AK SB199

Eliminates the previous formula for calculating permanent fund income distribution (21 percent of five-year average) and replaces it with 5 percent of average market value of the fund for the first five of the preceding six fiscal years.

Changes the distribution split of earnings reserve account funds between the dividend fund and general fund in three phases: initially 50-50 percent (Section 3), then 25-75 percent (Section 4 effective July 1, 2023), then back to 50-50 percent (Section 5 effective July 1, 2027 if revenue conditions are met).

Makes permanent fund appropriations subject to legislative action rather than automatic transfers by the corporation, and allows the legislature to appropriate funds for inflation protection of the principal.

Conditions the final 50-50 distribution split (Section 5) on the state enacting at least $800 million in new annually recurring general fund revenue by December 15, 2026, excluding permanent fund revenue.

Implements recommendations from the 2021 Comprehensive Fiscal Plan Working Group to allow time for debate and implementation of revenue measures and cost reductions needed for state financial stability.