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6.
State Assets
6.1
Trust (and Agency) Funds
Most state
assets ($ 50 billion at the end of 2001) are held in the form
of trust funds; that is, funds that are designated for the support
of a certain group or constituency. By far the largest is the
Alaska Permanent Fund (in accountant parlance known as a non-expendable
trust). The Constitutional Budget Reserve is also a trust
fund (an expendable trust).
A large share
of trust assets consists of the various pension funds for state
and local government employees (pension trust funds). Miscellaneous
other funds holding money in trust for various groups fall into
the agency funds category.
Trust
and Agency Funds, end of Fiscal Year 2001 in Billions
Nonexpendable
Trust Funds (Endowments)—end of Fiscal Year 2001
| |
(million
$)
|
| Alaska
Permanent Fund (34030)
- Alaska Constitution, article IX, section 15 - |
Administered
by the Alaska Permanent Fund Corporation. The Alaska Constitution
provides that at least twenty-five percent of all mineral
lease rentals, royalties, royalty sale proceeds, federal mineral
revenue sharing payments, and bonuses received by the State
shall be placed in the Permanent Fund. Subsequent legislation
increased the Permanent Fund’s share to fifty percent
for rents and royalties on mineral leases issued after December
1, 1979, and for bonuses on mineral leases issued after February
15, 1980. |
| Total Assets: |
$26,608
|
| Assets Less Liabilities: |
$24,815
|
| FY 2001 Revenue: |
$-884
|
| FY 2001 Net Income: |
$-2,040
|
|
| Public
School Trust Fund (34010)
- AS 37.14.110 - |
Administered
by the Departments of Revenue and Natural Resources. The
principal consists of the July 1, 1978 balance from the
public school permanent fund and one-half of one percent
of the receipts derived from the management of State lands.
The income from the trust is used exclusively for the support
of the State public school program.
|
| Total Assets: |
$287
|
| Assets Less Liabilities: |
$286
|
| FY 2001 Revenue: |
$13
|
| FY 2001 Net Income: |
$-2
|
|
| Alaska
Children’s Trust Fund (34050)
- AS 37.14.200 |
Administered
by the Department of Health and Social Services, and the
Alaska Children’s Trust Board established in the Office
of the Governor. The income from this endowment is used
to provide a continuing source of revenue for grants to
community-based programs for the prevention of child abuse
and neglect.
|
| Total Assets: |
$9
|
| Assets Less Liabilities: |
$9
|
| FY 2001 Revenue: |
$.442
|
| FY 2001 Net Income: |
$-.344
|
|
|
The
Alaska Mental Health Trust Authority administers the Mental
Health Trust Fund which was created in territorial days
when Congress passed the Alaska Mental Health Enabling Act
of 1956. The cash assets are managed by the Alaska Permanent
Fund corporation. The land Office in the Department of Natural
Resources manages the Trusts's lands. The principal of the
Mental Health Trust Fund includes $200 million from the
cash settlement part of the 1994 Supreme Court ruling that
reconstituted the Mental Health Trust Fund; a portion of
the revenue from trust lands and fund earnings is transferred
into the principal. The income of the fund is allocated
through grants by the Mental Health Trust for the benefit
of mental health programs in Alaska.
(Note:
The Mental Health Trust Fund appears in the summary pages
of the State's Annual Financial Report, but because it is
a "discretely presented component unit" there
is no detail about this fund within the report. Like the
other discretely presented component units (mostly public
corporations) it produces its own annual financial report.)
|
| Total Assets: |
$309.7
|
| Assets Less Liabilities: |
$306.4
|
| |
|
| |
|
|
Source: Department of Revenue, Spring 2002 Revenue
Sources Book p. 116.
|
|
Expendable
Trust Funds—end of Fiscal Year 2001
| |
|
(millions
$)
|
| Constitutional
Budget Reserve Fund (33041) - Alaska Constitution,
article IX, section 17; AS 37.13 |
Administered
by the Department of Revenue. All money received by the
State as a result of the termination of administrative proceedings
or litigation in a State or federal court involving mineral
lease bonuses, rentals, royalties, royalty sale proceeds,
federal mineral revenue sharing payments or bonuses, or
involving taxes imposed on mineral income, production, or
property are deposited in the fund, except for the share
of those proceeds that are deposited into the Alaska Permanent
Fund. The CBR has "loaned" the state general fund
close to $5 billion since 1990 to cover revenue shortfalls.
