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State of AlaskaOffice of Management and Budget

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Key Performance Indicators

Department of Revenue

Mission

The mission of the Department of Revenue is to collect, distribute and invest funds for public purposes. Alaska Constitution Article 9; Alaska Statute (AS) 25.27, AS 37, AS 43

Key Performance Indicators

FY2025 Management Plan as of 05/23/2025 (in thousands)
Department of Revenue Totals FundingPositions
UGF
Funds		DGF
Funds		Other
Funds		Federal
Funds		Total
Funds		Full
Time		Part
Time		Non
Perm
$33,291.1$2,511.9$377,272.2$165,650.1$578,725.38372422
1:  Funds Collection
Collection activities for the Department of Revenue include but are not limited to: Child Support Services collecting from obligors, Alaska Housing Finance Corporation collecting rents and mortgage payments, and the Tax Division collecting state taxes owed. 		Funding Positions
UGF
Funds		 DGF
Funds		 Other
Funds		 Federal
Funds		 Total
Funds		 Full
Time		 Part
Time		 Non
Perm
$24,807.8 $1,142.1 $43,693.4 $80,671.0 $150,314.2 409 10 9
2:  Funds Distribution
Distribution activities for the Department of Revenue include but are not limited to: Permanent Fund Dividend Division distribution of Permanent Fund Dividends to eligible Alaskans, Child Support Services distributing payments to the custodial parent, and Tax Division distributing shared taxes to communities. 		Funding Positions
UGF
Funds		 DGF
Funds		 Other
Funds		 Federal
Funds		 Total
Funds		 Full
Time		 Part
Time		 Non
Perm
$5,551.4 $1,062.3 $51,780.6 $65,912.1 $124,306.4 286 11 9
3:  Funds Investment
Funds Investment activities for the Department of Revenue include but are not limited to: Permanent Fund Corporation investment of the fund, Treasury and Alaska Retirement Management Board (ARMB) investment of the state"s funds and retirement systems, and Alaska Mental Health Trust Authority (AMHTA) and Alaska Housing Finance Corporation (AHFC) cor 		Funding Positions
UGF
Funds		 DGF
Funds		 Other
Funds		 Federal
Funds		 Total
Funds		 Full
Time		 Part
Time		 Non
Perm
$2,342.4 $307.5 $281,348.2 $19,067.0 $303,065.1 136 3 4
4:  Safety for Alaskans
The Long Term Care Ombudsman is located with the Alaska Mental Health Trust Authority and performs investigations of complaints regarding Alaskans in long term care who may be experiencing a negative care situation. 		Funding Positions
UGF
Funds		 DGF
Funds		 Other
Funds		 Federal
Funds		 Total
Funds		 Full
Time		 Part
Time		 Non
Perm
$589.5 $0.0 $450.0 $0.0 $1,039.5 6 0 0

Performance Detail

Priority 1: Funds Collection
    Target #1: Conduct five new compliance projects to identify non-filers.
Compliance Projects Conducted
Fiscal Year
# of Compliance Projects
# New Taxpayers
FY 2024
30
5
FY 2023
120
8
FY 2022
180
11
FY 2021
207
18
FY 2020
250
22
FY 2019
72
11
FY 2018
73
45
FY 2017
67
27
FY 2016
27
15
FY 2015
12
18
Analysis of results and challenges: The Tax Division encourages voluntary compliance as the most effective tool for collecting tax revenues. An important aspect of voluntary compliance is for taxpayers to believe that they are paying about the same amount in taxes as other similarly situated taxpayers. Seeking out and finding new taxpayers and bringing them into compliance assists the Tax Division both in long-term voluntary compliance as well as bringing in the revenues from the new taxpayers. The Tax Division does not believe there are any major oil and gas taxpayers not filing. Therefore, the Tax Division focuses its compliance efforts on other tax types. This target and measure do not include federal or multi-state compliance programs in which the Tax Division currently participates.

Compliance projects include analyzing databases of other states, the federal government, and local agencies to ensure that a person engaged in a taxable activity is filing required tax returns. The Tax Division also conducts taxpayer outreach and education through attendance at industry meetings and conferences.

