Walker’s $10K final PFD a plausible political proposal, but not the right answer

The following was published as an editorial by the Wrangell Sentinel.

Former Gov. Bill Walker is an honorable man who sincerely wants what’s best for Alaskans. He is also running for governor in the 17-candidate August primary, which means he needs to propose some strong new ideas to pop his head above the fray and make the final four for the November general election.

Last week, he proposed asking Alaskans if they want a one-time Permanent Fund dividend cash-out of $10,000 for every eligible resident. After that, the annual dividend program would go away.

If a majority of next year’s dividend applicants say yes, the newly elected Gov. Walker would present legislation to lawmakers to make the change.

His argument, which has some merit to it, is that elected officials have been quarreling and often pandering to the public, promising unaffordable dividends to win votes, and that the ensuing annual legislative debate has immobilized lawmakers from dealing with the bigger issue of the state’s out-of-balance fiscal future.

His proposal is to end the dividend battle and get down to work, using the investment earnings of the rest of the fund to pay for public services and reduce the need for new taxes.

“Someone’s got to throw something on the table that’s different,” Walker said during an interview with the Anchorage Daily News last week.

Different, it is.

Walker is a veteran of hard political decisions. He used his veto power as governor in 2016 to reduce the amount of that year’s Permanent Fund dividend because letting the full checks go out would have been irresponsible. The state did not have the money to cover the dividends without taking a huge chunk out of declining, non-replenishing savings. 

He did the right thing and paid the price of losing his bid for reelection in 2018.

But this year’s proposal is not the answer Alaska needs. The state needs money for the collective good — for schools and road repairs, for harbor rebuilds, for improved ferry service, for billions in deferred maintenance at public facilities across Alaska.

As much as elected officials need to find a way to end the annual dividend debate, spending almost $6.5 billion to cash out people who happen to be living in Alaska next year, even if they leave the state the next year, is an expensive way to solve a political problem.

What Alaska needs is strong leadership from the next governor and more legislators who put the state’s financial future over their own reelection. For its part, the public needs to put the collective good over visions of individual dividends.