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The Military and Alaska's Economy

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The Military and Alaska's Economy case, such as the Public Health Ser· through contracting out or paring Recent economic events and a gener­ vice. the Bureau of Indian Affairs support staff the overall trend has al unsteadiness in the world economy Schools, and the Alaska Railroad, the been clear, there has been steadily have put pressure on the Administra­ federal government has relinquished less nonmilitary federal employment tion to cut the federal deficit to steady control of these programs to either in Alaska during the last five years the economy. This could mean that private nonprofit corporations or the with just a few agencies bucking the all agencies will be asked to reex­ State of Alaska, overall trend. amine their budgets and try to pare away more employment. In that case It is important to remember that the It seems that those ag encies which the expectations for the next few federal employment numbers, if not have cut their staffs do not expect any years could change significantly. In carefully examined, can overstate the more drastic staff reductions in the some areas of federal employment total employment lost to Alaska's next several years with the possible though, such as the Federal Aviation economy. In addition, the military exception of the Forest Service. On Administration, there seems to be related civilian employment has been the other hand, those agenci s which growing public sentiment to find increasing over this period so that to­ have been in the growth mode forthe money to fund these agencies. In any tal federal employment has remained last several years are not expecting to case while the future of federa I stable. increase as rapidly as they have been government employment in Alaska during the past five years. This points looks steady at this writing, it could A good portion of the nonmilitary to a stabilization of federal employ­ change on a moments notice. federal employment lost has been m ent at somewhere dose to 1986s picked up by either private nonprofits level with some agencies growing and or the State of Alaska. Whether it be others sh rinking. The Military and Alaska's Economy By Neal Fried and Greg Huff eorge Ro gers, a noted Alaskan economist, once wrote that "by the 50s and 60s A laska had become primarily an 'exporter' of m ilitary defe nse" ... and that the m ilita ry had become " the major industry G in the state." It seem s strange that the military would be considered an '·industry" or an "exporter o f defense," but in essence that is what the mili­ tary in A laska does. It exports defense to the rest of the nation. In return, Alaska receives economic benefits from the military in a variety of ways, from the paychecks spent in the loca l economy to payments to local businesses that supply goods and services to the military and to contractors building and repair­ ing the m ilitary's infrastructure. The economic benefits fro m the military's presence have been great and in­ deed the military was "the m ajor industry in Alaska during the 1950s and The military in Alaska 1960s." T he m ilitary's economic might has declined since that time but still has considerably more provides a solid economic foundation. During the early 1980s the impacts of economic clout than in the military on the A laskan economy were obscured by the flood of o il dollars that ignited our economy into a period of unprece dented growth but by 1986 most states. the rapid growth came to a sc reeching halt and the m ilitary was again in the limel ight. T he m ilitary in Alaska has considerably more economic clout than in most states. For example, the number of active duty personnel and the amount of defense expenditures on a per capita basis are far higher in A laska than in most other states. In this article we will explore the m ilitary's influence on Alas­ ka's population and econom y, The Military Population in Alaska 1980-1987 In 1980 the m ilitary accounted for 15.7 % of A laska's population. While the military population gradually increased during the early 1980s, the nonmili­ tary population in A laska grew so rapidly that by 1985 the military represent­ ed only 12.5% of A laska's popUlation. 6 Table 1 Alaska's Military Population Active Duty, Civilian and Dependents 1980-1987 1980 1981 1982 1983 1984 1985 1986 1987 Military as % of State Population 15.7% 15.1 % 14.3% 13.4% 131 % 12.5% 13.2% 13.4% Total State Popu lation I 4 19,800 433,800 465,200 497.600 522,000 . 