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Financial Assistance to Communities
State of Alaska > Commerce > DCRA > Financial Assistance to Communities
 

DCRA administers five programs that provide financial assistance to Alaskan communities:

State Revenue Sharing Program

This program has two major elements. The Municipal Tax Equalization element rewards municipalities for local fiscal effort by allocating money on the basis of a formula incorporating locally generated revenues and property values along with municipal population. This account also provides for a minimum entitlement of $25,000 for municipalities, with a geographic location adjustment. Funding in FY 99 for this account was $14,389,200.

The second element, entitled State Aid for Miscellaneous Services provides money for public roads, ice roads, hospitals, health clinics, unincorporated communities, and volunteer fire departments. FY 99 funding of $7,194,600 resulted in payments at 25% of the statutory allocations.
Safe Communities Program

Safe Communities (Municipal Assistance) replaced the Gross Business Receipts Program in 1979, and uses the FY 78 gross business receipts payments to municipalities as a base amount under this new program. The base amounts total approximately $10.6 million. Any appropriation from the Legislature to the Municipal Assistance Program that is above the level necessary to fund the base amounts is distributed on a per capita basis. Funds appropriated in excess of the base amounts are designed to provide property tax relief. The FY 99 appropriation was $26,256,300.

Shared Fisheries Business Tax Program

This program provides for an annual sharing of fish tax collected outside municipal boundaries to municipalities that can demonstrate they suffered significant effects from fisheries business activities. In FY 99, $1,208,039 was distributed to eligible municipalities.

National Forest Receipts Program

DCBD distributes National Forest Receipts under the authority of a 1908 federal law. This is a revenue sharing program, in which 25% of the income earned from activities within the national forest is distributed to boroughs and cities within the national forest. Federal and state law require that national forest income be expended only for the benefit of public schools and public roads. In FY 99, $1.8 million was distributed to 9 boroughs, 17 cities, 4 Regional Educational Attendance Areas (REAAs), and the Metlakatla Reservation. Boroughs have been eligible to receive these funds since statehood. Cities, REAAs and Metlakatla became entitled as the result of a state law passed in 1991.

Federal Payments in Lieu of Taxes

Division staff worked closely with Senator Stevens to establish and administer a new program which expanded federal Payment in Lieu of Taxes (PILT) payments to include cities located in Alaska's unorganized borough. The division distributed approximately $3.44 million to 96 Alaska cities in FY01.

For more information about DCBD's revenue sharing programs, contact:

Bill Rolfzen
Division of Community and Regional Affairs
Department of Commerce, Community, and Economic Development
P.O. Box 112100
Juneau, AK 99811-2100
Phone: (907) 465-4733; Fax: 465-2948
e-mail: Bill.Rolfzen@alaska.gov