Department of Commerce, Community & Economic Development

Transcription

1 Department of Commerce, Community & Economic Development presented to Alaska Municipal League Summer Legislative Meeting August 17, 2017 Deputy Commissioner Fred Parady

2 State Budget Situation State has been in deficit since FY2013 State revenue has declined 80% State spending cut 44% since FY2013 Savings balance at the end of FY2018 $2 billion Down from $16 billion State credit rating Among lowest in the nation Only above Illinois and New Jersey

3 Gross Domestic Product

4 Alaska Confidence Index Alaska Confidence Index and Components, 2017 Q2 State Local Personal Composite Current Future Current Future Current Future

5 Alaska s Budget in Household Terms Income has dropped more than 80% Your annual income dropped from $80,000 to $16,000 Spending has been reduced 44% You have been able to reduce your rent or mortgage, heat, food, everyday travel, and vacations. You stopped building your cabin, stopped remodeling, and you ll keep your old car. Expenses have been cut from $80,000 to $45,000 Savings has one year remaining You had $130,000 in the bank, but now only $25,000 Investment accounts have been growing steadily You have $500,000 in an IRA and you need to decide whether to use it and how much you can prudently use An income / spending gap remains 5

6 UGF Spending FY2015 through FY2018 $3,500.0 $3,000.0 $2,500.0 $2,000.0 $1,500.0 $1,000.0 $500.0 $0.0 Agency Operations without K-12 K-12 Tax Credits, Debt, Retirement Capital Dividend FY2015 FY2017 FY2018 Dollars in thousands 6

7 FY2018 DCCED Budget Budget by Fund Group Federal $20, % UGF $11, % Fund Group Comparison FY2015 to FY2018 $90,000.0 $80,000.0 $70,000.0 Other $58, % DGF $83, % $60,000.0 $50,000.0 $40,000.0 $30,000.0 $20,000.0 $10,000.0 $0.0 UGF DGF Other Federal FY2015 Management Plan $40,454.3 $84,177.0 $68,918.7 $21,782.4 FY2016 Management Plan $30,478.3 $83,583.3 $68,357.8 $19,871.8 FY2017 Management Plan * $16,224.8 $83,356.5 $57,757.7 $20,041.1 FY2018 Authorized $11,586.6 $83,060.8 $58,461.7 $20,986.3 Change FY2015 to FY % -1% -15% -4% FY2017 Management Plan adjusted to remove $55 million fiscal note for the Reinsurance Program. That program is budgeted and accounted for separate from normal department operations.

8 Commerce, Community, & Economic Development

9 Maximizing Alaska s Potential DCCED s mission is to promote a healthy economy, support strong communities, and protect consumers in Alaska. Divisions Administrative Services Banking & Securities Community & Regional Affairs Corporations, Business & Professional Licensing Economic Development Insurance Corporate Agencies Alcohol and Marijuana Control Office Alaska Energy Authority Alaska Industrial Development & Export Authority Alaska Gasline Development Corp. Alaska Railroad Corporation Alaska Seafood Marketing Institute Regulatory Commission of Alaska Statutorily Designated Board Seats Alaska Housing Finance Corporation Alaska Marine Pilots Board Alaska Railroad Corporation Alaska Seafood Marketing Institute Alaska Industrial Development and Export Authority Alaska Pension Obligation Bond Corporation Alaska Royalty Oil and Gas Development Advisory Board State Bond Bank Committee State Emergency Response Commission Alaska Commission on Aging Alaska Workforce Investment Board Community and Public Transportation Advisory Board Municipal Bond Bank Authority Student Loan Corporation Alaska Tourism Marketing Board Unmanned Aircraft Task Force

10 Promoting a Healthy Economy Division of Economic Development 280 loans for $31.7 million across 11 loan programs to Alaska-owned businesses, including 150 in the Commercial Fishing Revolving Loan Fund 29% Partnerships with industry and University of Alaska to support resource development efforts to develop new industry Manufacturing support through the Made in Alaska and Alaska Product Preference programs Tourism marketing support 1.85 million summer visitors in 2016 that generated $1.97 billion in visitor spending 10

