Back in May, the Alaska Legislature adopted a budget that will pay out $3,200 to each qualifying Alaskan beginning in September. After lengthy deliberations and talks that resulted in a compromise, lawmakers decided to accept a smaller compensation than what had been originally suggested.
A $5,500 payment was first under consideration, but the Legislature ultimately decided on a $3,200 payment following a vote to use state savings that was unsuccessful.
This choice is a part of a larger initiative to strike a balance between long-term economic discipline and the urgent financial help that Alaskans need.
The necessity to save money for the future was emphasized by Fairbanks representative Grier Hopkins, a Democrat, in support of his pivotal vote against using state savings. Other lawmakers who placed a higher priority on preserving the state’s financial reserves also agreed.
With a total of $16.2 billion, the approved budget is the highest in Alaskan history and is backed by an expected rise in oil earnings as a result of international events like the conflict in Ukraine.
Funding for infrastructure projects, public services, and other crucial initiatives are included in this budget. Even though the compensation was less than anticipated, $3,200 is still a big amount—after accounting for inflation, it is the second-largest payment in state history.
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When will payments be made to beneficiaries?
Governor Mike Dunleavy said that Alaska will begin paying qualified residents on Tuesday, September 20, in the amount of about $3,200. This payment combines a unique one-time energy relief payment with the annual income from the Permanent Fund.
On September 20, Alaskans who opted for direct deposit of their dividend will see the money in their accounts. The governor said that those who requested a paper check or submitted paper applications will start receiving their rewards the week of October 3.
“We’re doing this early this year so that people could take advantage of getting the PFD early to take care of any expenses that they’ve incurred as a result of the high inflationary period we’ve been dealing with,” Dunleavy stated on Facebook.
