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UNICEF
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United Nations Children's Fund
Established
11 December 1946; 71 years ago (1946-12-11)
Type
Fund
Legal status
Active
Headquarters
New York City, New York, U.S.
President
Tore Hattrem
Executive Director
Henrietta H. Fore[1]
Parent organization
United Nations
Affiliations
United Nations
Revenue
$5,009,557,471[2]
Website
www.unicef.org
The United Nations Children's Fund [3] (UNICEF /ˈjuːnɪsɛf/)[4] is a United Nations (UN) program headquartered in New York City that provides humanitarian and developmental assistance to children and mothers in developing countries. It is a member of the United Nations Development Group.
The United Nations International Children's Emergency Fund was created by the United Nations General Assembly on 11 December 1946, to provide emergency food and healthcare to children in countries that had been devastated by World War II. The Polish physician Ludwik Rajchman is widely regarded as the founder of UNICEF and served as its first chairman from 1946. On Rajchman's suggestion, the American Maurice Pate was appointed its first executive director, serving from 1947 until his death in 1965.[5][6] In 1950, UNICEF's mandate was extended to address the long-term needs of children and women in developing countries everywhere. In 1953 it became a permanent part of the United Nations System, and the words "international" and "emergency" were dropped from the organization's name, making it simply the United Nations Children's Fund, retaining the original acronym, "UNICEF".[3]
UNICEF relies on contributions from governments and private donors. UNICEF's total income for 2015 was US$5,009,557,471 . Governments contribute two-thirds of the organization's resources. Private groups and individuals contribute the rest through national committees. It is estimated that 92 per cent of UNICEF revenue is distributed to program services.[7] UNICEF's programs emphasize developing community-level services to promote the health and well-being of children. UNICEF was awarded the Nobel Peace Prize in 1965 and the Prince of Asturias Award of Concord in 2006.
Most of UNICEF's work is in the field, with a presence in 190 countries and territories. UNICEF's network of over 150 country offices, headquarters and other offices, and 34 National Committees carry out UNICEF's mission through programs developed with host governments. Seven regional offices provide technical assistance to country offices as needed.
UNICEF's Supply Division is based in Copenhagen and serves as the primary point of distribution for such essential items as vaccines, antiretroviral medicines for children and mothers with HIV, nutritional supplements, emergency shelters, family reunification, and educational supplies.[8] A 36-member executive board establishes policies, approves programs and oversees administrative and financial plans. The executive board is made up of government representatives who are elected by the United Nations Economic and Social Council, usually for three-year terms.
Contents
1 Governance
2 UNICEF national committees
3 Promotion and fundraising
4 Sponsorship
4.1 UNICEF Kid Power
4.2 Trick-or-Treat UNICEF box
4.3 Cartoons for Children's Rights
4.4 Corporate partnership
4.5 Corporate Social Responsibility
4.6 Girl Star
4.7 Kids United
5 Celebrity ambassadors
6 Facilities
6.1 UNICEF World Warehouse
6.2 UNICEF Innocenti Research Centre
7 Controversies
7.1 Adoption program
7.2 Infant mortality
7.3 NSA surveillance
8 See also
9 References
10 External links
Governance[edit]
Each country office carries out UNICEF's mission through a unique program of cooperation developed with the host government. This five-year program focuses on practical ways to realize the rights of children and women. Regional offices guide this work and provide technical assistance to country offices as needed. Overall management and administration of the organization takes place at headquarters, where global policy on children is shaped. Guiding and monitoring all of UNICEF's work is an Executive Board made up of 36 members who are government representatives. They establish policies, approve programs and decide on administrative and financial plans and budgets. Executive Board’s work is coordinated by the Bureau, comprising the President and four Vice-Presidents, each officer representing one of the five regional groups. These five officers, each one representing one of the five regional groups, are elected by the Executive Board each year from among its members, with the presidency rotating among the regional groups on an annual basis. As a matter of custom, permanent members of the Security Council do not serve as officers of the Executive Board. Office of the Secretary of the Executive Board supports and services the Executive Board. It is responsible for maintaining an effective relationship between the Executive Board and the UNICEF secretariat, and helps to organize the field visits of the Executive Board.[9][10][11]
UNICEF School in a box contains basic educational items for one teacher and 40 students
UNICEF national committees[edit]
See also: List of UNICEF National Committees
There are national committees in 38 [industrialized] countries, each established as an independent local non-governmental organization. The national committees raise funds from the public sector.
