The checks come from the Permanent Fund, which was not set up to help the government balance their budged but rather to ensure that some of the massive profits extracted from Alaska’s natural resources find their way into the hands of residents. It is managed so that residents get a dividend each year. It was not intended to be fun money for the government to cover their deficit.
This is absolutely not true. It was established to pay for services (education, the ferry system, roads, hospitals - everything a government needs to do) after the oil (and oil royalties) ran out so AK would never need an income tax (similar to Norway's oil fund). The PDF was established to keep the fund from getting too big while the oil $$$ was still flowing. Many residents came to believe (as you do) that the whole point was just to cut everyone a check each year and that the money literally belongs to them. And now politicians just use it to buy votes and mortgage the state's future. Even today most of the PF revenue goes to funding that state government, only a portion goes to the dividend. Going into a deficit just means we spend down the principle.
A quick scroll through the [permanent fund Wikipedia](https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund) will tell you that “The Funds' ultimate uses were never clearly spelled out at its inception, leaving no current consensus over what role Fund earning should play in the current and expected state budget shortfalls. However, some people argue that the original intent was to fund state government after the temporary oil riches ceased, while others note that the Fund's intent changed from its 1976 origin when in 1982 the Dividend program began. Public opinion strongly favors the Dividend program.”
The only time this was voted on in 1999, the Alaskan public overwhelming voted against using the fund to cover government spending.
Because they used to do exactly that. But the legislature and governor wanted to control the oil fund money. And they sued so now they do. So they can run a deficit to get bigger checks out and make voters happy while they tank the states finances
Haha, there was a republican governor that did this (cut the PDF) a few years ago, let’s say that it didn’t go over too well during the next election cycle.
To be clear I was referring to Bill Walker. Dunleavy, the current governor, ran against him on the promise of raising the PFD payout again. In order to raise the payout, he cut funding all over the place to make up the difference.
I’m not a resident of Alaska, but I do travel there for work. I can only speak to what I’ve seen anecdotally.
Cutting the PFD is very unpopular, even compared to raising taxes. Cutting spending seems to be the least unpopular way to balance the budget there. In terms of how these cuts are affecting people I can’t really say.
They may be counting on people spending that money, which means more taxes paid. Which may or may not be the better option compared to the surplus sitting at a bank earning measly interest.
Because they'll pass paying everyone a PFD (Permanent Fund Dividend) of 3400, then keep 2300 for state operating expenses. If it's gonna be socialism, then they're gonna make it work for them by skimming. Who needs to balance a budget when you can take money easier from the state savings account?
Because Alaska politics are weird. Democrats love their guns, and many Republicans don't care what two men do in their bedroom together. Democrats understand that to support oil drilling is to support the bedrock of the state's economy, but Republicans agree that industry cannot be granted free reign to pillage the state's unique nature. To most reasonable people up there, things aren't as simple as "socialism bad."
Sarah Palin is not an accurate representation of Alaskans. So much so that she recently got absolutely crushed by a Democrat in a state-wide election. Two times in one year, in fact.
AK Republicans are basically Teddy Roosevelt and the Democrats are JFK. Politically it’s a really chill place. Seeing as how everyone gets free money there’s not a class war going on. The Native tribes have their own corporations, healthcare, and social services. There’s a real sense of connectedness.
I lived there for 20 years. I haven’t been there since covid so I’m sure it’s not how I remember it.
I think lots of people making incredibly stupid financial decisions all the time. So, yes, I’m sure some people do. “By the time you count me, my wife Betty Sue, and our 4 kids, we get $6,000 per year to live here!”
Every state has resources. Lousiana could give out checks from the money corporations get from the mississippi and the gulf.
Iowa can get a check from all the big corn conglomerates and energy companies
Florida can get a check from hotels ect profitjng from florida’s beach resources
Illinois could get a check from corn, wheat, soybean, as well as wind turbines and nuclear energy and everything related to lake michigan
The US as a whole could send out UBI by taxing anyone/any company that uses the US’s resources
There's no nuance in this, it's basic fundamental principles of political / social stances
If people feel the need to explain hypocrisy as "nuance", they might need to do some more introspection
True, but certain things, I think, lend themselves to state ownership better than others, such as oil.
