Taxes, garnishments may dilute Alaska energy assistance effectiveness
Published Sunday, August 31, 2008
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Stumble It!FAIRBANKS — One-time $1,200 energy assistance payments will be combined with Alaska Permanent Fund dividends as a single, combined payment — and, like dividends, will be subject to garnishments and federal income taxes.
According to the state PFD Division, funds will be direct deposited on Sept. 12. Paper checks will be mailed Sept. 30 and can take up to two weeks for delivery.
Gov. Sarah Palin said in August that the PFD money and Alaska Resource Rebates would reach Alaskans earlier than usual this year to give people more time to prepare for winter energy bills. The Legislature approved the one-time, $1,200 resource rebates along with other energy-related measures at the end of a special session in August.
Some Alaskans may not be hurrying to the mailbox, however. Families who hadn’t established residency in time to be eligible for a PFD payment won’t be getting the resource rebate, and Alaskans facing garnishments also are out of luck.
Mary Pedroza fell behind on a student loan. She wishes the legislature would have considered garnishments when setting the rules for the resource rebate — because, as she knows, the last thing people who have fallen behind on debt need is a high energy bill.
“I don’t mind them getting my dividend,” Pedroza said. “I owe them money. But the energy rebate is supposed to help us through the winter.”
Lawmakers could have established a process so people like her could sign the energy check over to a utility provider or fuel bill, she said, calling for an emergency meeting to re-write the rules.
“In my case, the state is going to give me the money and take the money right back. I don’t mind them taking my dividend, but leave my energy rebate alone,” Pedroza said.
A few eligibility notes for the resource rebates:
• Veterans and their spouses and dependents who did not apply for a 2008 PFD and who are eligible for veterans’ benefits can apply for the rebate. Forms are available online at www.pfd.state.ak.us and must be received by the Department of Revenue by Oct. 1.
• People who deposit half their PFD payments into a University of Alaska savings account will still receive the entire $1,200 energy rebate.
• Rather not receive the energy help? A withdrawal form is available on the PFD Division Web site, www.pfd.state.ak.us.
Palin signed the $1 billion energy relief legislation on Aug. 25, along with a proclamation declaring September as “Energy Efficiency Month” in Alaska. The proclamation encourages energy conservation and efficiency at home, at work and on the road.
Aside from resource rebates to individuals, the energy assistance package increases the amount villages can borrow to fund bulk fuel purchases; extends the Power Cost Equalization program that helps rural Alaskans compensate for utility costs above the national average; suspend’s the state’s eight-cent tax on motor fuel for one year; and includes funding for renewable and alternative energy projects statewide.
Coupled with about $35.5 million tied to the Alaska Gasline Inducement Act license granted to TransCanada, the legislature’s energy package commits $945.9 million.
Community Discussion
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What about what you haven't had to do anything before but now might break you............I'd get ready to dig in everyone's pocketbooks everyone's and dig for change because that's what Obama want's is change!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Rena, did you gone crazy? The money that is given to Alaskans-under publications is the use of our long winter status.
I wonder if Mike Kelly is going to opt out of receiving the payment and I wonder if his wife is too? He called it morphine and welfare and spoke so strongly against it in the special session--so now is the time for him to tell the voters whether he decided to personally accept it or not.
So lets get this straight, you owe money and are upset that the energy rebate is going to pay off your debt? I understand that you could use this money to pay current bills or go out to eat, but think about how much this will take off of those debts...to help get you back on track?
I heard someone comment that he was upset because now both his dividend and the energy rebate will be taken to pay off back child support. He claimed that he needed the money and it should be his to spend however he wants. Well guess what, you've got responsibilities... be a man and step up and act like one! I have absolutely no sympathy for someone who fathers a child and then runs out on them, leaving the mother with no support.
Most of us will receive our dividends as well as the rebate. I have no problem with paying taxes on the money...I have no problem with the state taking a portion or all of it if I were behind in my child support (I'm not) It is extra money coming in from our oil revenues.
I don't live in a welfare state. I work hard to ensure that I have enough money to support myself. I've worked 2 full time jobs before when the money got tight. I've ate top ramen and mac-n-cheese when I couldn't truly afford a good steak. I don't live off of welfare...supporting myself off of the backs of hard working individuals...I work hard and ensure that I live within my means.
