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 |
Where Did the Money Go?
| Total State Appropriations for FY 1999 in Billions |
$6.709
|
| Labor Cost |
$1.203 |
|
$1.020
|
|
| Payments to Individuals |
$1.693
|
| Purchases from Private Businesses |
$1.789
|
| Inflation Proofing, Debt Service, Special |
$0.548
|
| Intragovernmental Charges |
$0.454
|
| 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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Institute of Social and Economic
Research, University of Alaska Anchorage
Mailing Address: 3211 Providence Drive, Anchorage, Alaska 99508
Physical Address: 4500 Diplomacy Drive, Suite 501, Anchorage, Alaska
(907)786-7710
Page Updated April 22, 2003