As unpopular as it will be - the best solution is to end the Dividend and start a very low income tax and school tax in 2018. This is the "grand bargain" in the war between the Left and the Right. To temper the pain, we can provide a one-time overly-generous dividend of up to $3000 this year, the last year of the Dividend (as we know it). Then the State Budget and Permanent Fund Earnings withdrawals can be easily balanced with room to spare for inflation-proofing and social welfare. Then the debate between spending and taxes will be much less complicated.
DividEND IT!