Fiscal Effects of Commercial Fishing, Mining and Tourism What Does Alaska Receive in Revenue? What Does It Spend?
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Fiscal Effects of Commercial Fishing, Mining and Tourism What does Alaska receive in revenue? What does it spend? Prepared for: Division of Economic Development Department of Commerce, Community, and Economic Development State of Alaska Prepared by: Bob Loeffler and Steve Colt contact: [email protected]; [email protected] Institute of Social and Economic Research University of Alaska Anchorage 3211 Providence Drive Anchorage, Alaska 99508 December 2, 2015 This report was prepared by the authors listed and does not necessarily reflect the views of ISER or the University of Alaska. The report and its findings should be attributed to the authors, rather than to ISER, the University of Alaska Anchorage, or the sponsors of the research. Acknowledgements Steve Colt is a professor of economics at the University of Alaska Anchorage, Institute of Social and Economic Research. Bob Loeffler holds a position as a visiting professor of public policy at UAA/ISER. Mr. Loeffler’s position and therefore his work on this paper are funded by a grant to the University of Alaska Foundation from the Council of Alaska Producers. The opinions and conclusions of this paper are those of the authors and do not represent those of the Council of Alaska Producers, the University of Alaska, or the Institute of Social and Economic Research. Bob Loeffler and Steve Colt would like to thank Jennifer Schmidt, Assistant Professor of Natural Resource Management at ISER, for her work on the Capital Budget portion of the paper. Fiscal Effects of Commercial Fishing, Mining, & Tourism What does Alaska receive in revenue? What does it spend? Table of Contents December 2, 2015 Page 1. Summary. ................................................................................................... 1 1.1 Summary of Results 1.2 Observations and Conclusions 1.3 Cautions and Caveats 2. Methodology .............................................................................................. 9 3. Commercial Fishing Industry ............................................................. 13 4. Mining Industry ..................................................................................... 28 5. Tourism Industry ................................................................................... 40 6. Operating Budget Detail ...................................................................... 55 7. Capital Budget Detail ............................................................................ 77 8. Revenue Detail ....................................................................................... 93 9. Don’t Like Our Assumptions? Try You Own! ............................. 106 10. References ........................................................................................... 108 Appendix A ............................................................................. After Page 111 Fiscal Effects of Commercial Fishing, Mining and Tourism Page i List of Tables Page Table 1. Commercial Fishing: Comparison of Revenue and Expense ........................................... 3 Table 2. Mining: Comparison of Revenue and Expense ...................................................................... 3 Table 3. Tourism: Comparison of Revenue and Expense ................................................................... 3 Table 4. State of Alaska Commercial Fishing Revenue; Average of 2010-2014 .................... 14 Table 5. FY 14 Alaska Commercial Fisheries Management Expenses ...................................... 18 Table 6. Commercial Fishing Capital Projects FY 12-14 ................................................................. 20 Table 7. Local Government Revenue from Commercial Fishing Industry ............................... 22 Table 8. Comparison of State Commercial Fishing Revenue with State Operating Expenditures ........................................................................................................................................ 22 Table 9. Comparison of State Commercial Fishing Revenue with Operating and Capital Expenditures ........................................................................................................................ 23 Table 10. Comparison of State and Local Commercial Fishing Revenues with Operating and Capital Expenditures ......................................................................................... 24 Table 11. State of Alaska Mining Revenue Average of 2010-2014 ............................................. 28 Table 12. FY 14 State Operating Expense due to Mining ............................................................... 32 Table 13. Mining Capital Projects FY 12-14 ......................................................................................... 33 Table 14. Comparison of State Mining Revenue with State Operating Expenditures ....... 35 Table 15. Comparison of State Mining Revenue with Operating and Capital Expenditures ........................................................................................................................................ 36 Table 16. Comparison of State and Local Mining Revenues with Operating and Capital Expenditures ........................................................................................................................................ 37 Table 17. State of Alaska Tourism Revenue. Average of 2010-2014 ........................................ 41 Table 18. FY 14 State Operating Expense due to Tourism ............................................................ 44 Table 19. Tourism Capital Projects FY 12-14 ...................................................................................... 47 Table 20. Local Commercial Tourism Revenue, Average of 2010-2014 .................................. 50 Table 21. Comparison of Tourism Mining Revenue with State Operating Expenditures ........................................................................................................................................ 51 Table 22. Comparison of State Tourism Revenue with Operating and Capital Expenditures ........................................................................................................................................ 52 Table 23. Comparison of State and Local Tourism Revenues with Operating and Capital Expenditures ........................................................................................................................................ 53 Table 24. Agencies that Expend State Funds for Commercial Fishing, Mining, or Tourism ............................................................................................................................................ 55 Table 25. DEC FY 14 Budget Component Funding and Industry Expense ............................. 57 Table 26. DNR FY 14 Budget Component Funding and Industry Expense ............................. 61 Table 27. DF&G FY 14 Budget Component Funding and Industry Expense .......................... 67 Table 28. DCCED FY 14 Budget Component Funding and Industry Expense ....................... 71 Table 29. DPS Division of Wildlife Troopers FY 14 Budget Component Funding and Industry Expense ............................................................................................................................... 75 Table 30. Capital Project Appropriations. 2012-2014 .................................................................... 81 Table 31. Commercial Fishing Revenue 2010-2014 ........................................................................ 93 Table 32. Mineral Industry Revenue from Alaska Mineral Industry 2013 ............................ 99 Table 33. Mining Revenue 2010-2014 ................................................................................................ 100 Table 34. Tourism Revenue 2010-2014 ............................................................................................. 104 Fiscal Effects of Commercial Fishing, Mining and Tourism Page ii List of Figures Page Figure 1. Commercial Fishing: Comparison of Revenue and Expense ......................................... 2 Figure 2. Mining: Comparison of Revenue and Expense .................................................................... 2 Figure 3. Tourism: Comparison of Revenue and Expense ................................................................. 2 Figure 4. State as a Percent of First Market Value ............................................................................... 6 Figure 5: State Management Costs: Commercial Fishing, Mining, and Tourism ...................... 7 Figure 6. FY 14 State Oil Industry Revenue Compared with State Revenue from Commercial Fishing, Mining, and Tourism ................................................................................ 7 Figure 7. Alaska Capital Budgets ............................................................................................................... 11 Figure 8. Comparison of State Commercial Fishing Revenue with State Operating Expenditures ........................................................................................................................................ 23 Figure 9. Comparison of State Commercial Fishing Revenue with Operating and Capital Expenditures ........................................................................................................................................ 24 Figure 10. Comparison of State and Local Commercial Fishing Revenues with Operating and Capital Expenditures ..............................................................................................................