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| Comparisons | |||||
4.3 How Has the Differential Been Changing Over Time?
State and Local Outlays. Because of the concentration of public outlays at the state level in Alaska, it is best to compare combined state and local government expenditures in Alaska with combined outlays in other states. The U.S. Department of Commerce data on total outlays by state and local government shows a positive trend in real per capita state and local government outlays for the nation as a whole. In Alaska there was rapid growth through the early 1980s followed by falling real per capita spending in the 1990s.
A direct comparison of Alaska with the U.S. average shows Alaska total outlays per capita to be way above the national average. In 2000, the most recent year for which information is available, Alaska outlays were about 127 percent above the average for the U.S.--close to the ratio in the late 60s and early 70s.
| Alaska / US Avg Ratio of Per Capita State and Local Outlays | |||
|
Year
|
Total
|
Total
Net Dividend
|
Outlays
from Own Sources
|
|---|---|---|---|
|
1965
|
2.29
|
2.29
|
1.41
|
|
1966
|
2.18
|
2.18
|
1.56
|
|
1967
|
2.47
|
2.47
|
1.58
|
|
1968
|
2.28
|
2.28
|
1.68
|
|
1969
|
2.01
|
2.01
|
1.63
|
|
1970
|
2.09
|
2.09
|
1.83
|
|
1971
|
2.49
|
2.49
|
2.16
|
|
1972
|
2.70
|
2.70
|
2.44
|
|
1973
|
2.77
|
2.77
|
2.55
|
|
1974
|
2.65
|
2.65
|
2.45
|
|
1975
|
2.44
|
2.44
|
2.21
|
|
1976
|
2.5
|
2.5
|
2.27
|
|
1977
|
2.66
|
2.66
|
2.54
|
|
1978
|
2.76
|
2.76
|
2.67
|
|
1979
|
3.18
|
3.18
|
3.27
|
|
1980
|
3.84
|
3.84
|
3.92
|
|
1981
|
3.91
|
3.91
|
4.06
|
|
1982
|
4.14
|
3.55
|
3.67
|
|
1983
|
4.27
|
4.21
|
4.48
|
|
1984
|
3.98
|
3.82
|
4.06
|
|
1985
|
4.01
|
3.83
|
4.15
|
|
1986
|
3.68
|
3.46
|
3.73
|
|
1987
|
3.59
|
3.32
|
3.50
|
|
1988
|
3.21
|
2.94
|
2.88
|
|
1989
|
3.08
|
2.81
|
2.86
|
|
1990
|
2.88
|
2.62
|
2.66
|
|
1991
|
2.81
|
2.56
|
2.59
|
|
1992
|
2.63
|
2.41
|
2.49
|
|
1993
|
2.52
|
2.30
|
2.33
|
|
1994
|
2.46
|
2.24
|
2.30
|
|
1995
|
2.37
|
2.16
|
2.18
|
|
1996
|
2.31
|
2.08
|
2.07
|
|
1997
|
2.32
|
2.06
|
2.03
|
|
1998
|
2.26
|
1.97
|
1.92
|
|
1999
|
2.24
|
1.91
|
1.84
|
|
2000
|
2.27
|
1.92
|
1.86
|
|
Source: US Department of Commerce, Governmental Finances. |
|||
If we adjust Alaska outlays downward to take account of the higher cost of living (and, consequently, the cost of delivering public services) then Alaska was 90 percent above the national average. Netting out the Permanent Fund dividend Alaska was 60 percent above the national average. This is about the same size as the differential in the 1970s.
A large part of state outlays comes from federal grants. If we net out spending on the Permanent Fund dividend and spending that is financed by federal grants, we get the government outlays that are financed from OWN SOURCES (sources within the state). Alaska is 55 percent above the national average in government spending from own sources. This is much higher than before oil revenues began to flow when the state was more dependent on federal transfers to support public spending.
