SB 70 Summary

• Establishes an appropriation limit of $4.1 billion for unrestricted general fund appropriations, adjusted annually for inflation using the Anchorage Consumer Price Index, with exemptions for Alaska Permanent Fund, permanent fund dividends, debt obligations, and capital projects.

• Changes the Alaska Permanent Fund earnings distribution formula from 21 percent of five-year average net income to 5.25 percent of average market value of the fund for the first five of the preceding six fiscal years.

• Requires the legislature to appropriate 25 percent of available earnings to the dividend fund from the general fund, with remaining earnings available for appropriation to general fund or principal of the fund.

• Fixes permanent fund dividend amounts at $1,000 for fiscal years 2018, 2019, and 2020, and establishes a separate dividend fund to be administered by the Department of Revenue.

• Requires the governor to submit a report with the budget showing how appropriations comply with the new spending limit and directs the legislature to reevaluate the earnings distribution policy within three years.