fund Income

HB 400 : Permanent Fund Contribution For Education

HB 459 : Tax Permanent Fund Dividend

HB 476 : Hold Harmless Law Regarding PFDs

HB 493 : Okay to Assign PFD to Nonprofit Corporation

HJR 15 : Constitution Amendment: Permanent Fund

SB 92 : Removal of Members of The Permanent Fund Board

SB 105 : Victims' Rights/ Prisoner's PFD

SB 193 : Effects of Permanent Fund Dividend

SB 232 : PFD Eligibility for Peace Corp. Volunteers

SJR 11 : Perm Fund Income Distribution