Juneau, Alaska

(907) 699-6788 ed.king@kingecon.com

Tag: POMV

Alaska’s Finances Aren’t as Bad as You Think

If you happen across some information about Alaska’s current financial situation, you probably get the impression that we are in dire straights. When oil prices crashed 77% in late 2014, the State’s oil revenues collapsed – leaving a gaping hole in the budget. By all accounts, we’ve been deficit spending […]

Flattening the Recession Curve

You’ve probably heard the phrase “flatten the curve” quite a bit over the last month. It’s been popular when talking about the current pandemic. Economists use a similar model, except that we want money to pass from person to person as fast as possible. The tie between epidemiology and economics […]

Analyzing HB306 (the PFD bill)

The leadership of the Alaska House of Representatives introduced a piece of legislation on March 5th that would fundamentally change the Permanent Fund Dividend (PFD). The House Finance Committee will be taking up the bill this week. If you would like to provide your thoughts on the bill, public testimony […]

How Hard is it to Hit That $100 Billion Target

The House passed HCR13 earlier this week, mostly along caucus lines. The resolution is now in the Senate. It states that the legislature is committed to protecting the Permanent Fund and ensuring the continuation of the PFD for future generations. While the language is not actually in the resolution, the […]

Fixing Alaska’s Investment Earnings Paradox

I wrote a piece a few weeks back about how Alaska’s current investment earnings laws don’t work together. They create a paradox in which the budget deficit gets smaller if investment earnings get worse. In the extreme, we could balance the budget by losing $7 billion in the stock market. […]

Inflation Proofing the Permanent Fund

There was a little bit of a sparring match during the PFD working group meeting last week. Senators Hughes and Stedman seemed to have different impressions about the Percent of Market Value (POMV) approach to managing the Permanent Fund. But, the fireworks came in the form of a misunderstanding about […]

Alaska Has an Investment Return Paradox

Over the last five years, Alaska has pivoted from being a Petro-state to a Trust Fund kid. Thanks to years of saving and re-investing a quarter of our oil royalties, we now have over $66 billion in the bank. And, those billions of dollars go to work every day, bringing […]

Adding Uncertainty to Those 7 PFD Changes: PFD – Part 6

In this final article on the PFD, let’s explore how uncertainty changes the conclusions we arrived at in Part 5. Today, we will insert alternate projections into the model. From there, we can see how much the outcomes change. To keep this from getting out of hand, I’m only looking […]

Comparing the 7 Ideas to Change the PFD – PFD Part 5

Last week, I laid out the ideas that seem to pop up whenever conversations turn to the Permanent Fund Dividend (PFD). Please refer back to that article for descriptions of these alternatives. This week, I want to attach some numbers onto those ideas. Please remember that I am not advocating […]

Fighting Over Invisible Milk

In the event you have been hiking the Brooks Range for the last six months, let me briefly get you up to speed. We have a fairly serious battle going on in Alaska right now. By way of an oil price crash a few years ago, we’ve burned through all […]