539,600 542,1 51 537.080 Total Military Population 65,828 65,485 66,344 66,747 68,143 67,314 71,747 72,1 10 Dependents: Civilian' 8,545 8,672 9,633 9,757 9,957 10,226 10,547 10,573 Dependents: Active Duty ) 27,903 27,589 27,083 27,100 27,973 26,026 30,007 29.923 Civilian Military (I ncl. NAF/Exch.) 4 6,676 6,775 7.526 7.623 7,779 7,989 8.240 8,260 Active Duty Military ) 22.704 22,449 22 ,102 22.267 22,434 23,073 22,953 23,354 Sources: 1 Figures from Alaska Population Pr oj ect ion, Research and A,nalysis, Demographics . (1986 and 1987 low projection selected). • Figures estimated from data in Impacts of Military Spending on the Economy of Alaska, Fiscal Years 1980 to 1986, from Alaska Air Command and data from Alaska Department of Labor. A ra tio of 1.28 dependents for every m ilitary civilian was formulated from these sources. ) Alas ka Department of Labor. R&A Demograph ics. unpublished 1987 data. Aleutian Islands figure estimated because it was not avail­ able at time of publication. 4 Alaska Department of Labor, ES ·202 files. By 1987. Al aska's recession had prompted people to leave Alaska in sea rch of wo rk. At a time when more people were leaving Alaska than ar­ riving, the military population con­ At a time when more people were ti nued to increase. By 1987 the military accounted for 13.4% of the leaving Alaska than arriving, the· mili­ forecast 537,080 people living in tary population continued to increase. Alaska. This incl udes 23,000 + active duty personnel pl us their 30,000 de­ pendents and 8,000+ civil se rvice personnel (Table 1). The military in Alaska is represented by the Ai r Force, Army, a nd Navy and are all organized under the Depart­ ment of Defense (DOD). The Coast Figure 1 Guard is organized under the Depart­ ment of Transportation, but provides Military Labor Force by Type of Service many defense rel ated serv ices and 1980 and 1986 impacts a local economy in a fa shi on similar to that of the DOD agencies. Hence, the Coast Guard will be in ­ cluded in the military fi gures unless specifi cally noted that the data is not available. The Army's Corps of En­ gineers and the Army and Air Nation­ al Guard work force figures are also ___ :z..7lI included in the total military figures Cout _7.0: 7 presented in this article (full-time ac­ doubled over the period_The number tive duty and civil service only )_ of Navy active duty personnel (includ­ ing the Marines) has increased by In 1980 the Air Force was Alaska's lar­ one-third as its presence in the North gest military service, representing Pacific intensifies. over 41 % of the military's active duty and civil service personnel. This share Some of the increase in the National increased to over 44% by 1986, due Guard's share of the military work to a 12% increase in its work force force is attributable to the reclassifi­ and a decline in the number of A rmy ca tion of certain active duty guards­ active duty personnel over the period_ man to full-time_ There is a clear The six yea r decline in the number of trend of expanding the guard and Army active duty personnel ended reserve by the military because it is with the deployment of the 6th Light cost effective_ In late 1987 it was an­ Infantry Division in Alaska in 1987_ nounced that the Alaska National The deployment helped boost the Guard work force would increase by number of Army active duty person­ several hundred over the next year. nel by nearly 1,000 from year ago In 1980 the Air Force levels_ A n important trend in the military was Alaska's largest work force data is the decrease in the There were shifts in the relative work ratio of active duty to civilian em ­ military service. force figures among A laska's ployees. Fo r example, in 1980 there "sm aller" services as wel l (Figure 1). were 3.4 active duty personnel for From 1980 to 1986 the National each civilian em ployee. By 1986 this Guard, Navy, and Army Corps of En­ ra t io had fallen to 2,8_The number of gineers increased their proportion of civi lian perso nnel rose from 6,676 in the total military work force as the 1980 to 8,240 in 1986, an increase of Coast Guard sha re declined. This 23% (Table 1). Prel iminary data fo r does not reflect a drastic cut back in 1987 shows mili tary civilian employ­ Coast Guard personnel, but rather ment growth continued into 1987 but Sig nificant growth in the Corps of En­ at a slower pace.
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