Hi Forest.

You are correct; I believe that the PFD is a gift that was created at a time when the leaders of the State believed the Permanent Fund would have extra money.  The Permanent Fund started in 1976 via a constitutional amendment.  The Permanent Fund Dividend program was not established via  constitutional amendment, rather it was created by statute several years later to disperse that extra money many thought the State had.  

I would argue that the State no longer has excess Permanent Fund money to be distributing, rather the State needs that money to cover the expenses of government (at whatever size the people collectively demand through their legislators), and hopefully increase the size of the Permanent Fund so that future generations of Alaskans can benefit from the money that we collected from the sale of our nonrenewable resource.