"The problem is that Alaska itself is a bust. The state has a spending problem, mostly because spending has never been a problem before. If you are a resident of Alaska the Permanent Fund is essentially your government trust. The fund's trustees spend liberally on the state's bureaucracy while residents feed off the crumbs every fall by way of the PFD. The same people who believe the dividend has created an entitlement state tend to earn the highest incomes in the state's best jobs and vocally oppose the idea of a statewide income tax. Instead they Pick, Click, Give away their dividends for a much needed tax deduction and they won't miss the money either way. The PFD comprises a much more significant portion of income to Alaska's less affluent families and local businesses, where this year's garnishment will be felt the most."
http://www.anchoragepress.com/opinion/new-world-alaska