What was it like in Anchorage today as $1.6 billion worth of Permanent Fund dividend and "resource rebate" money washed over the state economy?
For one thing, the lines were long.
There was nary a parking spot at the Dimond Center mall, where sports fans were wheeling big-screen TVs out of Best Buy. In line at Fred Meyer, there were wads of cash. From banks to the iPhone line at the AT&T store, people were queued up, waiting to spend the biggest payout in the history of the state.
An estimated 500,000 Alaskans received up to $3,269 in their bank accounts today, thanks to direct deposits of their annual PFD and one-time "resource rebate" payments from the state, meant to offset high energy prices.
About 100,000 other Alaskans will receive their payments by check starting the week of Sept. 30.
The Permanent Fund dividend portion of the payment totaled $2,069, the largest dividend ever since the annual wealth-sharing began in 1982. The money comes from investment profits of the $35 billion Alaska Permanent Fund, the state's oil-revenue savings account.
The state is paying the $1,200 resource rebate out of windfall oil revenue due to high oil prices and a new tax on oil company profits.
In a line that snaked outside of an Alaska USA Federal Credit Union branch, there was a lot of math going on. A family of five? That's more than $16,000! What about a family of 12? That's 40 grand! It started to rain. Someone headed to the front of the line carrying a couple of pizzas. The damp crowd seemed jovial, kind of like everyone just won a game show prize.
"I'm planning on paying off all my bills in advance, my rent a couple of months ahead of time and getting my Christmas shopping done this weekend," said Tessa Eck, mother of three, who had five checks to play with.
"I'm gonna spend it on new clothes and a new car and probably go to Las Vegas," said Wesley Brewington, who only had his own.
"We're buying a van," said Carmen Smith, who was standing with her husband. They'd actually taken one for a test drive and parked it in the lot at the bank.
"We just gotta bring back the cash."
In Mat-Su, where many people heat with oil, some people were actually spending some of the money on energy. Fuel trucks for several companies were busy all day. The price of heating oil is over $4 a gallon.
"Our phone has been ringing off the hook," said Sam Newman, manager at Valley Fuel. "It's been the biggest boost all year."
Others were donating. Anchorage resident Carla Beam and a group of acquaintances came up with an idea for a program to donate energy rebates to people struggling with utility bills. United Way will take the money, she said, sending 70 percent to the villages with the highest energy costs and 30 percent to urban families having trouble making ends meet.
"A small group of us decided we didn't need it and others needed it significantly," she said.
Some sent money to political campaigns. Jason Nelson, who didn't agree with the "energy rebate" in the first place, said he wanted to help elect people who wouldn't spend state money with payouts. He split his $1,200 between Mark Begich, Ethan Berkowitz and Barack Obama.
Nathan Osburn, spokesman for Obama's campaign in Alaska, said several people had done the same. Calls to John McCain's campaign were not immediately returned.
In Anchorage, business was brisk in the lobby at Enstar Natural Gas Co., which is expecting a 22 percent increase in prices this year. People who use their rebate to prepay get a $25 credit.
"We've had several hundred customers come in and put $1,200 or some other large amount against their account," said Curtis Thayer, Enstar spokesman.
Things were a little slower over at ML&P, an Anchorage electric company.
"They were expecting to be slammed, but actually haven't been. We had one person make a $1,200 payment," said spokeswoman MaryAnn Hanson.
"But I wouldn't want to be at Best Buy today."
Find Julia O'Malley online at adn.com/contact/jomalley or call 257-4591.
By JULIA O'MALLEY
jomalley@adn.com