At-A-Glance

Overview

Lush, fertile farmlands of the Matanuska and Susitna valleys make up this Interior Alaska borough. Homesteaders who led an agricultural lifestyle in the 1930s originally settled the area. Construction of the statewide road system and the productivity of the farmlands spurred population growth. Today, this Borough is one of the fastest growing regions in Alaska. According to the U.S. Census Bureau, the area's population grew 49.5% from 1990 to 2000 -- a growth rate three times the state average. Mat-Su Borough residents enjoy a rural lifestyle that is conveniently close to metropolitan Anchorage. Many residents work in Anchorage, which is about a 40-mile commute. Tourism is on the rise, bringing visitors who fish and raft the area's remote rivers and lakes during the summer months. There are several lodges to support recreational activities. Just to the north of the Mat-Su Borough, Mount McKinley, North America's highest peak, attracts tourists and supports many local air taxi, helicopter, outfitter and climbing expedition businesses.

The local economy of Wasilla is diverse, and residents are employed in a variety of city, borough, state, federal government, retail and professional service positions. Tourism, agriculture, wood products and the manufacturing of steel and concrete products comprise the economy. The George Parks Highway and the Glenn Highway connect Wasilla to Anchorage, as well as the remainder of the state and Canada. The Alaska Railroad serves Wasilla on the route from Seward to Fairbanks.

In 1935, Palmer became the site of one of the most unusual experiments in American history: the Matanuska Valley Colony. The Federal Emergency Relief Administration, created by President Roosevelt, created an agricultural colony in Alaska. In 1935, about 200 families, mostly from Michigan, Wisconsin and Minnesota, joined the colony near Palmer. Although the farm failure rate was high, many descendants still live in the Mat-Su Valley.

Palmer is located about 40 miles north of Anchorage on the Glenn Highway. Palmer's economy is based on a variety of retail and other services, as well as city, borough, state and federal government. Some light manufacturing occurs, but most residents are employed in Anchorage. Palmer is home to 200 musk ox, whose underwool is knitted into garments by Alaska Natives from 12 rural villages. Between 2,500 and 3,500 garments are created each year and sold by an Anchorage cooperative.

Lazy Mountain is a new a settlement on the Glenn Highway, located on the outskirts of Palmer. Most residents commute to the Palmer/Wasilla area for work or farming. Children are bused out for schooling. Grain, hay and potatoes are grown in the area.

Big Lake residents are primarily employed in the Palmer and Wasilla area. There are several lodges on the lake to support summer recreational boating and fishing activities. Unemployment is relatively low.

Businesses that create new wealth in Alaska or reduce the state's dependence on imports, are defined as the economic base. Based on personal income, the economic base of the Mat-Su Borough increased 13% from 1995 to 1999. This growth was led by increases in manufacturing, tourism, federal government and agriculture. The expansion occurred despite the decline in mining and commercial fishing. The fastest growing segment of tourism is sport fishing and hunting. There are 97 commercial guides in the Borough.

There is $217.8 million of funded federal and state capital improvement projects in the Borough for schools, sewer and water projects, airports, utilities and other structures. During construction, capital improvements bring cash into the economy. However, these projects provided only limited opportunities for local employment.

Regional Native Corporation. Thirteen Native regional for-profit corporations were established by the 1971 Alaska Native Claims Settlement Act (ANCSA) that settled aboriginal land claims in the state. At the same time, some 200 village for-profit corporations were formed. An overview of all the Native regional corporations (Alaska Business Monthly, March 2001) is here. The Matanuska-Susitna Borough, as well as Anchorage and portions of several other census areas, is located within the Cook Inlet Region Incorporated (CIRI) region. Key CIRI businesses include telecommunications, construction services and equipment distribution, real estate, tourism, natural resources development and equity investments. CIRI has significant interest in the tourism industry, with lodging facilities at Seward, Fox Island, Grower Island, Talkeetna and Denali National Park, and tour boat services at Kenai Fjords National Park and Prince William Sound. CIRI also supports five non-profit affiliates. Total revenues in 2000 were $379.7 million. Details on the corporation's revenues and major business activities, and a narrative discussion, are here.

