The Institute of Social & Economic Research
Financial
Assistance
provided by:
| 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
2.8
The Economic Impact of Cash on the Street
The $6.8 billion from state government activities that became "Cash on the Street" in 1999 generated jobs and income throughout the economy, mostly in the private sector. We estimate about 98 thousand jobs in total were dependent, both directly and indirectly, on these billions.
| Jobs Generated by "Cash on the Street" for 1999 (thousands) | |
|
Category
|
Annual Jobs |
|---|---|
| Total |
97.8
|
|
Operations:
Personnel
|
31.6
|
|
Operations:
Local Operating Grants
|
25.0
|
|
Operations:
Local Debt Service
|
-
|
|
Operations:
Grants to Persons
|
5.5
|
|
Operations:
Contracts
|
3.1
|
|
Operations:
Debt Service
|
-
|
|
Operations:
Commodities
|
.9
|
|
Operations:
Travel
|
.4
|
|
Operations:
Equipment
|
.1
|
| Operations: Misc |
.4
|
| Capital |
12.6
|
| PF Dividend |
9.4
|
| Other |
-
|
| Public Employee Retirement |
3.3
|
|
Unemployment
Comp
|
.6
|
| AK Railroad |
.8
|
| State Shared Taxes |
4.1
|
| Source: ISER calculation. Annual jobs. | |
The personal income generated by this spending was about $5.43 billion.
| Personal Income Generated by "Cash on the Street" for 1999 (billion $) | |
|
Category
|
Personal Income |
|---|---|
| Total |
$5.43
|
|
Operations:
Personnel
|
$1.30
|
|
Operations:
Local Operating Grants
|
$
.92
|
|
Operations:
Local Debt Service
|
-
|
|
Operations:
Grants to Persons
|
$
.66
|
|
Operations:
Contracts
|
$
.10
|
|
Operations:
Debt Service
|
-
|
|
Operations:
Commodities
|
$
.03
|
|
Operations:
Travel
|
$
.01
|
|
Operations:
Equipment
|
$
.00
|
| Operations: Misc |
$
.01
|
| Capital |
$
.56
|
| PF Dividend |
$1.13
|
| Other |
-
|
| Public Employee Retirement |
$
.40
|
|
Unemployment
Comp
|
$
.07
|
| AK Railroad |
$
.03
|
| State Shared Taxes |
$
.20
|
| Source: ISER calculation. Personal Income from state spending. | |
The job and income multipliers used to generate these estimates are shown in the next 2 tables. These reflect the total, direct and indirect, impact of $1 million of "Cash on the Street" from various types of spending.
| "Cash on the Street" Job Multipliers for 1999 | |||
|
Category
|
Govt |
Other Jobs |
Total Jobs |
|---|---|---|---|
|
Operations:
Personnel
|
15
|
12
|
27
|
|
Operations:
Local Operating Grants
|
10
|
12
|
22
|
|
Operations:
Local Debt Service
|
-
|
-
|
-
|
|
Operations:
Grants to Persons
|
-
|
11
|
11
|
|
Operations:
Contracts
|
-
|
12
|
12
|
|
Operations:
Debt Service
|
-
|
-
|
-
|
|
Operations:
Commodities
|
-
|
7
|
7
|
|
Operations:
Travel
|
-
|
8
|
8
|
|
Operations:
Equipment
|
-
|
7
|
7
|
|
Operations:
Misc
|
-
|
7
|
7
|
| Capital |
-
|
10
|
10
|
| PF Dividend |
-
|
11
|
11
|
| Other |
-
|
-
|
-
|
| Public Employee Retirement |
-
|
6
|
6
|
| Unemployment Comp |
-
|
6
|
6
|
|
AK
Railroad
|
-
|
11
|
11
|
|
State
Shared Taxes
|
-
|
17
|
17
|
| Source: ISER calculation. Annual jobs per $1 million of state expenditure. | |||
| "Cash on the Street" Income Multipliers for 1999 | |
|
Category
|
Personal Income |
|---|---|
|
Operations:
Personnel
|
$1,106
|
|
Operations:
Local Operating Grants
|
$807
|
|
Operations:
Local Debt Service
|
-
|
|
Operations:
Grants to Persons
|
$1,323
|
|
Operations:
Contracts
|
$389
|
|
Operations:
Debt Service
|
-
|
|
Operations:
Commodities
|
$243
|
|
Operations:
Travel
|
$243
|
|
Operations:
Equipment
|
$243
|
|
Operations:
Misc
|
$243
|
| Capital |
$432
|
| PF Dividend |
$1,323
|
| Other |
-
|
| Public Employee Retirement |
$662
|
| Unemployment Comp |
$662
|
|
AK
Railroad
|
$455
|
|
State
Shared Taxes
|
$807
|
| Source: ISER calculation. Annual personal income (thousand $) per $1 million of state expenditure. | |
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Institute of Social and Economic
Research, University of Alaska Anchorage
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Physical Address: 4500 Diplomacy Drive, Suite 501, Anchorage, Alaska
(907)786-7710
Page Updated April 16, 2003