Ravenous Wolves are Circling Our Stash of Cash. Protect Our P.F.D.

Ravenous wolves are circling our Stash of Cash. En garde mes Amis, Protect Our P.F.D.
“Quite a trick to blow through Alaska’s savings, then propose a dividend cap.” Clem Tillion, ADN Jan. 25th 2016 You Agree? They have spent over twice the value of our fund and now want to spend even more. They do not know when, or how to stop spending. Starting with OUR Dividends they want access to our Permanent Fund itself. What?
“Alaskans beware: Government will never defund itself.” Jim Crawford ADN Feb. 6th 2016. He goes on to write; “Don’t fix the public budget by breaking the backs of Alaska families. A bloated bureaucracy won’t sustain Alaska’s economy. A stable and private sector will.”
Gov. Bill Walker himself says that it is time for us all to pull together and use the People’s Permanent fund. Ref: ADN Friday, Jan. 21st 2016. Gov. Tony Knowles honestly asked the people and was resoundingly told NO by an 84% referendum vote in 1999. Yes, Bob Kaufman, you and many others, are all Thieves, Robbers and Fund Rapists. Having, down the years, overspent our oil income $Billions, would you now rob the Peoples Permanent Fund too?
It is time to become aware that our minds are being pre-conditioned, by one commentator after another. We are being brainwashed, Herr Gobbles style, by lying propaganda published regularly via the ADN and other local media into accepting the idea that we must allow our state access to our Pot of Gold, Our Permanent Fund. En garde mes Amis, Protect Your P.F.D. from the ravenous wolves who greedily circle our Stash of Cash. Frau McGuire is even better than Herr Gobbles. See ADN Sunday, March 6, 2016 “There’s a way to keep PFDs, balance our budget, limit government.” Is that so? Well, I may be Irish, but my eyes are not green.
The Dirty Bastards club is very strong here in Alaska. First they had to rid us of Alaska’s Leading Lady, our ex-Governor Sarah Palin. Then that traitor in our midst, Sean Parnell, helped get rid of ACES and gave the $Billions we were getting as our clear and equitable share of oil taxes, to the oil companies. We need her back to lead us forward. Come back Sarah Palin to Alaska, your home. Come fill our coffers again, with $Billions as you formerly did, when you gave us ACES, before you were driven out of here, by the Dirty Bastards, who so hate your guts. They hate our guts too and will gladly shear us and leave us stand naked in ice and snow. We need you again to subvert those treacherous Bastards. They will totally ignore the laws already enacted, avoid putting the matter to the people and raid our fund. They will not contain their spending within the limits already allowed by the fund.
ALASKA CONSTITUTION ARTICLE VIII – NATURAL RESOURCES
Section 1. Statement of Policy. It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest.
Section 2. General Authority. The legislature shall provide for the utilisation, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.
All monies produced from our Natural Resources belongs to the State of Alaska. Therefore the legislature shall provide for the utilisation, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.
The Permanent Fund does not belong to our State Government. It belongs to the People of Alaska State. All this propaganda babble is just that. Babble. We The People, can of course, lend money from the Fund to the State against receipt of Non-Redeemable, Tax-Free State Bonds @ let’s say 10%. These bonds could be issued to the Permanent Fund Corporation who could hold them on behalf of a citizen or they could distribute them to each citizen, who can then sell them on the bond market if desired. Once sold however, they would become immediately taxable as income via the IRS.
Borrowing fund monies can and must be done at commercial rates beneficial to the Fund.
Herr Kaufman is correct, in that small cuts in the budget are not going to make any difference to our state expenditures. So then, Privatise Education. Wow. Have you got the guts to face the music? Privatise the city police forces. Privatise the fire brigades. Privatise our jail system. It is way past time to get rid of SB21 and bring back our ACES form of taxation on oil. It is time to get rid of all Oil Tax Credits. The privatisation of services will eliminate the need for much of our taxes.
No pressure should ever be brought to bear by any government officials upon the Permanent Fund Trustees to buy or sell any investments. The Trustees need to be able to act totally independent of government interference to make good financial decisions.
It’s no secret that most of the politicians in Juneau look longingly at the Alaska Permanent Fund to solve the current budget crisis. The reality is that politicians whose election campaigns are paid for by the wealthy few don’t represent the folks for whom the PFD is such an important, even critical part of a family budget. Thank you, Governor Hammond. Our Governor now needs to obey our Alaska Constitution and the people of Alaska who have already voted by an almost 84% vote on this PFD matter in 1999. Gov. Jay Hammond wanted a dividend. Defending that dividend means defending the fund. The Fund can lend the State money against 10% tax-free Non-Redeemable AK state bonds. Most of us have to pay much more than 10% ON OUR CREDIT CARDS. If the State wishes to spend money it does not have, then it too like unto us, should have to pay for the privilege. Yes, Governor, let’s all pull together, but let’s not destroy the People’s, Fund. We the people will gladly lend you money to keep you financially viable against the security of AK State Bonds @ 10% interest, non-redeemable. All you have to do is make a profit by charging for your services and pay the interest due on the bonded loan from our PPFD. Fellow Alaskans, rally round and roar at the robbers who would raid our Stash of Cash.
John J Kiernan Goldbeard84@gmail.com Cell# 907-441-2964

Re-Enact ACES Oil Tax.

