Filed Under: U.S.

Nearly every Alaskan just got $3,200 as part of state’s oil-wealth fund

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Nearly every single Alaskan received $3,284 on Tuesday as part of a combined payout as the state began distributing oil-wealth checks from its permanent investment fund. The amount was announced during a livestream broadcast on Republican Gov. Mike Dunleavy’s Facebook page. Officially called the Permanent Fund Dividend, or PFD, the payments amounted to $2,622 — the highest amount ever. Alaska lawmakers also authorized an additional $662 as a one-time benefit in an effort to help residents with high energy costs.

The PFD program was established in 1976 and it is funded by revenue from Alaska’s mineral and oil riches. It’s offered to those living in Alaska, and there is a yearly application process and residency requirements to qualify for a dividend.

Amounts have varied over the years, and traditionally were calculated on a five-year rolling average to buffer downturns in the economy, per the AP. Residents received the first check, $1,000, in 1982. In 2021, qualifying residents received $1,114, but this year Alaskans have received significantly more. The total value of the fund was $73.6 billion as of Aug. 31.

In March, unexpected oil revenue to the state created a projected $3.6 billion increase to the revenue forecast over this year and the next, prompting calls for larger disbursements. While this year’s PFD payments are the highest on record, Forbes reports it’s the second largest in value when adjusted for inflation.

MAHMOUD BENNETT:

EVERY YEAR PEOPLE IN ALASKA RECEIVE A PAYCHECK FROM THE STATES PERMANENT FUND

AND THIS YEAR THEY’RE GETTING A RECORD AMOUNT – NEARLY EVERY QUALIFYING ALASKAN IS POCKETING OVER 3 THOUSAND DOLLARS

THE PAYMENTS OFFICIALLY KNOWN AS PAYMENT FUND DIVIDENDS OR PFD WERE ESTABLISHED UNDER THE STATE’S CONSTITUTION BACK IN 1976

THINK OF IT AS SORT OF ALASKA’S VERSION OF UNIVERSAL BASIC INCOME.

IT’S FUNDED BY REVENUE FROM ALASKA’S MINERAL AND OIL RICHES – AS ONE OF THE TOP PRODUCERS IN THE COUNTRY

LAST YEAR RESIDENTS GOT AROUND ELEVEN HUNDRED DOLLARS EACH

THIS YEAR THEY’RE GETTING 2622 DOLLARS PLUS AN ADDED ONE TIME ENERGY RELIEF BONUS

IT’S A LOT AND EXPERTS BELIEVE THE SURGE IN OIL REVENUE FOLLOWING THIS YEAR’S SPIKE IN PRICES PLAYS A FACTOR

BACK IN MARCH UNEXPECTED OIL REVENUE CREATED A $3.6 BILLION SURPLUS TO THE STATES REVENUE FORECAST – PROMPTING CALLS FOR SOME HEFTIER CHECKS

WHILE THESE 3K PAYOUTS MAY SEEM LIKE A LOT – ENERGY AND FOOD PRICES ARE UP – ACCORDING TO FORBES WHEN ADJUSTED FOR INFLATION IT’S THE SECOND LARGEST PFD PAYMENT IN THE STATES HISTORY

Nearly every single Alaskan received $3,284 on Tuesday as part of a combined payout as the state began distributing oil-wealth checks from its permanent investment fund. The amount was announced during a livestream broadcast on Republican Gov. Mike Dunleavy’s Facebook page. Officially called the Permanent Fund Dividend, or PFD, the payments amounted to $2,622 — the highest amount ever. Alaska lawmakers also authorized an additional $662 as a one-time benefit in an effort to help residents with high energy costs.

The PFD program was established in 1976 and it is funded by revenue from Alaska’s mineral and oil riches. It’s offered to those living in Alaska, and there is a yearly application process and residency requirements to qualify for a dividend.

Amounts have varied over the years, and traditionally were calculated on a five-year rolling average to buffer downturns in the economy, per the AP. Residents received the first check, $1,000, in 1982. In 2021, qualifying residents received $1,114, but this year Alaskans have received significantly more. The total value of the fund was $73.6 billion as of Aug. 31.

In March, unexpected oil revenue to the state created a projected $3.6 billion increase to the revenue forecast over this year and the next, prompting calls for larger disbursements. While this year’s PFD payments are the highest on record, Forbes reports it’s the second largest in value when adjusted for inflation.

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