Alaska residents will commence the receipt of their annual dividends from the state’s energy fund starting Thursday, and this year’s payouts will exceed the usual average. The 2023 payment is set at $1,312 per resident, representing a decrease from last year’s dividend of $3,284 but surpassing the historical average payout of approximately $1,200 since the inception of the endowment.
Residents of Alaska deemed eligible for the annual dividend payment before September 22 will have the funds deposited into their accounts on Thursday as part of the initial mass disbursement by the state.
A second disbursement is planned for October 26, encompassing eligible electronic and paper applications received by October 18, which includes Alaskans who opted for a paper check.
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The Alaska Permanent Fund was established through the collaborative efforts of Alaskan citizens who voted to amend the state’s Constitution, dedicating a portion of oil and mining revenue for the collective benefit across generations,” explained Deven Mitchell, the Executive Director of the Alaska Permanent Fund Corporation. “As a public endowment, every resident of the state holds responsibility for the wealth within the Fund.
“Even in challenging investment climates, the Fund exhibited resilience, weathering economic challenges,” Mitchell continued. “The fiscal year of 2023 concluded with a total performance return of 5.18%.”
Alaska amended its state constitution in 1976 to establish the Alaska Permanent Fund as a state-owned corporation. Since 1982, the endowment has annually disbursed the Permanent Fund Dividend to eligible state residents.
The dividend amount is calculated using a formula based on net income to the fund from the current and past four fiscal years, prior year obligations, expenses related to the dividend program’s operations, and the number of eligible applicants.
The principal of the fund is constitutionally safeguarded and grows annually, with a minimum of 25% of royalties from leases and other income linked to oil and mineral development being contributed to the fund. The fund’s earnings can be utilized to finance the dividend payments to residents.
Alaska residents qualify for the annual Permanent Fund Dividend unless they meet any of the following criteria:
- Resided outside the state for over 180 days, unless the absence aligns with allowable circumstances under the law.
- Convicted of a felony within the state during the qualifying year.
- Incarcerated for either a felony or a misdemeanor following a prior felony conviction or multiple prior misdemeanors in the qualifying year.
The trustees of the Alaska Permanent Fund Corporation endowment are currently engaged in a comprehensive study that delves into the fund’s historical trajectory, its structural framework, as well as durability concerns arising from its existing design, and potential solutions to mitigate these challenges.
The distribution of annual energy dividends to Alaska residents marks a significant event for the state. The Alaska Permanent Fund, established through a constitutional amendment in 1976, channels a portion of the state’s oil and mining revenues to create a fund benefiting all generations of Alaskans. This fund, a public endowment, underscores the collective responsibility of every resident for its wealth and stewardship.
Residents of Alaska are eligible to receive the annual Permanent Fund Dividend, which is calculated using a formula based on net income derived from the fund over the current and preceding four fiscal years. This calculation also takes into account prior year obligations, expenses associated with the dividend program’s operations, and the number of eligible applicants. However, certain conditions, such as prolonged absence from the state or felony convictions, may render a resident ineligible for the dividend.
In the fiscal year of 2023, the Alaska Permanent Fund demonstrated its resilience by achieving a total performance return of 5.18%, navigating through challenging investment markets. The fund’s principal is constitutionally safeguarded, growing annually, with a minimum of 25% of royalties from leases and other income linked to oil and mineral development being allocated to the fund. The proceeds from the fund contribute to financing dividend payments to residents, emphasizing the fund’s vital role in the state’s financial ecosystem.
The dividend distribution process involves a two-tier disbursement, ensuring that eligible residents receive their funds efficiently. The commitment to distributing these annual dividends reflects the state’s dedication to utilizing its energy revenues for the benefit of its citizens, thereby enhancing the overall economic well-being of the Alaskan populace.