Alaska's oil production tax is broken

·        Author: Robin Brena

·        Updated: 1 day ago

·        Published 2 days ago: ADN March 2017  

First of two parts

As owners, we Alaskans are entitled to one-third of the gross revenues from the sale of our oil. We realize our fair share through a combination of revenues from a production tax, royalty payments, income taxes and real property taxes. Production taxes are the most critical. In 2012, for example, production revenues were responsible for $6.1 billion (60 percent of total petroleum revenues).  

Our production tax is broken and no longer helps us realize our fair share as owners. In 2017, production revenues will be only $0.1 billion (8 percent of total petroleum revenues). This article will discuss our current production tax, how to fix it and how to test if it is working.

Constitutional obligation

Article 8, Section 2 of the Alaska Constitution provides, "The legislature shall provide for the utilisation, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people." Thus, our Legislature has a constitutional duty to provide the maximum benefit for all Alaskans from our oil. The production tax is the primary manner in which the Legislature has historically undertaken to fulfil this constitutional duty.

The deal

The late Jay Hammond was our governor from 1974 through 1982 — the period when the Trans-Alaska Pipeline System and much of the infrastructure for the production of our major legacy fields were built. Hammond was perhaps the single person most familiar with the original deal under which our oil resources came into production.

Hammond was clear what portion of our oil resources represented our fair share as owners. To quote him directly from the chapter "A Broken Bargain" from his book "Diapering the Devil," "When I was in office, the state, the oil companies, and the federal government agreed to split the oil wealth pie roughly one-third, one-third, and one-third."

[Alaskans' fair share of petroleum revenue]

When Alaskans received less than one-third of the gross value for our oil, Gov. Hammond believed Alaskans were being "shortchanged hundreds of millions of dollars each year for the past several years and will continue to be denied what was once agreed to be our 'fair share.' " The year he said Alaskans were being "shortchanged" was 2004, a year when he calculated Alaskans received only 27 percent of the gross revenues from the sale of our oil.

The production tax is the primary means through which we are able to realise our fair share as owners. When considered with the other mechanisms for the recovery of our fair share, the production tax should be adjusted so the total net petroleum revenues equal one-third the gross market value of our oil.

History of petroleum revenues

Since 1978, Alaska has exported crude oil with a gross market value of $527 billion and received $141 billion in petroleum revenue — or 27 percent of gross revenue. Stated differently, from 1978 to date, we have under-collected our one-third ownership share by $35 billion — or 6 percent of gross revenue. This overall under-collection was what Hammond was referring to when he said Alaskans were being "shortchanged." This under-collection is primarily due to the failure of the production taxes to recover our fair share as owners.

Collapse of petroleum revenues

Our petroleum revenues have completely collapsed, and Alaskans are getting less for their petroleum resources than at any time in our history. Total net petroleum revenues from all sources have collapsed from $9.2 billion (2012) to $0.8 billion (2017) — or by 91 percent. The total net unrestricted petroleum revenues (which may be more readily used to reduce the massive current deficit) have similarly collapsed from $8.1 billion (2012) to $0.2 billion (2017) — or by 98 percent.

Failure of the production tax

A primary reason for this collapse in petroleum revenues is the failure of the production tax to realise our fair share as owners. Total petroleum revenues under our production tax have collapsed from $6.1 billion (2012) to $0.1 billion (2017) — or by 98 percent. Net petroleum revenues under our production tax have collapsed even more, from $5.4 billion (2012) to -$0.5 billion (2017) — or by 109 percent. This decline in net petroleum revenues under the production tax is illustrated in the chart below:

For the first time in our history, Alaskans are paying the producers to produce our crude oil under our production tax. Our production tax is not even bringing in sufficient net revenues to timely pay the petroleum credits we are incurring under it.