UNICEF is funded entirely by voluntary contributions,[12] and the National Committees collectively raise around one-third of UNICEF's annual income. This comes through contributions from corporations, civil society organizations around six million individual donors worldwide.
Promotion and fundraising[edit]
In the United States, Canada and some other countries, UNICEF is known for its "Trick-Or-Treat for UNICEF" program in which children collect money for UNICEF from the houses they trick-or-treat on Halloween night, sometimes instead of candy.
UNICEF is present in 191 countries and territories around the world, but not involved in nine others (Bahamas, Brunei, Cyprus, Latvia, Liechtenstein, Malta, Mauritius, Monaco, and Singapore).[13]
Many people in developed countries first hear about UNICEF's work through the activities of one of the 36 National Committees for UNICEF. These non-governmental organizations (NGO) are primarily responsible for fundraising, selling UNICEF greeting cards and products, creating private and public partnerships, advocating for children's rights, and providing other support. The US Fund for UNICEF is the oldest of the national committees, founded in 1947.[14]
On 19 April 2007, Grand Duchess Maria Teresa of Luxembourg was appointed UNICEF Eminent Advocate for Children,[15] in which role she has visited Brazil (2007),[16] China (2008),[17] and Burundi (2009).[18]
In 2009, the British retailer Tesco used "Change for Good" as advertising, which is trademarked by UNICEF for charity usage but not for commercial or retail use. This prompted the agency to say, "it is the first time in Unicef's history that a commercial entity has purposely set out to capitalise on one of our campaigns and subsequently damage an income stream which several of our programs for children are dependent on". They went on to call on the public "who have children’s welfare at heart, to consider carefully who they support when making consumer choices".[19][20]
Sponsorship[edit]
Lionel Messi who is wearing a Barcelona shirt showing the UNICEF logo
On 7 September 2006, an agreement between UNICEF and the Spanish Catalan association football club FC Barcelona was reached whereby the club would donate 1.5 million Euros per year to the organization for five years. As part of the agreement, FC Barcelona would wear the UNICEF logo on the front of their uniforms in the colour yellow (as seen in the picture on the right of Lionel Messi).[21] This was the first time a football club sponsored an organization rather than the other way around. It was also the first time in FC Barcelona's history that they have had another organization's name across the front of their uniform. In 2016, the team signed a new four-year sponsorship deal with UNICEF guaranteeing the organization £ 1.58million per year and free advertising.[22]
In January 2007 UNICEF struck a partnership with Canada's national tent pegging team. The team was officially re-flagged as "UNICEF Team Canada", and its riders wear UNICEF's logo in competition, and team members promote and raise funds for UNICEF's campaign against childhood HIV-AIDS.[23] When the team became the 2008 tent pegging world champions, UNICEF's flag was raised alongside the Canadian flag at the games, the first time in the history of international Grand Prix equestrian competition that a non-state flag has flown over the medal podium.[24]
The Swedish club Hammarby IF followed the Spanish and Canadian lead on 14 April 2007,[25] also raising funds for UNICEF and displaying the UNICEF name on their sportswear. The Danish football club Brøndby IF participated in a similar arrangement from 2008 to 2013.[26]
In 2007, Race driver Jacques Villeneuve has occasionally placed the UNICEF logo on the #27 Bill Davis Racing pickup truck in the NASCAR Craftsman Truck Series.[27]
Australian A-League club Sydney FC announced they would also enter into a partnership with UNICEF raising funds for children in the Asia-Pacific region, and would also display the UNICEF logo for the remainder of the 2011-12 A-League season.[28]
Race driver Jacques Villeneuve has occasionally placed the UNICEF logo on the #27 Bill Davis Racing pickup truck in the NASCAR Craftsman Truck Series.
