I want my PFD

Frontiersman

MAT-SU — There’s a scene in “The Simpsons Movie (2007)” where a border patrol agent hands Homer a wad of cash as he enters into the last frontier proclaiming, “Welcome to Alaska. Here’s $1,000.”

And so goes the fascination with Alaska’s Permanent Fund Dividend (PFD).

Despite common Outside belief, every Alaska resident knows the rule — maintain residency for an entire calendar year and you’re eligible the next year to receive money from the state. The annual windfall comes in the form of dividend payments earned off the state’s oil industry. Gov. Sarah Palin announced this past week that every qualifying Alaska resident will receive $1,654, which is $547 more than last year and the fourth highest ever.

Sorry, newcomers.

It is no surprise then that many Mat-Su Valley residents had already made plans for their dividends even before Gov. Palin made the announcement Wednesday morning. What will qualified Alaska residents do with their dough starting Oct. 3, when dividends are issued?

Some, like Fran Sedovic, are ready for an overdue vacation.

“We’re making our way down to Wisconsin in mid-October to see my kids,” Sedovic said. “The PFD will cover that trip.”

A Wasilla resident for more than 20 years and recently retired, Sedovic finds comfort in receiving her PFD each year and said it gives her an opportunity to do things she otherwise wouldn’t be able to.

Sedovic’s son, Ron, is in Wasilla visiting his mother for the week, and although he is not a resident of Alaska anymore, he remembers the good old days when he, too received a PFD payout.

“I received the very first PFD in 1982 and it reminds me of how easy it was to live in Alaska,” Ron Sedovic said. “With no sales or state taxes, I had it pretty good.”

Others, like Kathleen Hanson of Wasilla, will use their PFDs for more sensible pursuits — paying bills.

“We’ll need it to pay off the debt,” Hanson said.

Many families like Hanson’s combine their PFDs to get caught up financially and help the family get back on its feet. The PFD can become a part of a family’s dependable income.

Then there are shoppers.

“A couple putting their PFDs together towards a new car is pretty common here,” said Mark Cavanaugh, general manager of Alaska Sales and Service in Wasilla.

While no immediate signs shoppers are ready to invest in a new vehicle has emerged since the announcement when people begin receiving their money that will change, he said.

“The last three PFDs have been fairly low, so people tend to hold onto their money when that occurs,” Cavanaugh said. “This year, two PFDs, or $3,000, can help a lot in making a down payment on a new car, so we should be seeing a response soon.”

Annabella Lattimore of Wasilla doesn’t see her family taking immediate advantage of her PFD, she sees an investment.

“My husband and I are putting ours in the bank to help for our daughters’ school costs when they’re older,” Lattimore said.

Lattimore’s daughters, Kristina, 9, and Alicia, 4, still have awhile to go before they can put their PFDs to good use, but Lattimore said it’s all part of a bigger picture.

“Kristina wants to be a marine biologist one day,” she said. “We’re following in the family tradition of preparing our kids for their future, and what a better way to do it than with the PFD.”