Investor Presentaiton

Federal spending is extremely important to Alaska's economy. The federal government spent more than $12 billion in Alaska in FY2010. Alaska ranks first among U.S. states in federal expenditures per capita. Federal spending supports not just the military and federal civilian agencies, but also many other industries such as construction and health care. UAA Professor of Economics Scott Goldsmith has estimated that about 1/3 of Alaska jobs depend―directly or indirectly--on federal spending. $ millions 14000 12000 10000 8000 6000 Federal Spending in Alaska: 1981-2010 Note: The graph shows data reported by the Bureau of the Census. However, the data for 2009 and 2010 are likely significantly overestimated due to errors which the Bureau of the Census has acknowledged but not yet corrected. Examples of federal spending in Alaska in 2008 ($ million) Military procurement contracts Salaries and wages Medical assistance program Highway planning and construction Airport improvement program Indian housing block grants Procurement Direct Payments to Individuals and Others Wages and Salaries 1989 2206 693 383 186 80 Former Alaska Senator Ted Stevens used his political skill and power as one of the most senior members of the Senate to greatly increase federal spending in Alaska. Future federal spending will probably decline because Alaska's congressional delegation no long has as much power and there a lot of political pressure to cut total federal spending. 4000 2000 0 1981 1983 1985 1987 1989 1991 1993 1995 Grants to State and Local Governments 15

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