Alaskans needs a Permanent Fund Party

The Democrats and Republicans are too Compromised to keep it "Permanent" or Protect the Checks

By Steve Conn

The dangers to the Alaska Permanent Fund and annual dividends to every Alaska are deeper than the ineptitude of its so-called trustees and consultants, as a billion dollars a month disappears into the ether. Both major state parties are compromised by conflicting loyalties. Neither the Democrats nor Republicans will protect the Permanent Fund or its annual distributions if demands from competing constituencies are made to meet their needs. Alaska needs a Permanent Fund Party; a third party dedicated its protection and support.

Governor Knowles and industry promoted a popular vote in 1999 to drain the fund into state services, instead of paying dividends. 83 percent of the voters said, "No." "What does "No" mean?" was the editorial response. The men, women and children, (not to mention, creditors), who depend on the annual checks need reliable representatives within the political system, not compromised by competing pressures, to drain the Permanent Fund. A Permanent Fund Party with elected representatives is the only solution.

Alaskan Republicans and Democrats both have ties to major economic forces within the state who want access to the Fund. While the recent scandals over VECO have tarred Republicans, Bill Allen and Big Oil were courted by the Democrats for years. I watched Tony Knowles literally whisper in Bill's ear during sessions of his study group, formed to recommend new legal barriers for victims of corporate negligence. Allen worked with Mike Burns, now Executive Director of the Alaska Permanent Fund. Former Democratic Governor Bill Sheffield regularly holds fund raisers on Republicans on his private city street. Democrat John Shively moved from assisting the cruise ship industry to helping big mining score its victory over subsistence and commercial fishing. For major players and their surrogates, tapping Fund proceeds beat new taxes on them. Both parties know it.

If the Alaska economy falters, imagine the positions of public employee unions, school boards and municipalities when decisions made about the Permanent Fund are made? Watch closely who challenges the attorney general's decision to let the Fund pay expenses and issue dividend checks during the current crisis; you will learn both parties are compromised. Where are federal tax protections for minors who receive the checks? Even during the high watermark of Congressional power, (now decidedly passed), no friendly legislation was forthcoming.

Potential class warfare threatens the Permanent Fund and its dividends. Checks taxed at the Alternative Minimum Tax rate for higher earning Alaskans, are essential to the survival of thousands of others. Richer Alaskans are happy with no state income tax. Under the current bipartisan system, which position will prevail if the issue is checks versus taxation of the very rich who fund candidates?

For decades Alaska has been the only state where the gap between rich and poor has narrowed. Rather than seen as a source of pride, this is ignored by officials and the press.

Alaskans who want to protect the Permanent Fund and its distributions against the powerful interests who govern Democrats and Republicans should form a new state party, the Permanent Fund Party. When the Knowles administration sought a "Yes" vote on using the Fund, activists from the left and right worked together to fight it. They included liberals, Libertarians, Greens, Mark Chryson of the Alaska Independent Party and Eddie Burke, (among others). They didn't discuss their differences which were many. They focused on a common goal.

Differing positions on the role of government and, even, Alaskan and personal independence, must take backseats to protection of the Permanent Fund and the dividend stream. The only answer is formation of a Permanent Fund Party and election of representatives of that party to the legislature. These representatives can protect the Fund. and select Trustees and managers with no compromised agenda. The power of a Permanent Fund Party, as a third party with elected lawmakers, will be its ability to nudge both major parties in exchange for its votes. Both parties will try to win away votes from representatives of the Permanent Fund Party by improving their positions on fund administration and its payouts. Without a direct role in the political process, recipients of the checks will remain a disempowered minority even though they are the majority. "No" will mean "no."

Form a third party before it is too late. Get party members elected or watch your checks disappear.

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