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Web posted
The capital in the permanent fund is a tremendous asset for the state of Alaska and, like oil and gas, minerals, tourism, timber and fish, can be a tremendous resource to the people of Alaska if managed correctly. This year the state distributed $663 million in dividends.
When the fund was created it was designed to provide for a rainy day. Look around: Municipalities and school districts have their umbrellas up. The rainy day is here. Accordingly, the concept of a community dividend program in which a portion of the permanent fund distributions are channeled to revenue-share with municipalities and school districts deserves serious consideration and discussion.
Like many other municipal entities, the Municipality of Anchorage and the Anchorage School District are looking at a shortfalls this year. With a community dividend program in place, their funding needs would be met and none of the local governments or school districts would be looking at new taxes or raising property or sales taxes.
Just as dividends safeguard the permanent fund by giving all of us a vested interest in its growth and preservation, the community dividend would create a new class of constituents -- the municipalities and school districts, and all their employees, that would have a vested interest in maintenance and preservation of the permanent fund as well.
Finally, there are those that argue that there should be no reduction in the amount of the dividends to individuals. When the market was good a few years ago, the dividend was nearly $2,000. If the market rebounds and the community dividend was initiated, we would all receive approximately $1,000. Such a "price" to pay is insignificant compared to the education, roads, bridges, services, jobs and public facilities that would be derived from this form of municipal revenue sharing.
If we share a portion of Alaska's wealth with local governments, the level of government thought most responsive to the citizenry, we still retain a reasonably close watch on the use of that wealth.
I hope that the community dividend program concept will get some attention and discussion. There may be better ways to approach the complex funding, social, and other issues facing Alaska. If somebody has a better idea, let's hear it. But in the meanwhile, the community dividend program is a concept well worth considering.
Paul S. Wilcox, an attorney and mediator, is chairman of the labor and employment practice at Hughes Thorsness Powell Huddleston & Bauman LLC in Anchorage. He can be reached via e-mail at psw@htlaw.com.
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