Alaska
Permanent Fund leaders again call to restructure fund as spendable cash dwindles
There’s a nearly 50-50 chance that the Alaska Permanent Fund won’t have enough spendable money to pay dividends and the state’s bills at least once over the next decade — unless lawmakers change the structure of the fund to function more like a university endowment.
That’s the message Permanent Fund leaders and the Legislature’s chief budget analyst delivered to lawmakers on Tuesday.
The head of the Legislature’s nonpartisan budget analysis agency, Alexei Painter, presented lawmakers with a financial model showing a 46% chance that the fund’s spendable account would not have enough money to provide a payment to the state’s general fund that makes up the second-largest overall source of state revenue — second only to the federal government.
Permanent Fund Corporation Executive Director and CEO Deven Mitchell and Board of Trustees Chair Jason Brune told the Legislative Budget and Audit Committee that the issue is not with the $80-plus billion Permanent Fund itself, but with the fund’s two-account structure.
“We want to ensure that there’s an ability to provide a payment to the state of Alaska each and every year,” Mitchell said. “We don’t want to have a 46% probability of failure. We don’t want to have any probability of failure for this revenue stream at this point.”
The Permanent Fund is separated into two accounts. The $60 billion principal can’t be spent without a vote of the people.
The earnings reserve account, which has about $9 billion in spendable money, is more flexible. Legislators could spend every last dollar of the account — and possibly more in unrealized gains — by a simple majority vote.
Lawmakers have drawn 5% of the fund’s value every year to fund dividends and state services since 2018 after oil prices crashed in the mid-2010s. Today, the Permanent Fund provides more than half of the state’s general-purpose revenue.
This year, lawmakers are considering amending the Alaska Constitution to combine the two accounts into one.
That would solve the problem, Painter said.
“The [earnings reserve account] balance would no longer be something that would stop us from continuing to draw,” he said. “That would reduce the risk to zero. There’d be no risk at all.”
Lawmakers in the largely Democratic majority caucuses in the House and Senate have introduced amendments that would combine the accounts. Minority Sen. James Kaufman, R-Anchorage, has introduced a similar proposal.
The amendments would also place a constitutional cap on the annual draw. The current 5% cap is set in statute, but lawmakers could vote to ignore the law by a simple majority.
A pair of similar proposals sponsored by the Senate Finance Committee and Rep. Calvin Schrage, I-Anchorage, would constitutionalize the current 5% maximum draw rate.
Kaufman’s proposal would cap it at 5.5% to provide what called “headroom,” though he said at a news conference Tuesday that he was open to changing the maximum figure. It would also require the state to pay a dividend set by a formula set in law, though the proposal is silent on what the formula should be. Kaufman is a cosponsor of a bipartisan bill that would set the dividend at 25% of the state’s annual draw from the Permanent Fund.
Brune, the Permanent Fund board chair, said combining the two accounts and capping the draw would provide “predictability and sustainability” for the fund going forward.
Sen. Bert Stedman, R-Sitka, said limiting the draw with a constitutional amendment would prevent lawmakers from raiding the fund when facing a deficit. Lawmakers are currently looking for ways to fill a more than half-billion dollar hole in the state’s budget.
“The little piggies in the trough are getting hungry in this building,” he said.
Stedman, a co-chair of the powerful Senate Finance Committee, has suggested on more than one occasion that the 5% draw rate may be too high to be sustainable.
Combining the accounts and capping the draw is broadly popular among senators in both the largely Democratic majority and the all-Republican minority. The Permanent Fund’s board has been pushing to combine the accounts for decades. Last year, they published a rare analysis paper illustrating the importance of the concept.
Lawmakers could place a constitutional amendment on the ballot for the next election with a two-thirds majority vote in the House and Senate. The governor would not be able to veto it.
Alaska
Opinion: Alaska’s $10,000 question: Leave or stay?
This June, two very different offers reach Alaska families, and both amount to the same thing: $10,000. The difference is everything.
Bill Walker, running for governor, would hand every eligible Alaskan a one-time $10,000 check and then end the Permanent Fund dividend for good. Ask one question: Where does his $10,000 come from?
It comes from the Permanent Fund, the people’s own money and the savings Alaskans built for their children. Walker would spend that endowment once to pay Alaskans to give up the yearly dividend forever.
