State of Alaska
Fiscal Note
Bill Version: HCS CSSB 78(FIN)
2018 Legislative Session
Fiscal Note Number: 9
(H) Publish Date: 4/17/2018
Identifier: SB078-DOR-TRS-03-08-18 Department: Department of Revenue
Title: PERM FUND DIVIDEND Appropriation: Taxation and Treasury
CONTRIBUTIONS/LOTTERY Allocation: Treasury Division
Sponsor: BISHOP OMB Component Number: 121
Requester: Senate Finance
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
Travel
Services 4.4 8.8 13.1 17.5 21.9
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 0.0 4.4 8.8 13.1 17.5 21.9
Fund Source (Operating Only)
1004 Gen Fund (UGF) 4.4 8.8 13.1 17.5 21.9
Total 0.0 0.0 4.4 8.8 13.1 17.5 21.9
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?
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Updated for current fiscal year
Prepared By: Pamela Leary, Director Phone: (907)465-3751
Division: Treasury Division Date: 03/08/2018 12:00 AM
Approved By: Mike Barnhill, Deputy Commissioner Date:
OUT OF 03/09/18
Agency: DOR REPORTED
Printed 4/17/2018 Page 1 of 2 HFC 04/17/2 018
Control Code: uYVzR
 HCS CSSB 78(FIN) - Fiscal Note 9
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. CSSB78 (FIN)
2018 LEGISLATIVE SESSION
Analysis
This bill creates two funds to be managed in the Treasury Division. The Dividend Lottery Fund will be managed alongside
other funds in the General Fund and Other Non-segregated Investments (Gefonsi) and so will not require additional costs
to manage. The Education Endowment Fund will be a separate fund in the general fund to be invested in a manner likely to
achieve at least a four percent nominal return over a five year period. Using similarly targeted funds as a guide, the costs
of managing this fund are estimated assuming that each annual dividend is $1,000, 10% of PFD recipients aged 18 years of
age or older invest one-half of their dividend in the lottery each year (approximatley $25 million per year) and investment
costs are 7 basis points (.0007).
2020 2021 2022 2023 2024
Fund Balance 6,250,000 12,500,000 18,750,000 25,000,000 31,250,000
Costs 4,375 8,750 13,125 17,500 21,875
Costs for fiscal note 4.4 8.8 13.1 17.5 21.9
(Revised 9/26/17 OMB/LFD) Page 2 of 2
SB078-DOR-TRS-03-08-18 Page 2 of 2 Control Code: uYVzR


Statutes affected:
SB0078A, AM SB 78, introduced 03/06/2017: 11.66.280, 43.23.064
SB0078B, AM CSSB 78(EDC), introduced 03/31/2017: 11.66.280, 43.23.064
SB0078C, AM CSSB 78(FIN), introduced 04/14/2017, passed Senate 04/14/2017: 11.66.280, 43.23.064, 43.23.055, 43.23.011, 43.23.005, 37.25.050, 25.27.010, 43.23.035, 43.23.062
SB0078D, AM HCS CSSB 78(FIN), introduced 04/17/2018: 14.17.410, 11.66.280, 43.23.064, 43.23.055, 43.23.011, 43.23.005, 37.25.050, 25.27.010, 43.23.035, 43.23.062