Resolution Supporting the Investment of Alaskan Public Monies in the Alaskan Economy

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.