11 Statewide Economic Development Strategy Barrow Bethel Kotzebue Nome Kodiak Fairbanks Mat-Su Borough Anchorage Kenai Peninsula Glennallen Valdez Ketchikan Juneau

12 Economic Development Goal Areas Business Development Cultivate a resilient business climate that supports growth and expansion of existing and emerging industries. Finance and Investment Maximize the productive use of capital for Alaska business expansion. Economic Development Infrastructure Build the transportation, energy and technological foundations for economic growth. Entrepreneurship and Innovation Position Alaska to thrive in a technologically advanced global economy. Economic Development Capacity Building Strengthen the ability of Alaska organizations to execute economic development initiatives that create jobs and investment. Quality of Life Improve the attractiveness and livability of Alaska communities to attract and retain a quality workforce and set the foundations for economic well-being.

13 Protecting Consumers Banking and Securities Corporations, Business & Professional Licensing To protect and educate consumers of financial services and promote safe and sound financial systems To ensure that competent, professional and regulated commercial services are available to Alaska consumers Insurance To regulate the insurance industry to protect Alaskan consumers Alcoholic Beverage and Marijuana Control A regulatory and quasi-judicial agency that controls of the manufacture, and sale of alcoholic beverages and marijuana in the state Regulatory Commission of Alaska To protecting consumer interests and promote economic development 13

14 Alcoholic Beverage / Marijuana Control Boards

15 Marijuana Establishment Licenses by Location Geographic Distribution of Licenses Approved by MCB Anchorage and Mat-Su 105 Denali and Fairbanks 50 Kenai Peninsula 33 Southeast 29 Other (Nome, Valdez, no local gov) 7

16 Alcoholic Beverage Licenses Over Time

17 Heath Care Insurance Market Alaska Reinsurance Program Five-Year Federal Funding Projection

18 Federal Health Care Debate Let s take a moment to enjoy our senior Senator! If You Come At Sen. Lisa Murkowski, You Best Not Miss Huffington Post Better take two sandwiches : GOP consultant says Lisa Murkowski will eat your lunch like she did to Trump Susan Collins and Lisa Murkowski, the Health Vote Heroines The New York Times

19 Sharing Economy Transportation Network Co s Continuing to work on implementing the legislation Considering regulation but AG indicates there be much ability to regulate this industry We will seek local input on potential new legislation for the next regular session that could help address some of the local concerns CBJ is working with Uber and others to sort our sales tax administration and enforcement

20 Supporting Strong Communities Division of Community and Regional Affairs 14% An agency shall be established by law in the executive branch of the state government to advise and assist local governments. It shall review their activities, collect and publish local government information, and perform other duties prescribed by law. Article X, Section 14 of the Alaska State Constitution 20

21 Rural Utility Business Advisor Program

22 Billions Grants by Region Total Grants Administered Total Grant Money Distributed $3 $ To Adak Western Southwest Unalaska Kotzebue Nome Bethel Dillingham Barrow Prudhoe Bay Kodiak Fairbanks Anchorage Arctic Interior Cordova Yakutat Gustavus Southeast Southcentral Juneau Sitka Petersburg Wrangell Ketchikan

23 Shared Revenue Payment Programs Forestry Receipts* * 2017 data unavailable Shared Fisheries Community Revenue Sharing Payments in Lieu of Taxes $0 $10 $20 $30 $40 $50 $60 $70 Millions

24 Community Revenue Sharing

25 Serve Alaska

26 Alaska Taxable Interactive Features

27 Alaska Taxable Using the Data Demonstrating the source(s) of local revenue generation Sitka more heavily dependent on local sales taxes Anchorage more heavily dependent on local property taxes

28 Research Reimagined DCCED.Maps.ArcGIS.com

29 Building a Strong and Sustainable Future

30 Thank you Fred Parady Deputy Commissioner Department of Commerce, Community and Economic Development (907)

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