ANCHORAGE, Alaska — Yes, you could call it free money. But that doesn’t mean all Alaskans are happy about the $1,022 dividend checks nearly every resident will receive starting Thursday from the state’s oil wealth fund.

Folks were looking at getting more than twice that amount.

“It’s really putting the hurt on my community,” said Joel James, mayor of the tiny Yup’ik Eskimo village of Gambell, which, like many remote communities around the state, is plagued by chronic unemployment and astronomical living expenses. “I’m definitely disappointed.”

Each year, residents get the checks from the Alaska Permanent Fund, a reward of sorts for living here at least a full calendar year.

It’s fun money for some, with businesses offering highly advertised dividend deals. For others, it’s a way to make ends meet. The amount of the annual checks is based on a five-year average of the multibillion-dollar fund, and they took a hit when recession years were part of the formula, with $900 checks issued in 2013 before payouts rebounded again.

Last year, the amount for every person was a record $2,072. And this year, the check was estimated to be even higher at about $2,100. That is, until Gov. Bill Walker stepped in and shrunk the amount because of the state’s multibillion-dollar budget deficit, a situation exacerbated by low oil prices.

Walker’s action is being challenged in court by state Sen. Bill Wielechowski and two former lawmakers who allege the governor illegally vetoed fund earnings appropriated for dividends.

Walker said in a statement he did not take his decision lightly, and he acknowledged it may have upset some Alaskans.

He said setting the amount of this year’s dividend “more in line with the historical average” will ensure there’s money for future distributions.

“Alaska lost over 80 percent of its income in just two years, and we are burning through $12 million of savings each day,” Walker wrote.

The fund was established in 1976 after the discovery of oil on Alaska’s North Slope.