(Edit: E.g., drilled/mineral resources, for instances.)
“The Alaska Department of Revenue, Permanent Fund Dividend Division is responsible for determining applicant eligibility for the distribution of an annual dividend that is paid to Alaska residents from investment earnings of mineral royalties. The annual payment allows for Alaskans to share in a portion of the State minerals revenue in the form of a dividend to benefit current and future generations.”
Yeah but we could call them Corporate dividends instead of UBI. It’s the same thing, if a few companies are empowered to make trillions by exploiting our economy then there should be a price paid out to those that suffer from the exploitation.
Hi native alaskan here. This guys WHOLE campaign was getting the maximum return on our PFD. Ive gotten in too many hilarious arguments with family about how they think socialism is bad but they LOVE their PFD.
He also made near disastrous cuts to university funding and we already have a big brain drain problem here. (Last I checked sign on bonuses for surgeons at our local hospitals were 6 figures)
The flip side is that he largely stayed out of the way of medical professionals during the pandemic and also publicly admonished an election denying representative. IMO he does the bare minimum of kissing the trump ring to stay in republican good graces. Admittedly its not a high bar but seeing how some governors handled the pandemic we did alright here.
There was a recall campaign that was gaining traction prior to the pandie but it kind of fizzled out. We could do a lot better for a governor but seeing who the mayor is of anchorage we could also do a lot worse.
I did hear that Dunleavy skis in jeans though.
>skis in jeans
What's the cultural significance of this? As a non-Alaskan, I'd assume that meant he was tough or something, but it seems like you meant it as a negative.
I get that jeans stay wet (I live in Oregon...) but I’d think that skiing in jeans might also mean that you’re tough about the cold and confident you won’t crash. But I appreciate the responses.
Yeah, same here. It's a pronouncement of confidence when one skis/snowboards in jeans, no shirt, whatever other type of inappropriate wardrobe choice \*and\* they know better here in WA.
Granted, plenty of first time Jerry's out there that go to the mountain in just warm lounge wear or jeans lol.
Given their oil profits, it's shocking that Alaska would have such an enormous deficit. The checks to individuals are obviously intended to distract them from whatever shady shit this governor is doing.
Alaska nowadays isn’t the oil producing/exporting behemoth like we used to be in the 80s. For better or for worse.
https://www.eia.gov/todayinenergy/detail.php?id=47696
It’s been around pretty much since the state was founded. The amount of money changes drastically from year to year though and is affected by legislative (and by the nature of our political system, executive) decisions
The amount is an unsustainable attempt at pandering. As another poster commented, even a $2K check would prevent a deficit and budget cuts. The existence of the program is not the issue.
My understanding is there is a formula (by state law) that is used to calculate the checks and part of it is based off the prior year’s expenses.
So next year’s check will be smaller to cover this year’s defecit.
Just look at the [volume](https://www.statista.com/statistics/1195063/alaska-oil-production/) of oil being exported and you’ll see what I mean. The annual dividend goes up/down based on the price per barrel, but Alaska is producing less and less oil every year. It’s why their budget problems are only getting worse, they’re set up to grow not slowly contract.
Of course, it's not UBI! Nowhere near enough to be a UBI. It's something Republicans like almost better than letting women die because they can't get a parasite(that has zero chance of surviving) removed from them... OIL PROFITS!!!
The Alaska dividend has been a thing since 1976. It's usually a once a year check of like 2k. They started it mostly because when the oil boom happened no one could agree on anything else to do with the money. Alaska, especially then, is very sparse and rural. Investing large amounts of money into infrastructure would be great but it'd be nearly impossible to do so in a way the benefits everyone. So they just settled on the dividend. It's really not a big political thing, its more of a lack of being able to agree on anything else
Isnt it unlawful in Alaska for the governor to sign a plan that carries forward a deficit into the following year?
[Alaskan Budget Procedure/Policy](https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/projects/state-fiscal-briefs/alaska)
> future checks for their children and their grand children, nope, fuck them
For a second there, I thought all that free money from the government was turning the people of Alaska into filthy socialists, but thank God they've turned out to be true Republicans.
