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(The Center Square) High oil prices could be a good thing for Alaska residents.

Alaska's House Majority is proposing a $1,300 payment to state residents to deflect high energy costs and inflation. It says it can afford it because oil is climbing to more than $100 a barrel, which means more oil and gas revenue for the state's general fund.

The money would be in addition to the state's Permanent Fund Distribution (PFD).

Between the negative economic effects of COVID and escalating energy costs, our residents are suffering, House Speaker Louise Stutes, R-Kodiak, said. With the influx of new revenue, we are in a position to provide an Energy Relief Check to Alaskans, and that is exactly what the House Coalition intends to do."

High fuel prices may be good for the state's coffers but it hurts consumers.

Fuel prices could very well double by the end of the year, Rep. Bryce Edgmon, I-Dillingham, said.

Gov. Mike Dunleavy said in a Twitter post he agreed with the House Majority's proposal, citing it as an increase to PFD payments.

"The House Coalition announcement is better late than never, but the work is not yet done," Dunleavy said. "For months now, I have been pointing out that rising oil prices are benefitting government finances but are hurting Alaskans, and for years I have been asking the Legislature to either follow the statutory PFD formula or to change it with the approval of the people."

The payment will be included in the state's fiscal year 2023 budget, which the House Finance Committee is beginning to craft this week. Lawmakers are still debating the amount of PFD payments for this year, however.

Dunleavy is pushing for a constitutional amendment that he said would split the oil and mineral dividends equitably between the PFD and state services.

Lawmakers are considering two bills, including one that would give 75% to the state and set aside 25% for payments to residents and another with a 50-50 split.

The House Finance Committee began budget hearings Thursday and will continue until Saturday.

Dunleavey revealed his $10.9 billion budget proposal in December. Lawmakers have been critical of the spending plan, which relies on oil prices.

Senate Minority Leader Tom Begich said in response to Dunleavy's state of the state address that basing a budget on the stock market and the volatile price of oil "is not a sustainable plan for our next generation."

Other lawmakers said they are concerned that Dunleavy wants to spend $3.75 million from the American Rescue Plan Act (ARPA).

Sen. Bert Stedman, R-Sitka,asked whether some of the money could be saved and said there was the possibility "we walk our state into significant taxes and huge deficits."

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Alaska Republicans want to give residents $1300 to cover energy costs - The Center Square