Alaska Progress Report

Alaska gets grade of D+ for corruption risk

The State Integrity Investigation, a joint project of The Center for Public Integrity, Global Integrity and Public Radio International, grades Alaska a D+ on corruption risk. That's the bad news. The good news is we're still in the middle of the pack, 27th nationwide.

There are fourteen specific areas graded. Alaska's highest grade is a C+, given in three areas: political financing, judicial accountability and internal auditing. Lowest grade is an F, given in four areas: public access to information, state pension fund management, state budget processes and redistricting.

In all fairness, no state earned an A grade. Five states got a B, nineteen got a C, 18 received a D and eight bottomed out with an F.

Alaska's per capita GDP highest in nation

The October 2011 Alaska Economic Trends looks at our gross state product, a.k.a state gross domestic product (GDP). Alaska's GDP represents the value of all goods and services produced in the state, is a rough estimate of our state's economic health because it is so all-inclusive. In 2010 that number was $49 billion, 25 percent of it from oil, followed by the public sector (federal, state and local government) at 19 percent of GDP:

"At $63,424, Alaska’s per capita GDP is highest in the nation. Although there is typically a correlation between per capita income — for which Alaska is an important difference. While income data are for Alaska residents only, GDP measures the market value of goods and services produced in the state without differentiating between residents and nonresidents.

"For example, wages and salaries paid to people working in Alaska are part of the state’s GDP, regardless of where the workers live. Similarly, the profi ts — or in GDP terms, the 'net operating surplus' — of companies operating in Alaska are part of the state’s GDP, whether or not these profi ts stay in Alaska. Alaska’s high per capita GDP numbers show the state’s economy is especially productive relative to its population, but much of that is tied to the high value in recent years of Alaska’s commodities, especially oil and minerals."

State transportation dashboard

From the friendly horse and carriage folks: "The Alaska Department of Transportation and Public Facilities (DOT&PF) has developed a web-based dashboard to share DOT&PF performance measures with the public, elected officials, and partnering agencies. The site, located at www.dashboard.dot.alaska.gov, uses gauges on a dashboard to visually show the progress of 11 key DOT&PF performance measures.  The gauges show current operations and desired trends.  Visitors to the site can click on each gauge to advance to a second page that provides more information; such as why the measurement is important, what is being done, and how performance is measured."

Key performance indicators include:

• Number of centerline miles of National Highway System roads meeting department standards
• Traffic fatalities
• Occupational injuries and illnesses
• Seasonally closed airports
• Deck area of structurally deficient or functionally obsolete bridges
• Alaska Marine Highway on-time departures
• Alaska Marine Highway vessel car deck capacity utilization
• Airport revenues
• Runway lighting
• Commercial motor vehicle weight compliance
• Administrative and engineering costs on projects

Data is only updated annually with plans to go quarterly. If they could make the data near-real time and replace the gauge metaphor with a modern technique like bullet charts we'd have a winner.

Alaska ranks very low for oil and gas development

The Fraser Institute released its annual Global Petroleum Survey, which ranks 136 "jurisdictions" or places across the globe according to their "investment barriers," defined as, "high tax rates, costly regulatory schemes, and security threats." Alaska apparently is in the toilet:

"Alaska also remained in the third quintile but dropped in the global rankings from 68th position (of 133) to 83rd position (of 136) due to poorer scores on a number of issues including fiscal terms, environmental regulation, the cost of regulatory compliance, uncertainty around the interpretation of regulations, uncertainties about protected areas, and native land claims."

What's worrisome is that eight of the top ten slots went to other US states, topped by Mississippi.

Alaska one of 12 states with no online services for low income

From the Center on Budget and Policy Priorities: "Virtually all states have made basic program information on the five main state-administered low-income benefit programs — SNAP (Supplemental Nutrition Assistance Program, formerly known as Food Stamps), Medicaid, CHIP (Children’s Health Insurance Program), TANF (Temporary Assistance for Needy Families), and child care assistance — available to the public via the Internet.  Many, however, go much further, providing information such as application forms and data on the number of participants.  A number of states allow individuals to apply for benefits and transact certain related business online."

Oh well, at least we can apply for the Permanent Fund Dividend online...

Election review recommends changes

This just in from our lite governor: "Lieutenant Governor Mead Treadwell announced today that an internal review of Alaska’s historic 2010 election is complete. The report recommends 34 changes in election procedures to strengthen ballot security, improve public notice of election procedures, and improve poll worker training.

