Please note that I skipped over a lot of basic information while writing this article due to a previous submission. If you are interested in more information about how the PFD works, please for to "Get Paid to Live In Alaska," an article submitted in September of 2007.

The Permanent Fund is a stroke of brilliance that makes living in Alaska a little easier, considering the cost of living here. It is also one of those things that Alaskans love, as it is yet another thing that makes us unique. There is a special feeling up here, a solidarity that I haven't experienced anywhere else. As much as I disagree with the political pick of Sarah Palin as VP, I can't help but feel a measure of pride as well.

God bless the late Jay Hammond, former Governor of Alaska! He's the fellow who came up with the concept of the Permanent Fund Dividend (PFD). The State of Alaska took billions of dollars from its oil tax revenues and put it, under his direction, into an investment account. The PFD has a large office in Juneau that decides where to invest the diverse portfolio. It is spread out in stocks, bonds, real estate, etc. The interest gained is averaged out over 5 years and then divided among Alaskan residents. We will find out soon exactly how much that check will be, but it is estimated that this next check could be as high as $2,100.00. If so, it will be the highest PFD check ever distributed.

The PFD is a huge boon to living here. Of course, life is more expensive up here. We have the highest gas prices in the nation right now (or the second highest, depending on the day). According to a study done in April of 2008, Alaska is the 5^th most expensive state when it comes to electricity (Hawaii is number #1). Our cost per kilowatt hour is 14.96 cents, compared to the national average of 9.26 cents. The cost in the city is not so bad… the cost in the bush (remote Alaska) is outrageous. This, and more, has lead to the idea of an energy rebate.

The energy rebate is being carved out of a huge chuck of change that the state has made through the rise in the cost of oil (they receive tax revenue from the oil being pumped out of the North Slope). As one of my Alaskan friends put it, "it doesn't look good for the state government to be rich and its' people poor." The plan seems to be to add the $1,200.00 in with our PFD checks bringing the checks to about $3,300.00 per person, depending on the final amount of the PFD check. That is $13,200.00 for my family of 4. They have also decided to send out the PFD checks early, in mid-September instead of early October. I expect banner headlines any day with the exact amount of the check in big print on the front page of the Anchorage Daily News.

Despite the windfall feel of the $1,200.00 energy rebate, there are a lot of mixed feelings about it. I am happy to be getting the extra check. We will use it in the spirit intended by investing in a more efficient furnace to help with our overall fuel costs. But I can't help but wonder what amazing investments the state could have made with the mass of money that it is sending out. Perhaps they could have done something that would have helped us all with our long term gas, electric, and fuel costs for many years to come. The Daily Miner (up in Fairbanks) printed an article about the rebate which fueled a great deal of reader feedback. Read the article and comments at http://www.newsminer.com/news/2008/aug/07/alaska-legislature-passes-1200-energy-rebate/

The Anchorage Chamber of Commerce fields thousands of calls every year right after the amount of the PFD is announced. All of the sudden, Alaska seems like the place to be. Most of the time I would say that the PFD check helps us break even with the higher cost of living up here. This year is an exception with the additional energy rebate money thrown in. Still, if you are tempted to move up here in search of "free" money, here are a few thing to think about:

You gotta live with…

1. You have to live in Alaska for a full year starting January 1 through to December 31 before you can file to receive the PFD in March… to be delivered the following October.
2. In Anchorage, the shortest day of the year (December 21^st) offers us less than 6 hours of sunlight. Our average winter temperature is supposedly 20 degrees (F) in Anchorage, but it can be much colder than that for weeks at a time. (Note: Fairbanks is darker and colder)
3. A visit to the dentist can cost almost twice as much as in the lower 48 states (insult to injury), cars cost more, food costs more (especially fresh fruits and vegetables), and property is not inexpensive either. The average home cost is $315,000.00 (in Anchorage).
4. The domestic crime rate is high and so is the high school drop out rate.
5. Craziness... like bear attacks, moose on the road, and an extraordinary number of floatplanes overhead.

You get to live with…

1. The longest day of the year (June 21) has over 19 hours of light… in fact it never gets completely dark. The average summer temperature is in the 60's. (In Fairbanks it is lighter and much much hotter).
2. Anchorage has no sales tax. It makes store math easy. A $5.00 item actually cost just $5.00.
3. You get to tease Texans about their tiny state. Alaska is 2 1/2 times the size of Texas. The city limits of Anchorage reach North and South making us about the size of Delaware (but with only 277,000 people living here, about 42% of the state's population).
4. If you do well in school, the University of Alaska has many scholarships designed to keep the best students in the state. They offer over 1000 scholarships to top students, up to $11,000 per year. This is a general academic scholarship, there are also many individual and program based scholarships available.
5. Property costs outside of the city are low.
6. Craziness... like mild bear sightings, moose alongside the road, and an extraordinary number of floatplanes overhead

I could go on and on with both lists, probably. I love it here, so my list would be heavy on the "get to" side, but I know plenty of people who would rather be elsewhere, especially in the winter. In "Gentlemen Prefer Blondes," Marilyn Monroe had a line that went something like this. "A man having money is like a girl being pretty. It may not make you love him more, but doesn't it help?" That is what the PFD is to Alaska. It won't make you love it, but it sure doesn't hurt.