|
Alaska / US Avg Ratio of Per Capita State and Local Outlays (COLA Adjusted) |
|||
|
Year
|
Total
|
Total
Net Dividend
|
Outlays
from Own Sources
|
|---|---|---|---|
|
1965
|
1.50
|
1.50
|
.92
|
|
1966
|
1.43
|
1.43
|
1.02
|
|
1967
|
1.62
|
1.62
|
1.04
|
|
1968
|
1.52
|
1.52
|
1.12
|
|
1969
|
1.36
|
1.36
|
1.10
|
|
1970
|
1.44
|
1.44
|
1.26
|
|
1971
|
1.74
|
1.74
|
1.52
|
|
1972
|
1.90
|
1.90
|
1.72
|
|
1973
|
1.99
|
1.99
|
1.83
|
|
1974
|
1.91
|
1.91
|
1.77
|
|
1975
|
1.69
|
1.69
|
1.52
|
|
1976
|
1.69
|
1.69
|
1.54
|
|
1977
|
1.80
|
1.80
|
1.72
|
|
1978
|
1.88
|
1.88
|
1.82
|
|
1979
|
2.19
|
2.19
|
2.25
|
|
1980
|
2.76
|
2.76
|
2.81
|
|
1981
|
2.88
|
2.88
|
2.98
|
|
1982
|
3.05
|
2.61
|
2.71
|
|
1983
|
3.22
|
3.17
|
3.37
|
|
1984
|
2.98
|
2.86
|
3.05
|
|
1985
|
3.02
|
2.89
|
3.13
|
|
1986
|
2.77
|
2.60
|
2.80
|
|
1987
|
2.80
|
2.59
|
2.73
|
|
1988
|
2.59
|
2.37
|
2.32
|
|
1989
|
2.53
|
2.31
|
2.35
|
|
1990
|
2.35
|
2.13
|
2.16
|
|
1991
|
2.28
|
2.08
|
2.10
|
|
1992
|
2.12
|
1.95
|
2.01
|
|
1993
|
2.03
|
1.85
|
1.87
|
|
1994
|
1.99
|
1.81
|
1.86
|
|
1995
|
1.92
|
1.74
|
1.76
|
|
1996
|
1.87
|
1.68
|
1.68
|
|
1997
|
1.89
|
1.67
|
1.65
|
|
1998
|
1.85
|
1.60
|
1.56
|
|
1999
|
1.85
|
1.58
|
1.51
|
|
2000
|
1.90
|
1.60
|
1.55
|
| Sources: U.S. Department of Commerce, Governmental Finances, and ISER. | |||
(Note that the Alaska ratio to the US Average using "Outlays from Own Sources" is not quite the same as the ratio based on netting out the "Big Three" in the previous section. "Outlays from Own Sources" excludes all expenditures from federal grant money but includes all expenditures on agency interest. The ratio netting out the "Big Three" excludes the share of expenditures from federal grants and agency interest that is over and above the average for the U.S.)
State Outlays compared to the national average displays the same downward trend.
| Alaska / US Avg Ratio of Per Capita State Outlays | |||
|
Year
|
Total
|
Total
Net Dividend
|
Outlays
from Own Sources
|
|---|---|---|---|
|
1965
|
3.53
|
3.53
|
2.04
|
|
1966
|
3.07
|
3.07
|
2.08
|
|
1967
|
3.52
|
3.52
|
2.08
|
|
1968
|
3.25
|
3.25
|
2.39
|
|
1969
|
2.77
|
2.77
|
2.26
|
|
1970
|
2.92
|
2.92
|
2.69
|
|
1971
|
3.50
|
3.50
|
3.22
|
|
1972
|
3.78
|
3.78
|
3.68
|
|
1973
|
3.51
|
3.51
|
3.37
|
|
1974
|
3.40
|
3.40
|
3.28
|
|
1975
|
3.20
|
3.20
|
3.02
|
|
1976
|
3.33
|
3.33
|
3.22
|
|
1977
|
3.30
|
3.30
|
3.32
|
|
1978
|
3.53
|
3.53
|
3.65
|
|
1979
|
3.74
|
3.74
|
4.13
|
|
1980
|
4.76
|
4.76
|
5.25
|
|
1981
|
5.23
|
5.23
|
5.98
|
|
1982
|
5.80
|
4.84
|
5.49
|
|
1983
|
5.75
|
5.64
|
6.59
|
|
1984
|
5.38
|
5.12
|
5.99
|
|
1985
|
5.96
|
5.68
|
6.84
|
|
1986
|
4.55
|
4.19
|
4.92
|
|
1987
|
4.48
|
4.04
|
4.59
|
|
1988
|
4.04
|
3.60
|
3.68
|
|
1989
|
3.94
|
3.50
|
3.80
|
|
1990
|
3.81
|
3.38
|
3.68
|
|
1991
|
3.69
|
3.29
|
3.58
|
|
1992
|
3.50
|
3.14
|
3.57
|
|
1993
|
3.35
|
2.99
|
3.35
|
|
1994
|
3.30
|
2.95
|
3.39
|
|
1995
|
2.99
|
2.65
|
2.94
|
|
1996
|
2.95
|
2.58
|
2.81
|
|
1997
|
2.87
|
2.45
|
2.65
|
|
1998
|
2.78
|
2.23
|
2.28
|
|
1999
|
2.75
|
2.27
|
2.53
|
|
2000
|
2.77
|
2.23
|
2.33
|
