The Institute of Social & Economic Research

The Alaska Citizen's Guide to the Budget

Financial Assistance
provided by:

Fiscal Policy Council of Alaska

Comparisons
Comparisons
Outlays—Per Capita
Outlays—Big Items
Outlays—History
Outlays—Rankings
Jobs and Payroll—Per Capita
Jobs and Payroll—Big Items
Jobs and Payroll—History
Jobs and Payroll—Rank
Assets and Debt
Financing Govt.
Compare Wyoming
Why Alaska Spends More
Tax Burden
State Share

 

 

4.14 State Share of Government Outlays

In Alaska a larger share of government outlays is delivered at the state level, even after taking into account grants from state to local government for education, revenue sharing, and other purposes. This invalidates spending comparisons across states if local government spending is excluded.

If the relative shares of spending responsibility in Alaska in 1999 had been the same as the national average, the state would have spent about $1.5 billion less, and local governments would have spent about $1.5 billion more. Even after netting out the Permanent Fund dividend (in the "other and unallocable" category in the tables below), the extra concentration of spending at the state level would have been about $1 billion.

The concentration at the state level is spread across most spending categories, with K-12 education, air transportation and highways together accounting for about $500 million (see table).

The Alaska Extra State Share is the extra percentage of government outlays in Alaska coming from the state rather than local sources. For example, the program most heavily concentrated at the state level in Alaska compared to other states is AIR TRANSPORTATION. In the US as a whole, 8% of combined state and local government expenditures for air transportation were paid by state government. In Alaska 89% were paid by state government. The extra Alaska state share was 81%, or $118 million.

1999 Alaska Extra State Share of Public Spending

  Alaska Extra State Share Extra State Spending
(thousand $)
     
STATE TOTAL $1,560,492
Air transportation (airports) 81% $118,154
Judicial and legal 46% $56,129
General public buildings 44% $24,517
Cash assistance payments 43% $72,168
Other and unallocable 39% $558,300
Other public welfare 36% $44,419
Correction 32% $48,894
Housing and community development 25% $35,103
Natural resources 24% $61,834
Elementary & secondary education 20% $272,453
Miscellaneous commercial activities 17% $17,335
Protective inspection and regulation 17% $4,757
Police protection 15% $26,191
Interest on general debt 14% $54,707
Libraries 14% $3,160
Highways 14% $101,046
Higher education 12% $41,536
Other governmental administration 11% $11,612
Health 11% $17,577
Financial administration 7% $15,193
Vendor payments 2% $7,277
Social insurance administration 0% $33
Parking facilities 0% $0
Fire protection 0% $0
Veterans' services 0% $0
Other education 0% $0
Parks and recreation -3% -$2,559
Sewerage -4% -$3,003
Solid waste management -12% -$6,383
Hospitals -15% -$13,152
Sea and inland port facilities -26% -$6,805

The graph compares the concentration of outlays (state + local government) in the US as a whole with the concentration in Alaska. We see that in Alaska, outlays are more concentrated at the state level in almost all categories. The exceptions are hospitals, sea and inland port facilities, solid waste management, parks and recreation, and sewerage. In Alaska outlays for these activities are more concentrated at the local level.

Ratio of State to State + Local Government Outlays, 1999

The following tables contain the data used to calculate the Alaska Extra State Share.

State and Local Government Direct General Expenditures by Level of Government: 1998-99
(thousands of dollars)

(includes operations and capital spending)

Description State and Local Alaska
State
Local
TOTAL
$7,131,493 $4,543,042 $2,588,451
Education services:      

Higher education

341,156 326,733 14,423

Elementary & secondary education

1,348,354 284,059 1,064,295

Other education

53,088 53,088 0
Libraries 23,173 4,230 18,943
       
Social services and income maintenance:      

Public welfare

     

Cash assistance payments

166,763 166,763 0

Vendor payments

398,670 398,670 0

Other public welfare

123,760 117,808 5,952

Hospitals

85,125 21,896 63,229

Health

165,287 103,839 61,448
Social insurance administration 24,692 24,692 0
Veterans' services 35,673 35,673 0
       
Transportation:      

Highways

748,166 553,416 194,750

Air transportation (airports)

145,928 129,861 16,067

Parking facilities

3,055 0 3,055

Sea and inland port facilities

26,196 0 26,196

Transit subsidies

0 0 0
       
Public safety:      

Police protection

177,696 52,196 125,500

Fire protection

63,126 0 63,126

Correction

154,514 153,161 1,353

Protective inspection and regulation

27,708 22,298 5,410
       
Environment and housing:      

Natural resources

257,337 253,808 3,529

Parks and recreation

73,820 9,557 64,263

Housing and community development

139,295 48,271 91,024

Sewerage

71,835 0 71,835

Solid waste management

52,390 0 52,390
       
Governmental administration:      

Financial administration

202,671 128,102 74,569

Judicial and legal

122,304 111,132 11,172

General public buildings

56,062 39,372 16,690

Other governmental administration

101,859 35,168 66,691

Interest on general debt

395,156 217,867 177,289
       
General expenditure, n.e.c.      

Miscellaneous commercial activities

100,444 100,444 0

Other and unallocable

1,446,190 1,150,938 295,252

Note: Note: State to local intergovernmental transactions are shown as part of local spending.

 

 

1999 Alaska Government Outlays
The Alaska Extra State Share Compared to U.S. Average
(thousand dollars)

 
Alaska: State Share
U.S. Average: State Share
Alaska
Alaska
Description State/
(State+Local)
State/
(State+Local)
Extra State Share Extra State Spending
TOTAL       $1,560,492
Education services:        

Higher education

96% 84% 12% 41,536

Elementary & secondary education

21% 1% 20% 272,453

Other education

100% 100% 0% 0
Libraries 18% 5% 14% 3,160
         
Social services and income maintenance:       

Public welfare

       

   Cash assistance payments

100% 57% 43% 72,168

   Vendor payments

100% 98% 2% 7,277

   Other public welfare

95% 59% 36% 44,419

Hospitals

26% 41% -15% -13,152

Health

63% 52% 11% 17,577
Social insurance administration 100% 100% 0% 33
Veterans' services 100% 100% 0% 0
         
Transportation:        

Highways

74% 60% 14% 101,046

Air transportation (airports)

89% 8% 81% 118,154

Parking facilities

0% 0% 0% 0

Sea and inland port facilities

0% 26% -26% -6,805

Transit subsidies

  40% -40% 0
         
Public safety:        

Police protection

29% 15% 15% 26,191

Fire protection

0% 0% 0% 0

Correction

99% 67% 32% 48,894

Protective inspection and regulation

80% 63% 17% 4,757
         
Environment and housing:        

Natural resources

99% 75% 24% 61,834

Parks and recreation

13% 16% -3% -2,559

Housing and community development

35% 9% 25% 35,103

Sewerage

0% 4% -4% -3,003

Solid waste management

0% 12% -12% -6,383
         
Governmental administration:        

Financial administration

63% 56% 7% 15,193

Judicial and legal

91% 45% 46% 56,129

General public buildings

70% 26% 44% 24,517

Other governmental administration

35% 23% 11% 11,612

Interest on general debt

55% 41% 14% 54,707
         
General expenditure, n.e.c.        

Miscellaneous commercial activities

100% 83% 17% 17,335

Other and unallocable

80% 41% 39% 558,300

Note: State to local intergovernmental transactions are shown as part of local spending.

 

 

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