Think about what that does. It cancels the annual check that gives a family a reason to keep an Alaska address and replaces it with a single payout. You hand people their own savings, call it a gift and cut the tie that held them here in the same motion. It is the oldest mistake in governing money: raid what you have saved to buy a moment’s applause and call the spending generosity.
A plan that spends the people’s savings to send the people away is not bold. It is foolish.
Now consider the other $10,000. Through Alaska Housing Finance Corp., the state offers families up to $10,000 to build a new, energy-efficient home. AHFC raids nothing. It earns its own way. Over the years, it has returned more than $2 billion to the state treasury, and it spends some of that income the way any good business does: to win a customer.
Here, the customer is an Alaskan who wants to own a home, put down roots and stay.
That is the oldest sound move in business: Invest a little of what you earn to bring in someone who stays. The homeowner remains, the community gains a family and the corporation keeps earning. The money spent comes back. A plan that puts earnings to work to bring people home is not charity. It is clever.
Same amount. Opposite source. Opposite wisdom. One spends savings; the other spends earnings. One pays Alaskans to leave; the other pays them to stay. One empties the state; the other fills it.
This Homeownership Month, the choice is the size of a single check, and the whole question is where the check comes from and what it asks of you. Ten thousand dollars of your own fund, to wave you goodbye. Or $10,000, earned and reinvested, to help you stay and build.
Evan Swensen is the publisher of Publication Consultants in Anchorage and the author of “What’s the Money For: A Permanent Fund Mortgage Proposal.”
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Alaska
Alaska Sen. Dan Sullivan’s primary challenger who has the same name is eligible for ballot, judge rules
A man with the same name and party affiliation as Alaska Republican U.S. Sen. Dan Sullivan is eligible to challenge the senator in the August primary, a judge ruled Friday.
Superior Court Judge Thomas Matthews’ ruling overturns a June 15 decision by Division of Elections Director Carol Beecher to disqualify the challenger and keep him off the primary ballot. Matthews’ ruling can be appealed to the state Supreme Court.
Attorneys for the state have said Tuesday is the deadline for a final ruling so that ballots for the Aug. 18 primary can be printed.
The judge ruled that the division’s decision to exclude Dan J. Sullivan because his candidacy was not “in good faith” was not based on the Constitution, Alaska law or the division’s own regulations. The retired teacher from the small fishing community of Petersburg filed to challenge the incumbent.
“Instead, the decision was based upon a new, previously unstated, ‘good faith’ criteria,” the judge wrote.
The division is appealing the decision, Sam Curtis, a spokesperson with the state Department of Law, said by email Saturday. Jeffrey Robinson, an attorney for Dan J. Sullivan, said in an email he expected the division to appeal and couldn’t comment until the Alaska Supreme Court rules on the case.
The controversy over the two Dan Sullivans has underscored the stakes involved in the incumbent’s reelection campaign. The Alaska race is one of about half a dozen U.S. Senate races expected to be highly competitive in the fall, and the seat is one Democrats are trying to flip in their efforts to try to regain the majority. But it’s expected to be an uphill battle in a state that President Trump won by 13 points in 2024.
The senator and allies, including the National Republican Senatorial Committee, have condemned the challenger’s efforts to join the race, arguing his presence could confuse voters. Republican Lt. Gov. Nancy Dahlstrom earlier this month opened an investigation into the non-Senator Sullivan’s candidacy.
Under Alaska’s election system, the top four candidates from the primary, regardless of party, move on to the ranked-choice November general election.
The senator has accused the challenger Sullivan of working with Democrats and the campaign of Democratic former U.S. Rep. Mary Peltola — who is considered the senator’s main opponent — to cause confusion and boost Peltola’s chances. The sitting senator brought the situation to reporters’ attention at the Capitol earlier this month, accusing Democrats of being “complicit in trying to trick Alaskans” to “rig an election in their favor.”
Peltola’s campaign and state Democrats have denied the allegation, as has the challenger.
Sen. Sullivan and Peltola are the highest-profile candidates in the crowded race and the only ones to report raising any money.
Beecher has said she determined the challenger Sullivan is not eligible to run because his candidacy was not filed in good faith and instead was done with an intent to confuse voters. She said he had registered to vote as Daniel J. Sullivan Jr. and, in conjunction with his candidacy, changed his party affiliation to Republican. She also cited similarities between his campaign website and the senator’s, and his work with a consultant whose clients have included some Democrats. She did not mention finding any evidence of alleged coordination.