In Botswana, UNICEF has funded the development of new state-of-the-art HIV/AIDS education for every schoolchild in Botswana from nonprofit organization TeachAIDS.[29]
UNICEF announced a landmark partnership with Scottish club Rangers F.C. UNICEF partnered with the Rangers Charity Foundation and pledged to raise £300,000 by 2011.[30]
In 2010, UNICEF created a partnership with Phi Iota Alpha, making them the first Greek Lettered Organization UNICEF has ever worked with. In 2011, Phi Iota Alpha raised over $20,000 for the Tap Project and the Trick or Treats for UNICEF Campaign.
In 2013, they agreed a contract with Greek association football champions Olympiacos F.C. who will show the organization's logo on the front of their shirts.
UNICEF Kid Power[edit]
Main article: UNICEF Kid Power
Started in 2015, Kid Power is a division of UNICEF that was created as an effort to involve kids in helping other kids in need. UNICEF Kid Power developed the world’s first Wearable for Good,[31] called Kid Power Bands,[32] which is a kids’ fitness tracker bracelet that connects to a smartphone app. The app lets users complete missions, which counts total steps and awards points. The points then unlock funding from partners, which is then used by UNICEF to deliver lifesaving packets of therapeutic food to severely malnourished children around the world.
Trick-or-Treat UNICEF box[edit]
Main article: Trick-or-Treat for UNICEF
Since 1950, when a group of children in Philadelphia, Pennsylvania, donated $17 which they received on Halloween to help post-World War II victims, the Trick-or-Treat UNICEF box has become a tradition in North America during the fall.[33] These small orange boxes are handed to children at schools and other locations before 31 October. As of 2012[update], the Trick-or-Treat for UNICEF campaign has collected approximately CAD 91 million in Canada and over US$167 million in the U.S.[34]
Cartoons for Children's Rights[edit]
Main article: Cartoons for Children's Rights
In 1994, UNICEF held a summit encouraging animation studios around the world to create individual animated spots demonstrating the international rights of children. Cartoons for Children's Rights is the collection of animated shorts based on UNICEF’s Convention on the Rights of the Child.
Corporate partnership[edit]
To raise money to support its Education and Literacy Programs, UNICEF collaborates with companies worldwide – international as well as small- and medium-sized businesses.
Since 2004, the organization has been supported by Montblanc, working collaboratively to help the world's children getting better access to education.[35]
According to Vaccine News Daily, Merck & Co. partnered with UNICEF in June 2013 to decrease maternal mortality, HIV and tuberculosis prevalence in South Africa. Merck's program "Merck for Mothers" will give US$500 million worldwide for programs that improve health for expectant mothers and their children.[36]
In May 2010, Crucell N.V. announced an additional US$110 million award from UNICEF to supply its pentavalent pediatric vaccine Quinvaxem to the developing world.[37]
Corporate Social Responsibility[edit]
UNICEF works directly with companies to improve their business practices, bringing them in line with obligations under international law, and ensuring that they respect children's rights in the realms of the marketplace, workplace, and the community. In 2012, UNICEF worked with Save the Children and The United Nations Global Compact to develop the Children's Rights and Business Principles and now these guidelines form the basis UNICEF's advice to companies. UNICEF works with companies seeking to improve their social sustainability by guiding them through a due diligence process where issues throughout their supply chain, such as child labor, can be identified and actions to ratify them are put in place.[38]
Girl Star[edit]
The Girl Star[39] project is a series of films which documents stories of girls from the most disadvantaged communities across five northern states in India who, through via education, have managed to break socio-economic constraints to make a success of their lives and become self-sufficient. These young women have grown to become role models in their communities, inspiring younger girls to go to school and continue their education. They have selected professions from the most conventional such as teaching and nursing, to the most unconventional like archery, bee-keeping, scrap management[clarification needed], often entering what has traditionally been a man’s domain. Girl Star is also one of UNICEF’s most known projects.
Kids United[edit]
Kids United is a French musical group of four children (six children when the group was formed) born between 2000 and 2007. It has been created to support UNICEF campaigns and is sponsored by Hélène Ségara and Corneille, two Francophone singers. The first album Un monde meilleur (A better world) was launched on Universal Children's Day in 2015, it received gold certification in France.[1] The second album Tout le bonheur du monde was even certified 2x platinum.
