Gov. Mike Dunleavy speaks about state revenue during a press conference on Tuesday, March 15, 2022 in Juneau, Alaska. (Screenshot)

Gov. Mike Dunleavy speaks about state revenue during a press conference on Tuesday, March 15, 2022 in Juneau, Alaska. (Screenshot)

Citing spike in oil prices, Dunleavy urges $3,700 PFD

Dunleavy said oil prices are still up overall and high inflation demands action

Citing a spike in oil prices, Gov. Mike Dunleavy during a press conference Tuesday in Juneau announced a projected $3.6 billion surplus in state funding and teased $3,700 in Alaska Permanent Fund dividend payments. Dunleavy called the projection “really good news” for Alaska and encouraged the Legislature to greenlight higher PFD payments.

Acknowledging the price of oil is “volatile” and that prices are down this week compared to a couple of weeks ago, Dunleavy said oil prices are still up overall and high inflation demands action. Dunleavy proposed putting what isn’t used for PFD payments into savings.

“We’re seeing inflation like we’ve never seen before,” Dunleavy said Tuesday. “We can afford — I repeat, we can afford — a much higher PFD than people have been contemplating. We need to help the people now.”

Even with a $3,700 PFD, Dunleavy said, Alaska is still looking at a $3.4 billion surplus. That payment, he said, reflects a retroactive dividend payment from 2021 as well the 2022 payment under a fifty-fifty plan. That plan splits permanent fund earnings equally between dividend payments and state services.

Alaska Department of Revenue Deputy Commissioner Brian Fechter said during Tuesday’s press conference that the state’s economic research group uses a five-day median of the futures market to calculate revenue projections. A release from Dunleavy’s office says that the forecast is based on Alaska North Slope crude oil prices.

The oil price forecast, which is based on futures markets prices through fiscal year 2029, forecasts oil prices of $91.68 in fiscal year 2022 and $101.00 for fiscal year 2023, to then stabilize at $77 by fiscal year 2031. Those numbers assume prices will increase with inflation.

“Based on the higher forecasted oil prices, petroleum is once again expected to be the largest source of (Unrestricted General Fund) revenue for FY 2022 and FY 2023, contributing over 50% of expected UGF in each of those two years,” the Alaska Department of Revenue’s Spring 2022 Revenue Forecast says.

As it relates to the PFD, Dunleavy emphasized that the Alaska Legislature will have the final say. He urged the body to support the $3,700 in payments and said his department is “looking forward” to start working on the issue.

The department’s full forecast can be accessed at tax.alaska.gov. Dunleavy’s full Tuesday press conference can be viewed on the governor’s Facebook page.

Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.

More in News

Attorneys Eric Derleth and Dan Strigle speak to Superior Court Judge Kelly Lawson during the opening arguments of State of Alaska v. Nathan Erfurth at the Kenai Courthouse in Kenai, Alaska, on Wednesday, July 16, 2025. (Jake Dye/Peninsula Clarion)
Opening arguments offered in Erfurth trial

The trial is set to continue for around two weeks, into early August.

Evacuees in Seward, Alaska, walk along Adams Street following a tsunami warning on Wednesday, July 16, 2025. (Photo by Jeff Helminiak/Peninsula Clarion)
Tsunami warning canceled following 7.3 earthquake near Sand Point

An all clear was issued for Kachemak Bay communities at 1:48 p.m. by the Kenai Peninsula Borough Office of Emergency Management.

The Ninilchik River on May 18, 2019, in Ninilchik, Alaska. (Photo by Michael Armstrong/Homer News)
Ninilchik River to remain closed to king salmon fishing

It was an “error in regulation” that would have opened the Ninilchik River to king salmon fishing on Wednesday.

A table used by parties to a case sits empty in Courtroom 4 of the Kenai Courthouse in Kenai, Alaska, on Wednesday, Dec. 11, 2024. (Jake Dye/Peninsula Clarion)
Nikiski woman sentenced to 4 years in prison for 2023 drug death

Lawana Barker was sentenced for her role in the 2023 death of Michael Rodgers.

Alaska State Troopers logo.
Seward resident arrested after Monday night police pursuit

Troopers say she led them on a high-speed chase on Kalifornsky Beach Road for around 7 miles.

Concert-goers listen to The Discopians at Concert on the Lawn on Saturday, July 12, 2025, at Karen Hornaday Park in Homer, Alaska. (Delcenia Cosman/Homer News)
‘Dancing at the end of the world’

KBBI AM 890 hosted their annual Concert on the Lawn Saturday.

Lisa Gabriel unfurls a set beach seine during a test fishery for the gear near Clam Gulch, Alaska, on Wednesday, July 9, 2025. (Jake Dye/Peninsula Clarion)
Seine test fishery continues after board of fish calls for more data

The east side setnet fishery has been entirely closed in recent years to protect Kenai River king salmon

Jason Criss stands for a photo in Soldotna, Alaska, after being named a qualifier for the Special Olympics USA Games on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
Soldotna athlete to compete in 2026 Special Olympics USA Games

Thousands of athletes from across all 50 states will be competing in 16 sports.

Most Read