| Source: US Department of Commerce, Governmental Finances. | |||
|
Alaska
/ US Avg Ratio of Per Capita State Outlays (COLA-adjusted)
|
|||
|
Year
|
Total
|
Total
Net Dividend
|
Outlays
from Own Sources
|
|---|---|---|---|
|
1965
|
2.31
|
2.31
|
1.34
|
|
1966
|
2.01
|
2.01
|
1.36
|
|
1967
|
2.31
|
2.31
|
1.36
|
|
1968
|
2.17
|
2.17
|
1.59
|
|
1969
|
1.87
|
1.87
|
1.53
|
|
1970
|
2.02
|
2.02
|
1.86
|
|
1971
|
2.45
|
2.45
|
2.26
|
|
1972
|
2.67
|
2.67
|
2.60
|
|
1973
|
2.52
|
2.52
|
2.42
|
|
1974
|
2.45
|
2.45
|
2.36
|
|
1975
|
2.21
|
2.21
|
2.09
|
|
1976
|
2.26
|
2.26
|
2.18
|
|
1977
|
2.23
|
2.23
|
2.25
|
|
1978
|
2.40
|
2.40
|
2.48
|
|
1979
|
2.59
|
2.59
|
2.85
|
|
1980
|
3.42
|
3.42
|
3.77
|
|
1981
|
3.84
|
3.84
|
4.39
|
|
1982
|
4.27
|
3.56
|
4.04
|
|
1983
|
4.33
|
4.25
|
4.96
|
|
1984
|
4.03
|
3.84
|
4.49
|
|
1985
|
4.50
|
4.28
|
5.16
|
|
1986
|
3.42
|
3.16
|
3.70
|
|
1987
|
3.49
|
3.15
|
3.57
|
|
1988
|
3.26
|
2.90
|
2.97
|
|
1989
|
3.24
|
2.88
|
3.12
|
|
1990
|
3.10
|
2.75
|
2.99
|
|
1991
|
2.99
|
2.66
|
2.90
|
|
1992
|
2.82
|
2.53
|
2.88
|
|
1993
|
2.70
|
2.40
|
2.69
|
|
1994
|
2.66
|
2.38
|
2.73
|
|
1995
|
2.41
|
2.14
|
2.37
|
|
1996
|
2.38
|
2.08
|
2.27
|
|
1997
|
2.34
|
2.00
|
2.16
|
|
1998
|
2.26
|
1.88
|
1.99
|
|
1999
|
2.27
|
1.84
|
1.88
|
|
2000
|
2.32
|
1.86
|
1.95
|
| Sources: US Department of Commerce, Governmental Finances, and ISER. | |||
Spending as a Share of Personal Income. Compared to the national average, Alaska has always been high in public spending as a percentage of personal income. Alaska is currently about twice the national average, down from nearly 3 times the national average during the "petrodollar" boom of the 1980s.
|
Alaska / US Avg Ratio of Per Capita State and Local Outlays as a Share of Personal Income |
|||
|
Year
|
Total
|
Total
Net Dividend
|
Outlays
from Own Sources
|
|---|---|---|---|
|
1965
|
1.93
|
1.93
|
1.19
|
|
1966
|
1.87
|
1.87
|
1.39
|
|
1967
|
2.08
|
2.08
|
1.34
|
|
1968
|
1.97
|
1.97
|
1.45
|
|
1969
|
1.63
|
1.63
|
1.32
|
|
1970
|
1.63
|
1.63
|
1.43
|
|
1971
|
1.94
|
1.94
|
1.68
|
|
1972
|
2.13
|
2.13
|
1.93
|
|
1973
|
2.20
|
2.20
|
1.95
|
|
1974
|
1.85
|
1.85
|
1.71
|
|
1975
|
1.43
|
1.43
|
1.29
|
|
1976
|
1.42
|
1.42
|
1.29
|
|
1977
|
1.61
|
1.61
|
1.54
|
|
1978
|
1.84
|
1.84
|
1.77
|
|
1979
|
2.20
|
2.20
|
2.26
|
|
1980
|
2.60
|
2.60
|
2.66
|
|
1981
|
2.66
|
2.66
|
2.76
|
|
1982
|
2.65
|
2.27
|
2.35
|
|
1983
|
2.78
|
2.74
|
2.91
|
|
1984
|
2.80
|
2.69
|
2.85
|
|
1985
|
2.87
|
2.74
|
2.97
|
|
1986
|
2.83
|
2.66
|
2.87
|
|
1987
|
2.97
|
2.75
|
2.90
|
|
1988
|
2.76
|
2.53
|
2.47
|
|
1989
|
2.61
|
2.38
|
2.42
|
|
1990
|
2.44
|
2.21
|
2.24
|
|
1991
|
2.31
|
2.11
|
2.13
|
|
1992
|
2.24
|
2.05
|
2.09
|
|
1993
|
2.17
|
1.98
|
2.00
|
|
1994
|
2.18
|
1.98
|
2.02
|
|
1995
|
2.12
|
1.93
|
1.96
|
|
1996
|
2.14
|
1.92
|
1.93
|
|
1997
|
2.18
|
1.94
|
1.95
|
|
1998
|
-
|
-
|
-
|
|
1999
|
-
|
-
|
-
|
|
2000
|
-
|
-
|
-
|
| Sources: US Department of Commerce, Governmental Finances, and ISER. | |||
Also look at: A Second Opinion
| Top
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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 January 6, 2004