Alaskanomics

Health Care is Alaska's Fastest-Growing Industry: Represents 9% of State's Jobs

The August issue of Alaska Economic Trends, released by the State of Alaska Department of Labor, features Alaska's health care industry. The industry added 10,000 jobs between 2001 and 2010, making it Alaska's fastest-growing industry. In 2010, the health care payroll was about $1.5 billion, with nearly 32,000 jobs. The actual job number is higher because it does not include self-employed health care professionals (for example, physicians who own their own practices), health care workers in non-health related government agencies (for example, school nurses), or military health care workers.

The U.S. Census Bureau estimates that 81% of Alaskans have health insurance, but that does not include about 21,000 Alaska Natives who are covered through the Alaska Tribal Health System. Alaska had the fifth-highest per capita health care costs in the nation in 2004, which is the latest available government data.

For more information about Alaska's health care industry, read the full report.

Office of Federal Coordinator reviews Alaska Natural Gas Projects; many underway with no clear "winner"

A new review by the Office of the Federal Coordinator examines all of the proposed projects for Alaska's natural gas, including the project background, estimated costs, timeline, current status and pros and cons. The review, authored by Bill White, covers the following projects:

• Pipeline to Alberta. This is the TransCanada/ExxonMobil project under AGIA. $32 to $41 billion in 2009 dollars, first gas 2020.
• Pipeline to Southcentral. This project is sponsored by the Alaska Gasline Development Authority, a state agency. $5.3 to $9.8 billion in 2011 dollars, first gas 2018-2019.
• Pipeline to Valdez. Primarily a project of the Alaska Gasline Port Authority, a joint venture of the Fairbanks North Star Borough and City of Valdez. TransCanada/ExxonMobil did review this alternative, but the pipeline to Alberta is their preferred route. No current cost estimates are available from the project sponsors, but the Office of the Federal Coordinator estimates the project will cost $43 to $49 billion. No timeline is available; the review characterizes this project as "dormant."
• Cook Inlet Gas. Through state incentives, two companies are drilling exploration wells. The review does not list costs or a timeline for these projects.
• Imported LNG. Enstar, Chugach Electric and Anchorage's Municipal Light & Power are looking at this option to fill a supply gap that starts in 2014.
• Gas to Fairbanks by Truck or Pipe. Fairbanks Natural Gas, which trucks Cook Inlet gas to customers in Fairbanks, has looked at trucking from the North Slope. Golden Valley Electric and Flint Hills Refinery in Fairbanks are looking at a separate trucking project. A third company, Fairbanks Pipeline Company, is exploring a pipeline from the North Slope to Fairbanks, with an estimated cost of about $700 million.

The review indicates that there is no clear "winner" - a project that will monetize Alaska's vast natural gas resources, provide natural gas for Alaska's in-state energy needs, or both.

 

Alaska Single Family Permits Up 22% in 2010; Multi-Family Units Are Half of 2009 Level

The U.S. Census Bureau recently released their final estimates of building permits for new, privately-owned residential construction in 2010. In the U.S., more than 600,000 permits were issued with a total valuation of $102 billion - a 3.7% increase from the 2009 total. Alaska's permits grew faster than the U.S., at 4.8%, but Alaska's total value of construction was just $205 million, or .2% of the U.S. total.

Single family residential construction permits were up in 2010, but permits for two or more units declined over 2009.

 

The census data for Alaska is likely to be understated because outside of Alaska's larger communities, building permits are not required for any dwelling of three units or less.

Alaska's Per Capita Disposable Income Up 4% in 2010; Ranks 8th in Nation

The U.S. Department of Commerce released data on disposable income by state. Preliminary figures show that total disposable income in Alaska increased 4% from 2009 to 2010, from $27.7 billion to $28.8 billion - the 5th fastest in the nation. Total personal income in Alaska has grown each of the last five years, from $23.9 million in 2006.

Per capita disposable income for 2010 in Alaska was $40,530, the 8th highest in the U.S. and 110% of the U.S. average. States with higher per capita personal income include:

1. Connecticut, $48,596
2. Massachusetts, $45,511
3. New Jersey, $45,197
4. Maryland, $43,753
5. Wyoming, $43,602
6. New York, $42,492
7. New Hampshire, $40,532

Alaskans' Personal Income Grows 2.2%, to $32.4 Billion

The First Quarter 2011 Regional Quarterly Report issued by the U.S. Bureau of Economic Analysis showed that personal income in Alaska increased 2.2% from the first quarter of 2010 to the first quarter of 2011. Alaska's growth rate tied with Mississippi, a state which benefited from continued Hurricane Katrina assistance payments and BP oil spill payments.

States which exceeded Alaska's growth rate included:

• North Dakota, leading the nation with 6.9% growth
• Montana, Wyoming, and Texas, which each grew 2.6%. Texas also received BP Oil Spill payments
• Oklahoma, which grew 2.5%

Total personal income in Alaska has grown from $28 billion in the second quarter of 2007 to $32 billion through the first quarter of 2011 after dropping to about $30 billion for five quarters in 2009 and early 2010.