ITEM TITLE:
#26-33 - Supporting a Constitutional Amendment to Restructure the Alaska Permanent Fund and Stabilize the Annual Draw for State Services
SUBMITTED BY: By Request of Council
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Approve Resolution 26-33.
SUMMARY STATEMENT:
On Tuesday, May 26, 2026, members of the Alaska Permanent Fund Corporation Board of Trustees presented to City Council on the history and management of the Alaska Permanent Fund.
It was requested that the Valdez City Council consider adopting a resolution to lend support for a constitutional amendment intended to protect the fund and limit the annual draw. This restructuring has been supported by the trustees for many years.
The proposed amendment to the Alaska Constitution would restructure the Alaska Permanent Fund by combining the earning reserve account (fund comprised of the income generated by the permanent fund each year that is available for appropriation by the legislature) with the principle (constitutionally protected corpus of the fund). The proposed constitutional amendment would also limit the money available each year for state spending (draw) to five-percent of the average five-year value of the entire fund.
Versions of this have been considered by the Alaska Legislature but have not passed. The most recent version of this legislation was HJR 10 during the 34th Legislature. To take effect a constitutional amendment would need to pass the legislature and be approved by Alaska voters.
Council Member Foster requested that Council consider a resolution of support on this topic, other council members consented to bring it forward for consideration.
The resolution is attached for review. The additional background materials are provided for context: APFC Resolution 20-01, APFC Resolution 04-09, HJR 12 (full text and sponsor statement)