State of Alaska
Fiscal Note
Bill Version: CSSB 154(FIN)
2018 Legislative Session
Fiscal Note Number: 3
(S) Publish Date: 3/28/2018
Identifier: CSSB154-DOR-PFD-3-23-2018 Department: Department of Revenue
Title: PFD CONTRIBUTIONS TO GENERAL FUND Appropriation: Taxation and Treasury
Sponsor: WILSON Allocation: Permanent Fund Dividend Division
Requester: Senate Finance OMB Component Number: 981
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2019 Governor's
Appropriation FY2019 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Personal Services 13.3 9.6 9.6 9.6 9.6 9.6
Travel
Services
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 13.3 0.0 9.6 9.6 9.6 9.6 9.6
Fund Source (Operating Only)
1004 Gen Fund (UGF) 20.3 9.6 9.6 9.6 9.6 9.6
1050 PFD Fund (Other) (7.0)
Total 13.3 0.0 9.6 9.6 9.6 9.6 9.6
Positions
Full-time
Part-time
Temporary
Change in Revenues
None *** *** *** *** *** ***
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2018) cost: 0.0 (separate supplemental appropriation required)
(discuss reasons and fund source(s) in analysis section)
Estimated CAPITAL (FY2019) cost: 0.0 (separate capital appropriation required)
(discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Updated to reflect revenue generated as a result of contributions being made to the General Fund, and to appropriately account for
personal services costs. The fund source was changed to GF/PR because funds spent on the program must be specifically directed to
be used for costs incurred, and currently no dividend funds are used to operate the program. Additionally, the analysis was updated to
reflect the changes outlined in the CS.
Prepared By: Sara Race Phone: (907)957-2881
Division: Permanent Fund Dividend
REPORT Date: 03/23/2018
ED
SFC 03/2 OUT OF
Approved By: Mike Barnhill Date: 03/23/18
Agency: Department of Revenue
8/2018
Printed 3/28/2018 Page 1 of 2 Control Code: NnsfF
 CSSB 154(FIN) - Fiscal Note 3
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. 30-LS0081\O
2018 LEGISLATIVE SESSION
Analysis
The legislation creates a separate contribution option on the electronic permanent fund dividend application. Similar to
the Pick.Click.Give. (PCG) program, this new option will allow individuals to donate their dividend in $25.00 increments to
the State of Alaskas General Fund.
There will be no fee associated with participating in the program, but seven percent of the money contributed to the fund
will be used for administrative costs incurred by implementing the new program, ensuring that no money is used from the
dividend fund. AS 43.23.062(e) states that the department may not use money from the dividend fund for administrative
costs incurred in implementing this section, even if it has been appropriated for costs of administering the dividend
program.
Programming will be required on the PFD application as a new section will be created within the voluntary option portion
of the application. This will be the third option along with the UA College Savings program and PCG. In addition to
application programming, modifications will be necessary in the divisions database (DAIS) to update the deduction
priority order, or the order that the voluntary options are paid. All other existing contributions will take a higher priority.
Both the General Fund and the seven percent breakdown will need to be added to the divisions monthly payment reports
that generate from DAIS, and financial transactions will increase. The division will be the primary contact for all questions
and concerns related to the new option.
In the first year, associated programming time will include 10% of one programmer position (Analyst Programmer V),
which is equivalent to $13,300, and 5% of the PFD Operational Managers position, which is equivalent to $7,000. The PFD
Operational Managers costs will be removed from the Dividend Fund and replaced with General Funds as the position is
already budgeted. Whereas, all costs associated with programming will be requested from the General Fund.
In the following years we expect programming time to be limited to roughly 2% of one position, or $3,000, and personal
service costs to remain the same for the PFD Operations Manager. The seven percent collected from donations will be
applied to the personal services costs associated with both positions, and the remaining balance will be requested from
the General Fund. Using an estimate that five individuals will donate their entire dividend, the out-year expenditure
estimates were reduced by $400.00 ((5*$1,100)*.07=$385.00). Structuring the fiscal note in this manner will eliminate
Dividend Funds from being spent, and allow the General Fund to cover the costs associated with implementing this option
that will directly benefit the fund.
The revenue that will be generated from individuals that choose to contribute all or a portion of their dividend to the
General Fund through this new program is indeterminate. Using PCG as an example annual contributions range anywhere
from $25.00 to over $123,000.00. At this time the estimated number of individuals that will contribute to the General
Fund utilizing this option are on the lower end of that rage, but precisely predicting where the General Fund will fall on
this spectrum is unknown . Therefore, the impact of the seven percent collection in the out years was projected
conservatively.
(Revised 9/26/17 OMB/LFD) Page 2 of 2
CSSB154-DOR-PFD-3-23-2018 Page 2 of 2 Control Code: NnsfF


Statutes affected:
SB0154A, AM SB 154, introduced 01/24/2018: 43.23.062, 43.23.069
SB0154B, AM CSSB 154(FIN), introduced 03/28/2018, passed Senate 04/06/2018: 43.23.015