Celebrity ambassadors[edit]
Main article: List of UNICEF Goodwill Ambassadors
UNICEF Ambassadors are leaders in the entertainment industry, representing the fields of film, television, music, sports and beyond. They help raise awareness of the needs of children, and use their talent and fame to fund-raise, advocate, and educate on behalf of UNICEF.[40]
Facilities[edit]
One of the gates to the old UNICEF World Warehouse
The UNICEF research centre in Florence
UNICEF World Warehouse[edit]
The old UNICEF World Warehouse is a large facility in Denmark, which hosts UNICEF deliverable goods as well as co-hosts emergency goods for United Nations High Commissioner for Refugees (UNHCR) and the International Federation of Red Cross and Red Crescent Societies (IFRC). Until 2012 the facilities was a 25,000m2 warehouse at Marmormolen in Copenhagen. With construction of a 45,000m2 UN City that is to house all UN activities in Copenhagen under one roof,[41] the warehouse service has been relocated to outer parts of the Freeport of Copenhagen. The facility houses the UNICEF Supply Division which manages strategic transport hubs in Dubai, Panama and Shanghai.[42] The warehouse contains a variety of items, e.g., food supplements, water purification tablets, dietary and vitamin supplements, and the "School in a box" (illustrated above).
UNICEF Innocenti Research Centre[edit]
The UNICEF Innocenti Research Centre in Florence, Italy, was established in 1988. The centre, formally known as the International Child Development Centres, has as its prime objectives to improve international understanding of issues relating to children's rights, to promote economic policies that advance the cause of children, and to help facilitate the full implementation of the United Nations Convention on the Rights of the Child in industrialized and developing countries.
The program for 2006–2008 was approved by UNICEF Executive Board in September 2005.
This section needs to be updated. Please update this article to reflect recent events or newly available information. (August 2015)
It reaffirms the centre's academic freedom and the focus of IRC's research on knowledge gaps, emerging questions and sensitive issues which are relevant to the realization of children's rights, in developing and industrialized countries. It capitalizes on IRC's role as an interface between UNICEF field experience, international experts, research networks and policy makers and is designed to strengthen the centre's institutional collaboration with regional academic and policy institutions, pursuing the following goals:
Generation and communication of strategic and influential knowledge on issues affecting children and the realization of their rights;
Knowledge exchange and brokering;
Support to UNICEF's advocacy, policy's and program development in support of the Millennium Agenda
Securing and strengthening the centre's institutional and financial basis.
Three interrelated strategies guide the achievement of these goals:
Evidence-based analysis drawing on quantitative and qualitative information, the application of appropriate methodologies, and the development of recommendations to assess and inform advocacy and policy action.
Enhanced partnerships with research and policy institutions and development actors, globally and at regional level, in developing and industrialized countries.
Communication and leveraging of research findings and recommendations to support policy development and advocacy initiatives through strategic dissemination of studies and contribution to relevant events and fora.[43]
Controversies[edit]
Adoption program[edit]
UNICEF has a policy preferring orphanages only be used as temporary accommodation for children when there is no alternative. UNICEF has historically opposed the creation of large-scale, permanent orphanages for children, preferring instead to find children places in their (extended) families and communities, wherever possible. This has led UNICEF to be skeptical of international adoption efforts as a solution to child care problems in developing countries; UNICEF has preferred to see children cared for in their birth countries rather than be adopted by foreign parents.[44][45]
Major news outlets such as US News have asserted UNICEF's intervention that on giving large cash payments to developing countries can lead to a cessation of international adoptions until all of its recommendations are in place, and have even labeled UNICEF a "villain" for the extent of its negative impact on orphans.[46] Elizabeth Bartholet and Paulo Barrozo have written in this context, encouraging adoption protocols to take on a more child-centric viewpoint.[citation needed]
Infant mortality[edit]
One concern is that the child mortality rate has not decreased in some areas as rapidly as had been planned, especially in Sub-Saharan Africa, where in 2013 "the region still has the highest child mortality rate: 92 deaths per 1000 live births".[47] and that "Globally, nearly half of under-five deaths are attributable to undernutrition."
