The Institute of Social & Economic Research

The Alaska Citizen's Guide to the Budget

Financial Assistance
provided by:

Fiscal Policy Council of Alaska

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

Where Did the Money Go?

Total State Appropriations for FY 1999 in Billions
Labor Cost


Grants to Local Governments and Non-Profits

Payments to Individuals
Purchases from Private Businesses
Inflation Proofing, Debt Service, Special
Intragovernmental Charges
Source: Legislative Finance, Summary of Appropriations, the FY98 Session (for FY 1999), 1999 capital and 1999 operating budget spreadsheets, and ISER calculations. Note: This is what the legislature appropriated for spending in the fiscal year from July 1, 1998, through June 30, 1999.

State spending has a big impact on the Alaska economy as we can see by looking at how the annual budget appropriation is broken down by recipient. But to account for all public dollars that impact the economy, we need to calculate "Cash on the Street," which is a more comprehensive measure of the amount of money flowing from state government into the economy each year. How to Derive "Cash on the Street" from Appropriations

Spending on labor costs, grants to local government, payments to businesses, payments to individuals, etc.—each has different jobs and income impact. We can use simple multipliers to get a rough estimate of the impact of each type of spending as well as the total number of jobs and amount of personal income generated by state spending. Economic Impact of "Cash on the Street"

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Page Updated April 22, 2003

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