Population

At 24,694 square miles, the Matanuska-Susitna Borough is the home to 9% of the state's population. The population density is 2.3 people per square mile and is twice the Alaska average of 1.1 people per square mile. The chart at right shows that the population was 55,694 in 1999, and steadily increased about 4% per year. In 1999, birth rates were 11.7 births per 1,000 population and death rates were estimated at 4.3 deaths per 1,000 population. Both birth and death rates have decreased since 1991. (Chart) Both rates are substantially below the Alaska averages of 18.5 births per 1,000 population and 5.2 deaths per 1,000 population. (Chart) The area has grown increasingly popular due to the scenic beauty of the region, a budding economy, and its close proximity to Anchorage. The average annual in-migration is 26.1 people per 1,000 population from 1991 to 1999. (Chart)

Alaska Natives, primarily Athabascan, represent 4% of the total population in the Matanuska-Susitna Borough. In comparison, Alaska Natives represent 17% of Alaska's total population. The Native population in the Borough has increased 66% since 1990. The percentage of Natives in the Borough is low compared with other census areas in the state. (Chart)

Personal Income and Employment

Employment for all economic sectors (economic base, private sector and government) increased nearly 16% from 1991 to 1999. Employment in the private support sector dominates all other sectors, representing 63% of the total employment. Furthermore, this sector grew 23% from 1995 to 1999. The growth was primarily due to Permanent Fund Dividends, other government expenditures, tourism and the success of Alaska's Native regional corporations. All these factors have allowed the private support sector to expand beyond the normal influence of the economic base. Employment in state and local government represents almost 25% of the total jobs and remained stable between 1995 and 1999. The economic base sector (which includes businesses that create new wealth by generating exports or by displacing imports to Alaska) is relatively small at13% of the region's total employment. Employment for this sector has increase 11%, despite declines in mining and commercial fishing.

The growth in personal income is similar to growth in total employment. (Chart) The combined income from all economic sectors increased almost 12% from 1991 to 1999. After adjusting for inflation, personal income from the economic base increased 13%. Income in the private support sector grew even more -- 24% over the same time period. Personal income in state and local government decreased 7%. More important, there are downward trends in the earnings per job for the economic base and state and local government sectors. (Chart) The downward trend means that the new employment opportunities are for jobs that pay lower salaries than in the past or that more part-time work is being substituted for full-time work. The loss of relatively higher paying mining jobs contributes to the downward trend. There is a slight upward trend in earnings per job in the private support sector - less than 1%.

Unemployment

Unemployment averaged 8% in 2000 and has been increasing since 1998. From 1991 to 2000, the average monthly unemployment rate was 10.2% and was well above the Alaska average. (Chart) The unemployment rate in the Mat-Su Borough was higher even though many residents work in Anchorage - Alaska's largest economy. Like the rest of Alaska, there is a large variation in monthly unemployment rates. This is due to seasonal nature of an economy based on natural resources. (Chart)

The normal measure of unemployment (people unemployed and actively seeking work) is somewhat misleading in rural Alaska because it does not reflect the realities of a small cash economy and a high dependence on subsistence wild foods. Unemployment rates do not include working age adults who are not in the work force. In the Matanuska-Susitna Census Area, adults not in the workforce are estimated at 26.3%. For a typical developed community in the United States, 20% of the adults are not in the work force. The higher percentages in Alaska usually reflect the amount of time and effort directed toward subsistence activities.

Subsistence

Over the entire Borough, annual wild-food harvests average 29 pounds per person. The figure above shows a lower dependence on wild foods for communities in the Borough compared with other communities throughout the state. By community, wild-food harvests range from 27 pounds to 312 pounds per person per year. More detailed information about subsistence activity in the Matanuska-Susitna Borough is here.

Per Capita Wealth

Per capita wealth includes the cash income from all sources, transfer payment (state and federal entitlements) and the estimated replacement value of wild foods harvested. Adjusting for inflation, the 1999 per capita income for the Borough is $13,400 and is well below the statewide average of $25,700. (Chart) The much lower per capita income is primarily due to the lower wages and salaries available in the Borough and to a less extent a low dependence on subsistence wild foods. The trend in per capita income is flat or slightly increasing. (Chart)

Per capita transfer payments including medical assistance, income assistance, Bureau of Indian Affairs compacting dollars, Permanent Fund Dividends and other individual entitlements was $3,700 in 1999, an increase from 1995 levels. The increase was due to larger Permanent Fund Dividends. (Chart)

On a per capita basis in the Borough, food from subsistence activities accounts for about 3% of an individual's economic well being. (Chart) Permanent Fund Dividends are an important source of income for most Alaskans. In the Matanuska-Susitna Borough, the Permanent Fund Dividend accounts for 14% of the per capita income that comes from wages, salaries, rents and transfer payments and is double the Alaska average of 7%. (Chart)

Capital Improvement Projects

In 2001, there were about $217.8 million in funded capital improvement projects. Nearly 80% of these projects are designed to develop basic infrastructure such as electric utility upgrades, state roads and harbors. About 11% of the projects will expand or improve services and include equipment, community facilities, housing, schools and local roads. Close to 8% of the projects are designed to improve health and safety, including water and sewer systems, airport improvements, landfills and health clinics. Less than 1% will be used to create new business ventures. Another $263.9 million in projects are in the planning stage. (Chart) Details on capital improvement projects for every community in Alaska is available on the state Department of Community and Economic Development RAPIDS web site.