Greater Ketchikan Chamber of Commerce
Board of Directors
Resolution Supporting the Investment of Alaskan Public Monies in the Alaskan Economy
WHEREAS, Alaska is a young state which continues to lack the basic infrastructure necessary to support development of its resources and a robust economy, including: ports; harbors; energy transmission and generation infrastructure; pipeline infrastructure; roads; and more; and
WHEREAS, Alaska lacks a diversified economy, relying on revenue from oil and gas taxes and royalties to comprise over 90% of the State’s unrestricted general fund; and
WHEREAS, the recent and sustained decline in oil prices has adversely impacted the State of Alaska’s ability to invest tax dollars in the development of new infrastructure necessary to support economic growth and diversification; and
WHEREAS, Alaska’s Permanent Fund contains over $50 billion in investments as of September, 2015, the majority of which are in bonds, stocks, and mutual funds as broken down below; and
unaudited, as of Sep 14, 2015
US Bonds $9,097,500,000
US Stocks $5,877,000,000
Non US Stocks $8,621,200,000
Global Stocks $5,628,200,000
Non-US Bonds $1,052,600,000
Real Estate $6,267,300,000
Cash $813,200,000
Alternatives $11,354,300,000
Real Return/External CIO $2,130,700,000
TOTAL $50,842,000,000
Source: http://www.apfc.org/home/Content/home/index.cfm
WHEREAS, the State has additional funds and endowments, such as the Power Cost Equalization Fund (currently valued at over $900 million), which are invested predominantly in bonds and mutual funds with the purpose of generating sustained, long-term returns; and
WHEREAS, the State of Alaska has the ability to issue interest-bearing loans for infrastructure development through agencies such as the Alaska Industrial Development and Export Authority and the Alaska Energy Authority, and through programs such as the Power Project Fund, AIDEA’s SETS fund, AIDEA’s offshore and arctic infrastructure funds, and the State of Alaska’s long-term, revolving loan programs; and
WHEREAS, the funds the State of Alaska invests in bonds and stocks benefit infrastructure and resource development and companies located primarily outside of the State of Alaska; and
WHEREAS, the State of Alaska has an excellent opportunity to drive infrastructure growth, foment resource development, and attract additional private investment in Alaska by utilizing portions of the Permanent Fund, the Power Cost Equalization Fund, and other State endowments and trusts to capitalize State of Alaska loan programs, and otherwise invest in Alaskan projects;
NOW THEREFORE BE IT RESOLVED that the Greater Ketchikan Chamber of Commerce urges the State of Alaska to actively seek opportunities to invest money from the Permanent Fund, the Power Cost Equalization Fund, and other funds and endowments into Alaskan resource development and infrastructure projects capable of driving job creation and economic diversification, providing a long-term return on investment to the State, and leveraging new private investment in Alaska’s economy.

Posted in: Board Resolutions

Business Resource Links

Follow Us!

Connect with the Ketchikan Chamber of Commerce Connect with the Ketchikan Chamber of Commerce