The Governor of the state of Alaska, Mike Dunleavy, has signed last week a budget that, despite including more than $230 million in cuts, offers a Permanent Fund Dividend (PFD) of $1,718 for every eligible resident of Alaska. This amount slightly exceeds the $1,655 initially approved by the Legislature at the end of its session in May, and this has generated an important debate.
Believe it or not, there are people who are criticizing the fact that this payment is too big: how can there be anyone who does not want money? Well, there are, and they go around criticizing that Alaskans receive money that, by law, corresponds to them.
PFD Stimulus Check Increase and an Energy Relief Payment
The increase in the PFD stimulus checks was made possible by an improvement in the estimated tax revenues for the fiscal year 2024. The chairman of the Senate Rules Committee, Senator Bill Wielechowski, explained that the initial estimate of the PFD, which included an energy relief check of $295, was revised upwards after the close of the fiscal year on June 30.
Anchorage resident Jerry Perkins expressed surprise and acceptance of the new amount. “I think anything over $1,700 is too much, it should have been around $1,200. But, you know? Am I going to turn it down? No, I’m not turning it down. Am I in a position to cash the check? Yes, I’m going to charge it,” he said. Perkins plans to use the money to travel somewhere warm for the winter.
On the opposite side of the argument, Sam Bair, also from Anchorage, considers the amount of $1,700 to be fair and necessary to cover his expenses. “The problem with PFD is that it is necessary because it is very difficult to live. I pay the rent a few days late and I have two jobs, I shouldn’t have that problem since I go to work every day,” Bair commented.
Becca Veivao, another Anchorage resident, said the PFD should prioritize families in the greatest need. “I think that if a family comes from a situation of greater poverty, they should receive more than those who already have a lot,” he said.
Julia Lez, also based in the capital of Alaska, was critical of the PFD, stating that “it causes a lot of controversy,” more than is actually necessary.
Legislative Debate over the $1,718 Stimulus Check
With the support of Governor Dunleavy, this stimulus check seeks to offer financial relief in times of economic uncertainty, right in the middle of the political pulse between Democrats and Republicans, but still maintains the spirit of the law that created the PFD, being a commitment of the state to the well-being of its citizens. Even so, the new $1,718 PFD has generated a variety of reactions among Alaskans, reflecting the diverse needs and expectations of the population.
Before agreeing on the PFD of approximately $1,655, there was an intense debate among the legislators. The majority of the House of Representatives advocated a high payment of about $2,300 to compensate for the high cost of living in Alaska. However, the majority of the Senate feared that such a high payment could generate a budget deficit and force cuts in essential state services.
