PFD does NOT stand for "Personal Flotation Device""

Before we moved to Alaska, we frequently heard "they pay you to live there, don't they?", referring to the payment that most Alaskans get every year from the oil profits.  I believe most people who live in "the U.S." (meaning the lower 48) have heard of the payment that every person living in Alaska receives every year, just for putting up with the cold, snow and remote-ness of the state, paid for by oil profits.  I also think that most people assume that this check is BIG and makes up for the challenges that come from living in Alaska.  Partly true, mostly not.  Let's start from the beginning - the PFD stands for "Permanent Fund Distribution", which started in 1978 (didn't you think it was older than that??) when a state constitutional amendment was approved to distribute the funds from an account where the profits from oil sales were deposited.  The thought was to pay every person in Alaska $50 for every year of residency since statehood in 1959.  However, that was declared unconstitutional in the original form, and it wasn't until 1982 that the amendment was approved, giving an equal amount to all who lived in the state for at least 6 months.  The first payment was $1000 - there wasn't enough in the fund at that time to pay the $100 million that was necessary so a loan was arranged from the state general fund which, by the way, was never paid back.  Someone must have been asleep at the wheel!!  Over the next few years, the law was changed over and over again - first from 6 months residency to 24 months, then to 12 months with a "physical presence" demanded for at least 72 hours.  And, up until 1996, even those with a criminal records (no felonies, only misdemeanors) could qualify.  Now, you must be a full-time resident of Alaska, qualifying by use of a registration form that one must complete and turn in by a deadline.  This year, the deadline was in March for those who were full-time residents through December 31, 2011.  The payment will be received (most by direct deposit) on October 4th in the amount of $878.  It has been as high as $2,069 in 2008 and as little as $331 in 1984.  There is a complicated formula to calculate the PFD - bear with me: 1) Add Fund Statutory Net Income from the current plus the previous four fiscal years; 2) Multiply by 2.1%; 3) Divide by 2; 4) Subtract prior year obligations, expenses and PFD program operations; 5) Divide by the number of eligible applicants.  Since 1982, the PFD has distributed over $17.5 BILLION DOLLARS.  Alaskans use the dividend for many things - those in rural Alaska depend on it to purchase clothes and food that they otherwise couldn't afford since they truly "live off the land".  Those that are more affluent use it for their annual ski pass here in Juneau at Eaglecrest or to winterize or store the boats that are so important to the Alaskan way of life.  Others, foolishly, use it for alcohol or cigarettes.  There are stories of people who travel to larger Alaskan towns by ferry where they go to the local Costco or Walmart and load up their cars with beer, whiskey and cigarettes.  Some use their children's checks (yes, even infants get a check) to start college funds, pay for braces or eyeglasses or purchase a whole years worth of clothing (those darn kids don't get smaller, you know!).  There is even a way to donate the entire check via the online program "Pick.Click.Give".  Print and television/radio ads are ripe with dividend check "specials" - even my own Alaska Vision Center is having a special on eyeglasses to capture some of those dollars.  In our case, we don't qualify yet for the PFD.  Even though we have lived in Alaska for a year (Bill was a resident as of June 1, 2011) we didn't qualify.  The requirements changed from a revolving year to a calendar year in 1993 which means that in January of 2013, both Bill and I will be able to register for the dividend to be paid in October, 2013.  I am hoping that this will be the biggest dividend ever!!  I might even be able to buy a boat to go with my PFD (the other kind)!!