Direct deposits kick off PFD spree

Oct. 14, 2005

DAWN DE BUSK\Frontiersman reporter

MAT-SU - When Sam Stackhouse received his Alaska Permanent Fund dividend check, he decided to drive to Wasilla, hit Fred Meyer, and really stock up. First, he treated himself to something he hadn't done in a while.

&#8221We filled the vehicles up with gas for the first time in a long time,“ the Big Lake resident said.

Many Valley residents received their PFDs on Wednesday, when the checks were automatically deposited into bank accounts. Others may wait a little longer for the checks to come in the mail.

With each resident getting $845.76, the annual windfall from oil-revenue investments this year will bring $61,740,480 into the Mat-Su Borough. That's based this year on a population of 73,000 - a statistic quoted by Neal Fried, state economist with the Alaska Department of Labor.

&#8221We are definitely stocking up on food. We also got a case of oil for the cars, some movies and some CDs,“ Stackhouse said.

While the Big Lake residents are enjoying having a tankful of gas, some residents may be finding that their money isn't getting the mileage it once did.

Since Wednesday, the phone has been ringing off the hook at Travel Solutions in the Cottonwood Creek Mall.

People are looking for those great permanent fund deals - nabbing four plane tickets and paying with just one dividend, according to travel agent Kim Boggs.

&#8221The airlines stopped doing those deals,“ she said, adding that the high cost of jet fuel has driven up the cost of flying. &#8221Another thing is - and put this in big, bold letters - people wait for their dividend to arrive to book for Thanksgiving and Christmas travel. It's too late by then. There aren't any inexpensive tickets available anymore. The time to start booking holidays is when you get your tax return. Ninety percent of the phone calls are for holiday travel.“

When people hear the price quotes for the popular dates they want to travel, they are shocked, she said.

&#8221The fares are horrible. You have to win the lottery to buy holiday tickets now,“ she said.

However, Boggs said she's sold between 15 and 20 Hawaiian vacation permanent fund packages. That plan provides airfare, hotel stay and car rental for two people for about $1,600.

Some residents would prefer to use their windfall to explore colder climes via snowmachine.

&#8221A lot of kids are buying parts and accessories. They're getting ready to roll for the season,“ according to Jarrod Gibbs, from the parts and service department at Performance Yamaha. &#8221The PFD doesn't affect our big-ticket items. The guys who are buying the machines have money. They're making six-digit salaries.“

It isn't just teens with disposable income once the permanent fund arrives, or people who already have money above and beyond their monthly bills who are buying snowmachine shops.

Big Lake residents Jim Carlson and his wife combined their PFD checks to purchase a used Polaris 500 SKS from a private party who had been advertising the recreational machine for sale.

&#8221Families pool together to get snowmachines,“ according to Jamie Davis, head of financing with Hartley Motors in Palmer. &#8221In the past, we have done a lot of business with families in the Bush. They send us their dividends, and we take a snowmachine to the airlines in Anchorage to be flown to them.“

Some people in the Bush opt to buy an off-road vehicle from the Valley dealer.

So far, this year, there have been two Bush orders paid off with dividends, Davis said.

&#8221It's a little early to tell, since many of the people living in villages don't have direct deposit,“ Davis said.

Contact Dawn De Busk at 352-2252 or dawn.debusk@ frontiersman.com.