Posted on 05/01/2015 6:17:14 AM PDT by thackney
The Alaska Permanent Fund, established using revenues paid to the state by oil and natural gas producers, provides Alaska residents with an annual cash dividend, which is unique among natural resource permanent funds in the United States. In 2014, the annual dividend was $1,884 per resident, more than double the 2013 dividend and the highest since 2008.
All Alaska residents receive an annual cash dividend from the permanent fund. The fund was established by voters in 1976, as the extent of Alaska's oil and natural gas resources began to emerge, and retains at least 25% of the royalties that oil and natural gas producers pay to produce on leased state lands. Those royalties have provided $800 million or more to the fund annually in recent years. The permanent fund is now worth more than $51 billion, making it the largest trust fund in the United States.
The annual dividend is calculated on a five-year average of investment earnings. Under Alaska law, the fund's principal cannot be spent. When first issued in 1982, the annual dividend provided $1,000 for each Alaskan resident. Since then, the annual dividend has varied from a few hundred dollars to more than $2,000 per person.
In addition, Alaska is the only state without a state income tax or a state sales tax. Production and income taxes on the crude oil and natural gas industry have provided as much as 90% of Alaska's general fund revenues and more than half of its total state revenues from all sources, including federal programs.
Native Americans in Alaska, in addition to their permanent fund dividend, have another unique system for sharing energy royalties from tribal lands. The 1971 Alaska Native Claims Settlement Act (ANCSA), enacted by Congress to resolve conflicting land claims and to encourage energy development, established 12 regional tribal corporations to take ownership of tribal lands, which total 44 million acres, or about 12% of Alaska.
When energy resources are developed on tribal lands, under ANCSA, 30% of royalties go to the corporation holding the land and 70% is shared with the other tribal corporations. Although crude oil and natural gas development is concentrated along the northern and southern coasts, more than $1 billion in royalties shared over the years has provided investment capital for all 12 regional corporations to build diversified businesses, expanding into areas such as energy field services, real estate, and construction. All 12 regional corporations were ranked among Alaska's 50 largest businesses by Alaska Business Monthly in 2014. Alaska's fossil energy production has been declining as major producing areas on the North Slope age.
Alaska's crude oil output was at its highest in 1988 at 738 million barrels; by 2013, it was 188 million barrels. Natural gas marketed production was at its highest in 1994 at 555 billion cubic feet (Bcf); 2013 production was 338 Bcf.
Alaska Ping!
Socialists.
I always thought what a great deal it was. The state experienced a great windfall, and put it in reserve for future generations, rather than blowing it.
I remember my Mom telling me periodically that some politician would suggest "borrowing" or "assessing" revenue from the Permanent Fund to help the state get through whatever little crisis had befallen it.
People only think Social Security is the third rail of politics. If you live in Alaska, suggesting a raid on the Fund is likely to get you tarred and feathered.
The near universal thoughts on the PF are "if the politicians get their hands in that fund just once, they won't stop until it is all gone."
If Pennsylvania's politicians were in charge of a comparable fund, it would take them about 10 years to p*$$ it away by giving raises to the educrat and other public unions as vote buying schemes. Probably less than 10 years.
I don’t live in Alaska I hear about this other day on Fairbanks daily news miner yeah it weird loophole in Tax law can’t explain it YIKES
Was that set up by Sarah Palin?
BFL
Sounds like a good deal - if you are on welfare. If you actually pay taxes, then at least half of this goes tot he FedGov. The PFD payment is the single biggest windfall for the...Federal gov’t.
I’d much rather have that money go to revenue sharing to reduce property taxes.....not that it would ever happen.
The Fund is a great boon to the local economy. When I got it, it came right at the Christmas Season. Everyone got it, no means testing, no age requirements. Truly democratic.
Many of the local stores had some sort of deal... sign over your $1000 check, and we'll give you a $1200 gift certificate.
Of course, my Mom, who ruled the financial roost in our house, certainly didn't do that! But, if someone wanted to, that was their choice.
No the find was established long before Palin’s rise to power. I remember getting it in the late 70’s, I think.
When she was 12?
Property Taxes are local government and PFD is state. Unless you are an oil company, then the State will charge them property taxes, but no other industry. If your local government spending was a handout from the state, locals would quickly find a lot of local government spending.
Yay!
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