You’re correct that the Earnings Reserve is a spending account.  The problem is that we’re spending like we’re 30 when we need to spend like we’re retired.  The State can spend 50% of the 5-year average of Permanent Fund earnings every year sustainably and still pay the people their 50% of the 5-year average of Permanent Fund earnings.  The problem is the State wants to keep spending 800% more than their share, rob the people’s share of the PFD, spend down savings and tax anything that moves to do so.  They are still going to come up short, and worse, will be broke in a few years if we continue the status quo.  There is only one solution to our crisis, and while it involves responsibly spending from our retirement earnings, it must be predicated on spending only what we can afford.  Like a morbidly obese person going on a diet, it’s going to hurt.  It’s also the only way to stay alive.