In arguing to keep the challenger disqualified, attorneys for the state pushed back on suggestions the ballot could be designed in a way to reduce voter confusion over two candidates with the same name and party running for the same office.
“The Constitution does not require States to place a sham candidate on the ballot and then attempt to mitigate the damage through design choices,” attorney Rachel Witty, with the Alaska Department of Law, and outside attorneys Christopher Murray and Michael Francisco wrote in court filings.
Attorneys for the challenger Sullivan argued that the Constitution lays out three exclusive qualifications for the Senate, addressing only age, citizenship and residency. They said Beecher lacked the legal authority to boot their client off the ballot.
The challenger Sullivan has said that sharing a name and party affiliation with the incumbent gave him “an instant megaphone.” But the 69-year-old retired teacher and former U.S. Forest Service employee said he had considered a run for some time and had grown frustrated with the senator.
He initially was certified on the state’s candidate list as Dan J. Sullivan, with the senator listed as Dan S. Sullivan and identified as the incumbent.
Alaska
Delmonico’s Love Letter To America: A Red, White, And Blue Baked Alaska
America 250 Baked Alaska
Delmonico’s
In the conversation about the world’s greatest steakhouses, Delmonico’s is always among the shortlist of names.
The Lower Manhattan institution is a destination for New Yorkers and tourists alike, an attraction as much as a restaurant. First opened in 1837, it is widely recognized as America’s first fine-dining restaurant. It was here that dishes that have become cultural symbols of this country as much as they are cuisine were born: the Delmonico Steak, Lobster Newberg, Eggs Benedict, and perhaps most famously, Baked Alaska.
Now, as the United States prepares to celebrate its 250th birthday, Delmonico’s is giving one of its signature creations, a dessert that’s as much a cultural symbol as it is a sweet ending, a patriotic makeover.
On July 4, the restaurant will debut the America 250 Baked Alaska, a reinterpretation of the classic dessert that celebrates both the nation’s history and North America’s native ingredients. The striking red, white, and blue confection has already earned the nickname “America’s Birthday Cake.”
The dessert was created by acclaimed pastry chef Miro Uskokovic of Hani’s Bakery + Cafe in the East Village, who also serves as Delmonico’s consulting pastry chef. While his interpretation is rooted in the original version, he has reimagined it with a distinctly American theme.
Pawpaw, the largest fruit native to North America, becomes a rich ice cream. Wild blueberry lemonade sorbet adds a bright, tart layer, while pecan cake- made with the only major tree nut indigenous to North America- forms the base. Mixed berry jam, toasted meringue, and fresh seasonal berries complete the dessert.
The cone-shaped presentation also pays tribute to history.
The original Baked Alaska dates to 1867, when the legendary French chef Charles Ranhofer, who headed the kitchen at Delmonico’s in the late 19th century, created the dessert to commemorate the United States’ purchase of Alaska from Russia. Epicurean lore goes that Ranhofer originally called the dessert “Alaska, Florida,” highlighting the contrast between frozen ice cream and warm toasted meringue. He later featured elaborate mountain-shaped versions in his 1894 cookbook, “The Epicurean.”
Today, nearly 160 years later, Delmonico’s is revisiting that theatrical presentation while looking ahead to its next chapter.
“This dessert is a piece of American history,” says Dennis Turcinovic, owner and executive culinary partner of Delmonico’s Hospitality Group. “Delmonico’s has never just served food. For nearly 190 years, it has served hope, opportunity, and the American dream. Today, we’re celebrating that with our red, white, and blue Baked Alaska.”
For Uskokovic, it’s both a history lesson and a celebration.
“America’s 250th anniversary presents an opportunity to celebrate not only our nation’s history, but the evolution of American cuisine,” he said in a release announcing the dessert. “We wanted to revisit one of the most important desserts in Delmonico’s history while showcasing ingredients that are uniquely American.”
According to a release, the dessert will be available as a serving for two for $40, with production limited to just 10 each day because of its labor-intensive preparation. Larger versions serving 10 to 12 guests can also be ordered for private celebrations.
The best part? For non-New Yorkers clamoring for a chance to try the dessert, the America 250 Baked Alaska is here to stay as a permanent fixture on the menu. And when Delmonico’s Reserve, the brand’s upcoming Midtown Manhattan restaurant, opens next year, New Yorkers and visitors alike can order it there.
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