Where Have All the Billions Gone?

Providing a basis to help Alaskans determine future spending levels and priorities, this report traces how the state spent more than $26 billion in general funds from fiscal years 1981 through 1986 before oil prices crashed and brought state revenues tumbling down with them. Figures indicate that cumulative general fund expenditures over the 5-year period were allocated to state agencies (31%), schools (14%), municipalities (11%), permanent fund deposits (10%), individuals (9%), public corporations (8%), loan funds (5%), University of Alaska (4%), debt service (3%), one-time expenses (3%), and miscellaneous grant/programs (2%). Over 30% of general fund expenditure was for expenditures that did not exist or were miniscule before 1980. Overall standard operating expenses increased 168% between 1979 and 1985. Capital expenses grew more than 800%. Biggest percentage increases in operating expenses between 1979 and 1985 were in development (+393%), general government (+206%), and transportation (+196%). The nature of state spending changed by assuming increased responsibility for municipal and school finance. The state paid more than 90% of the operating costs of expanded rural school districts and nearly 70% of city/borough school costs. The nature of revenues also shifted, with no taxes being taken from individuals after the first half of 1980. (NEC)