Lawmakers signal roughly $1,000 PFD, weigh deferred-maintenance trade-offs and new taxes

Senators said recent market moves and the Department of Revenue's spring forecast have kept oil-price planning cautious but that current prices are above the budget target. Sen. Stedman said the Senate is holding a $73-per-barrel target for the fiscal year budget and warned of oil-price volatility; he said the body has discussed possible "fuel triggers" that would activate if prices climb substantially.

On the Permanent Fund Dividend (PFD), senators said the public should not expect a full dividend this year. Sen. Stedman and others suggested a payout near $1,000 would be reasonable based on current revenue projections. The senators stressed that the size of the PFD is a choice within competing budget priorities: increasing the PFD would shrink funds available for deferred maintenance, capital projects and services paid from the Permanent Fund.

Lawmakers also discussed potential new revenue measures under consideration to help expand fiscal capacity: an internet-sales tax (described in the discussion as targeting out-of-state companies that sell into Alaska), an S-corporation tax oriented at companies that currently do not pay corporate tax in Alaska, and a proposed small education payroll tax (one example cited was a $100-per-paycheck, once-a-year deduction to support education funding). Senators said those ideas have proponents but noted any new tax would require broad legislative support.

Sen. Stevens urged the public to view the dividend in the broader context of services paid from the Permanent Fund, saying that the fund's distributions help avoid the need for an income or sales tax to sustain current services. He and other senators said they will continue to balance capital needs, education and public-service funding as they finalize budget decisions.