['Tax the oil companies more' is not the answer to Alaska's fiscal plight]

Some choose to attribute this entire revenue collapse to the decline in the price of crude oil. As the price of crude oil declines so will gross revenues and our fair share of those gross revenues. Unfortunately, revenues under the production tax declined much more than the decline in the price of crude oil. Our net production tax revenues declined from $5.4 billion (2012) to -$0.5 billion (2017) — or by 109 percent while the price of crude oil only declined from $112.65 per barrel (2016) to $43.18 per barrel — or by 62 percent. If our net production tax revenues had declined proportionally to the decline in the price of crude oil, the $5.7 billion in net production tax revenues would have declined 62 percent to $2.2 billion rather than to -$0.5 billion.

In 2016, Alaska produced 531,500 barrels per day at an average price of $43.18 per barrel (ANS West Coast) — or $8.4 billion in total gross market revenues. Our share of this $8.4 billion should have been one-third of the gross market value — or $2.8 billion. Instead, we recovered a net of $0.9 billion (total petroleum revenues from all sources less credits incurred) — or $1.9 billion less than our fair share as owners. Stated differently, collecting one-third of the gross market value for our crude oil through an appropriate production tax would have increased our petroleum revenues by $1.9 billion and cut our deficit roughly in half.

How best to fix the production tax

There are several ways to improve our current production tax, and I have detailed them in prior articles and testimony.

In general, going to a simple progressive gross-market tax with adjustments upward for the lower-cost major legacy fields and downward for the higher-cost minor fields would be the best solution.

If the Legislature is unable to adopt the best solution, the existing production tax could be improved through simply (1) raising the minimum tax for the Prudhoe and Kuparuk fields; (2) hardening the minimum floor so credits, new oil designations and loss carry-forwards may not avoid it; (3) restricting the definition of new oil and eliminating Point Thompson from the definition, (4) requiring and resourcing timely audits coupled with appropriate interest on underpayments, and (5) eliminating unnecessary credits while paying the necessary credits. That said, Alaskans have always gotten and will always get the short end of the stick under the complex revenue system we have in place today.

Alaska's oil production tax is broken, Part 2

·        Author: Robin Brena

·        Updated: 1 day ago

·        Published 4 days ago:  ADN March 20th 2017

Second of two parts

In Part 1 of this commentary, I explained the collapse of our production tax structure and suggested ways to correct and test it to be sure it is working. Here in Part 2, I will directly address the primary arguments suggesting we should take less than our fair share.

Inefficient state spending

Some suggest we should take less because the state government is spending wastefully.  Alaskans should disagree.  As the owners of our oil, we should recover our fair share whether the state spends wisely or foolishly.

Over-taxation

Some suggest the oil industry is being overtaxed.  Alaskans should disagree.  Alaskans are entitled to a one-third fair share as owners of the oil ‒ getting our share is not a taxation issue but a question of ownership and stewardship.

Health of the major producers

Some suggest we take less for the health of three major producers. Alaskans should disagree.  The three major producers have made and are continuing to make substantial profits from our oil while we forgo billions of our fair share as owners and spend billions of our savings.  It is time for our primary concern to turn to the health of the state, the economy, independent producers, and other industries.

Moreover, property-related taxes, such as a production tax, should be paid regardless of claimed profitability.  This is why every other oil state has a production tax based on gross revenues rather than on net revenues.

We also need sufficient petroleum revenues to efficiently support a viable and competitive oil industry with independent producers. Currently, our revenues used to give the oil industry incentive are being massively misallocated ‒ we need more support for independent producers willing to explore for additional resources and less support for the three major producers harvesting Prudhoe and Kuparuk.

Finally, there is a natural evolution of an oil-producing region such as the North Slope. Major producers with higher cost structures often build out the initial infrastructure and capture the largest fields in an oil region. Over time, as field economics become more challenging, there is a natural progression to producers with lower cost structures. We should not have a net production tax that discourages this natural evolution and rewards the highest-cost majors for indefinitely harvesting our major legacy fields to fund projects outside of Alaska.

High costs of production

Some suggest we should take less because the cost of production in Alaska is too high. Alaskans should disagree. Alaskans should not take the risks associated with the three major producers' costs. The major producers are best able to manage their own costs and should bear the risks of not managing them prudently. Further, the three major producers are among the highest cost-producers in the world. Alaskans should not take less due to their inefficient spending.

In addition, the major producers' claimed costs are not reliable. Their claimed costs have not been audited; they average costs, which shields the true profitability of the low-cost major legacy fields such as Prudhoe and Kuparuk; and their claimed costs include substantial costs that are improper.

