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What Drives State Spending

Major Elements to Consider | Per Capita Spending | Major Categories of State Spending | Unmet Needs and Deferred Maintenance | Summing Up and Looking Ahead

 

Unmet Needs and Deferred Maintenance

In the past couple of years, resources for K-12 education, the university and child protection have been increased to partially meet the public demand for improved quality as well as to help offset the effects of prior years' inflation and population growth.

Recent investments in prevention of child abuse and neglect cost more in the short term but will pay off in reduced criminal justice system and other state costs in the future.

There has also been some progress in dealing with the enormous deferred maintenance backlog, particularly for K-12 schools and the university but also for harbors and public health facilities.

The deferred maintenance list for state facilities is nearly $200 million, not including schools or the university. Many state facilities built with large capital budgets in the early 80's are now reaching the point in their useful life when they need major repair, renovation or replacement.

State share of the remaining statewide school construction priority list is $387 million; rest of the current school major maintenance list is $72 million.

Growth in state spending to accommodate population and inflation is not a steady linear progression. For instance, we can add incrementally to the number of inmates or students for a while, but at some point we have to build a new prison or more schools.

Infrastructure built during the early 80's when the growth rate was very high and projected to continue has accommodated the lower growth rate of the 90's (e.g. Anchorage roads). However, prospective higher growth rates caused by big projects could quickly surpass these threshold levels requiring new infrastructure investments.

Summing Up and Looking Ahead -->

 

 


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