On Monday, credit rating agency Standard & Poor\u2019s said Gov. Bill Walker\u2019s proposed changes to the way the Alaska Permanent Fund is used \u201cis a favorable development because it illustrates \u2026 how a pathway to a more sustainable fiscal structure for Alaska\u2019s general fund is possible.\u201d<\/p>\n
Last week, Attorney General Craig Richards shared what is being called the \u201csovereign wealth model\u201d with lawmakers.<\/p>\n
The proposal involves diverting all of the state\u2019s oil and gas revenue to the Permanent Fund, whose earnings would be used to partially pay state operations. Permanent Fund Dividends would be paid from a portion of oil and gas revenue rather than the Permanent Fund proper.<\/p>\n
The state has estimated that the plan would generate $3.3 billion per year for state operations.<\/p>\n
S&P stated that the \u201csovereign wealth fund model is not risk-free over the longer term\u201d because it assumes a 6.73 rate of return for the Permanent Fund. It also does not solve the state\u2019s entire annual deficit: About $1 billion would be left to be made up through cuts or additional revenue, such as taxes.<\/p>\n
In an emailed statement, Walker praised S&P\u2019s \u201cpositive feedback.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
On Monday, credit rating agency Standard & Poor\u2019s said Gov. Bill Walker\u2019s proposed changes to the way the Alaska Permanent Fund is used \u201cis a favorable development because it illustrates \u2026 how a pathway to a more sustainable fiscal structure for Alaska\u2019s general fund is possible.\u201d Last week, Attorney General Craig Richards shared what is […]<\/p>\n","protected":false},"author":107,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_stopmodifiedupdate":false,"_modified_date":"","wds_primary_category":4,"footnotes":""},"categories":[4],"tags":[34,230],"yst_prominent_words":[],"class_list":["post-17029","post","type-post","status-publish","format-standard","hentry","category-news","tag-alaska-legislature","tag-state-news"],"_links":{"self":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/17029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/users\/107"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/comments?post=17029"}],"version-history":[{"count":0,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/posts\/17029\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/media?parent=17029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/categories?post=17029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/tags?post=17029"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.juneauempire.com\/wp-json\/wp\/v2\/yst_prominent_words?post=17029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}