December 2, 2017 Politadick

After I had written several Facebook messages to Mia Costello (my representative) I never got a response. So I wrote to her legislative email and she answered in less than 12 hours. Basically I summarized what I see being posted on this site and how her decision affected myself and all of you. She voted to cap the PFD. I found her answer to be rather informative so I will share what she wrote back............

From: "Sen. Mia Costello" <Sen.Mia.Costello@akleg.gov
Sent: Fri, Dec 1, 2017 at 9:13 AM
Subject: Re: Please protect the PFD

Kevin,
I really appreciate your communication with me.

I feel a duty to listen to my constituents and understand what you value most. I value the dividend, too. My votes have been to protect it and grow the fund through a POMV approach to our budget.

By capping the dividend for a few years and reinvesting it to grow the fund, the dividend program continues, our savings grow and the dividend grows. The savings grows and we can pay for government from an amount less than the annual growth, so over time the fund grows. We live off our interest and the dividend amount becomes 1.5 percent of whatever the size the permanent fund is - $60 billion this year (and a larger amount over time). The dividend amount would grow in this scenario. It is also protected.

Addressing our challenges in light of worldwide commodity price falls has thrown our economy into a recession and our budget into a deficit and there are no easy solutions.

Without that $700 million reinvested back into the fund to grow it, the payout can be large for a few years but then we risk complete elimination of the program. ($700 million is the amount reinvested in the POMV bill if a dividend goes from $2,000 to $1,000) Payout of the dividend is the largest government expenditure, in the recent past, at $1.4 Billion. That said, that money is spent or saved by Alaskans and gets recycled back into the economy, which is what we need - Alaskans using it on what you decide, not government deciding.

So, three years of a $1,000 dividend followed by a robust dividend in perpetuity and no taxes and enough to pay for government? Or a $2,000 dividend for three years, followed by the elimination of the dividend and taxes. Those, essentially are our choices. These are the choices if SB 26 were to pass both houses. The Senate passed it two years in a row and the House passed it once but tacked on an income tax, which the former revenue commissioner said "overcapitalizes our budget." The POMV approach has been discussed for a decade and every major endowment in the world used it because it protects the fund. The longer we go without a POMV approach, the more difficult our challenges will be.

I listen to families and individual Alaskans every day. I have chosen to protect the dividend in perpetuity - not just for the next three years and support SB 26. I know it is a difficult decision and I know it affects everyone. Many believe the capping of the dividend was to spend it immediately, however the plan is that it is invested. The math drives the numbers - so with the spending cap I voted for, a POMV budgeting approach works well and serves Alaskans well into the future.

In the meantime, I've passed bills to grow the economy through small business equity crowd investing and then my UBER and LYFT bill to create jobs. I just used LYFT yesterday and the driver said he works two weeks on, two weeks off on the slope and his new job via rideshare is helping him out.

I look forward to continued discussion with you. I appreciate that you vote.

Best,

~Mia

Mia has made it very clear that she didn’t listen to her constituents and voted to cause the largest economic impact on all Alaskans.

She makes false claims that it’s to protect the dividend for all in the future!

The dividend doesn’t need that kind of protection, Never has... The only protection the fund needs is to have it enshrined into Alaska’s constitution so crooks like her cannot take it for government use.

Claiming the whole time how governments knows how to spend the money better then we do.

Roughly $1.5 Billion dollars was taken from the fund to pay for Alaska’s bloated budget. What we got, $1100.00 dividends paid out.

$1.5 BILLION EXTRA was taken for “governments budget”. If that $1.5 billion was paid out to Alaskans we would all have enjoyed a $3,200.00 dollar dividend this year.

She makes false claims about how she was looking out for Alaskans futures by inflation proofing it. This happen no matter what and the only thing they do is put the money into the PFD’s savings account.

After reading Mia’s letter, she is not someone who cares about the Alaskans she represents and is clearly looking to take the PFD’s in the future and intends to get rid of it completely to pay for governments pleasures.

Another of Alaska’s government that will not survive the next election cycle.

Politadick