These "loans" are carried as an asset of the CBR,
but they will probably never be repaid.
|
| Total Assets: |
$6,827
|
| Assets Less Liabilities: |
$6,827
|
| FY 2001 Revenue: |
$252
|
| FY 2001 Net Income: |
$252
|
|
| Permanent
Fund Dividend Fund (33020) - AS 43.23.045 |
Administered
by the Department of Revenue. This fund consists of 50 percent
of the income earned by the Alaska Permanent Fund during the
fiscal year ending on June 30. The balance in this fund is
then paid out as dividends to eligible Alaska residents in
the fall. |
| Total Assets: |
$1,134
|
| Assets Less Liabilities: |
$1,129
|
| FY 2001 Revenue: |
$.768
|
| FY 2001 Net Income: |
$-57
|
|
| Deferred
Compensation (32014)
- AS 39.45.010 |
Administered
by the Department of Administration. This fund consists of
compensation deferred by employees under the State’s
deferred compensation plan allowed under Section 457 of the
Internal Revenue Code. |
| Total Assets: |
$406
|
| Assets Less Liabilities: |
$406
|
| FY 2001 Revenue: |
$10
|
| FY 2001 Net Income: |
$-14
|
|
| Unemployment
Compensation Fund (33030) AS 23.20.130 |
Administered
by the Department of Labor and Workforce Development. This
federal trust fund is established and maintained in the U.S.
Treasury. It is used to account for unemployment contributions
from employers and unemployment benefits paid to eligible
claimants. |
| Total Assets: |
$218
|
| Assets Less Liabilities: |
$209
|
| FY 2001 Revenue: |
$142
|
| FY 2001 Net Income: |
$11
|
|
| Exxon
Valdez Settlement Trust Fund (33070) - AS 37.14.400
- |
Memorandum
of Agreement and Consent Decree between the United States
(U.S.) and the State of Alaska to maximize the funds available
for restoration of natural resources and to resolve the
governments’ claims against one another relating to
the Exxon Valdez Oil Spill, which occurred on the night
of March 23-24, 1989, in Prince William Sound, Alaska. The
funds are administered by the trustee council which consists
of the Secretaries of the U.S. Departments of the Interior
and Agriculture and the Administrator of the National Oceanic
and Atmospheric Administration (the federal trustees) and
the Commissioners of the Departments of Environmental Conservation
and Fish & Game and the Attorney General of the State
of Alaska (State trustees). The trustee council determines
which projects shall be financed by monies from the trust.
The Exxon Valdez Settlement Trust Fund established in the
State accounting system accounts for those monies transferred
to the State for projects approved by the trustee council.
These projects are for the purpose of restoring, replacing,
enhancing, rehabilitating, or acquiring the equivalent of
natural resources injured, lost, or destroyed as a result
of the oil spill.
|
| Total Assets: |
$8
|
| Assets Less Liabilities: |
$8
|
| FY 2001 Revenue: |
$28
|
| FY 2001 Net Income: |
$-4
|
|
| Alyeska
Settlement Trust Fund (33080)
- |
Consent
Decree between the United States, the State of Alaska, and
Alyeska Pipeline Service Company - Administered by the Department
of Revenue. The fund was created for the purpose of receiving,
holding, and disbursing settlement proceeds from Alyeska under
the Consent Decree. The funds are to be used to clean up oil
spills and for other projects specified in the Consent Decree. |
| Total Assets: |
$7
|
| Assets Less Liabilities: |
$7
|
| FY 2001 Revenue: |
$.578
|
| FY 2001 Net Income: |
$.383
|
|
| Public
Advocacy Trust Fund (32012) - AS 44.21.410 |
Administered
by the Department of Administration. The Public Advocacy
Trust Fund holds in trust funds for individuals under the
guardianship of the Office of Public Advocacy.
|
| Total Assets: |
$6
|
| Assets Less Liabilities: |
$6
|
| FY 2001 Revenue: |
$12
|
| FY 2001 Net Income: |
$2
|
|
| Exxon
Valdez Oil Spill Restoration Fund (11140) |
U.S.
District Court judgment in the criminal case U.S. v. Exxon
Shipping Company and Exxon Corporation resulted in $50 million
restitution being received by the State to be used exclusively
for restoration projects related to the Exxon Valdez oil spill.
