A PFD proposal, not a mandate

By Bill Walker and Randy Hoffbeck

We appreciate the thoughtful editorial discussion of our proposal regarding the Permanent Fund Dividend. The editorial correctly notes that Alaska needs strong leadership, long-term fiscal planning, and adequate funding for essential public services.

That is exactly why we put this idea on the table.

First, our proposal is not a mandate. It is one option for Alaskans to consider. We have been clear that any change of this magnitude would require broad public support, legislative approval, and a serious statewide discussion before anything could happen.

Second, the proposal does not “spend” $6.5 billion in the traditional sense. The Permanent Fund itself would remain intact. A one-time distribution would reduce the size of the fund, but it would not eliminate it, nor would it jeopardize its future earnings.

The Permanent Fund today is approximately $86 billion. A one-time payout would reduce the balance by about 7.5%. Historically, normal market growth can exceed that amount in a relatively short period of time. The fund has recovered from far larger market declines than this and continued to grow.

Most importantly, ending the annual dividend debate would allow 100% of future Permanent Fund earnings available under the percent of market value system to be used for public priorities. Schools. Public safety. Ferries. Roads. Harbor improvements. Energy projects. The very investments the editorial correctly says Alaska needs.

Reasonable people can disagree with our proposal. That is healthy and expected. We are not asking Alaskans to accept it today. We are asking them to consider whether continuing the same annual political fight over dividends is serving the state’s long-term interests.

Alaska’s fiscal challenges will not solve themselves. New ideas deserve discussion. This is one idea, not the only idea, and certainly not a mandate.

The goal is not the proposal itself. The goal is a stronger, more stable Alaska for future generations.

• Bill Walker is a former Alaska governor seeking election to that office in 2026. Randy Hoffbeck is a former Department of Revenue commissioner in the Walker administration who is running for lieutenant governor with Walker this year.