Alaska state budget

Alaska's Gov. Sean Parnell signed Alaska's 2013 $12.1 billion in operating and capital spending budgets into law on May 14, 2012.^[1] It increases spending from the FY2012 budget, which totaled $11.4 billion, marking a 3.3 percent increase in FY2013.^[2]

Alaska operates on an annual budget cycle. Its fiscal year begins on July 1 and it is currently in FY2013.

Alaska has a total state debt of approximately $22,506,229,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and current budget gap.^[3] That is down from the prior year's debt of $27,962,377,000.^[4]

Total Alaska state debt per capita is $31141.09 per state resident.^[5] The state has the third highest debt figure per capita of the 50 states.^[5]

See also: The Alaska State Budget on State Budget Solutions

Economic Freedom

A new Fraser Institute report on economic freedom ranks Alaska 11th in economic Freedom. Delaware ranks 1st and New Mexico ranks 50th. The study examines the impact of economic freedom on both the level of economic activity and the growth of economic activity. According to the study, the freest economies operate with minimal government interference, relying upon personal choice and markets to answer basic economic questions. More governmental restrictions on those choices curbs economic freedom. The study looks at three major categories per state – size of government, taxes and regulations. ^[6]

Federal Aid to State Budget

The chart below represents how much of the state’s budget comes from the federal government. The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):

• Figures are calculated by dividing each state’s intergovernmental revenue into its general revenue. Data is available at in U.S. Census.

FY2014 State Budget

Gov. Parnell introduced his proposed FY2014 budget on Dec. 14, 2012. Including appropriations from the Permanent Fund, the total authorization to spend in Parnell’s FY2014 budget proposal is $12.78 billion, less than the total amount is $13.18 billion in the prior budget year.^[7]

The FY2014 operating budget is $5.75 billion, up from $5.7 billion in FY2013. The capital budget for FY2014 as proposed would be less than half of what it was in FY2013, at $795.2 million, down from FY2013's capital budget of $1.93 billion. The combined total in spending is $10.86 billion (without appropriations from the Permanent Fund), compared to $11.37 billion in projected total revenue, which would leave the state with a surplus.^[7]

FY2013 State Budget

The Operating and Capital budgets as enacted can be found here. A budget summary prepared by the Office of Management and Budget can be found here.

The budget increase spending by 3.3 percent over FY2012.^[8]

Gov. Sean Parnell signed Alaska's 2013 $12.1 billion in operating and capital spending budgets into law on May 14, 2012.^[9] The governor vetoed a total of $67 million in spending, with $50 million of that for a lump-sum contribution to the underfunded Judicial Retirement System.^[8]

Education

The final budget spends $50 million more on education than what the governor had initially proposed.^[8] That amount brings total spending on K-12 education and pupil transportation budget to $1.2 billion for FY2013.^[10] In addition to that spending, Alaska directly funds more than $329 million for school district retirement system unfunded liability for the Public Employees’ and Teachers’ Retirement Systems and more than $431 million for building schools.^[10]

Although the governor vetoed $1 million in spending on pre-kindergarten programs, the state will increase spending to reach children before kindergarten to $14 million, an increase of 38 percent.^[11]

Capital Budget

The Capital Budget totals $2.9 billion, including $1.9 billion in state general funds. It spends more than $1.6 billion was appropriated for highways, aviation, the Alaska Marine Highway, harbors, village safe water, and municipal water and sewer projects.^[10]

Governor's Proposed Operating Budget

The governor proposed the $12.1 billion total spending package of the operating and capital budgets for FY2013, more than $800 million less than FY2012, on Dec. 16, 2011.^[12] The governor said that under his proposal, the state will have surplus revenue of $3.7 billion. The proposed state general fund operating budget increases 4.5%. The proposed capital budget totals $1.8 billion, including $882 million in state general funds.^[13]

The Governor's proposed budget can be found here.