"The review, conducted by the Office of the Lieutenant Governor, the Division of Elections, and the Department of Law, includes an analysis of state election laws and procedures and incorporates comments and questions received from stakeholders and the public. The review also recommends:

• Changing Alaska statutes to clarify procedures for counting write-in ballots, and ensuring law on voter intent is consistent with Supreme Court rulings;
• Changing Alaska statutes to make the declaration of write-in candidacy voluntary, but moving the deadline for that declaration to 21 days before a general election; and
• Continuing an independent, third-party study on ballot security by the University of Alaska originated by former Lieutenant Governor Sean Parnell.

“None of the changes in statute or procedure suggested by our review would have changed the results of the 2010 election,” Lt. Governor Treadwell said. “They will, however, respond to the concerns of Alaska voters and streamline procedures in the future. Alaskans can be confident that their voices and votes were heard and accounted for.”

State film subsidies: good, bad or ugly?

With the current popularity of Alaska-based films and "reality" TV shows, there has been revised interest in whether Alaska's film incentive program, scheduled to sunset in 2013, is ready for prime time. A new study by McDowell Group looks at the benefits of Everybody Loves Whales, and the history and status of film incentive programs in general.

The study tentatively concludes a total economic impact for Whales of approximately $16.5 million. The study notes that this is a preliminary estimate prior to the official submission of expenses, which are necessary for the production company to qualify for the tax credit program.

Although the study says analysis of the film incentive program in Alaska is beyond its purview, there has been at least one study on the topic from the Center on Budget and Policy Priorities. This study concludes that, "Like a Hollywood fantasy, claims that tax subsidies for film and TV productions — which nearly every state has adopted in recent years — are cost-effective tools of job and income creation are more fiction than fact." Truth or fiction? We don't have a clue.

Health Reform State of the States

Hot off the press is State of the States: Laying the Foundation for Health Reform from the Robert Wood Johnson Foundation. The report "...looks back at 2010, an extraordinary yet challenging year. With the passage of the Patient Protection and Affordable Care Act (ACA), the United States embarked on a historic course toward expanding coverage for the uninsured. The ACA has set an ambitious yet complex path for states to assume a major role in implementing many of the reforms envisioned in the new law. And, of course, all of this takes place in an extraordinarily difficult fiscal environment."

True dat. The report has detailed treatments of the most important provisions of the ACA, yet there are some Alaska-specific omissions. A table of state workgroups and commissions studying the impact of the ACA in states neglects the Alaska Health Care Commission, which recently released it's report after a year of deliberation: Transforming Health Care in Alaska. Also, the section on health information technology likewise neglects completely the pioneering work done in Alaska in this area, including that by the Alaska e-Health Network.

Sometimes you just get no love.

Alaska has lowest tax burdens

The conservative Tax Foundation has released its latest Facts & Figures Handbook that "...compares the 50 states on 31 different measures of taxing and spending, including individual and corporate income tax rates, business tax climates, excise taxes, tax burdens and state spending." Alaska generally ranks at or near the bottom in terms of tax burdens. For example, we're ranked 49th for per capita state and local tax burden in FY08, with $2,871 owed per person compared to a national average of $4,283. As a percentage of state income we're ranked 50th, with a burden of 6.4% compared to a national average of 9.7%.

In general Alaska has rankings in the Foundation's book at the top or at the bottom because of (1) our lack of a state income tax, Alaska being one of seven states that do not levy one, and (2) our combination of a small population with big oil revenues, which results in things like Alaska being ranked #1 for state revenues per capita at $23,168 per person, versus a national average of $4,995.

The Tax Foundation is not known for being particularly careful with their figures. Every year they release a report called "Tax Freedom Day" that purports to identify that date on which Americans have earned enough to pay their tax bill.Fortunately, for a variety of reasons, 80% of taxpayers pay a smaller share of income in taxes than what the Foundation says is the average.

Alaska in minority of states not raising taxes

Sometimes the news is what's not happening. Case in point: 33 states have increased revenues by raising taxes, but Alaska is not one of them, mostly because we have no income tax. From the Center on Budget and Policy Priorities:

"The national recession has had such a devastating effect on state finances that states took in $87 billion less in tax revenue from October 2008 through September 2009 than they collected in the previous 12 months. This 11 percent decline, the steepest on record, resulted from the impact on tax collections of lost jobs, reduced wages, and lowered economic activity.

"To recoup lost revenue, states have taken such actions as eliminating tax exemptions, broadening tax bases, and in some cases increasing rates as well as raising a number of fees. In 33 states, tax changes are increasing annual revenues, relative to what they otherwise would have collected, by $31.7 billion... Overall, 13 states raised new revenue from personal income taxes, 17 enacted sales tax increases, 22 increased excise taxes on tobacco, alcohol, or motor fuel, 17 increased business taxes, and 24 increased fees or other taxes."