Target Last Modified: 10/10/2024

    Target #2: 90% of existing taxpayers file their tax returns and make tax payments timely.
Taxpayers Filing and Paying Taxes Timely
Fiscal Year
% of Timely Filers
FY 2024
89.4%
FY 2023
85.7%
FY 2022
85.8%
FY 2021
83.2%
FY 2020
88.8%
FY 2019
88.2%
FY 2018
88.8%
FY 2017
87.4%
FY 2016
89.7%
FY 2015
89.0%
Analysis of results and challenges: The Tax Division completed its final rollout of its Tax Revenue Management System (TRMS) in FY2017. The new system replaced many outdated legacy systems and allowed the Tax Division to get more accurate information from tax returns. While the above graph and table report a decrease in timely filing and paying of tax returns beginning in FY2015 (the year of the first rollout), the division believes the higher numbers in earlier years were not correct, but a flaw in previous system reports. The division has reached out to other states, and their timely filing rates are below 90 percent (some are far below). The new system is providing more accurate information. It should be noted that certain assumptions had to be made to produce the number provided. For example, only returns and payments that have been received are considered in the calculation. There may be returns and payments that will be late but have not yet been received. One of the primary functions of the division is to encourage voluntary compliance by all taxpayers across all tax programs. This is achieved in a variety of ways, i.e. taxpayer education and outreach programs, compliance activities where the division actively looks for non-filers, and collection activities. Taxpayers are more apt to voluntarily comply if they believe that everyone else is paying their fair share and the division makes it relatively easy to file returns and pay taxes. As such, the most effective way to measure performance is to look at the percentage of known taxpayers who timely file their returns and pay their taxes.

TRMS has a public facing component which allows taxpayers to file and make payments online. The division has had great success with this system and believes it is a factor in the performance reported.

Target Last Modified: 10/10/2024

    Target #3: Increase child support collections by 1.0%, to include Permanent Fund Dividend collections.
Percent Change in Total Child Support Collections for a Fiscal Year
Fiscal Year
% Change
FY 2024
-9.16%
FY 2023
3.10%
FY 2022
-5.7%
FY 2021
-8.02%
Analysis of results and challenges: FY2024 collections including Permanent Fund Dividends (PFDs) decreased by 9.16 percent over FY2023. The division did not meet the target of a one percent increase over FY2023 due to the energy rebate distributed with the calendar year 2022 PFD payment. The calendar year 2023 PFD payment did not include an energy rebate, leading to a decrease in the collections in FY2024.

Target Last Modified: 11/02/2024

    Target #4: 1,000 hour increase in audit hours over prior year.
Change in Audit Hours over Prior Year
Fiscal Year
# of Hours
Target
FY 2024
-5786
1000
FY 2023
3450
1000
FY 2022
-316
1000
FY 2021
-2,083
1000
FY 2020
963
1000
FY 2019
455
1000
FY 2018
-92
1000
FY 2017
-2,670
1000
FY 2016
4,168
1000
FY 2015
-1,102
1000
Analysis of results and challenges: Although voluntary compliance remains the best tool for effective tax collection, that voluntary effort is enhanced by an audit presence, therefore, the Tax Division needs to increase its audit numbers.

In general, the Tax Division strives to increase its year-over-year audit hours in an effort to be more efficient with its time and spend auditor time on things that will generate the greatest benefit to the State. In FY2024, the Tax Division upgraded its Tax Revenue Management System (TRMS). This was a big lift and required a significant time commitment of staff. In order to ensure that the upgrade was successful, the Tax Division deliberately cut back on its audit hours and diverted those resources to the TRMS upgrade. TRMS has allowed the Tax Division to automate many processes and makes audit work more efficient. For those reasons, the Tax Division prioritized the TRMS upgrade in FY2024 which resulted in a decrease in audit hours from the prior year. The decrease in hours in FY2017 — FY2018 can partially be explained by the fact that there have been significant changes in the oil and gas production tax regime which has required programming changes to TRMS. The oil and gas production tax and corporate income tax Audit Groups remain current on all oil and gas audits.

Target Last Modified: 10/10/2024

Priority 2: Funds Distribution
    Target #1: Increase disbursements of child support payments by 0.5%.

Methodology: % change from the prior year
Disbursements of Child Support Payments
Fiscal Year
% Change
FY 2024
-9.84%
FY 2023
1.63%
FY 2022
-4.4%
FY 2021
-4.54%
Analysis of results and challenges: This measure has a direct correlation to the amount of collections received in the fiscal year. When collections decrease, disbursements also decrease.

The division is focused on improving processes and implementing technology with the upgrade of our outdated system, to continue to meet our target increase of 0.5 percent in child support disbursements.

Target Last Modified: 10/10/2024

    Target #2: Maintain or reduce administrative costs from year to year.

Methodology: Calendar/dividend year is used for Permanent Fund dividend (PFD) application and payment statistics. Appropriations are based on state fiscal year and become effective on July 1 of the dividend year shown.
*Number of applications received by the Permanent Fund Dividend Division at time of dividend calculation.
Estimated Cost per Dividend Paid
Fiscal Year
Dividend Year
Total PFD Appropriation*
#Applications Received**
Estimated # PFD's Paid
Estimated Cost Per PFD
FY 2024
2023
$8,569,700
673,905
631,729
$13.57
FY 2023
2022
$8,572,800
666,523
632,108
$13.56
FY 2022
2021
$8,538,500
664,282
634,368
$13.46
FY 2021
2020
$8,249,400
672,277
634,831
$12.99
Analysis of results and challenges: Paper applications have steadily decreased over the past five years. The increase in web applications has created efficiencies throughout the application and eligibility determination process. As online activity has increased the division has been able to reallocate resources which prioritize Alaskans personal data security, and fraud protection.