Additionally, their claimed costs include excessive and noncompetitive payments to their own profit centers.  For example, they deduct the payments to themselves for the transportation of our oil through their pipelines and tankers.  These payments to themselves are excessive and noncompetitive. To give one of many possible examples, the Regulatory Commission of Alaska has held that from 1977 through 1996, the major producers over-collected $13.5 billion in excess profits.  This entire $13.5 billion in excess profits was claimed as costs of production and improperly deducted from their production taxes. Such excessive and noncompetitive payments by the three majors to themselves should not be deducted from their production taxes. In short, Alaskans need to understand that costs are not always costs, but are often additional profits, when dealing with the three major integrated producers.

Benefits of SB21

Some suggest we should take less because of the benefits of Senate Bill 21, the current tax regime. Some suggest this year SB21 is bringing in $100 million more than ACES, the previous tax regime. Alaskans should disagree.

For different reasons, neither SB21 nor ACES perform well at lower oil prices.  Both would have to be significantly modified to realize our fair share under lower oil prices. Further, while ACES brings in a little less than SB21 during periods of lower oil prices, ACES brings in a lot more than SB21 during periods of higher oil prices. Comparing the revenues that would have been generated under SB21 and ACES from 2007 to date reveals ACES would have collected $11 billion more. Essentially, for every $1 more in revenue SB21 is bringing in this year, it will cost us $100 in revenue over time.

Some suggest SB21 has resulted in more production. But SB21 is not the cause of increased production ‒ the gain of a few thousand barrels per day is the result of projects under development for years if not decades before SB21 passed into law.

Alaskans voted

Some suggest we should take less because Alaskans voted not to repeal SB21.  Alaskans should disagree. The vote came before the price of oil declined and it became obvious how poorly SB21 performs in periods of lower oil prices.

The vote was also based upon representations of new jobs and substantially increased production. Neither of those representations has proven true. Jobs have substantially declined, and SB21 has had no significant impact on production.

Under SB21, we are forgoing several billion dollars of our fair share in annual revenues to incentivize the three majors to do what they are already legally obligated to do under their leases ‒ develop and produce our oil.  Instead, Alaskans should demand they honor their lease commitments. Ironically, we are doing such a poor job of incentivizing additional investment that we would be much better off to simply get our fair share and give all of it back to the oil industry for capital projects in Alaska. This would be much better than allowing billions to simply leave Alaska in the hope the majors will leave some part of our fair share in Alaska.

Finally, we simply cannot do any worse at protecting our interests. If the Legislature is unable to find the political will to pass a reasonable production tax, perhaps it is time for Alaskans to vote again. This vote should be first on Alaskans' legislators and second on whether to adopt a simple progressive production tax based on our fair share of one-third of the gross market sales.

Conclusion

Alaskans need to be clear ‒ there are only three potential sources of revenues to close our massive annual $3.5 billion deficit:  1. three major international producers (through an increased production tax); 2. us (through an income tax, sales tax, user fees, and reduced dividends); or 3. our children (through the Permanent Fund). While we may need some combination of these three sources, Alaskans should be clear that recovering our fair share should be the first place we look, not the last.

Former Gov. Jay Hammond anticipated this dilemma and was also clear that before Alaskans should agree to user fees or a broad-based sales or income tax (much less use the Permanent Fund earnings or dividends), we should first ensure we are recovering one-third of the gross value for our oil. Specifically, he stated, "(F)irst, oil taxes should be adjusted to redeem the State's initially agreed upon one-third share. Only then should user fees or a broad based sales or income tax be imposed if we lack sufficient revenues to fund essential government services." Alaskans should agree.

Robin Brena is a longtime oil and gas attorney who recently was called to testify on petroleum revenue issues before the state House Resources Committee. He was the chair of the Oil and Gas Subcommittee for Gov. Bill Walker's transition team.

Wild Wolves are Howling!

So Rally Round Our Fund folks! 

Alaska Must Resolve the Budget Gap. But, Beware of the Snare.                                        We Must NOT let Wild Wolves Raid Our Permanent FUND.                                                  There is No shortage of Dough in AK. They must just pay for what they need.

Our AK Permanent Fund is not now and never was part of the Constitutional Budget Reserve Fund. It is a separate fund from which no one has the legal authority to take money without a referendum vote from “We the People”. Congress seems to think otherwise.

Though our Ex-governor Sarah Palin filled our tax coffers, our Constitutional Budget Reserve Fund to overflowing ($20 Billion), our elected Representatives who apparently really represent the oil companies, have turned around and given away Alaska’s Clear and Equitable Share of our oil Revenue to those oil giants as urged to do so, by our traitor Oil Governor Sean Parnell. We were promised then, that if SB 21 did not work out for us, we could change it. Instead of rescinding SB 21 and Re-enacting ACES, our current leaders suggest a raid upon our PFD Fund. It matters not at all what we the people said, in 1989 with an "84% No" vote. Congress has given away our oil tax revenue to their buddies in the Dirty Bastards club. Why should the oil companies continue to fund Alaska when they can cleverly make the people pay from our wealthy savings fund.? Those Oil companies now want to make us, the Alaska public pay, so that they don't have to.