Administered by the Department of Revenue. |
| Total Assets: |
$6
|
| Assets Less Liabilities: |
$5
|
| FY 2001 Revenue: |
$.498
|
| FY 2001 Net Income: |
$-.598
|
|
| Memorial
Scholarship Revolving Loan Fund (21611) - AS 14.43.255 |
Administered
by the Department of Education and Early Development. The
fund was created to honor Alaskans who, by example of their
lives, or by their distinguished contribution and service
to the State, their community, or their profession, have exemplified
the best that is the challenge of "The Great Land."
Memorial scholarships are established in the fund to pay tribute
to these distinguished Alaskans. |
| Total Assets: |
$4
|
| Assets Less Liabilities: |
$4
|
| FY 2001 Revenue: |
$.379
|
| FY 2001 Net Income: |
$.365
|
|
Pension
Trust Funds—end of Fiscal Year 2001
| |
(million
$)
|
| Public
Employees’ Retirement System (35010)
- AS 39.35.020 |
Administered
by the Department of Administration. This fund consists of
accumulated assets held for the purpose of paying benefits
provided by the Public Employees’ Retirement System. |
| Total Assets: |
$8,097
|
| Assets Less Liabilities: |
$8,088
|
|
| Teachers’
Retirement System (35020)
- AS 14.25.010 |
Administered
by the Department of Administration. This fund consists of
accumulated assets held for the purpose of paying benefits
provided by the Teachers’ Retirement System. |
| Total Assets: |
$4,091
|
| Assets Less Liabilities: |
$4,087
|
|
| Supplemental
Benefits System (35041)
- AS 39.30.150 |
Administered
by the Department of Administration. This fund consists of
accumulated assets held for the purpose of paying benefits
provided by the Supplemental Benefits System. (The Investment
Loss Trust Fund is included in this system.) |
| Total Assets: |
$1,802
|
| Assets Less Liabilities: |
$1,800
|
|
| Judicial
Retirement System (35025)
- AS 22.25.048 |
Administered
by the Department of Administration. This fund consists of
accumulated assets held for the purpose of paying benefits
provided by the Judicial Retirement System. |
| Total Assets: |
$69
|
| Assets Less Liabilities: |
$68
|
|
| Alaska
National Guard and Alaska Naval Militia Retirement System
(35030)
- AS 26.05.222 |
Administered
by the Department of Administration. This fund consists of
accumulated assets held for the purpose of paying benefits
provided by the Alaska National Guard and Alaska Naval Militia
Retirement System. |
| Total Assets: |
$13
|
| Assets Less Liabilities: |
$13
|
|
Agency
Funds—end of Fiscal Year 2001
| |
(million
$)
|
| EVOS
Investment Trust Fund (32020)
- Public Law 106-113 |
Administered
by the Exxon Valdez Oil Spill (EVOS) Trustee Council. Consists
of assets of a joint federal/state trust fund established
to receive, hold, disburse and manage all natural resource
damage recoveries obtained by the United States government
and the State of Alaska under the Clean Water Act, arising
out of the Exxon Valdez oil spill. |
| Total Assets: |
$131
|
| Assets Less Liabilities: |
$0
|
|
| Deposits,
Suspense, and Miscellaneous (32005) |
Administered
by the Department of Administration. This fund is used to
account for refundable deposits and other receipts held in
trust until the State has the right to transfer them to operating
funds, or until there is a proper authorization to disburse
them directly to others. |
| Total Assets: |
$74
|
| Assets Less Liabilities: |
$0
|
|
| Impact
Aid PL 103-382 (32017) |
Administered
by the Department of Education and Early Development. These
monies are received from the federal government and are distributed
to the local school districts. The funds provide financial
assistance to local school districts where enrollment or availability
of revenue is adversely affected by federal activities. |
| Total Assets: |
$3
|
| Assets Less Liabilities: |
$0
|
|
|
Administered
by the Department of Labor and Workforce Development. This
fund was established to account for receipts and disbursements
for wage and hour violations. |
| Total Assets: |
$.155
|
| Assets Less Liabilities: |
$0
|
|
Source:
Alaska Comprehensive Annual Financial Report, Fiscal Year Ended
June 30, 2001. Note: The Alaska Science and Technology Non-Expendable
Trusts are included with the Alaska Science and Technology Foundation
and reported in the State Corporation section.
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