The Institute of Social & Economic Research

The Alaska Citizen's Guide to the Budget

Financial Assistance
provided by:

Fiscal Policy Council of Alaska

Comparisons
Cash on the Street
Labor Cost
Grants to Local Govt
Payments to Individuals
Purchases from Business
Inflation Proofing, etc.
Intragovernmental Charges
Appropriations to COTS
Economic Impact of COTS
 
 
 

 

 

2. Cash on the Street

2.2 Grants to Local Governments and Non-Profit Corporations—$1.020 billion in 1999

Grants to local governments and non-profit corporations accounted for about 28% of the operating budget. The distinction between a transfer to an individual that is actually paid to a service provider, such as a payment for a health service, and a grant paid to a non-profit that actually benefits an Alaska household is somewhat fuzzy. Grants generally pay for services that provide for the general welfare whereas transfers to individuals are targeted to certain individuals or groups. The Foundation Program for the support of primary and secondary education, municipal assistance, and revenue sharing are good examples of grants to local governments. Medical assistance grants for public health, social services, and alcohol and drug abuse are good examples of money channeled to non-profits such as the Yukon-Kuskokwim Health Corporation for the delivery of services that could otherwise be done by state workers.

The Department of Education handles the largest share of grants, over 80% of the total. In fact over 90% of the Department of Education budget flows through to local governments as education-related grants. The largest of these are the Foundation Program ($660 million), teaching and learning support programs ($67 million), and pupil transportation ($36 million). (School debt reimbursement is included in Debt Service rather than here.)

Two other agencies, the Departments of Health and Social Services and Community and Regional Affairs (now incorporated into the Department of Community and Economic Development) account for most of the rest of the grant activity of the operating budget.

A small portion of the capital budget is grants to local governments and non-profits for capital projects. For example, Municipal Matching Grants and Unincorporated Matching Grants totaled about $16 million. Since this is such a small portion of the total capital budget and it ultimately is spent for construction services, we have included it with the rest of capital spending rather than in this category.

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Page Updated April 16, 2003

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