El T,
Read Alaska's Constitution sometimes, it is the very model of doing it right.
One of the major precepts is that the resources of the State of Alaska are held in Trust by the State for its citizens.
The Permanent Fund dividend was set up in the heady days when the pipeline was built and oil extraction took off. The state owned lands with oil and sold leases to drill there. They also tax part of the value of the extracted crude (as it belongs to the state).
Rather than blow all of that windfall money from the lease sales, a bunch of forward thinkers on both sides of the aisle (which is a narrow asle in AK for the most part) developed a way that that money could be invested for the future costs of government rather than just handed out.
The Permanent Fund is now big enough that it is approaching the point of being able to fund state government in its entirety (which is why we have no state income or sales tax). To sell the wisdom of "locking up" that money to the citizenry, the Dividend program was developed.
Basically after reinvestment and inflation proofing of the Fund's investment earnings, a portion is distributed to the citizenry. It's not a "kickback", it is shareholder dividends from the earnings generated by the investment proceeds of our resources.
The Dividend is based on the market performance of the Fund, not tied to the price of oil. The yearly tax income goes to the state budget with only a small amount of overage going to the Fund. That yearly addition is small nowadays when compared to the earnings on the actual investments the fund is made up of.
Because of the booming stock market until recently, and how well the Fund is managed, our checks this year will be the highest ever, around $2,100.
Also, because of the increased earnings this year caused by higher oil prices, the Governor and State legislature are giving back additional refunds to help folks cope with the higher fuel prices this winter, that will be $1,200.
So on Sept. 12th I and every other qualified Alaskan are getting $3,300. Because Alaska is an "owner-state" and we are its citizens.