With unexpected oil revenue flooding the state coffers to the tune of a $3.6 billion increased revenue forecast over this year and next year, Gov. Mike Dunleavy is calling on lawmakers in Juneau to issue $3,700 Permanent Fund Dividends to all eligible Alaskans.
In a March 15 notice, Dunleavy requested that the Legislature use some of the surplus to get immediate relief to Alaskans facing skyrocketing fuel costs and 40-year record inflation.
“Rising oil prices are benefiting government finances and hurting Alaskans,” Dunleavy said. “I’m asking the Legislature to help alleviate economic hardship for Alaskans now, by paying every eligible resident a PFD this year of at least $3,700. We must get funds into the hands of Alaskans now when the bills are due, not in a month’s time.”
Deputy Commissioner of Revenue Brian Fechter said current market conditions present a “tremendous opportunity to use this additional revenue to provide relief to Alaskans currently grappling with high inflation all while putting billions into savings to deal with future price volatility.”
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The Unrestricted General Fund (UGF) revenue forecast has been increased by $1.2 billion for FY 2022 and $2.4 billion for FY 2023. Forecasts for revenue have also been increased for all years beyond FY 2023.
“Under the 10-year outlook, we can have surpluses while paying the PFD,” Dunleavy said. “We can also rebuild our savings with these surpluses in the range of $11 billion over ten years, based on a conservative forecast of $70 plus per barrel to 2031.”
The revenue forecasts are based on Alaska North Slope crude oil prices of $91.68 a barrel for FY 2022 and $101 for FY 2023, stabilizing at $77 by FY 2031.
In FY 2021 Alaska crude oil production was 486,000 barrels per day. That’s expected to drop to 481,800 barrels a day in FY 2022 and then gradually climb to 576,600 barrels a day by FY 2031.
Dunleavy has placed the PFD question squarely in the Legislature’s court, saying he can’t choose the amount of the PFD this year, but lawmakers can.
“Only the Legislature can make this happen,” Dunleavy said. “We have the resources. We have the duty to do something to help now. Alaskans are paying the price in these uncertain times.”
19 Comments
Plus an energy rebate.
The future production estimates are too low, way too low.
With Willow, Pikka, and now Talitha, oil production should exceed 700,000 or even 800,000 bpd.
We should not concede to the 50% amendment to the constitution. They know we will have much higher production and thus much higher revenue.
Makes me wonder if Dunleavy is not really doing us a favor but trying to slip us a Mickey???
I don’t remember Palin asking the legislature anything am I wrong? I just remember going to the mailbox reading the letter and crying. Mike we’re in an emergency according to you. How about an executive order? Maybe you should call Sarah.
Actually it worked the same way in 2008. Governor proposes to spend the money and the legislature votes to either pass it as is, adjust it to their liking and pass it or not pass it at all. The main difference between now and then is that the legislature back then was more apt to work with the governor where this legislature is working against the current Governor.
Well said… However, Dunleavy asking legislature instead of just taking charge is obvious and pointless virtue signaling. Same thing he has always done, sadly.
u nailed it!
It the Law to a full PFD
Separating the weeds from the wheat: who (at every level of government) is out to kill the middle class and who (at every level of government) retains some vestiges of his human nature?
No. Statutory PFD, plus what’s owed from Walker’s short sheeting. The money is there, but it seems the governor does not have the cajones to make an issue. Pay us, then maybe, the 50-50 would be a bit more palatable.
OOOOOOH Kathy girl, you said it . Dunleavy, she just told you to man up !!!! Lol!!
No. I’m gonna have to say, ‘no’, to $3,700. Why? We have not yet received the full amounts of the permanent fund dividends we were legally eligible to receive for the years; 2016, 2017, 2018, 2019, 2020 and 2021.
In 2016, the dividend was $2,085 but we received only $1,022, short $1,063.
In 2017, the dividend was $2,458 but we received only $1,100, short $1,358
In 2018, the dividend was $2,924 but we received only $1,600, short $1,324
In 2019, the dividend was $2,884 but we received only $1,606, short $1,278
In 2020, the dividend was $2,895 but we received only $992, short $1,903
In 2021, the dividend was $4,200 but we received only $1,114, short $3,086
To spare you the math, that’s a $10,012 shortfall.
When you or I cheat gov’t, we’re in big trouble…may even go to jail. But when the gov’t cheats the people, it’s somehow ok and nothing happens
I agree. Pay us back everything that is rightfully ours according to current law, then we’ll talk about your 50-50 plan or some other constitutional resolution.
Well put Sir. Dunleavy campaigned on being a take charge kinda of politician. OOPS guess he was wrong.
exactlytheyneverpaytherightamount.
I agree with the gov. We should also take a hard look at restarting the North Pole Refinery, bringing it up to current standards so as not to pollute, and convert it to producing gasoline as well as jet fuel. It is time we become self sufficient in Alaska as we are too dependent on the communist west coast and will probably be the first to.be cut off.from supplies of a lot of stuff when the economy and/or the country collapses. It would be prudent to use money from the corpus of the Permanent Fund to do before the stock market and other investments completely completely collapse and we lose it all anyway…just.saying
The legislature does not stand with Alaskans. They have a socialist agenda.
Well put Sir. Dunleavy campaigned on being a take charge kinda of politician. OOPS guess he was wrong.
go out and vote all the pfd thieves out of office…………. they don’t care about the people who voted them in but about stealing the pfd for themselves and special interest groups who already have a lot of money…. its time for the pfd thieves in senate and and is state reps seats to get voted out of office and leave.. and never get voted back in office.