On Tuesday, the day the state began distributing payments from Alaska's investment fund that has been seeded with money from the state's oil wealth, nearly every Alaskan received a windfall of more than $3,000.
The highest amount ever paid was $2,622. The one-time benefit was added to help people with high energy costs.
A total of $1.6 billion in direct deposits began hitting bank accounts Tuesday and checks will arrive later for those who chose them.
Residents use the money in many different ways, from buying big-screen TVs, vehicles or other goods to putting it in savings or college funds. Money can be used to help offset the high costs of fuel and food in rural Alaska.
Governor Mike Dunleavy said in a video that they are experiencing record high inflation. This year's PFD will provide much needed relief as we head into winter and Alaskans have been bearing the brunt of this inflation from the gas pump to the grocery store.
The western coast of the state was devastated by the remnants of typhoon Merbok last weekend and the timing of the checks couldn't have been better. There was extensive damage to homes and infrastructure along the coastline.
The world's most famous sled dog race ends in Nome, the largest city on the coast with about 3,500 residents.
Nome was secured as the Iditarod's finish line over 50 years ago. His century-old home was safe from the storm on high ground in Nome but they did lose about 100 feet (30.48 meters) of frontage and one building at the family's camp site.
He said the beach is close.
The payments are needed for a family of five.
He said that even people who didn't have damage were hit hard by the inflation up here.
The price of gas will stay at $7 a gallon until the next shipment arrives in the spring because barges can't deliver during the winter.
He said that the price wouldn't go down like it does in Alaska and other places.
A lot of families will be able to break even with high prices.
The oil-wealth check is usually derived from the earnings of the nest-egg account. The diversified fund was established in the 70s and is now worth $73.6 billion.
To qualify for a dividend, you have to apply every year and live in the area. Earnings from the Alaska Permanent Fund have historically been used to pay dividends. Lawmakers tried to limit how much can be taken from fund earnings for both government and private purposes. This year's amount is less than the authorized draw.
The residents received their first check. Historically, the amount was calculated on a five year rolling average to buffer downturns in the economy.
In 1983, the smallest check was $331 In 2015, the largest check was $2,072. Someone has collected every check since 1982.
There are two people living in the interior Alaska village of Tanacross, one of which is a 74-year-old woman namedMildred Jonathan.
When they get their paper check in October, there won't be any overspending. The Jonathans will buy firewood.
She said she was hoping to get wood with a load of 10 cords. If I purchase that, I will survive the winter.
The temperature in the village during the winter is usually well below zero. She said it was cold.
The money left over by the couple will be used for a new hot water system, flooring for their home, and Christmas gifts for their children.
All Rights Reserved © 2024
