newsminer.com

FAIRBANKS — In the vice presidential debate last week, Alaska Gov. Sarah Palin said, “we have a $40 billion investment fund, a savings fund called the Alaska Permanent Fund.”

The governor needs to update her figures.

Three weeks ago today it was a $35 billion fund.

On the day of the debate, it was a $32.8 billion fund.

During the four business days that followed the debate, the fund lost more than $500 million a day, dropping to $30.5 billion as of Wednesday.

The stock market decline Thursday pushed it to $29.6 billion. The trend was continuing Friday on Wall Street.

The last few weeks have been the most difficult in the history of Alaska’s unique savings account, mirroring — on a multibillion-dollar scale — the experience of individual investors.

Since the most recent monthly performance report in August, the fund has lost about $5.5 billion.

Mike Burns, executive director of the permanent fund corporation, described the experience this week as a “very challenging time,” which is putting it mildly.

The loss of billions on paper is not pleasant, but it has not triggered a political uproar in Alaska.

I think this is mainly due to an understanding that has developed among Alaskans who have witnessed staggering declines in their own retirement accounts and still don’t know what to make of the economic chaos afflicting the nation.

The Alaska Permanent Fund did enjoy a brief moment as a $40 billion fund. When it edged past that number on July 12, 2007, the governor issued a news release saying, “We should all be proud of this milestone.”

That was just before $1 billion was transferred to pay 2007 dividends.

At the end of October 2007, the fund’s assets totaled $39.9 billion.

The current fiscal year began July 1 with the fund valued at $35.9 billion, trimmed by dropping stock prices and the summer transfer of $1.3 billion to pay dividends to Alaskans this fall.

The weeks since the collapse of several major financial institutions and the government bailout have been brutal.

If the fund is going to live up to its name, however, a long-term investment strategy is required, which means accepting the risks of periods with extreme market volatility.

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TARGETED: Officials from Target and an architectural firm that works with the big retailer were back in Fairbanks this week, conducting the “due diligence” needed before the company decides if it will build a local store.

Land on the north side of the Johansen Expressway near the Old Steese intersection is reported to be the targeted site.

If it happens, this would be the first project to fall under the new borough box store development standards. An application under that review process may be coming in a few weeks.

Target representatives talked to numerous people in town about prospects for building next year and opening in 2010, but the deal is not finished.

The chances of Target building in Fairbanks have been enhanced because the company opened its first Alaska stores Wednesday in Anchorage and Wasilla. Target is the fifth-largest retailer in the country.

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HAPPY BIRTHDAY: Some of the women in the Avery family got together to celebrate Emma Avery’s 80th birthday this week.

Two of her daughters, two granddaughters and one great granddaughter took part in the birthday dinner Tuesday. Avery, who has lived in Fairbanks since 1949, is the widow of Leroy Avery, who passed away 15 years ago. He came to Fairbanks to work at what was then Ladd Field.

As for Emma, her favorite pastime is going to church. You’ll often find her at the First Church of God in Christ.

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BEST WISHES: Friends are invited to drop by the Elks Lodge on Sunday afternoon to join an 80th birthday celebration for Frank DeLong.

DeLong, an oil industry veteran and solar power innovator, has been in Fairbanks since he helped launch the North Pole Refinery more than 30 years ago. He has been active on utility and energy issues.

The birthday celebration for the transplanted New Yorker is from 2 p.m. to 5 p.m. at the Elks Lodge.

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ELECTRIC RATES: GVEA has filed its latest proposed rate revision with the Regulatory Commission of Alaska. The proposal would mean a 5.6 percent rate increase for a residential user consuming 750 kilowatt/hours a month and 4.9 percent increase for a small commercial user consuming 2,000 kilowatt/hours.

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TASTES FISHY: If you want to nibble on salmon and crackers next week, swing by Wood Center for a salmon taste test to be conducted by the Fishery Industrial Technology Center from Kodiak and the UAF Cooperative Extension Service.

They need several hundred taste testers to evaluate canned pink salmon for appearance, color, taste, saltiness, bitterness, fattiness, flavor and texture.

Participants must be at least 18 and be among those who eat fish at least twice a month. Drop by conference rooms C and D from 10 a.m. to 3 p.m. Monday through Friday.

The test should last 10 to 15 minutes. Cookies will be served for dessert.