* FY2023 appropriation does not reflect $2,000,000 appropriated for security upgrades. Subsequently, after security upgrades were made, $1,500,000 was returned to the fund as the security solution selected was a more cost-effective choice.

Target Last Modified: 11/14/2024

    Target #3: Increase Senior Housing units
Analysis of results and challenges: Senior housing remains a high priority for the Corporation. Over 156,000, or 21.0%, of Alaska`s population is 60 years or older. Over 7,500 are 85 or older. While funding for senior housing has remained stable in recent years, the Alaska senior population continues to grow. Over the past five years, the 60 and over population in Alaska has grown by over 17.5%. Leading that growth are seniors 60+ residing in the Matanuska-Susitna Borough with an increase of 26.7% in the Borough since 2018. Also notable on the statewide level are the 41,400 Alaskans between the ages of 55-60 that meet the Federal Fair Housing Act Exemption for housing for older persons age 55 and above.

Renovating properties to allow for aging-in-place, through accessibility modification upgrades (loans or grants) may assist in relieving the overall demand for senior housing as demographics continue to grow. Encouraging Alaskans to complete home modifications, perhaps while they are still working and can more easily afford the repairs, will assist in assuring residents can remain in their homes and communities for as long as possible.

Note:
Unit data excludes AHFC mortgage data to assisted living properties as those developments report beds rather than units.

Target Last Modified: 11/02/2024

    Target #4: Increase Multi-Family units
Total Multi-Family Units
Fiscal Year
Total Units
FY 2024
20,202
+1.21%
FY 2023
19,960
+2.95%
FY 2022
19,388
+3.63%
FY 2021
18,708
+3.82%
FY 2020
18,020
+2.03%
FY 2019
17,662
+1.92%
FY 2018
17,329
+3.17%
FY 2017
16,796
+1.31%
FY 2016
16,579
+1.02%
FY 2015
16,412
Analysis of results and challenges: Affordable rental housing remains in demand and vacancy rates were down across the state. The production of multi-family housing activity is subject to interest rates, local economic conditions, and other volatile market factors. New construction across the state continues to face marginal feasibility due to high construction costs and the persistent gap between achievable rents and those required to support the high development costs.

Target Last Modified: 11/04/2024

Priority 3: Funds Investment
    Target #1: For the funds under the fiduciary responsibility of the Commissioner of Revenue, exceed the applicable 1-year target returns.

Methodology: FY2024 one-year return data is for the period 7/1/2023 through 6/30/2024.
One-year Return Data for Funds Managed by the Treasury Division
Fiscal Year
Fund
Actual Return
Target Return
FY 2024
Illinois Creek Reclamation
13.19%
12.90%
FY 2024
Int Airport Revenue
5.60%
5.27%
FY 2024
Higher Ed
13.21%
12.90%
FY 2024
Public School
13.19%
12.90%
FY 2024
Retire- Major Med
5.71%
5.40%
FY 2024
Retire- Long Term
9.83%
9.37%
FY 2024
CBRF
5.71%
5.40%
FY 2024
GeFONSI 2
6.30%
5.94%
FY 2024
GeFONSI 1
5.60%
5.27%
Analysis of results and challenges: A combination of investments that is expected to produce the highest investment return for a given amount of risk is known as a "point on the efficient frontier." Each fiduciary for a fund reviews points on the efficient frontier and selects the combination of investments consistent with their appetite for risk and return of the fund. This selection is known as the target asset allocation. Target returns assume the total rate of return of passively managed indexes invested in the same proportions as the target asset allocation. A fund"s investment return will differ from its target return if its asset allocation differs from the target asset allocation or if the returns of the underlying investments differ from those of the passively managed indexes.