Legislative Proposed Operating Budget

On April 4, 2012, the Senate unanimously passed a $9.5 billion FY2013 general fund state budget which proposes putting $2 billion into state savings and an additional $1 billion toward $11 billion in unfunded pension liabilities. ^[14][15] It increases spending over last year's $9 billion budget.^[16]

The House passed its version of the a $9.5 billion state operating budget by a vote of 32-5 on March, 2012.^[15]

The operating budget was then sent to a conference committee, where negotiators from both chambers agreed to the Senate's approach to funding Alaska Performance Scholarships by tying a portion of the funding to HB104. Gov. Sean Parnell had urged the conference committee members to provide the $8 million he requested for the scholarship program and not tie a portion of the funding to HB104.^[17]

• Education spending

The legislature passed SB182, which provides funding for education. It provides $42 million additional funds to education, $12 million more than Gov. Parnell called for in his budget.^[18]

• Capital budget

The legislature passed the $2.9 billion capital budget and the governor said he did not anticipate making any significant vetoes.^[19] The capital budget is SB160, which can be found here.

FY2012 State Budget

• See past state budgets

Alaska's Gov. Sean Parnell on June 29, 2011, signed budgets totaling $11.4 billion, $6.9 billion of which came from the state’s general fund. The governor vetoed $400 million, many of the cuts aimed at one-time projects in the capital budget. Parnell explained that his budget vetoes were to ensure the state lived within its means.^[20] The vetoes reduced the budget from $3.2 billion to $2.8 billion.^[21] The governor said that although the state is expected to end the year with $15 billion in available savings, it is also facing an unfunded retirement liability of $11 billion.^[22]

The Appropriations Bill for FY2012 can be found here.

At the start of FY2012, the state had $15.9 billion in undesignated savings, a category that includes the constitutional and statutory budget reserve funds and Permanent Fund earnings reserve account. Total market value of the Permanent Fund was at approximately $39 billion.^[23]

Education Spending

For FY2012, Alaska devoted 23.0% of its total spending to education, up from 21.6% in FY2009.^[24]

Legislative Budget

The Alaska House adjourned on May 14, 2011, three days early. The House had been locked in a month-long budget dispute with the Senate and its adjournment forced the Senate either to accept the House's version of the omnibus capital bill or to let the state go without the budget. The Senate agreed.^[27]

The capital budget is higher than Gov. Sean Parnell had indicated he'd be willing to accept. He had said that he would approve expenditures of $2.8 billion if lawmakers also passed a bill addressing oil taxes, and they did not do so.^[28]

Governor's Proposed Budget

Gov. Sean Parnell introduced his $11 billion budget for FY2012.^[29]

The governor's proposed budget does not include $123 million in Medicaid increases that was picked up by the 2010 federal stimulus program, but is now the state's responsibility in 2011. Instead, the governor budgeted for the regular cost increase, $46 million, and said he planned to work with other governors to try to get the federal government to absorb that increase.^[29] The budget also includes an extra $1 million to fund legal challenges to the federal government on development and environmental protection issues, $100 million for deferred maintenance of state facilities and $10 million for the Southeast Energy Fund.^[29]

FY2012 begins July 1, 2011, and Gov. Sean Parnell said that he wanted Alaska to live within its means, but his budget director, Karen Rehfeld, said that there has been no talk about spending caps, restrictions or cuts.^[30]

The governor announced in September 2010 that his goal for the FY2012 operating budget was that it hold the line. He said that to achieve that goal he was prepared to make cuts in some areas and increases in the areas to which he refers as "constitutional priorities," including resource development, education, transportation and public safety.^[31]

A new amendment to the Alaska Transportation Improvement Program would increase its budget by $30 million by 2013. Of the $30 million, $25 would go towards improving AMATS’ highway safety improvement plan.^[32]

Budget transparency

Alaska currently has partial transparency, because of its Checkbook Register Online.

See also: Evaluation of Alaska state website or sample transparency legislation at the Sunshine Standard

See also: Constitutional provisions regarding reading of bills

Art. 2, Section 14 of the state constitution provides that bills must be read three times in each house on three separate days, 2nd reading dispensable by ¾ of House.