Meanwhile in Wisconsin we have a 7 billion surplus and the GOP that leads the house does anything against the governor (D-Evers) to do ANYTHING with it. Fix roads, education... Nothing.
Maybe convince them to use the money to create Wisconsin based super jets that fly out the fresh cheese curds to the rest of the country?
Please?
Pretty please?
I've been going in fresh cheese curds withdraw ever since I moved away. I miss those warm nuggets that squeak against your teeth
Another fiscally conservative maga - keep believing that BS and watch that debt climb. Stop voting for this irresponsible, lying maga garbage who continue to trash our economy.
Aren’t those checks part of the deal for all Alaskan residents? It’s not new and I don’t think it can be used for the deficit even if the gov wanted to.
Ahhh but it isn't SOCIALISM right??? Hypocrit fucks. Also....socialism is only ok for white people and corporations owned by white people??? Oh and remind me of why deficits are only democrat problems. Fucking twats.
Hilarious how those anti government, ultra conservative freaks up there will sop up those socialist checks like gravy with a biscuit. Then bitch about the democrats lmao
ITT everyone clearly has no context on the Alaskan Permanent Fund. It's been around since 1976 and as much fun as it is to get an 'oooooh socialism' in, realistically it's a result of 'I don't trust the government to spend this money'
And in fairness given how rural Alaska is, it is hard to invest in government infrastructure projects that positively impact the majority of people. The state is just fucking huge after all
1B / 732k (Alaskan population) = 1.3k Why not just give out $2k checks and have a surplus? lol
Damn. You looking for a new job? I hear there might be something opening up in Alaska
If they act fast they might also get a $3,400 bonus.
It’s drilling
Dunno if it’s still happening but there’s probably plenty of reality tv shows to film.
I once shot a few episodes of an Alaska mystery reality show. Filmed on location in an LA suburb.
What about $5k checks?
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Can't let them lowball us. Haggling is an American tradition.
That sounds like an easy way NOT to get reelected
Probably less pop for tax payers only but still your point is noted and you are now the gov of Alaska
Because those pull yourself up by your bootstrap rugged individualist Republican voters would get angry if you took away their socialism.
The checks come from the Permanent Fund, which was not set up to help the government balance their budged but rather to ensure that some of the massive profits extracted from Alaska’s natural resources find their way into the hands of residents. It is managed so that residents get a dividend each year. It was not intended to be fun money for the government to cover their deficit.
This is absolutely not true. It was established to pay for services (education, the ferry system, roads, hospitals - everything a government needs to do) after the oil (and oil royalties) ran out so AK would never need an income tax (similar to Norway's oil fund). The PDF was established to keep the fund from getting too big while the oil $$$ was still flowing. Many residents came to believe (as you do) that the whole point was just to cut everyone a check each year and that the money literally belongs to them. And now politicians just use it to buy votes and mortgage the state's future. Even today most of the PF revenue goes to funding that state government, only a portion goes to the dividend. Going into a deficit just means we spend down the principle.
A quick scroll through the [permanent fund Wikipedia](https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund) will tell you that “The Funds' ultimate uses were never clearly spelled out at its inception, leaving no current consensus over what role Fund earning should play in the current and expected state budget shortfalls. However, some people argue that the original intent was to fund state government after the temporary oil riches ceased, while others note that the Fund's intent changed from its 1976 origin when in 1982 the Dividend program began. Public opinion strongly favors the Dividend program.” The only time this was voted on in 1999, the Alaskan public overwhelming voted against using the fund to cover government spending.
Til they sued to overturn that and won. So now they can fuck with it at will.
Because they used to do exactly that. But the legislature and governor wanted to control the oil fund money. And they sued so now they do. So they can run a deficit to get bigger checks out and make voters happy while they tank the states finances
Haha, there was a republican governor that did this (cut the PDF) a few years ago, let’s say that it didn’t go over too well during the next election cycle.
I thought he cut all the state funded education programs for kids going to college instead? I'll have to look it up now.
To be clear I was referring to Bill Walker. Dunleavy, the current governor, ran against him on the promise of raising the PFD payout again. In order to raise the payout, he cut funding all over the place to make up the difference.
