Permanent Fund could run short of cash in bad investment year

The Alaska Permanent Fund started the fiscal year on July 1 facing a possible $600 million shortfall.

Legislators have earmarked $3.8 billion from the fund for next year’s budget, which includes the Permanent Fund dividend. An additional $1 billion has been set aside for inflation proofing. Both draws would exceed currently available revenue in the fund’s spendable account.

“That’s the first time that we’ve been in this scenario,” Deven Mitchell, CEO of the Alaska Permanent Fund Corp., told a joint legislative committee on June 24.

Investment earnings over the next year should bridge that fisc...

 

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