If you're not happy that you're getting the energy rebate added to your PFD, then decline it. If you're not happy that it will be taken to pay off your student loans or delinquent child support, then get a 2nd job and pay your damn bills!
Don't incur bills you can't pay. Live within your means. Get a second job. Get a roommate. Don't complain that money you didn't have to begin with, is paying down debt YOU owe.
I agree, People should not live beond thier means. This money can take care of alot of peoples debts. Then you can pay off fueling cost with the cash you are saving from not having those debts to pay. I think BERIC200 and Blazer explained it very well. Pay attention to the money you receive from now on because things can get better. We live in a wonderful state to give you that chance to get ahead not behind. No other state offers you free money every year. Be thankful you are able to have extra money garnished to pay off your debt.
I'm very grateful for the pfd's every year . I use it to pay off bills and yes I've used mine to pay my student loans up and at one time I worked 3 jobs to pay my bills and take care of my family also just to let you know I'm a single mom of 4 boys and 3 of them are adopted . So my rebate is going to where it needs to go . So if you loose your pfd's and rebate's to garnishment think of it this way its one less bill you got to worry about . Everything is tougher in ALASKA
Come on, some of these people have no intention of paying off their debts, whether the money comes out of their paychecks or out of the PFD. There are people out their who create debt with the idea that they will walk away from it. The garnishments involuntarily takes money they would have wasted away to pay their debts. The ones who complain the most are the ones who probably owe the most.
I like that this is happening. I have family members that refuse to apply for their dividends because they have accounts in collections from DUI's.
This year they are feeling really upset for not applying. Funny thing is if they would have applied last year they would have got the whole check this year!
Glad it went through this way!!
Can someone tell me why there is not a class action law suit filed to allow the $1,200.00 'energy assistance' payment to be given to all Alaskan residents, not just those who currently get the Permanent fund..??..There are perhaps thousand of Alaskan's facing the high energy costs who for what ever reason do not receive the permanent fund.
I have been behind in child support and I look forward to reducing my debt. I can no longer work due to disabilities, but I stay on top of my child support obligations. Quit crying and accept it. I do.
I see people being very critical of being who owe money and may have there PFD garnish because of this. Tough times happens to everybody, and sometimes even in the best situations, bad things happen. People get laid off, death in the family, serious health issues..etc. I am sure there are many people who live beyond there means, and rack up bills and then don't pay for them. My mother had Cancer several years ago and the bills started piling up, she try to paid as many as possible, but the high cost of health care is expensive. It was not her fault she didn't leave beyond her means, she was fighting for her life, so according to all of you, tough luck for her. We don't know everybody situation, We have no idea why there PFD was garnished. I do believe people who owe back child support, or rack up bills that were unnecessary should have there permanent fund garnished to pay these bills, but that doesn't help the people who have to pay to heat their homes and drive to there jobs. You people lack of compassion really bothers me, you put everybody in the same category because it is easy. I hope to God that you don't ever have to be put in situation you had no control over and have some of the things everybody saying on here, said to you.
I am the Mary mentioned in the article and I agree with bkjanet4 about people being critical about people owing money. I work 2 jobs (sometimes even 3 time allowing) and have for several years in order to
pay off my debts. My student loan went into default due to a my car being totaled by a moose requiring me to buy another vehicle, which was a necessity, thus incurring a monthly truck payment and an employer who took money out of my pay for taxes and never paid it to the IRS (the IRS said I was responsible for paying it and then had to sue the employer for - which took about 3 years to get). I ended up running out of forebearance time and the debt skyrocketed. I am still making monthly payments to the state for my student loan and my
PFD's are still being garnished. Like I said I have no problem with
them taking my PFD but I feel that the energy rebate should be used
specifically to help ease the fuel costs for the winter and people should be given the option to sign it over to fuel and electric companies. I work approximately 65+ hrs a week trying to pay off my
debts. I wasn't living beyond my means and have every intention of paying off my debts it was just a streak of bad happenings which I had no control over that altered my financial status so all of you out there being critical of others need to get off your "high horses" and have a little compassion for others especially when you don't know the circumstances surrounding others situations. In other words but for the grace of God it could be you.
Well, at least you have the opportunity to get the dividend check. In all the other states I imagine they would garnish your wages?
So, really, no one who actually can receive the dividend check should complain, whether it is being garnished or not.
