Information Insights

Citings: Alaska Native Economic Impact Study

May 28th, 2008

In April 2008, Information Insights completed an analysis of the economic impacts of Alaska Native organizations on Interior Alaska. The results were highlighted in the following “Community Perspective” piece by Jerry Issacs of Tanana Chiefs Conference and Norman L. Phillips Jr. of Doyon, Limited that appeared in the Fairbanks Daily News-Miner on May 28, 2008.

A recently completed economic study presents a picture that might surprise you when it comes to Native organizations in Fairbanks and Interior Alaska. Doyon, Limited and Tanana Chiefs Conference along with Fairbanks Native Association, Interior Regional Housing Authority, Doyon Foundation and Denakkanaaga contracted with Information Insights, Inc., a Fairbanks based Alaska public policy and management consulting firm, to carry out the study.

Information Insights completed a similar study in 2000 so we asked the company to review the fiscal data for 2006, our most recent and audited financial reports, to determine the total economic impact of Alaska Native organizations, based In the Interior on the economies of the City and Borough of Fairbanks and all of Interior Alaska.

Organizations surveyed for the study include ANCSA regional and village corporations and their subsidiaries, Alaska Native nonprofits, Tribal Governments, and interior school districts with over 90 percent Alaska Native enrollment.

Here are a few of the findings of the study:

TOTAL ECONOMIC IMPACT

• Total earnings impacts of $256 million represents 17 percent of all civilian wage and salary income in the Fairbanks North Star Borough.
• The total employment impact of Alaska Native entities represents 12 percent of all civilian employment in Fairbanks.
• The total impact of Alaska Native organizations on the regional economy of Interior Alaska was $345 million.

EMPLOYMENT IMPACTS

• Alaska Native organizations directly employed 3,800 people in Interior Alaska. This included approximately 2,200 jobs in Fairbanks and 1,600 jobs in the rest of the Interior.
• Direct employment by Alaska Native organizations accounted for nearly 6 percent of all civilian jobs in Fairbanks – about the same amount provided by the borough school district and the hospital.
• As an industry, Alaska Native organizations were the third largest employer overall in Interior Alaska, after state and federal government and just ahead of school districts and the construction industry.

PURCHASING IMPACTS

• Alaska Native organizations spent over $164 million on goods and services purchased in Interior Alaska in 2006. This included $137 million in spending in the Fairbanks North Star Borough and another $27 million in the rest of the Interior. This is based on data from 90 percent of Alaska Native employers in the region.
• Alaska Native organizations in the Interior contributed more than $1.5 million in property taxes to the Fairbanks North Star Borough in 2006.
• Alaska Native events and conferences in 2006 brought in $2.4 million in visitor impacts to our community.

To be honest we were surprised by the findings. We never thought of ourselves as an economic engine on par with the University of Alaska or the military. Most of us didn’t realize the impact our organizations have on the Interior economy because we are working hard to help our organizations grow and serve our customers, clients and shareholders.

While the findings of the study may be surprising, they only reflect one component of our contributions to the community. We are proud to be able to be part of a diverse community and hope that there will be more interaction between the Native organizations and the community as a whole.

Over the next few months these groups will be writing similar pieces to discuss who we are, what we do and how we can work together to make the Interior a better place to live, work and raise our families.

We hope that you will read them so that there will be a better understanding of the Native organizations’ roles in our community. Together we can continue to improve the quality of life in Fairbanks and our interaction with other communities across the Interior.