Alaska Residents Can Expect Dividend Check in October

Alaska residents can expect their dividend checks in October.  Beginning October 7, 2010, over 530,000 residents will receive a direct deposit of $1281 into their bank accounts while the remaining 85,000 eligible Alaska residents will have their checks mailed to them from the 2010 Alaska Permanent Fund.

The fund was created in 1976 when the trans-Alaska oil pipeline was nearly finished and the state received a $900 million "bonus" from petroleum companies thanks to the discovery of Prudhoe Bay's oil.  At that time, the residents of Alaska voted to set up a fund that would dole out an annual dividend to future generations rather than receiving a lump sum from the state's "windfall".

As of June 30, 2010, the total in the fund, including the constitionally required deposits and special appropriations by the state's legislature, comes to $14.7 billion.  Since 1980, the Alaska Permanent Fund has paid out $18.8 billion in dividends, including the 2010 distribution funds.  The amount of each year's dividend check is based on the market's performance.  This year's check is actually $24 less than last year's.

Alaska's economy is boosted by the dividend check distribution every year.  Thankfully, Alaska hasn't been as affected by the nation's economic troubles as much as most of the other states.  Local retailers are offering special deals in their stores just in time for the checks to arrive.  Spending some of that money will help keep the Alaska economy going.

Starting October 7th, Alaska residents can expect to receive their dividend check of $1281.  Spend it wisely and keep Alaska strong.  If you are looking to purchase or sell an Anchorage home, please contact me.  I'm always here to help.

Pauline Hofseth, your Anchorage real estate specialist