Sometimes life teaches you valuable lessons in ways you may not like.
I've never posted a comment here but because of the pompous attitude of the mass majority, I feel the need to now. "Kudos!" to bkjanet4 for having the grace to understand, until you walk in another's shoes, be careful about judging them for the blisters they may have on their feet. I know someone who our court system just plea bargained for a DWI in order to drop a more serious charge that was tacked on, even though his blood alcohol test proved they were under the legal limit. Trooper test registered 8.4.(interesting) They ran because they were afraid. Enough said, about how someone can end up looking less than perfect to all the perfect people living in those fragile glass houses.Frankly, perfect people scare me. It usually means, they are very sneaky and excellent liars. Just check out our politicians! This energy rebate was a joke any way you look at it. And if that's the way Sarha's going to waste our money in Washington,I won't be voting for her. What needed to happen was a price subsidy at the must have warm house this winter store.
Thanks for sharing, Alaskarose.
so as I understand it my neighbor who is on public assistance getsv 800.00 a month on food stamps has 5 kids and dont work will get about $19000.00 at once in sept. and still be on welfare. this just is not right.
You have that right Frozn welfare recipients should not recieve the PFD. They are already living off the rest of us right now.
Pat
Hadn't thought about that aspect, but if Public Assistance is paying attention, they might very well garnish the ol' welfare check a bit. Goes back to what I had mentioned elsewhere that I don't recall any little kid kickin' in money to contribute for paying for heating fuel for their household.
I would say if you think these checks are bad then don't take them and send them to a church and feel good, but you might want to store them away in case Obama gets elected cuz he'll have more than those checks to give to someone else in some other country guaranteed. Its not the governors fault that some are in a bad situation but the checks will help the majority keep there head above water.
sourdoughjoe what are you talking about? our government money already goes to other countries to support the wars because of Bush.
The $1200 should not be subject to garnishment since it is given to offset the high energy cost.
"Welfare" includes Aid to Families with Dependent Children, rent assistance through low income housing and Section 8 rental assistance, energy assistance, food stamps and medical coverage through Denali Kid Care and the medicare/medicaid system. People on welfare refer to the checks they receive as their pay checks.
The AFDC program now has a 5-year lifetime limit, instead of lasting as long as you have minor children. Years ago, Alaska opted to hold-harmless welfare recipients, and provides monies to pay the welfare benefits when it pays out the PFD. With the 5-year rule being the case, welfare queens in Alaska are having a much harder time "Making a Living." It's getting harder to support the sperm donor who shacks up with the welfare queen...jeez perhaps people might start getting married and having families.
Since the 5-year lifetime limit went into effect, I suspect there is a great increase in applications for social security disability. Has anyone looked into that? (I haven't.) When applying for disablility, Alaska gives you money until Social Security reviews your case. If you can't get AFDC, then you have to do something, right? Get diagnosed with depression or ADHD, or a bad back, or mental retardation, something gotta work so one doesn't have to.
I don't agree with the hold-harmless benefit. You'll need to get with your legislators if you want to change how this works.
By the way, before someone decides to jump on me, I did apply for AFDC/food stamps one time, 1984. Turns out my $8 an hour job put me slightly over the limit for a divorced woman with two kids. The kicker was when I told the welfare worker I'd live better and my kids wouldn't have to go to day care, if I just quit my job and went on welfare, her reply was that I wouldn't be consequenced for that. I couldn't believe it. So, I got me a janitor job for a couple hours a night to keep food on the table. I went to the soup line for lunch so I'd be able to have milk in the fridge.
I don't know if that has changed now or not. My kids are grown now, and I still am working. I was able to work then because I did qualify for day care assistance, and that money went straight to the day care center.
As for rural Alaskans, if you want to live where there is no way to earn a paycheck, then live off the land. Not off the people who work.
If there is an exception offered for VA and military members, then perhaps the legislators could look at an exception for those people out there who can meet residency requirements but not necessarily the PFD requirements. Just a thought.
oops. Wrong thread - having a slow moment.
I pay my bills on time, i live within my means, i pay cash for everything that i can. i will use the EXTRA monies to continue to live as free from debt as i can.
be thankful your getting extra money and if it garnished to pay what you owe it will get you free of debt sooner and in the end you will be more grateful.
i know times are tough for alot of folks. thank goodness for family, friends and church to help each other. if your in deep debt there are a ton of jobs in Fbks. you might have to work two jobs but at least you will be paying off monthly bills that hold you a slave each month.
peace
Just getting on this thing.
