The state government provides considerable money to Alaska’s local governments—but so far there has been little analysis of how the precipitous decline in state revenues might affect local governments. A new report by Mouhcine Guettabi, an assistant professor of economics at ISER, assesses how much Alaska’s borough governments rely on state aid and considers how vulnerable they are to cuts in that aid.
The author found that overall, boroughs depend much more on state dollars now than they did 10 years ago—the average share of borough revenues coming from the state increased from 12% to 28% between 2005 and 2015. But he also shows that some boroughs rely much more than others on state money—and are therefore more vulnerable to inevitable cuts in state aid.
To learn more, download the report, A Regional Assessment of Borough Government Finances and Employment (PDF, 1.8MB). If you have questions, get in touch with Mouhcine Guettabi at email@example.com or 907-786-5496.