FAIRBANKS - The state would create a sustainable community dividend program to share revenue with local governments, under a plan state Sen. Gary Wilken plans to propose.
If the Alaska Legislature backs up the Fairbanks Republican, the plan would distribute an estimated $63.8 million to communities statewide next year, he said.
Wilken's idea comes a month after Gov. Frank Murkowski proposed using earnings from a special account within the larger Alaska Permanent Fund for a dividend program.
Fairbanks Mayor Steve Thompson applauded the plan, as well as Murkowski's plan to beef up a federal fuel assistance program for low-income residents. The governor's decision to cut revenue sharing programs two years ago left a gap in the city's annual budget local lawmakers haven't been able to fill.
"We need to have something," Thompson said. "We depended on that money."
The city's share would fall in the $3 million range, and could help pay for more city police officers and staff or be used to repair City Hall, Thompson said.
Wilken said he would not support other proposals seeking to take money out of the state's general fund, which previous revenue sharing plans did.
"If we really want to do a dividend, then we need to have a dividend that has an ongoing revenue source. And my bill would," Wilken said. "If folks think it's a good idea, I've offered up at least a plan, and I'm sure there'll be others."
The proposed dividend, Thompson said, would be a boost for rural communities. Many are struggling with high prices for insurance and fuel, and don't have much of a tax base for things like public safety or office space.
Wilken's plan incorporates Murkowski's earlier proposal of using $27 million in earnings from the Amerada Hess fund for community governments. The plan was established after a legal settlement between the state and oil companies over trans-Alaska oil pipeline royalties.
Amerada Hess earnings aren't used when calculating residents' permanent fund dividend checks.
The rest of the estimated $63.8 million would come from the Constitutional Budget Reserve and the permanent fund earnings reserve.
Wilken's plan would give local governments $100 per resident in areas with a school district and $70 per head in unorganized areas.