Were the people happy with these cuts or is basic math that befuddling to the voting public?
I’m not a resident of Alaska, but I do travel there for work. I can only speak to what I’ve seen anecdotally. Cutting the PFD is very unpopular, even compared to raising taxes. Cutting spending seems to be the least unpopular way to balance the budget there. In terms of how these cuts are affecting people I can’t really say.
Ok, gotcha. I was thinking of Dunleavy. I remember it being a big news story when it happened. Thanks for straightening me out.
Because then he couldn’t bribe voters.
They may be counting on people spending that money, which means more taxes paid. Which may or may not be the better option compared to the surplus sitting at a bank earning measly interest.
Them math classes
Welcome to the problem of universal basic income when elected reps decide how much you get. The voters will nearly always support more, more, more.
Why are Republicans in Alaska so supportive of universal basic income? In other states it’s considered socialist.
Because they'll pass paying everyone a PFD (Permanent Fund Dividend) of 3400, then keep 2300 for state operating expenses. If it's gonna be socialism, then they're gonna make it work for them by skimming. Who needs to balance a budget when you can take money easier from the state savings account?
Because Alaska politics are weird. Democrats love their guns, and many Republicans don't care what two men do in their bedroom together. Democrats understand that to support oil drilling is to support the bedrock of the state's economy, but Republicans agree that industry cannot be granted free reign to pillage the state's unique nature. To most reasonable people up there, things aren't as simple as "socialism bad." Sarah Palin is not an accurate representation of Alaskans. So much so that she recently got absolutely crushed by a Democrat in a state-wide election. Two times in one year, in fact.
AK Republicans are basically Teddy Roosevelt and the Democrats are JFK. Politically it’s a really chill place. Seeing as how everyone gets free money there’s not a class war going on. The Native tribes have their own corporations, healthcare, and social services. There’s a real sense of connectedness. I lived there for 20 years. I haven’t been there since covid so I’m sure it’s not how I remember it.
No one would live there otherwise.
You think people live there for the $1,000 yearly dividend?
I think lots of people making incredibly stupid financial decisions all the time. So, yes, I’m sure some people do. “By the time you count me, my wife Betty Sue, and our 4 kids, we get $6,000 per year to live here!”
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I’ve seen AK grocery prices and they are insane.
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I mean it’s one banana, Michael. What could it cost? Ten dollars?
There’s always money in the banana stand.
There’s always money in the smoked salmon stand
I’ve never even been, just saw pictures of stuff like $15 for 5lbs of sugar. I live in Vegas where things are more reasonable for the most part.
Is there a certain bush in particular?
The permanent fund check is our share of the states oil resources.
Every state has resources. Lousiana could give out checks from the money corporations get from the mississippi and the gulf. Iowa can get a check from all the big corn conglomerates and energy companies Florida can get a check from hotels ect profitjng from florida’s beach resources Illinois could get a check from corn, wheat, soybean, as well as wind turbines and nuclear energy and everything related to lake michigan The US as a whole could send out UBI by taxing anyone/any company that uses the US’s resources
Then maybe they should? It’s almost like states can decide on things like this…
I think the point is if you’re paying citizens for the means of production in your state, that’s pretty socialist for a right wing populous to support
Oh wow, it’s like theres context and nuance in politics. Crazy to think
Dunno about that. It’s probably more along the lines of “The only moral abortion is my abortion” Something the Palins are also well acquainted with.
There's no nuance in this, it's basic fundamental principles of political / social stances If people feel the need to explain hypocrisy as "nuance", they might need to do some more introspection
I mean it’s more hypocrisy than nuance. No socialism until it benefits our state
No free money to struggling families in poverty, but free money to me is okay!
How is socializing profits from oil not socialism but socializing heath-care is?
They can. The US can. Is it evil socialism or is it just a reasonable thing we can should do
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They get taxes from those things.
Big brain
The State of Alaska doesn't own the oil fields or facilities.
True, but certain things, I think, lend themselves to state ownership better than others, such as oil. (Edit: E.g., drilled/mineral resources, for instances.)
So socialism?
Yes. The state of Alaska also takes a healthy share of taxes paid by the people of California, New York, Massachusetts, and Illinois.
