Economist: Permanent Fund Earnings an Option to Ease State's Budget Crisis

Apr 29, 2015

Permanent Fund earnings are one of the few means of paying for state government if oil prices remain depressed. There’s $7 billion in the Permanent Fund earnings reserve account, money left over after paying annual dividends and inflation proofing the fund. Tapping any money related to the Permanent Fund is highly controversial, but as KUAC’s Dan Bross reports a longtime Alaska economist says it’s time to take a serious look at using fund earnings to get through tough financial times brought on by low oil prices.

Gunnar Knapp, director and professor of economics with the University of Alaska Anchorage's Institute of Social and Economic Research.
Credit UAA