History of Alaska Permanent Fund in Timeline

The Alaska Permanent Fund (APF) is a constitutionally established fund managed by the Alaska Permanent Fund Corporation (APFC), a state-owned corporation. Created in 1976 through Article 9, Section 15 of the Alaska State Constitution under Governor Jay Hammond and Attorney General Avrum Gross, the fund was initially managed by the Department of Revenue Treasury Division. In 1980, the Alaska State Legislature established the APFC to manage the fund. The APF serves as a savings account for the State of Alaska that uses investment earnings to pay dividends to its residents.

1969: Oil Field Leasing Bonus

In 1969, the state of Alaska received a $900 million bonus after leasing out the oil fields. Multiple citizens believed that the legislature too quickly and too inefficiently spent the bonus. This belief spurred a desire to put some oil revenues out of direct political control.

February 1976: Permanent Fund Establishment

In February 1976, the Alaska Permanent Fund was established under Article 9, Section 15 of the Alaska State Constitution, with Governor Jay Hammond and Attorney General Avrum Gross.

1976: Original Intent of the Fund

In 1976, the Funds' ultimate uses were never clearly spelled out at its inception, leaving no current consensus over what role Fund earning should play in the current and expected state budget shortfalls.

1977: Initial Investment

In 1977, the Alaska Permanent Fund had an initial investment of $734,000.

April 1980: Alaska Permanent Fund Corporation (APFC) Creation

In April 1980, the Alaska State Legislature established the Alaska Permanent Fund Corporation (APFC) to manage the state's Permanent Fund assets, taking over from the Department of Revenue Treasury Division, which had managed the fund since February 1976.

1982: Dividend Program Begins

In 1982 the Dividend program began, and the Fund's intent changed from its 1976 origin.

1982: Zobel v. Williams Supreme Court Decision

In 1982, the U.S. Supreme Court in Zobel v. Williams, 457 U.S. 55, disapproved the original dividend plan's $50 per year of residency formula as an invidious distinction burdening interstate travel. Now, each qualified resident receives the same annual amount.

1984: Lowest Individual Dividend Payout

In 1984, the lowest individual dividend payout was $331.29.

1991: Establishment of the Constitutional Budget Reserve (CBR)

In 1991, the Constitutional Budget Reserve (CBR) was established as a companion fund to the Permanent Fund to ease problems from the variability of oil revenue.

1999: Public Disapproval of Government Tampering with the Fund

In 1999, 84% of Alaskans disapproved of allowing the government to tamper with the fund, especially if that meant government might spend Fund income.

1999: Advisory Vote on Spending Fund Earnings

In 1999, with oil prices going as low as $9 per barrel, the State put an advisory vote before Alaskans, asking if government could spend "some" part of Permanent Fund earning for government purposes. The public voted "no" by nearly 84%.

2000: PoMV Proposal

In 2000, the APFC Board of Trustees proposed changing the Permanent Fund's management system to a Percent of Market Value (PoMV) approach which would require an amendment to the state constitution.

2000: Minority Party Power

In the 2000–2007 era, the high vote requirement empowered the Democratic Party.

2004: Michael J. Burns Became Execute Director

Michael J. Burns led the corporation as execute director since 2004.

2007: Minority Party Power

In the 2000–2007 era, the high vote requirement empowered the Democratic Party.

2008: Special Payment

In 2008, Governor Sarah Palin signed Senate Bill 4002 that used revenues generated from the state's natural resources and provided a one-time special payment of $1,200 to every Alaskan eligible for the PFD.

July 9, 2015: Fund's Value

As of July 9, 2015, the Alaska Permanent Fund reached approximately $53.7 billion.

July 2015: Death of Michael J. Burns

In July 2015, execute director Michael J. Burns died.

2015: Consideration of POMV Approach

In 2015–2017, a POMV approach was considered. The market price for North Slope oil fell from an average $107.57 per barrel in FY2014 to $50.05 per barrel in FY2017.

2016: Lawsuit Against the State of Alaska

In 2016, Alaska State Senator Bill Wielechowski, alongside former senators Rick Halford and Clem Tillion, filed a lawsuit against the State of Alaska, challenging Governor Bill Walker's veto that reduced the Permanent Fund Dividend (PFD) payments.

2017: Consideration of POMV Approach

In 2015–2017, a POMV approach was considered. The market price for North Slope oil fell from an average $107.57 per barrel in FY2014 to $50.05 per barrel in FY2017.

2018: Study on Dividend Impact on Employment

A 2018 paper found that the Alaska Permanent Fund dividend had no effect on employment, and increased part-time work by 1.8 percentage points (17 percent).

2019: Study on Substance Abuse and Crime

A 2019 study found "a 14% increase in substance-abuse incidents the day after the [Alaska Permanent Fund] payment and a 10% increase over the following four weeks. This is partially offset by a 8% decrease in property crime, with no changes in violent crimes.

2019: Fund Worth and Dividend Payout

As of 2019, the Alaska Permanent Fund was worth approximately $64 billion. It was funded by oil and mining revenues. It had paid out an average of approximately $1,600 annually per resident (adjusted to 2019 dollars). The main use for the fund's revenue has been to pay out the Permanent Fund Dividend (PFD).

2022: Highest Individual Dividend Payout

In 2022, the highest dividend payout was $3,284.

2024: Study on Poverty Reduction

A 2024 paper in Poverty & Public Policy found that the Alaska Permanent Fund "reduced the number of Alaskans with incomes below the US poverty threshold by 20%–40%" and "reduced poverty rates of rural Indigenous Alaskans from 28% to less than 22%".