Alaska Check Register Online

See also: Alaska Check Register Online

The Alaska Check Register is an online database of state expenditures that was launched in February 2008.Stating, "Alaskans deserve open, transparent government," Governor Sarah Palin announced that all state expenditures over $1,000 would be available online. It is available at the Alaska Department of Administration website, Division of Finance.

Main article: Alaska transparency legislation and transparency headlines

Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Source	Sponsor	Data year	Searchable	Line-item expenditures	Grants	Dept/Agency budgets	Gov. lobbying	Salaries/Pensions
Alaska Department of Finance	Government	2008-2012	N	N	N	N	N	P

Alaska Checkbook Register Online features and other tools:

• Expenditures are not searchable in the browser.
• Line-item expenditures are not available. The only expenditures provided in the checkbook are payments made to vendors.
• A comprehensive list of state grants is not available, but The Community Funding Database provides information on the year, grant type, recipient, project description and status, award amount, disbursement information, and staff contact for grants made to local Alaska communities.^[33]
• One source of local spending information is the Capital Projects Database, which contains descriptions, funding levels, and status for over 16,000 capital projects in Alaska communities.^[34]
• Dept/Agency Budgets do not seem to be available.
• Public employee salaries are not posted, but salary schedules for all levels of employees are available.^[35]

Twenty-six different types of payments are excluded for confidentiality reasons.^[36]

Independent transparency sites

None.

Multi-Measure Budget Transparency Profile

The Institute of Government and Public Affairs at the University of Illinois has created a multi-measure transparency profile for Alaska, which measures state transparency as of September 2011 using indicators from a range of organizations, including Sunshine Review. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.

Budget Background

Alaska does not have a state income tax or statewide sales tax. 82% of Alaska’s estimated state revenues for 2010 are from oil taxes, royalties and fees.^[37] Alaska has the lowest tax burden of all 50 states.^[38]

Alaska's fiscal year runs from July 1 to June 30 of the following year, with year-end accruals made through August. Every state agency submits requests and statistics on the revenue and spending before the Governor releases a recommended budget to the Legislature by December 15. The Legislature convenes on the third Tuesday in January. Once the House and the Senate approve and make any necessary changes to the budget bill, the bill is passed back to the Governor. If an appropriation bill is transmitted to the governor after session, the governor has 20 days to review the bill and exercise line item veto power.^[39]

See Alaska state budget (2008-2009) for more information.

Accounting Principles

Article IX, Section 14 of the Alaska State Constitution provides that "The legislature shall appoint an auditor to serve at its pleasure. He shall be a certified public accountant. The Auditor shall conduct post-audits as prescribed by law and shall report to the legislature and to the governor.”^[40]

The Legislative Budget and Audit Committee is responsible for overseeing the Division of Legislative Audit. The Committee is composed of five members from the Senate and five members from the House of Representatives.^[41]

Audits are performed by the Division of Legislative Audit in order to ensure that Alaska state administrators comply with financial regulations and adequately manage their state programs and are published on their Web site. Pat K. Davidson has served as Legislative Auditor since 1997.^[41]

Stimulus

Alaska has received $1.1 billion in federal funding.^[43]

Public Employees

According to 2008 Census data, the state of Alaska and local governments in the state employed a total of 62,644 people.^[44] Of those employees, 48,124 were full-time employees receiving a net pay of $224,039,245 per month and 14,520 were part-time employees paid $15,701,767 per month.^[44] More than 50% of those employees, or 31,622 employees, were in education or higher education.^[44]

The total number of state and local government employees was up slightly from the 61,483 employees of state and local government according to the 2007 Census data.^[45]

Most state employees work a 37.5 hour workweek, with standard hours of 8:00 am—4:30 pm, Monday through Friday.^[46]

See Also

• Alaska government sector lobbying
• Alaska public pensions
• Government budgets

External links

Additional reading

References

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