Joseph Goebbels set the principle that: If You Tell a Lie Big Enough and Keep Repeating It, People and even you yourself,  Will Eventually Come to Believe It. They’ll never quit lying to us the Public.

Yes, Alaska is overflowing in wealth. But it is the profit made from this wealth that needs to be taxed.

1^st, No Personal Income Tax can ever be justified in a state which abounds in so much wealth. None! Ever! So stop giving away our wealth.

2nd  When a  company pays its employees and deducts their wages and salaries as business expenses and thereafter pays tax on its profits. Tax is fully paid on that source of revenue. No further taxation should be required from that one source of revenue, None! Ever!            It is Double Taxation. No Government, Socialist or otherwise has the right to interfere in wage or salary agreements.

Whether it be the lowly floor cleaner, the company Chairman or its President, no one should have their income subject to Double Taxation. Personal income tax is Double taxation.    Businesses are best equipped with accountants to deal with the IRS, not so the private individual. Local municipalities likewise only should be allowed to collect Sales taxes, totally In Lieu, of Property taxes. When a property is purchased a sales tax is paid by the purchaser. The local Municipality does not own the property and has no right to impose a rental charge and call it property tax,  They are not elected to act as a Local Mafia gang of thieves.

Yes, Alaska abounds in wealth. Our permanent Fund does too. Is it any wonder our former  Governor and the local congress wanted to use our fund monies. The Oil companies  pointed in our direction. They don’t want to pay their clear and equitable share of our taxes. That is why they pushed for the SB 21 tax act. Re-enact ACES as of the date of SB 21.  Collect the back taxes due  thereunder.

I was going to suggest the Fund purchase 5 billion worth of 10 yr. AK 10% tax-exempt State bonds. But the State could not pony up the interest due each year. It has given away Alaska’s oil revenue. Well, now here’s the rub. I wouldn’t lend the state one copper cent from the permanent fund. The State is just not credit worthy. It has given away most of its income to the oil magnates. Too bad, And they may object to paying 10%. Good luck. Then let them go issue their bonds for sale on the open market. And see what response they get being so uncreditworthy.

Our AK Permanent Fund is not part of the Constitutional Budget Reserve Fund. You have your Fund, We the People, Have Ours! Obey the 1980 Statute. Pay Us our dividends. Respect all our laws, lead by example and obey them. Otherwise why should we?

You can borrow from the fund with 10% AK tax-exempt State Bonds as Security.  There is no shortage of Dough here in AK. Just pay for what you need. Rescind SB 21 and Re-enact ACES as of the enactment date of SB 21. Collect the back taxes due thereunder and then you can afford to pay us the interest due on any bonds purchased.

We will not suffer any interference with our Permanent Fund.  Guillotines from France need not be imported to ensure a French style revolution, we ourselves have more modern methods, which are much more efficient to get the job done.

Instead of impeding the will of our good Governor Dunleavy, who desires to pay us our dividends, look you towards your own safety, and cease to run rampant over the will of the people who elected  you to office. Obey the 1980 law as already enacted. Let us all obey the law. 

NO EXCEPTIONS.

Now, Wild Wolves are Howling!  So Rally Round Our Fund folks! 

Have we forgotten that we the people voted to abolish all income tax here in Alaska? 
The right to veto new law before it is enacted, does not extend to making of new law against the will of the people and does not allow a veto of existing law.  Unless of course one has dictatorial authority.

The USA constitution, which Alaska has had to ratify to become a State of the Union, Article 1 Section 9 reads; "No capitation, or other direct, Tax shall be laid." Taking any part of our Permanent Fund Dividend is 1, a direct tax and 2, a Capitation tax. Our former Governor Walker needs to be held accountable because he has not only broken the US constitution, which he swore to uphold, but totally ignored our own Alaska law. We need to take this matter before the United States Supreme Court, not just the AK State High court which gave him approval.

Our AK Permanent Fund is not and was never a part of the Constitutional Budget Reserve Fund. It is a separate fund from which no one has the legal authority to take money without a referendum vote from “We the People”.

