The Institute of Social & Economic Research

The Alaska Citizen's Guide to the Budget

Financial Assistance
provided by:

Fiscal Policy Council of Alaska

Comparisons
State Assets
Trust Funds
Public Corporations
The General Fund
Enterprises
Administrative Funds
Special Revenue Funds
Investment Management
Index to Funds

 

 

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

TOTAL
$50, 138
Nonexpendable Trust Funds
$ 27,240
Expendable Trust Funds
$ 8,616
Pension Trust Funds
$ 14,072
Agency Funds
$ .208

 

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
Mental Health Trust Fund

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
Wage and Hour (32011)
 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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