JUNEAU \u2014 Researchers are recommending other states look to Alaska\u2019s Permanent Fund to learn how to grow funds supported by natural resource extraction.<\/p>\n
The Pew Charitable Trust recently released a national study<\/a> focusing on seven states that have funds from extraction revenue, which the report describes as \u201csovereign wealth funds,\u201d KTOO-FM reports<\/a>.<\/p>\n The report said Alaska is one of only two state funds with a purpose well-defined by state law. It also identified Alaska as one of only three states that don\u2019t allow withdrawals from the fund principal.<\/p>\n \u201cIt\u2019s an outstanding example of a government that had the opportunity to establish one of these funds when the oil industry in Alaska was really just starting up – at least starting up in earnest,\u201d after the Prudhoe Bay oil discovery, said Brenna Erford, a co-author of the Pew report.<\/p>\n Erford also praised the Permanent Fund Corp. board and managers for transparent policies in holding public board meetings and having open financial records.<\/p>\n The report comes as Alaska residents will be receiving smaller dividend checks from the fund this year. The decision to cut the amount by about half from 2015 was made by Gov. Bill Walker because of the state\u2019s multimillion-dollar budget deficit, a situation exacerbated by low oil prices.<\/p>\n Erford said Walker\u2019s plan to use fund earnings for the state budget is about whether Alaskans believe oil and gas revenue will stay low or increase.<\/p>\n \u201cI think that the question for Alaskans is, what do they think the future – in terms of natural resources and the Alaskan economy – what does that look like?\u201d Erford said.<\/p>\n The six other states with sovereign wealth funds are Montana, New Mexico, North Dakota, Utah, Wyoming and West Virginia. In June 2015, the Alaska Permanent Fund had nearly $53 billion, while the other six funds held $16 billion combined.<\/p>\n —<\/p>\n Read more news:<\/strong><\/p>\n Taking Stock: A Q&A with the independent running against Murkowski<\/a><\/p>\n Panamax problems: Wings Airways worries about where to land<\/a><\/p>\n