Though our ex-governor Sarah Palin filled our tax coffers with over $20 Billion to overflowing. Our elected Representatives who now really represent the oil companies have turned around and given away Alaska’s Clear and Equitable Share of our oil income to those oil giants as urged to do so, by our traitor Oil Governor Sean Parnell. We were promised then, that if SB 21 did not work out for us, we could change it. Now instead of changing it by rescinding SB 21 and Re-enacting ACES, our current congress leaders suggest a raid upon our PFD Fund. It matters not at all, what we the people said, in 1989 with an "84% No" vote. Congress has given away our tax revenue to their oil buddies in the Dirty Bastards club. Why should the oil companies continue to fund Alaska when they can cleverly MANIPULATE Congress and make the people pay from our wealthy savings fund? Now they want to make the Alaska public pay, so that they don't have to.  If they can make all of us Alaskan Suckers pay, then they then can enjoy more clearly of our  Fiscal Reality, (our oil wealth profit among themselves).  

Joseph Goebbels set forth the principle that: "Truth is the enemy of the State". and "If You Tell a Lie Big Enough and Keep Repeating It, People Will Eventually Come to Believe It". So will they ever quit lying to us, the Public?  Depend upon it, they will never cease lying.

Continue to pay out our PFD's  from the 50% of the Fund's Earnings Related account as legally stipulated in 1980.  

Our AK Permanent Fund is not part of the Constitutional Budget Reserve Fund. You have your Fund, We the People, Have Ours! Obey the 1980 Statute. Pay Us our dividends. You can then, and only then, borrow from the fund with 10% AK tax-exempt State Bonds as Security.  There is no shortage of Dough here in AK. Just pay as you go, for what you want, and the fund  itself will continue to grow. 

Is Alaska Run by Outlaws? Apparently!

Are Alaska's Elected Outlaws attacking the Peoples Permanent Fund?            Vote the Governor and All the Outlaws OUT!                                                         Rally Round Our Fund Folks!  The Robbers are Very Busy Thieves.

Brainwashed a few years ago, we, the people were encouraged and convinced by many members of the Dirty Bastards Oil Club to replace our excellent ACES form of Oil revenue with taxes from SB 21.  A wonderful increase in Oil exploration and production was promised, but guess what, the increase has not materialized.  We were also promised then, that if SB 21 did not serve our needs, it could be replaced. So why hasn't it been replaced?  Now, instead, we find our Governor and many in congress willing to take money from our Permanent Fund just like outlaws take money from a bank, without authority from the Bank, the Fund Owners,  Yes, without borrowing and paying for the borrowed money. We The People of Alaska, the owners of this Fund are not being consulted.  Why Not? They dare not risk it.  This is a Statewide matter!  A Referendum vote of "We the People" is needed here. 

The Fund was set up to as an investment enterprise to create Future Income for all existing and future residents of Alaska, who are the constitutional and legal owners of all Alaska's resources.  Then when Oil revenues ran out, there would still be a major source of State Revenues to pay the costs of basic Government Services.  Our state Constitutional Budget Reserve fund Has not run out of money.  Neither have Oil revenues, while they may have declined, they have not run out. They have been given away to the oil giants, by a Congress so stupefied, they forgot who elected them.  Not the same thing.  Rescind SB21 and automatically Re-enact ACES backdating it to the enactment of SB 21.  Then collect the back taxes which the oil companies cleverly talked and/or greased their way out of paying. 

Oil Revenues have not run out. The  State still has approximately 2 years of budget money in its Constitutional Budget Reserve Fund.  But to crack open that fund a 75% vote of congress is needed. Why is it possible to crack open the Permanent Fund's Reserve Earnings a/c  with just a simple, single, majority vote?  That too needs to be a 75% vote of congress or a 66% Referendum vote of "We the people".

Governor, the Permanent Fund is the Alaskan Peoples Fund.  Should you have a desperate need for money, you can Borrow from the Fund by Offering the collateral security of AK Tax-exempt State Bonds @ 10%.  Since the Fund can invest only in income producing investments and all investments must conform to the prudent investor rule, 10% Tax Exempt State bonds would conform to that rule, therefore,  investments would continue to be made with an eye single toward the bottom line----Income, the safety of the Fund's principal would thus be secured.   The Fund continues to function and grow to provide an endless supply of money for our needs. It continues to re-invest that other 50%, which to-date has normally been reinvested, to offset inflation, simply by investing in AK state bonds.  This system has worked really well.  

Once again, your oil revenue monies have not run out.  When they do, then borrow from the fund and pay for your borrowing by Tax-exempt state bonds. Thus maintain and enhance the value of our fund for future generations.

Meanwhile, you have cut the 2016 dividend payments as enacted into law in 1980 without authority from congress or the people. Now the 2017 dividend has also been reduced without a Full Floor vote of the house of representative on SB" 128 which also proposes to re-structure the fund. How is this justified as Democracy? If our delegated Representatives are not even given an opportunity to vote on this matter, our representative Democracy system is being manipulated, screwed, fucked up, by dirty bastards who plan on robbing the people's Fund?  And here we go again after the 2018 dividend.  

