For the first time in the state’s history, Permanent Fund earnings will be used to help fund government spending.
On Tuesday, lawmakers approved a plan that will draw $2.7 billion from the earnings account for the upcoming fiscal year that starts July 1. The plan is an amended version of Senate Bill 26, which establishes a limit on how much can be drawn from the fund’s earnings.
The bill uses 5.25 percent of the fund’s average value over the past five years. This rate remains in place for three years. Afterward, the draw rate falls to 5 percent.