In 2005, Richard Horton editor-in-chief of The Lancet, editorialized that "over 60% of these deaths were and remain preventable" and that the coverage levels for these interventions are "appallingly low in the 42 countries that account for 90% of child deaths".[48]
NSA surveillance[edit]
Further information: Global surveillance disclosure
Documents released by Edward Snowden in December 2013 showed that UNICEF was among the surveillance targets of British and American intelligence agencies.[49]
See also[edit]
United Nations portal
Hunger relief portal
Afghan New Beginnings Programme
Alliance for Healthy Cities
Awaaz do – India
Facts for Life
Integrated Management of Childhood Illness
James P. Grant, who was the third executive director of UNICEF
Multiple Indicator Cluster Survey, statistical monitoring program of UNICEF
Music for UNICEF Concert
Odisha State Child Protection Society
Unite for Children, Unite Against AIDS
Voices of Youth
RapidSMS (co-developed by UNICEF)
Children in emergencies and conflicts
Refugee children
Child marriage
References[edit]
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Jump up ^ Rogers, Emma (June 4, 2013). "Merck for Mothers contributes to UNICEF's South African efforts". Vaccine News Daily. Retrieved 6 June 2013.
Jump up ^ "Crucell announces new award of $110 million for paediatric vaccine Quinvaxem by UNICEF". Leiden Bio Science Park. May 10, 2010. Archived from the original on August 8, 2014.
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Jump up ^ GCHQ and NSA targeted charities, Germans, Israeli PM and EU chief The Guardian 20 December 2013
External links[edit]
Wikimedia Commons has media related to
UNICEF
(United Nations Children's Fund).
Official UNICEF website
United Nations Rule of Law: The United Nations Children's Fund, on the rule of law work conducted by the United Nations Children Fund.
UN Practitioner's Portal on HRBA Programming Resources on rights of the child, UN centralised webportal on the Human Rights-Based Approach to Development Programming.
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2012 European Union
2013 Organisation for the Prohibition of Chemical Weapons
2014 Kailash Satyarthi / Malala Yousafzai
2015 Tunisian National Dialogue Quartet
2016 Juan Manuel Santos
2017 International Campaign to Abolish Nuclear Weapons
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BNE: XX129129
BNF: cb118684944 (data)
GND: 2023668-2
ISNI: 0000 0001 2189 1912
LCCN: n79093850
NDL: 00288570
NKC: kn20010711466
NLA: 35561200
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Alaska Permanent Fund
From Wikipedia, the free encyclopedia
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The Alaska Permanent Fund is a constitutionally established permanent fund managed by a state-owned corporation, the Alaska Permanent Fund Corporation (APFC).[1] It was established in Alaska in 1976[2] by Article 9, Section 15 of the Alaska State Constitution[3] under Governor Jay Hammond. From February 1976 until April 1980, the Department of Revenue Treasury Division managed the state's Permanent Fund assets, until, in 1980, the Alaska State Legislature created the APFC.[4] As of the end of 2016, the fund is worth nearly $55 billion that has been funded by oil revenues.[5]
Contents
[hide]
1 History
2 Alaska Permanent Fund Corporation
2.1 Board of Trustees
3 Permanent Fund Dividend
3.1 Annual individual payout
4 Constitutional Budget Reserve (CBR)
4.1 Issues with the Constitutional Budget Reserve
5 Issues with the Permanent Fund
5.1 Dividends and spending
5.2 Percent of Market Value (POMV) Proposal
6 See also
7 References
8 External links
History[edit]
Shortly after the oil from Alaska’s North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the Alaska Constitution. It was designed to be an investment where at least 25% of the oil money would be put into a dedicated fund for future generations, who would no longer have oil as a resource.[6] This does not mean the fund is solely funded by oil revenue. The Fund includes neither property taxes on oil company property nor income tax from oil corporations, so the minimum 25% deposit is closer to 11% if those sources were also considered.[Context?] The Alaska Permanent Fund sets aside a certain share of oil revenues to continue benefiting current and all future generations of Alaskans. Many citizens[who?] also believed that the legislature too quickly and too inefficiently spent the $900 million bonus the state got in 1969 after leasing out the oil fields. This belief spurred a desire to put some oil revenues out of direct political control.
