It is worth noting why the Permanent Fund was established by public approval of a constitutional amendment rather than by simple enactment of legislation. It has to do with the concept of dedicated funds.

The authors of the state constitution had specifically prohibited the dedication of state revenues. They believed it was important that no portion of money received by the state be automatically assigned, on a continuous basis, for any special spending purpose; all revenues were to flow directly into the General Fund, the state's all-purpose spending account.

The dedicated funds prohibition was intended to ensure that the people's elected representatives would have the right and the ability, each year, to make their own decisions about how best, at that particular time, to spend state revenues. The people, by popular vote, created a specific exception to this prohibition against dedicated funds when they created the Permanent Fund. The principal of the Fund is a dedicated fund set aside specifically for the purpose of investing.

That exception to the prohibition of dedicated funds, however, does not apply to the income of the Permanent Fund. In fact, in the constitutional amendment creating the Permanent Fund, it is specifically stated:

Income of the Permanent Fund shall be deposited in the General Fund unless otherwise provided by law.

• From "An Alaskan's Guide To The Permanent Fund" (www.apfc.org)