Kindly Pay the people what is due to them and stop messing with us. Leave the Fund alone. It is working real well. No Changes are required except greater restrictions are needed on access to fund monies.

Our AK Permanent Fund (which saved 25% oil tax revenue) is not part of the Constitutional Budget Reserve Fund (which spent 75% of oil tax revenue). You have your Fund, which you spent like opiates.  We the People, have saved Ours!  We saved it.  You could have done the same with just 25% and spent 50%.  But No, you had to spend like opiates.  Obey the 1980 Statute. Pay Us our proper dividends. Likewise obey Article 1 Section 9 of the USA Constitution which reads:  “No capitation, or other direct, Tax shall be laid,”  You need us to be a law abiding people, then lead us by your good example in obedience to our laws as already passed. 

Governor, Walker, you have inflicted a direct Capitation Tax on every Alaskan.  Kindly obey all laws as already enacted in our State and in our USA constitution.  Permanent Fund monies belong to "We the people" of Alaska. We are entitled as owners, to our Dividends. We the people intend to keep it that way.

Kindly remember we got rid of Kings and Queens, and we are a free people. Neither do we bow to you or give you ein Zeig Heil as our Fuehrer or a Deus Meus as our Roman Ethnarch. 

John J Kiernan  3550 W Dimond Blvd. Unit 211  Anchorage AK 99502-1555
Goldbeard84@gmail.com   Cell 907-441-2964

A Budget Solution?

A POMV Ploy, is a  PFD Assault.                         
After Giving away Our ACES Oil Tax Revenue! No Kidding!                

Rally around our Fund Folks! 
Stop the Thieves. Stop them!                          

We the People own all Alaska's resources. Our AK Permanent Fund is not a part of the Constitutional Budget Reserve Fund. It never was. The two funds are totally separate.  One provides for State Government expenses. They have mismanaged their Fund's share, 75% of our  resource monies. The other 25%, Our AK Permanent Fund share,  provides a Nest Egg for all of the People of Alaska, both current and future residents. 

No one has the legal authority to take money from the Alaska Peoples Permanent Fund without a referendum vote from “WE the People”. The Fund was set up in 1976 by an amendment to our constitution not by the Legislature, but by a public vote of “We the people”, as the Alaska Permanent fund.

Then in 1980, the current dividend program was created by statute, mandating 50% of the earnings from the fund be dispersed to all Alaskans Annually. The other 50% of the Fund’s earnings, were legally mandated by Statute to be re-invested to counteract inflation.  This Dividend program as mandated in 1980, now needs to be written into our constitution, so that it cannot be vetoed by any future Governor nor overridden by any future Legislature.

When in 1989 then governor Tony Knowles asked permission of the people to use money from the fund for government expenses, 84% of the people roared NO! Since then our Excellent  Ex-Governor Sarah Palin filled our coffers to overflowing with our new ACES form of oil tax income, when oil was less than $50 per barrel. Before any attempt could be made to thieve money from our fund, Governor Sarah Palin had to be driven out of Alaska. Sean McCain was instrumental with that by enticing her out.  The membership of the dirty bastards club saw to that and to the replacement of ACES with SB 21. Thanks a lot Sean, no, the other Sean, not McCain, Parnell.

Governor Walker illegally used his veto powers to overrule laws already legally enacted in 1976 and 1980, to cap the 2016 fall's dividend at $1000. Essentially (he says) saving the fund $666 million in dividend payouts. He took $1000 from many poor Alaskan’s, all legally mandated to be paid. He also did it in 2017, and again in 2018.  Governor Walker has broken our 1980 State Law without authority from Congress or the Public. He has broken State Law. His veto power does not extend to enacting new law. He was our elected governor, not our Dictator, not our King, nor an elected Oligarch.  Congress alone has authority to Enact new law. He should have obeyed all laws already enacted into law. His illegal use of the veto has taken almost $2 Billion from our Alaskan economy. We need to hold our Governors accountable via a recall vote and ensure they too obey our laws, or they can become a self appointed Mein Fuehrers.


Can you believe it? he wanted the Fund to pay $700 million back to the oil companies. We can’t afford those oil tax credits AND HE JUST HADN’T GOT THE GUTS TO VETO THEM OUT OF EXISTENCE AND CANCEL THEM ENTIRELY. 

He wanted you and me to pay for them out of the Fund, no less. to his friends of the DBC, who were getting more than their just One Third share of our Wealth.

