(JUNEAU) - Earlier today Representative Bill Thomas (R-Haines) introduced HB 144, a bill calling for a vote of all Alaskans on the question of municipal revenue sharing. Representative Thomas said of the bill, "Many of our communities in Alaska are really struggling to provide basic services. They are just keeping their heads above water. I think Alaska has the resources and the obligation to do better than that, so I introduced this bill today."

HB 144 calls for an advisory vote of the people at the next general election, which will be in November 2006. The vote would be to spend $150 million annually from the interest earnings of the Permanent Fund according to a formula similar to that which the state once used to pay for the municipal revenue sharing program.

Thomas wants to first use excess earnings to continue the Permanent Fund Dividend program in its present form, and to continue inflation proofing the body of the fund. "My bill will not affect the PFD as we know it," he said. Payments to communities would be made from a portion of the remaining interest earnings. "My proposal asks for the input of Alaskans because the legislature has said it wasn't time to use any of the earnings of our investments. Well now is the time, because if we don't act, we will continue to see local taxes and fees go up. If we don't adequately provide a dividend to our communities, people in cities and villages statewide will feel it in their wallets."

The community dividend program would first provide a $50,000 grant to all municipalities (cities and boroughs) and $25,000 to all unincorporated communities outside borough boundaries. The remaining balance of the $150 million would be allocation to the municipalities on a per capita basis. "Everyone gets a fair shake under this idea," said Representative Thomas, "whether they are rural or urban Alaskans."

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Community Dividend Estimates @ $150 Million
[PDF - 6 page(s) pages - 15 KB]