Target Last Modified: 10/10/2024

    Target #2: A long-term 5% real rate of return
Rolling 10-year real rate of return; annualized returns for periods ended June 30
Fiscal Year
Fund Total Return
APFC Inflation Rate
Fund Real Return
LT Real Return Objective
FY 2024
7.6%
2.7%
4.9%
5.0%
FY 2023
8.3%
2.4%
5.9%
5.0%
FY 2022
8.9%
1.9%
7.0%
5.0%
FY 2021
9.0%
1.7%
7.3%
5.0%
FY 2020
8.3%
1.8%
6.5%
5.0%
FY 2019
9.2%
1.5%
7.7%
5.0%
FY 2018
6.5%
1.7%
4.8%
5.0%
FY 2017
5.0%
1.8%
3.2%
5.0%
FY 2016
5.4%
2.0%
3.5%
5.0%
FY 2015
6.4%
2.3%
4.1%
5.0%
Analysis of results and challenges: Alaska Statute 37.13.120 defines the Alaska Permanent Fund Corporation"s (APFC) responsibilities for the investment of the Fund. The statute requires that APFC"s Board of Trustees apply the Prudent Investor Rule standards, emphasizing diversification and long-term goals in asset allocation strategy when making investment decisions. The Board authorizes APFC staff to make investment decisions to maximize the portfolio"s risk-adjusted return.

The Board of Trustees" long-term investment objective for the Fund is to generate total returns over Inflation/CPI plus 5% with acceptable levels of risk. The Board has defined an approved risk guideline to delineate the absolute and relative risk staff may take to achieve these investment objectives. To achieve this goal, the Fund is invested across eight asset classes in both public and private markets. The portfolio is designed to deliver compelling long-term returns under a variety of potential market conditions.

The Fund"s long-term rolling 10-year Real Rate of Return for the fiscal year period (FY) 2015-2024 was 4.9% with an inflation rate of 2.7%, and the Total Rate of Return for the same period was 7.6%. The Fund"s annualized total return for 40.5 years, ended June 30, 2024, was 8.8%.

For FY2024, the Fund ended the year with a value of $80.54 billion in assets under management (AUM). This comprises $70.7 billion in the Principal and $9.87 billion in the Earnings Reserve Account (ERA). The portion of dedicated State of Alaska revenues deposited into the Fund"s Principal (or "corpus") is based on mineral prices and production. In FY2024, this amount came in at $533 million.

Target Last Modified: 11/04/2024

    Target #3: Formal visit, bond issue update, or updated document template sent or presented to ratings agencies at least four times per year.
Updates Provided to Ratings Agencies
Fiscal Year
# of Updates
FY 2024
11
FY 2023
10
FY 2022
7
FY 2021
9
FY 2020
7
FY 2019
7
FY 2018
6
FY 2017
7
FY 2016
16
FY 2015
11
Analysis of results and challenges: Presentation and discussion with ratings agencies ensures the proper context is given to the State"s revenue, economic, and debt profile to support the State"s credit ratings.

Target Last Modified: 05/30/2024

    Target #4: 100% of new financings will result in savings or diminished administrative effort.
New Financings That Resulted in Savings
Fiscal Year
Percent
Aggregated Savings
FY 2024
100%
$4.5 million
FY 2023
100%
$13.5 million
FY 2022
100%
$3.7 million
FY 2021
100%
$51.7 million
Analysis of results and challenges: In each fiscal year shown, all authorized Alaskan borrowers that borrowed funds through the Alaska Municipal Bond Bank Authority are projected to be paying less debt service (realized savings) than they otherwise might have using other means of financing their project or diminished the administrative burden of their staff.

Target Last Modified: 05/30/2024

Priority 4: Safety for Alaskans
    Target #1: 90% of all complaints received by the LTCO program are resolved to the satisfaction of the resident or their representative.
Complaints Resolved to Satisfaction or Partial Satisfaction of Complainant
Federal Fiscal Year
Complaints Received
% Resolved
FFY 2023
355
80%
FFY 2022
307
80%
FFY 2021
292
82%
FFY 2020
374
80%
Analysis of results and challenges: During FFY2023, this target was nearly met. The Long Term Care Ombudsman Office approaches resolutions to complaints in a resident directed manner. The resident determines if they are satisfied with the outcome of the complaint. While the Long Term Care Ombudsman Office strives for an outcome of 90 percent resident satisfaction of all complaints, there are other factors such as facility policies, funding, medical concerns, or guardianship that may prevent an outcome that the resident hopes to obtain. For FFY2023, 80 percent of all complaints received by the Long Term Care Ombudsman Office were resolved to the satisfaction of the resident or their representative. The Long Term Care Ombudsman Office investigated nearly 50 more complaints in FFY2023 than in FFY2024. The top 5 complaints for FFY2023 centered around the quality of care, evictions, residents` rights and choices, financial exploitation, and legal guardianship.

Who filed complaints to the Long Term Care Ombudsman Office in FFY2023: 48 percent of complaints received were from residents in facilities; 17 percent of complaints were reported by resident representatives, or family members; 15 percent of complaints received were initiated by facility staff, and all other complaints came from other agencies, resident councils, friends of residents and concerned citizens of the community.

Target Last Modified: 11/02/2024

Last refreshed: 05/23/2025 05:00 pm