Governor Walker wanted to pitch “Oil Tax Credit Investments” to our Permanent Fund Board. Suggesting; The Proposal could be a money maker for the fund, attracting investors. ADN 09/25/2016. Ha! Ha! What a Farce! He didn't put his idea to the public. There are no such stupid investors. 

The state government has overspent by $Billions each year.  Now, it is "cut back" time. So wake up folks and get used to it. But it need not be so. We are overflowing with money. However, we will take most unkindly to theft from OUR PERMANENT FUND. We did not elect a gang of Mafia Robbers to the legislature. We elected Senators and Representatives most of whom instead of representing us, have betrayed us by giving away our ACES income form of taxation to the oil company giants, our One Third share. Let us no longer continue to subsidise those Giants with Oil Tax Credits and reduced taxes under SB21?   Alaska Oil is now again, over $70 per barrel and Sarah Palin filled our coffers to overflowing when it was less than $50. So let the DBC pay up their share of back oil taxes, under ACES.

When SB21 was being promoted by then Governor Parnell, all sorts of oil production promises were made which failed to materialise. Very well, they failed to keep their promises, so the simple solution to our Alaskan financial situation is to rescind SB21 and re-enact ACES, automatically, backdating it to the implementation of SB21. If those Oil companies cannot work without State Welfare Tax Credit subsidies, then Goodbye folks! All other oil companies are welcome. Invite the Aussies, the Chinese, the Germans, the Indians, the Japanese, and the Russians to compete.

Now the state Legislature and our Governor are looking around in desperation, they only have a small Constitutional Budget Reserve backup fund with less than $5 Billion.  From $20 to less than $5 billion,  though the CBRF is much reduced it has not yet been exhausted though depleted yes by overspending. Our Permanent Fund could now buy 10% Tax exempt State Bonds at the rate of approx. $3.25 Billion each year.  As the dividends increase each year there would be more and even more money available to purchase new State Bonds. Government budgeting expenditures plus interest payments on bonds already issued, would just need to be limited to that 50%  of the Earnings Related Account,  I.E. the money available for Re-investment in our Fund.  Thus we’d have an endless supply of cash serving the Government and the public. The money just needs to be passed around and paid for, by 10% Tax exempt State bonds, and thus a limit imposed on Government spending. If the Governor needs money desperately, then let him issue state bonds which will help the fund continue to counter inflation.  If the Government fails to pay interest due on the Bonds, the fund would simply refuse all further government loan applications. 


The Permanent Fund needs to function totally independent of the Governor and the State Legislature, selecting its own board members by a public vote on all nominations submitted by its own existing executive board. The Fund instead of being robbed, can thus have its purpose, immensely enhanced. 

Rescind SB21 and Re-Enact ACES oil taxes. Stop giving away our oil tax revenues.
Permanent Fund monies belong to “We the People” of Alaska. Let’s keep it that way. 

Our AK Permanent Fund is not part of the constitutional Budget Reserve Fund, nor is it designed as a back-up to the State Budget. The State has been  given authorization to collect Corporate Taxes only.  No double dipping private income taxes nor Municipal Rent, aka property taxes are needed in Alaska.

Nathaniel Herz,  in the ADN page A13 Friday March 2nd 2018, writes: "This years proposed state spending is $4.6 billion, with just 2.1 billion in revenue to pay for it."  They are only $2.5 billion short, less than half the fund's re-investment amount required to counteract inflation.  "The deficit has prodded lawmakers to look toward the $65 Billion Permanent fund as a possible fix."  The deficit has not yet prodded the lawmakers to rescind SB 21 and automatically re-enact ACES.  Why not? Are they all members of the DBC?


"The funds earnings have historically gone towards dividends, cash sums paid directly to residents each year." (The residential owners of the Fund.)  "Touch it and you risk being zapped at the ballot box." ZAPPED BY 84 % OF THE RESIDENTIAL OWNERS.

Correction: Only 50% of the funds earnings have historically gone towards dividends. The other 50% of the funds earnings have historically been re-invested to counteract inflation. This 50% is available for funding State Government Expenses and is more than sufficient to do so, without touching our 50% dividend section. The budget is only $2.5 Billion short, this 50% Re-investment section has over $3.25 Billion.


You've had your Constitutional Budget Reserve Fund and have given away  Alaska's Clear and Equitable Share of our oil tax revenue under SB21. We the People, have Our Nest-egg.  Hands off our Nest-egg.  Our Permanent Fund is functioning really well, and is now valued at over $65 Billion. Obey the 1980 Statute. Pay us back all the dividend money due to us in accordance with current law already enacted and start collecting ACES again.  
 
John J Kiernan 907-441-2964 Goldbeard84@gmail.com
3550 W Dimond Blvd Unit 211,  Anchorage AK 99502-1555