Performance Details

Department of Commerce, Community, & Economic Development - Division of Economic Development

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Mission

Promote economic development opportunities.

Core Services

• Research
• Statewide Economic Development Strategy Implementation

Mission Results	Core Services
A: Economic opportunities for Alaskans are optimized.  Details > TARGET #1: Increase economic output as expressed by the change in real gross domestic product; meet or exceed national and peer state averages. TARGET #2: Maintain or improve total nonfarm employment. TARGET #3: Increase corporation tax revenue as a result of increased economic activity.	A1: Research  Details > TARGET #1: Promote Alaska's economic assets and industries to external audiences through development of research projects. A2: Statewide Economic Development Strategy Implementation  Details > TARGET #1: Carry out activities with partner organizations that implement the Comprehensive Economic Development Strategy (CEDS).

Performance Detail

Target #1: Increase economic output as expressed by the change in real gross domestic product; meet or exceed national and peer state averages. Methodology: United States Bureau of Economic Analysis Analysis of results and challenges: Gross Domestic Product annual growth rate is based on gross domestic product in chained dollars* and rounded to the nearest tenth of a percent. Peer states were selected as economies of comparable size. The peer states include North Dakota, South Dakota, Idaho, Montana and Wyoming. The growth rate of Alaska’s GDP was 0.30% in 2017. *Refers to a method of adjusting dollar amounts for inflation over time, so as to allow comparison of figures from different years. Chained dollars use a base year to calculate the real dollars. The base year for these growth rates is 2009.

Target #2: Maintain or improve total nonfarm employment. Methodology: State of Alaska, Department of Labor and Workforce Development, Research and Analysis Analysis of results and challenges: The employment numbers exclude self-employed workers, fishers, domestics and unpaid family workers. Job losses continued for a second year during, calendar year 2017. Losses to non-farm wage and salary employment were less in 2017 than 2016.  

Target #3: Increase corporation tax revenue as a result of increased economic activity. Methodology: Alaska Department of Revenue, Corporate Income Tax Annual Report Data State of Alaska Corporate Tax Liabilities (millions) Year Oil and Gas Corps. Non-Oil and Gas Corps. 2017 -$59.4 $84.2 2016 -$58.8 $89.2 2015 $86.5 $134.8 2014 $313.8 $102.4 2013 $433.7 $109.5 2012 $542.2 $96.6 2011 $542.1 $146.2 2010 $447.9 $80.1 Analysis of results and challenges: Amounts reflect the total general fund tax collections as reported on corporate income tax returns. Overall, corporate taxes have been declining since 2011.

Target #1: Promote Alaska's economic assets and industries to external audiences through development of research projects. Research Projects Undertaken Fiscal Year Tourism Development Natural Resources Business Development Other FY 2018 1 2 7 6 FY 2017 1 3 4 5 FY 2016 2 2 2 5 FY 2015 1 4 2 2 FY 2014 1 9 2 1 FY 2013 3 12 1 4 Analysis of results and challenges: Projects include total quantity of primary and secondary research projects the Division of Economic Development designed, implemented, and/or coordinated. Natural resources include seafood, minerals, and wood product industries.

Target #1: Carry out activities with partner organizations that implement the Comprehensive Economic Development Strategy (CEDS). Analysis of results and challenges: FY2018 marks the first year of implementation of the state’s five-year Comprehensive Economic Development Strategy (CEDS). The division’s CEDS was approved by the United States Economic Development Administration in February of 2018. Feedback was gathered from the CEDS Strategy Committee to determine the first set of objectives to implement. The division collaborated with communities and economic development organizations around the state to begin the implementation of the Phase 1 objectives during FY2018. Sponsorships include events and physical projects sponsored by the division to assist in the implementation of the CEDS. These activities and sponsorships span from the Made in Alaska program, the division’s primary activity and tool utilized to increase import substitution, to sponsorship of a coding school to help develop and retain technology expertise in state. Additionally, the division sponsored and participated in the Juneau Economic Development Council’s annual Innovation Summit in February 2018, presenting the prioritized Phase 1 priorities of the statewide CEDS. This activity helped garner partners for cooperation on many CEDS goals including workforce development, resource extraction, visitor industry, the ocean economy, energy, the arts economy, and entrepreneurship. Other activities to promote the CEDS includes topics on resource extraction, microfinance, and foreign direct investment. The division foresees the number of these activities to grow in the coming years. Sponsorships are forecasted to remain steady throughout the next few years.

Current as of December 19, 2018