And I must respond to "BEric2000's" "be a man and support your children" comments about the Energy Rebate, and subsequent complaints over garnishments for such things as child support.
While I do agree with him, nothing burns me up more than that mentality as if a man is the lone culprit whereas supporting children is concerned.
Folks, I know what if feels like to endure garnishments and the like in order to take care of obligations.
At the time, and amid some tough financial times, I weathered the storm, and made it through.
Our system of child support was unforgiving during that time, and since it was my obligation, it was dealt with.
For almost 10 years now, I have been the sole custodian of my daughter.
Dealing with a MOTHER who is negligent in HER financial duties to her first born child.
For the most part,the ONLY way I have been able to get ANY kind of financial support from her, is through garnishing her PFD.
I get a lump sum amount once a year.
And this year, she didn't even file for the PFD, so you're damn straight I'll be lobbying to garnish that Energy Rebate check.
My college-graduated (BBA-Human Resource Management--UAF '97) ex-spouse will be just fine.
She refuses to work, collects Public Assistance and has four other children's PFD's and Rebate checks to make it all work.
And trust me, she's waiting for it all with baited breath.
Before folks continually go off about how it's a "man's job" to support your children, understand....WOMEN are prone to the same utter stupidity, and "DEAD BEAT" status as the man.
And are thusly, obligated to step up in the same manner...AS the man.
Interesting how Betyursocks left childcare assistance and the soup kitchen off the list of what is considered welfare. Is it because that is something that she utilized? Welfare is defined as: a. Financial or other aid provided, especially by the government, to people in need.
We are all beneficiaries of welfare in one way or another. Call it an energy rebate, tax rebate, incentive payment, if it makes it easier to accept. It's not a perfect system but like with every other system we have it serves a purpose. There are people who abuse the system...everybody seems to know a story of someone who abuses the system or of someone the system did not work for. However, for countless others, myself included it was a tide over, during circumstances beyond my control.
I sure wish that people were kind to those who do not deserve the hardships that they struggle to face. I know how combination of many bad things can add up to make your life a terrible stuggle. Loss of job (program cuts caused lay offs) with this high unemployment rate (where are those jobs?) combined with a family member who needed health care caused the loss of most our dividends.
Like losing our house and only vehicle was not enough now we are struggling in every way to support our kids. How does someone get a job and work if they are living remote and there is not transportation! The cost of gas and heating is awful to face with these garnishments. I understand the loss of the PFD but not the energy rebate we desperately needed. I am proud of those who look at other peoples situations and are fair to their hardships.
I have sacraficed for my whole family so now I don't know how I am to even get my spouse to his current job so we can get on our feet, thanks to this garnishment issue.
We are not proud to be in debt but we also should be able to choose how and when we are actually able to pay, based on meeting our BASIC NEEDS first!
Our kids are suffering with us and believe me we were never living beyond our means. It was an awful fate for our family so far and we only want the chance to improve it. Money going to a mobil home or car debt when we are eating PBJ's and Ramen noodles to get by seems a bit unfair. We are spending more on gas to get to work than food and this seems wrong for our kids at least to suffer with us. I wanted to be the best I could but money is so tight and we already are in a crunch. Why do we need it harder in the mean time? We try to pay our bills as we can but our bad luck has been so significant in the last 5 years (deaths, loss of home and car, demands to care for our elderly, vehicle that was nothing but problems over $3000 to fix and be drivable, and lay offs at 4 different jobs in 5 years!)
No one can read the future and we all know that bad things do happen to good people. We are proof of that.
People should just be more understanding and considerate of each other! It is so right to say that you can't judge what you have not lived with.
The money may be free and if you are getting it you feel great but when you are in our shoes it is awful and quite wrong to have people saying we should loose the vital help we need to get ourselves on our feet. Luckly we keep praying and have hope still for a brighter future for our family.
We are still unable to understand any reason we don't get the energy help like everyone else!!!
Life has thrown a lot of curve balls thrown to some of us! We can't control everything. It just hurts our kids too, that is not right. In the end we are grateful for anything we get but it really could have been better if S.P. made better choices for the people who are needing the help the most and doing the best they can with what they have.
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