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 entity. Created in 1976 under Governor Jay Hammond and Attorney General Avrum Gross, as stated in Article 9, Section 15 of the Alaska State Constitution, its assets were initially managed by the Department of Revenue Treasury Division. In 1980, the Alaska State Legislature established the APFC to specifically oversee and manage the Fund.

1969: State Bonus after leasing oil fields

In 1969, the state got a $900 million bonus after leasing out the oil fields.

February 1976: Establishment of the Alaska Permanent Fund

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

1976: Original intent of the fund

In 1976, the fund's intent was to fund state government after the temporary oil riches ceased.

1977: Initial investment of the fund

In 1977, the fund started with an initial investment of $734,000.

April 1980: Alaska Permanent Fund Corporation Created

In April 1980, the Alaska State Legislature created 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: Zobel v. Williams Supreme Court Decision

In 1982, the U.S. Supreme Court in Zobel v. Williams, 457 U.S. 55, disapproved the initial dividend plan of paying Alaskans $50 for each year of residency up to 20 years, deeming it an invidious distinction burdening interstate travel. This resulted in each qualified resident receiving the same annual amount, regardless of age or years of residency.

1982: Dividend program began

In 1982, the fund's intent changed when the Dividend program began.

1984: Lowest Dividend Payout in 1984

In 1984, the lowest individual dividend payout from the Alaska Permanent Fund was $331.29.

1991: Establishment of the Constitutional Budget Reserve

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 voted no to spending permanent fund

In 1999, despite an advisory vote asking if the government could spend "some" part of Permanent Fund earnings for government purposes and campaign spending greatly favoring the "yes" side, the public voted "no" by nearly 84%.

1999: 84% disapprove of government spending the fund

In 1999, most Alaskans (84%) disapprove of allowing the government to tamper with the fund, especially if that means government might spend Fund income.

2000: Unintended consequence of spending CBR money

In 2000, former state senator Dave Donley recognized that the high vote requirement to spend CBR money had a perverse and unintended consequence.

2000: Percent of Market Value (PoMV) approach proposal

In 2000, the APFC Board of Trustees proposed changing the Permanent Fund's management system to a Percent of Market Value (PoMV) approach, but the POMV died in the Legislature.

2004: Michael J. Burns became executive director

In 2004, Michael J. Burns became executive director of the Alaska Permanent Fund Corporation.

2007: Unintended consequence of spending CBR money

In 2007, former state senator Dave Donley recognized that the high vote requirement to spend CBR money had a perverse and unintended consequence.

2008: Special Payment in 2008

In 2008, Governor Sarah Palin signed Senate Bill 4002, providing a one-time special payment of $1,200 to every Alaskan eligible for the Permanent Fund Dividend (PFD), using revenues generated from the state's natural resources.

July 9, 2015: Fund Value on July 9, 2015

As of July 9, 2015, the Alaska Permanent Fund had grown to approximately $53.7 billion from an initial investment of $734,000 in 1977.

July 2015: Death of Michael J. Burns

In July 2015, executive director Michael J. Burns died, having led the Alaska Permanent Fund Corporation since 2004.

2015: Consideration of a POMV approach

From 2015 to 2017, a POMV approach was again considered for the Alaska Permanent Fund. The market price for North Slope oil fell from an average $107.57 per barrel in FY2014 to $50.05 per barrel in FY2017. This price shift caused an 80 percent decline in state revenue and resulted in a multibillion-dollar budget gap.

2017: Consideration of a POMV approach

2018: Study on Dividend Impact

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)... our results suggest that a universal and permanent cash transfer does not significantly decrease aggregate employment."

2019: Study on Criminal Activity

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 Value and Payouts in 2019

As of 2019, the Alaska Permanent Fund was worth approximately $64 billion, funded by oil and mining revenues. The fund has paid out an average of approximately $1,600 annually per resident (adjusted to 2019 dollars).

2022: Highest Dividend Payout in 2022

In 2022, the highest individual dividend payout from the Alaska Permanent Fund 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%".