The Alaska Permanent Fund Corporation manages the assets of both the Permanent Fund and other state investments, but spending Fund income is up to the Legislature.[citation needed] The Corporation is to manage for maximum prudent return, and not—as some Alaskans at first wanted—as a development bank for in-state projects. The Fund grew from an initial investment of $734,000 in 1977 to approximately $53.7 billion as of July 9, 2015.[7] Some growth was due to good management, some to inflationary re-investment, and some via legislative decisions to deposit extra income during boom years. Each year, the fund's realized earnings are split between inflation-proofing, operating expenses, and the annual Permanent Fund Dividend.
In June 2011, the Fund's chief investment officer announced he would leave the sovereign wealth fund and re-enter the private sector, joining consulting firm Wurts and Associates.[8] His replacement will be Jay Willoughby, a businessman from the private sector.[9] The fund is a member of the International Forum of Sovereign Wealth Funds[10] and has therefore signed up to the Santiago Principles on best practice in managing sovereign wealth funds. The fund's current CIO is Russell Read.[11]
Alaska Permanent Fund Corporation[edit]
The Alaska Permanent Fund Corporation is a government instrumentality of the State of Alaska created to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law.[12][13]
Board of Trustees[edit]
The Board of Trustees are governor-appointed[14]
Bill Moran, Chair, reappointed 2014
Carl Brady, Vice-Chair, reappointed 2015
Larry Cash, appointed 2013
Gary Dalton, appointed 2012
Randall Hoffbeck, appointed 2014
Craig Richards, appointed 2015
Permanent Fund Dividend[edit]
The Permanent Fund Dividend [PFD] is a dividend paid to Alaska residents that have lived within the state for a full calendar year (January 1 – December 31), and intend to remain an Alaska resident indefinitely.[15] This means if residency is taken on January 2, the "calendar year" wouldn't start until next January 1.
However, an individual is not eligible for a PFD for a dividend year when:
(1) during the qualifying year, the individual was sentenced as a result of conviction in this state of a felony;
(2) during all or part of the qualifying year, the individual was incarcerated as a result of the conviction in this state of a
(A) felony; or
(B) misdemeanor if the individual has been convicted of
(i) a prior felony as defined in AS 11.81.900 ; or
(ii) two or more prior misdemeanors as defined in AS 11.81.900
The amount of each payment is based upon a five-year average of the Permanent Fund's performance and varies widely depending on the stock market and many other factors. The PFD is calculated by the following steps:[16]
Add Fund Statutory Net Income from the current plus the previous four fiscal years.
Multiply by 21%
Divide by 2
Subtract prior year obligations, expenses and PFD program operations
Divide by the number of eligible applicants
The lowest individual dividend payout was $331.29 in 1984 and the highest was $2,072 in 2015.[17] However, in 2008 Governor Sarah Palin signed Senate Bill 4002[18] that used revenues generated from the state’s natural resources and provided a one-time special payment of $1,200 to every Alaskan eligible for the PFD.[19]
Although the principal or corpus of the Fund is constitutionally protected, income earned by the Fund, like nearly all State income, is constitutionally defined as general fund money.[citation needed]
The first dividend plan would have paid Alaskans $50 for each year of residency up to 20 years, but the U.S. Supreme Court in Zobel v. Williams, 457 U.S. 55 (1982) disapproved the $50 per year formula as an invidious distinction burdening interstate travel. As a result, each qualified resident now receives the same annual amount, regardless of age or years of residency.
One mathematical effect of an equal-amount dividend is that the dividend contributes a greater percentage of added income for people of lower incomes. Conversely, any cut, limit, cap, or end of the equal-amount PFD would mean low-income Alaskans would experience the greatest percentage loss of income. The PFD payout, which comes in or near October of each year, is acknowledged to have a substantial effect on Alaska's economy, both in total and especially in rural Alaska where unemployment can reach 60% and where cash is scarce.
