Alaska Republican Governor Mike Dunleavy has presented a budget plan that would pay residents an oil-wealth dividend of about $3,400 next year. This proposed dividend aims to use savings to cover a $990 million deficit. The plan also includes various policy proposals for lawmakers to consider.
The proposal, if approved, will draw from the state’s Permanent Fund Dividend (PFD) and will distribute approximately $3,400 to Alaska residents. The PFD, which has been in place since 1980, is funded by deposits from the state’s oil and mining revenues. The move comes as the state, one of the largest oil-producing states in the U.S., looks to help its residents keep up with inflation.
As part of the budget plan, Governor Dunleavy did not include an increase in the per-student K-12 school funding formula. However, he emphasized the importance of education and proposed bonuses for teachers to aid in recruitment and retention efforts.
Additional highlights of the proposed budget bill include the request for over $2 million to modernize and automate statewide timesheet auditing and other payroll-related tasks within the Department of Administration.
The proposal is set to be discussed and modified by the Alaska Legislature before its finalization in mid-2024. Governor Dunleavy reiterated the significance of these financial decisions and acknowledged that education would be a key topic during the upcoming legislative session.
The PFD allocation, along with the various policy changes, is poised to be a focal point of discussions as lawmakers convene in the new legislative session next month. If approved, the dividend will be distributed conditional upon residents completing a simple form, providing significant financial relief for Alaskans in the face of both economic challenges and inflation concerns.
