Representatives from the Alaska State Legislature express concerns in a letter to Speaker Chenault regarding a plan to transfer funds from the Permanent Fund Earnings Reserve to help fund the FY2016 operating budget. They consulted constituents who have not felt the full impacts of budget cuts or contemplated future sacrifices. Transferring funds from the reserve so suddenly will sow confusion and mistrust among Alaskans and should go before voters. The representatives fear impacts to PFDs cannot be properly evaluated and transferring funds may impact the reserve's role in reaching sustainable budgets and financing a gas line. They do not intend to vote for the plan and urge continuing negotiations to access the Constitutional Budget Reserve.

1. 29th
Alaska State Legislature
State Capitol
Juneau, Alaska 99801
Mike Chenault, Speaker of the House
Alaska State Legislature
Capitol Building, Room 208
Juneau, AK 99801 May 20, 2015
Dear Speaker Chenault,
On behalf of our constituents, we feel compelled to express to you our serious misgivings regarding
a plan to transfer funds from the Permanent Fund Earnings Reserve as part of a mechanism to fund
the Fiscal Year 2016 Operating Budget.
During the recent recess from the special session, we consulted with our constituents on many of
the issues surrounding the current impasse over fully funding the budget. It is clear that average
Alaskans are only just beginning to grasp the dimensions of the fiscal crisis the state faces. Most
have not yet felt the full impacts of the significant cuts made to state programs and services during
the regular session. Most also have not yet been given the opportunity to contemplate the sacrifices
that may be asked of them in the future in order for healthy economies to be maintained in Alaska.
We feel that resorting to Permanent Fund earnings so suddenly as part of a solution to the impasse
will sow grave confusion and mistrust among Alaskans. Furthermore, we strongly believe that major
actions having to do with the Permanent Fund, such as this, should go before the voters.
We fear that the possible adverse impacts to Permanent Fund Dividends cannot be properly
evaluated at so short a notice. We are also uneasy with utilizing part of the reserve balance at a time
when many analysts feel that a historic bull market will soon face a significant correction.
Additionally, we are concerned about how manipulating these funds now might impact the ability of
the earnings reserve to play an effective long-term role in reaching sustainable, balanced budgets and
financing a gas line.
We do not see this as a procedural vote; we see it as a policy change, and as such, we do not intend
to vote in favor of it.
We respectfully urge you to continue negotiations with minority caucus legislators to attain the
number of votes needed to access the Constitutional Budget Reserve. Like you, we are in favor of
fully funding the Base Student Allocation in the Education Funding Formula, and we hope that our

2. (Page 2 of 2: To Speaker Chenault RE: Permanent Fund Earnings Reserve 5.20.2015.)
colleagues in the other caucus will be willing to come to a reasonable compromise on additional
items.
Sincerely,
Representative Bryce Edgmon Representative Louise Stutes
House District 37 House District 32
Representative Neal Foster Representative Gabrielle LeDoux
House District 39 House District 15
Representative Jim Colver Representative Paul Seaton
House District 9 House District 31