Alaska Senate votes to cap Permanent Fund Dividend checks at $1000 for three years

"The Senate voted for a three year cap on the dividend of $1000 each year.", stated Senator Dennis Egan on Action Line Tuesday.

The Alaska Permanent Fund Dividend will be diminished under terms of legislation approved by the State Senate Monday night.

Juneau Senator Dennis Egan was asked about the dividend provision while a guest on Action Line Tuesday. "The Senate voted for a three year cap on the dividend of $1000 each year.", stated Egan. "Now, that's about what the divided averaged for the years 2010 through 2013, but it should stay stable at about a thousand dollars."

The Senate voted 14 to 5 to send that bill to the house, with the governor himself watching from the back of the room, saying he didn't want to interfere and knew it was a little unusual for the governor to go onto the floor, but he just wanted to be a part of history.

Senate Bill 128 proposed to spend up to 5.2 percent of the Permanent Fund's market value each year. Draws from the fund are limited as oil prices rise. The current draw would be over two billion dollars. The bill would not erase the deficit but would narrow it.

The measure is the cornerstone of Walker's plan to address the deficit, and Monday's vote puts pressure on the House to act. The House Finance Committee, which has been reviewing the proposal, plans to consider the bill next week, as they recess during the biennial Native event, Celebration, which runs Wednesday through Saturday in Juneau.

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