The Alaskiens obtain money from the State Fund for the State each year. But the last dividend check is the smallest since 2000

Canoy and his two sons have arriving checks that will cover these expenses and will also leave money to boys. From Thursday, Alaska plans to start distributing their annual dividend derived from the oil wealth fund of $ 83 billion in the state, a sort of premium that Alaska get to live in the state.

For some, it is spending more money on a new set of tires or a sunny climate during the long dark winter. For others, it is a vital supplement in a state where the cost of the internet service, gas and grocery store can be high.

Here is what you need to know about the dividend of the Alaska permanent fund:

This year’s payment is one of the lowest in 20 years

Alaskiens get $ 1,000 per person – the lowest amount since 2020, when they each received $ 992. Payment is less than $ 1,000 only two more times since 2006.

There was a formula to calculate the amount, linked to the performance of the fund market. But the legislators largely consider that the unaffordable formula and in the last decade has abandoned it.

Politicians have now set the amount. This is often one of the last elements set during sensitive budgetary negotiations. Legislators must weigh the size of the check compared to other programs and public needs, including education, and in 2018, began to use the funds of the fund – used for a long time to pay dividends – to also help balance the budget.

This year, $ 1,000 is what legislators argued that they could afford while supporting an increase in kindergarten financing to the 12th year and trying to limit the prints of economies.

If the old formula had been followed, residents would obtain about $ 3,800 each.

The Alaska Permanent Fund is almost 50 years

Voters created the fund in 1976, during the first years of intoxicating oil in the state. The objective was to save part of the mineral wealth of Alaska. The fund has increased thanks to investments and, although the state constitution protects the principal from the fund, its profits can be spent.

Dividends have been paid since 1982. Supporters have considered them a way to guarantee that Alaskians have been able to have an interest acquired in the Alaska permanent fund.

More than 600,000 people from around 740,000 Alaska residents are expected to receive this year’s check. To qualify, you must meet the residence and other requirements.

Three times, including last year, the Alaskiens received an energy aid payment with their dividends, depending on the state.

Many ways to use money

For some Alaska, the check is a good supplement. Some have put it in college funds or savings accounts or donate to charity organizations. Others are counting on this for necessities, such as oil heating, winter tires or snow, which are essential modes of transport in rural villages where residents count on hunting or trapping.

Canoy, a single mother of two children, sells her house and reduces the workforce. She had planned to fill the fuel tank in her house as a gift to new buyers when closing, but the fuel truck arrived early while she was absent. So, instead of putting the $ 3,000 that her family receives towards other projects, as she hoped, she uses it to pay for this bill. She plans to let her sons spend the remaining $ 400.

Canoy said she lives comfortably and considers the dividend as a blessing. However, she hopes that legislators will find a better way to define the amounts – “at least, simply give Alaskiens a little spirit that, yes, we do everything we can to make sure that you draw the best party from the Dividend permanent funds.”

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