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

6.2 Public Corporations

The combined assets of the public corporations of the state were about $10 billion at the end of FY 2001, about half of which was in the Alaska Housing Finance Corporation. Corporation assets are not generally held as cash, but rather are put to work as loans in pursuit of the missions of the different corporations, or as physical assets, as in the case of the Alaska Railroad.

The "assets less liabilities" of these corporations were about $3.7 billion at the end of FY 2001, again with about one-half represented by the Alaska Housing Finance Corporation. The liabilities of these corporations consist mostly of borrowing to finance the activities supporting their missions.

If any of these corporations were to be eliminated, their assets would need to be sold. The proceeds of the sale would be used first to pay off their borrowing. Any remaining money would then be available for other purposes. The value of corporate assets reported in their financial statements might not be equal to their market value were such a sale to take place. Consequently, the net proceeds from closing down a public corporation might not be the same as their stated "assets less liabilities."

In 2001 the net income of these corporations (excluding the University of Alaska) was $172.6 million. About $120 million was paid to the state in various forms of dividend, with most of that coming from AHFC.

Public Corporation
Description

FY 2001
(million $)

Alaska Housing Finance Corporation (AHFC) Using proceeds from its bond sales, AHFC buys home mortgages from Alaska banks. Income from these mortgages are used to repay bond holders and (since FY91) to pay a dividend to the state. AHFC administers state and federal low-income housing, residential energy and home weatherization programs. It is also authorized to finance construction of schools, UA housing and other projected as specified by the legislature.
Total Assets:
$5,000
Assets Less Liabilities:
$1,800
Total Positions:
351
FY 2001 Revenue:
$376.2
FY 2001 Net Income:
$96.4
Alaska Industrial Development and Export Authority (AIDEA) AIDEA promotes industrial, export, and other business enterprises in Alaska through lending, guaranteeing loans are acquiring ownership interests. Income to AIDEA is from interest on its loans and leases. AIDEA has paid a dividend to the state since FY97.
Total Assets:
$1,300
Assets Less Liabilities:
$856
Total Positions:
62
FY 2001 Revenue:
$83.6
FY 2001 Net Income:
$40.3
Alaska Energy Authority (AEA) Existing as an entity within AIDEA, AEA makes loans for upgrading/purchasing equipment or buying bulk fuel. Recipients are rural utilities, communities and individuals. AEA administers the Power Cost Equalization program. AEA uses federal funding to provide technical assistance for energy projects/planning, management & conservation in rural Alaska.
Total Assets:
$800
Assets Less Liabilities:
$637
Total Positions:
see AIDEA
FY 2001 Revenue:
$56.2
FY 2001 Net Income:
($9.5)
Alaska Student Loan Corporation (ASLC) Uses bond sale proceeds to finance student loans made by the Alaska Commission on Postsecondary Education.
Total Assets:
$750
Assets Less Liabilities:
$292
Total Positions:
100
FY 2001 Revenue:
$40.6
FY 2001 Net Income:
$21
Alaska Railroad Corporation Operates freight and passenger rail service between Seward and Fairbanks/North Pole with a spur to Whittier. Generates revenue from real estate holdings.
Total Assets:
$251
Assets Less Liabilities:
$107
Total Positions:
670
FY 2001 Revenue:
$98.4(1)
FY 2001 Net Income:
$16.7
Alaska Municipal Bond Bank Authority (AMBBA) Alaska municipalities can borrow from the AMBBA for capital improvement projects. The AMBBA can often sell bonds at lower interest rates than many municipalities due to its larger capital base, reserve funds, and credit rating.
Total Assets:
$244
Assets Less Liabilities:
$37
Total Positions:
1
FY 2001 Revenue:
$13
FY 2001 Net Income:
$.7
Alaska Science and Technology Foundation (ASTF)

Promotes science and energy research and development in Alaska; awards grants; advises and facilitates between various government agencies and industry.

(ASTF is listed as a non-expendable trust in the Annual Financial Report and presented as including the International Trade and Business Endowment .)

Total Assets:
$108
Assets Less Liabilities:
$107
Total Positions:
7
FY 2001 Revenue:
($4.0)
FY 2001 Net Income:
$5.2
Alaska Aerospace Development Corporation Finances aerospace-related projects, including commercial space vehicle launch facility in Kodiak, space science and engineering research, and promoting tourism at the Poker Flat rocket range...
Total Assets:
$67
Assets Less Liabilities:
$39
Total Positions:
14
FY 2001 Revenue:
$4.3
FY 2001 Net Income:
$1.8

(1) Alaska Railroad reports financial data by calendar year. CY 2000 covers the second half of FY 2000 and the first half of FY 2001.

Source: Summary information about the public corporations is available in the Annual Financial Report of the Alaska Department of Administration. Each corporation publishes its own annual report and thus they are referred to as "discretely presented component units" in the Annual Financial Report. Summary and comparative information is provided in the Alaska Department of Revenue, Fall 2001 Revenue Sources Book, Section IX. Public Corporations and the University of Alaska

 

University of Alaska

The funds and assets of the University of Alaska also appear only in summary form in the Annual Financial Report, but are part of the total. Total assets reported in all forms at the end of FY 2001 were $1.534 billion. The entire operating budget for the University for FY 2002 was $472.1 million, and this supported 3,621 employees.

Sources: Alaska Department of Administration, Annual Financial Report, and Alaska Department of Revenue, Fall 2001 Revenue Sources Book, Section IX. Public Corporations and the University of Alaska.

 

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