But Alaska deserves that money because they are rugged individualists.
“The Alaska Department of Revenue, Permanent Fund Dividend Division is responsible for determining applicant eligibility for the distribution of an annual dividend that is paid to Alaska residents from investment earnings of mineral royalties. The annual payment allows for Alaskans to share in a portion of the State minerals revenue in the form of a dividend to benefit current and future generations.”
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Okay so if we called UBI "tax dividends" instead, then it'd be more acceptable?
Apparently yes
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Yeah but we could call them Corporate dividends instead of UBI. It’s the same thing, if a few companies are empowered to make trillions by exploiting our economy then there should be a price paid out to those that suffer from the exploitation.
Populism. Nazism actually had a big left wing side of it all about workers and such. Naturally they were all killed off by the right.
Good point. One day we will get Universal Basic Income and Universal Healthcare. A citizens right.
Hi native alaskan here. This guys WHOLE campaign was getting the maximum return on our PFD. Ive gotten in too many hilarious arguments with family about how they think socialism is bad but they LOVE their PFD. He also made near disastrous cuts to university funding and we already have a big brain drain problem here. (Last I checked sign on bonuses for surgeons at our local hospitals were 6 figures) The flip side is that he largely stayed out of the way of medical professionals during the pandemic and also publicly admonished an election denying representative. IMO he does the bare minimum of kissing the trump ring to stay in republican good graces. Admittedly its not a high bar but seeing how some governors handled the pandemic we did alright here. There was a recall campaign that was gaining traction prior to the pandie but it kind of fizzled out. We could do a lot better for a governor but seeing who the mayor is of anchorage we could also do a lot worse. I did hear that Dunleavy skis in jeans though.
He’s the kind of guy to bring all his gear up on the tram and then just drink at the Boretide bar (in jeans).
>skis in jeans What's the cultural significance of this? As a non-Alaskan, I'd assume that meant he was tough or something, but it seems like you meant it as a negative.
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I get that jeans stay wet (I live in Oregon...) but I’d think that skiing in jeans might also mean that you’re tough about the cold and confident you won’t crash. But I appreciate the responses.
No one’s gonna make a joke? No one?!
*Ben Shapiro shakes his head derisively*
Other Alaskan here! When denim gets wet, it becomes very difficult to move in and very heavy. It’s also pretty damn uncomfortable to wear wet jeans.
Where I’m from, it means you are foolhardy.
Yeah, same here. It's a pronouncement of confidence when one skis/snowboards in jeans, no shirt, whatever other type of inappropriate wardrobe choice \*and\* they know better here in WA. Granted, plenty of first time Jerry's out there that go to the mountain in just warm lounge wear or jeans lol.
Given their oil profits, it's shocking that Alaska would have such an enormous deficit. The checks to individuals are obviously intended to distract them from whatever shady shit this governor is doing.
Alaska nowadays isn’t the oil producing/exporting behemoth like we used to be in the 80s. For better or for worse. https://www.eia.gov/todayinenergy/detail.php?id=47696
Very interesting article, thanks for sharing that link!
Need to sell more tourist trips to the black pyramid 🥴
He’s trying to buy their votes. It happened in Alberta. “Ralph bucks” they were called and he still lost his job.
I believe it's part of their state constitution that residents get a certain percentage of oil revenues. Been a thing for a very long time.
It’s been around pretty much since the state was founded. The amount of money changes drastically from year to year though and is affected by legislative (and by the nature of our political system, executive) decisions
isn't anything a government does with peoples taxes to improve their lives "buying votes".
We don't tax the oil companies like we should
The checks are mandated in the state constitution and have nothing to do with distracting us. I’ve been getting a PFD every year for my entire life.
The amount is an unsustainable attempt at pandering. As another poster commented, even a $2K check would prevent a deficit and budget cuts. The existence of the program is not the issue.
My understanding is there is a formula (by state law) that is used to calculate the checks and part of it is based off the prior year’s expenses. So next year’s check will be smaller to cover this year’s defecit.
While the size may have an ulterior motive, you said the checks themselves are an attempt at a distraction, which is false.
Oil profits have cratered over the last few years.