Annual individual payout[edit]
This is the fund's history of annual individual payouts, in nominal USD.[20]
Year
Amount
1982 $1,000.00
1983 $386.15
1984 $331.29
1985 $404.00
1986 $556.26
1987 $708.19
1988 $826.93
1989 $873.16
1990 $952.63
1991 $931.34
1992 $915.84
1993 $949.46
1994 $983.90
1995 $990.30
1996 $1,130.68
1997 $1,296.54
1998 $1,540.88
1999 $1,769.84
2000 $1,963.86
2001 $1,850.28
2002 $1,540.76
2003 $1,107.56
2004 $919.84
2005 $845.76
2006 $1,106.96
2007 $1,654.00
2008 $2,069.00 + $1,200 Alaska Resource Rebate
2009 $1,305.00
2010 $1,281.00
2011 $1,174.00
2012 $878.00
2013 $900.00
2014 $1,884.00
2015 $2,072.00
2016 $1,022.00 (dividend was estimated to be $2,052 however Governor Walker's veto reduced it)
Constitutional Budget Reserve (CBR)[edit]
The Constitutional Budget Reserve is a companion fund to the Permanent Fund which was established in 1991 to deal with the problem of short-term oil revenue variability. Deposits into the CBR consist of settlements of back taxes and other revenues owed to the state. Draws from the CBR into the general fund require a 3/4 vote of each house of the legislature and must be repaid. To date, the general fund has amassed a debt of approximately $4 billion to the CBR to maintain a stable level of public spending.
Issues with the Constitutional Budget Reserve[edit]
The size of the debt as related to that of the budget has spawned doubt over the probability of eventual repayment. The CBR is based on the assumption that the general fund deficit will remain constant over time (allowing paybacks to balance draws). Believing this to be mistaken, critics allege the state uses resources from the CBR to avoid reducing the budget, acknowledging debt, or increasing taxes. According to them, falling oil revenues and growing spending requirements will leave paybacks consistently lower than draws, causing the CBR to fail.
Former state senator Dave Donley (R-Anchorage) recognized that the high vote requirement to spend CBR money (3/4 of each house) had a perverse and unintended consequence, The high vote requirement was meant to ensure that draws from the CBR would be rare, but in fact such draws are common. Donley explained that the high vote requirement really empowers the minority party (in the 2000-07 era, Democratic Party), who can then get what they want in a Christmas tree bill (presents for everyone, both majority and minority) in exchange for their votes (which minority votes would not be needed with the usual 51% voting rule). Donley thus explains why both parties can and do use the higher voting rule requirement to more frequently spend from the CBR.
Issues with the Permanent Fund[edit]
Dividends and spending[edit]
While the Permanent Fund generally generated large surpluses even after payment of the Dividend [PFD], the state general fund operated at a substantial deficit. However, the consolidated account of both General and Permanent Funds usually shows a surplus. The Funds' ultimate uses were never clearly spelled out at its inception, leaving no current consensus over what role Fund earning should play in the current and expected state budget shortfalls. However, some people argue that the original intent was to fund state government after the temporary oil riches ceased, while others note that the Fund's intent changed from its 1976 origin when in 1982 the Dividend program began. Public opinion strongly favors the Dividend program. Indeed, in 1999, with oil prices going as low as $9 per barrel and Alaska's oil consultant Daniel Yergin forecasting low prices "for the foreseeable future", the State put an advisory vote before Alaskans, asking if government could spend "some" part of Permanent Fund earning for government purposes. Gov. Knowles, Lt. Gov. Ulmer, and many other elected officials urged a "yes" vote. Campaign spending greatly favored the "yes" side. The public voted "no" by nearly 84%. (Oil prices rose dramatically, starting about two weeks after Yergin's prediction, to above $60 per barrel, though the quantity produced continues to fall.) Perceived support of the dividend program is so universally strong that it ensures the dividend's continuity and the protection of the Fund's principal, since any measure characterized as negatively impacting dividend payouts represents a loss to the entire populace. That is, legislators willing to appropriate the Fund's annual earnings are constrained by the politically suicidal nature of any decrease in the public's dividend.
