Permanent Fund bosses vote to defy Alaska Legislature, keep Anchorage office

The offices of nan Alaska Permanent Fund Corp. are seen Monday, June 6, 2022 successful Juneau, Alaska. (James Brooks/Alaska Beacon)

The Alaska Permanent Fund Corp. will support its Anchorage office, ignoring authorities lawmakers’ instructions to unopen it down.

The corporation’s Board of Trustees voted 4-2 connected Thursday to proceed operating nan office, though committee members acknowledged that nan determination is apt to intensify legislative dissatisfaction pinch nan corporation.

The corporation, which manages Alaska’s $80 billion trust fund, opened an Anchorage office last year, successful abstraction already leased by different authorities agencies. 

State legislators criticized nan action, successful portion because nan corporation’s committee of trustees took action without requesting legislative permission. 

“That should person gone done nan modular fund process,” said Rep. DeLena Johnson, R-Palmer and co-chair of nan House Finance Committee. Johnson was successful complaint of nan subcommittee for nan Permanent Fund Corp.’s budget.

In this year’s authorities budget, lawmakers inserted a clause stating, “It is nan intent of nan legislature that nan Alaska Permanent Fund Corporation will not found aliases support caller agency locations without corresponding fund increments for that purpose.”

So-called “intent” connection is not legally binding, but it signaled legislative dissatisfaction pinch nan corporation’s action.

“The matter wasn’t astir that peculiar rumor — I’m not peculiarly concerned astir nan Permanent Fund Corp.’s operations — arsenic overmuch arsenic making judge nan Legislature maintains nan powerfulness of appropriation,” Johnson said. 

Lawmakers besides restructured nan corporation’s fund to specifically limit backing for nan Anchorage office. They created a statement point specifically for that agency and gave it $100, little than a pittance successful a archive that’s typically measured by nan millions.

“Ignoring nan clear legislative appropriation powerfulness is simply a unspeakable precedent and astir apt a mistake,” said Sen. Jesse Kiehl, D-Juneau and an force of nan Anchorage office. “It’s an inefficient measurement to walk Alaskans’ money. That’s why nan Legislature didn’t springiness immoderate money to do it.”

That budgetary connection isn’t last — Gov. Mike Dunleavy still must motion nan fund and could usage his line-item veto authority — but trustees didn’t hold for nan governor’s input.

After debating down closed doors, nan six-member committee exited an executive convention for nan 4-2 ballot to o.k. nan corporation’s fund and nonstop nan executive head to support nan agency open.

Trustee Adam Crum, besides commissioner of nan Alaska Department of Revenue, said he believes it is “very clearly” successful nan executive branch’s authority to move money astir wrong fund statement items to support nan Anchorage agency going.

That’s worthy doing, he said, because nan corp has been capable to fill vacant positions with group who were consenting to activity successful Anchorage but not successful nan corporation’s Juneau headquarters.

“Recruitment and retention correct now successful Alaska is specified an important issue, and providing devices to nan corp — immoderate devices that they tin person to springiness them that precocious manus to compete … is really important,” said Trustee Ryan Anderson, commissioner of nan Department of Transportation and Public Facilities.

Trustee Jason Brune, formerly commissioner of nan Alaska Department of Environmental Conservation and now sitting successful a nationalist spot connected nan board, was nan committee personnel who suggested keeping nan agency open.

“It sends a connection to nan unit that are location that we don’t want them being a yo-yo from 1 location to another,” Brune said. “I deliberation that we request to nonstop a connection that we support what we did and are going to proceed to guidelines by them arsenic well.”

Trustee Gabrielle Rubenstein provided nan 4th ballot successful favour of nan action, while trustees Ethan Schutt and Craig Richards voted against it.

“I deliberation it’s a mistake,” Richards said. “We person beardown feelings among nan trustees. I don’t personally work together that nan Legislature should person unopen nan Anchorage agency down. It’s been bully for nan organization, clearly, deservedly. But connected nan different hand, I deliberation that we should beryllium rising supra this and not getting into a fight.”