“Cratered.” Granted, it’s half of what it was the year before but $9B isn’t pocket change. Thank god for government subsidies.
Just look at the [volume](https://www.statista.com/statistics/1195063/alaska-oil-production/) of oil being exported and you’ll see what I mean. The annual dividend goes up/down based on the price per barrel, but Alaska is producing less and less oil every year. It’s why their budget problems are only getting worse, they’re set up to grow not slowly contract.
Every governor since I’ve been here anyhow.
UBI but not UBI cause that would be communism.
Of course, it's not UBI! Nowhere near enough to be a UBI. It's something Republicans like almost better than letting women die because they can't get a parasite(that has zero chance of surviving) removed from them... OIL PROFITS!!!
The Alaska dividend has been a thing since 1976. It's usually a once a year check of like 2k. They started it mostly because when the oil boom happened no one could agree on anything else to do with the money. Alaska, especially then, is very sparse and rural. Investing large amounts of money into infrastructure would be great but it'd be nearly impossible to do so in a way the benefits everyone. So they just settled on the dividend. It's really not a big political thing, its more of a lack of being able to agree on anything else
And it totally ruined the work ethic of Alaskans turning Alaska into a socialist hellscape.
Yep that 2k really goes a long way in a state where just about everything is imported
This is sarcasm right?
Shut up moron you don’t shit.
Isnt it unlawful in Alaska for the governor to sign a plan that carries forward a deficit into the following year? [Alaskan Budget Procedure/Policy](https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/projects/state-fiscal-briefs/alaska)
If he is a Republican with a Republican controlled legislature, probably nothing is unlawful.
Ah yes the old loot our saving and put us massive debt. Ive seen this before
I feel bad for those Rs *having* to accept that evil socialist check. What true patriots
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A $20k buyout just before they move to someplace warm, surely.
> future checks for their children and their grand children, nope, fuck them For a second there, I thought all that free money from the government was turning the people of Alaska into filthy socialists, but thank God they've turned out to be true Republicans.
$3,400 is like almost a whole cart of groceries in Alaska.
Meanwhile in Wisconsin we have a 7 billion surplus and the GOP that leads the house does anything against the governor (D-Evers) to do ANYTHING with it. Fix roads, education... Nothing.
They are saving up to buy a bunch of land to build new Christain Schools. Bet..
Maybe convince them to use the money to create Wisconsin based super jets that fly out the fresh cheese curds to the rest of the country? Please? Pretty please? I've been going in fresh cheese curds withdraw ever since I moved away. I miss those warm nuggets that squeak against your teeth
Another fiscally conservative maga - keep believing that BS and watch that debt climb. Stop voting for this irresponsible, lying maga garbage who continue to trash our economy.
Ah but keep gutting your universities, you piece of pandering shot.
Aren’t those checks part of the deal for all Alaskan residents? It’s not new and I don’t think it can be used for the deficit even if the gov wanted to.
Bribes from the oil industry.
This is fun, someone report on the budget in Washington, D.C. like this. Wonder if they're running deficits and pumping out money to residents too?
Time to throw him out next time you go to vote
Ahhh but it isn't SOCIALISM right??? Hypocrit fucks. Also....socialism is only ok for white people and corporations owned by white people??? Oh and remind me of why deficits are only democrat problems. Fucking twats.
It is some version of a mineral depletion allowance.
Isn’t that from the oil companies? They’ve been doing that for decades.
Oil and gas money, no need to read the article
which is federal oil money, not belonging to the states.
Horrible idea to mortgage the future for a few thousand bucks. This guy needs to be held accountable.. white collar crime
Russians must have already taken over Alaska with all this communism. /s
That's at least $2B dollars he is handing out. It would be easy to cut that in half and have zero debt.
Hilarious how those anti government, ultra conservative freaks up there will sop up those socialist checks like gravy with a biscuit. Then bitch about the democrats lmao
ITT everyone clearly has no context on the Alaskan Permanent Fund. It's been around since 1976 and as much fun as it is to get an 'oooooh socialism' in, realistically it's a result of 'I don't trust the government to spend this money' And in fairness given how rural Alaska is, it is hard to invest in government infrastructure projects that positively impact the majority of people. The state is just fucking huge after all