Percent of Market Value (POMV) Proposal[edit]
In 2000,[21] the APFC Board of Trustees proposed changing the Permanent Fund's management system to a Percent of Market Value (PoMV) approach which would require an amendment to the state constitution. The PoMV proposal would limit withdrawals to five percent of the fund's value each year, to be spent at the discretion of the Legislature. Currently the Legislature has authority to appropriate all of the fund's realized earnings. Tentative, unapproved proposals indicate that half of this five percent withdrawal would go to the dividend and half to government spending — but POMV died in the Legislature because most there saw POMV as unambiguously tied to such politically unpopular spending proposals. Most Alaskans (84% in 1999) disapprove of allowing the government to tamper with the fund, especially if that means government might spend Fund income.
See also[edit]
Asset-based egalitarianism
Basic income guarantee
Citizen's dividend
Permanent University Fund – funds universities in Texas from oil revenue
The Government Pension Fund of Norway
References[edit]
Jump up ^ "About the Alaska Permanent Fund Corporation (APFC)". Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ "What is the Alaska Permanent Fund?". Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ "Alaska State Constitution, 9.15". State of Alaska. Retrieved September 27, 2012.
Jump up ^ "About the Alaska Permanent Fund Corporation (APFC)". Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ Helman, Christopher. "Biting the Hand that Feeds You". Forbes (November 29, 2016). |access-date= requires |url= (help)
Jump up ^ "Why did Alaskans create the Fund?". Alaska Permanent Fund Corporations. Retrieved September 27, 2012.
Jump up ^ "Alaska Permanent Fund - Balance Sheet" (PDF). Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ aiCIO. Alaska! Retrieved June 13, 2011
Jump up ^ "Alaska Permanent Fund goes Outside for new CIO". Juneau Empire. Retrieved April 17, 2012.
Jump up ^ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on September 27, 2016. Retrieved 24 September 2016.
Jump up ^ "Alaska Permanent Fund Corporation".
Jump up ^ Alaska Permanent Fund Corporation Bylaws (PDF). Alaska Permanent Fund Corporation. February 25, 2011.
Jump up ^ "About the Alaska Permanent Fund Corporation (APFC)". Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ "Alaska Permanent Fund Corporation - Board of Trustees". www.apfc.org. Retrieved 7 January 2016.
Jump up ^ http://pfd.alaska.gov/Eligibility/EligibilityRequirements
Jump up ^ "How the PFD amount is calculated". Alaska Permanent Fund Corporation. Retrieved September 27, 2012.
Jump up ^ "$2,072: 2015 Alaska Permanent Fund dividend amount announced". Alaska Dispatch News. Retrieved September 21, 2015.
Jump up ^ "Senate Bill No. 4002". State of Alaska. Retrieved September 27, 2012.
Jump up ^ "Palin signs energy relief package". Capital Weekly. August 26, 2008. Retrieved September 27, 2012.
Jump up ^ "Annual Dividend Payouts". Alaska Permanent Fund Corporation. Retrieved October 12, 2014.
Jump up ^ http://www.apfc.org/_amiResolutions/Res00-13MA.pdf
External links[edit]
State of Alaska - Department of Revenue - Alaska Permanent Fund Corporation
State of Alaska - Department of Revenue - Permanent Fund Dividend Division
Sovereign Wealth Fund Institute - Alaska Permanent Fund Page
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values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-navigation p-navigation-label

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values:
/wiki/Wikipedia:File_Upload_Wizard
Upload files [ctrl-alt-u]
u

values: A list of all special pages [ctrl-alt-q]

values: Permanent link to this revision of the page

values: Link to connected data repository item [ctrl-alt-g]

values: Printable version of this page [ctrl-alt-p]

values:
uls-settings-trigger
Language settings
0
button
true

values: صندوق دائمی آلاسکا – Persian

values: Постоянный фонд Аляски – Russian

values: Перманентний фонд штату Аляска – Ukrainian

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