John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Alaska’s boroughs, Copper River Census Area saw the largest increase in transfer dependency over the past 10 years, surging 23.8% from 0% in 2012 to 23.8% in 2022. In dollar terms, government transfers per capita in Copper River Census Area jumped from $0 in 2012 to $14,302 in 2022.
Chugach Census Area followed with the second-largest increase in transfer dependency, increasing to 16% as of 2022 from 0% in 2012. This trend is reflected in per capita amounts, with residents of Chugach Census Area receiving an average of $11,312 in transfer income in 2022, up from $0 in 2012.
Additionally, Kusilvak Census Area had the highest percentage of income derived from government transfers, at 52.7% in 2022, making it the borough with the highest overall transfer dependency. Yukon-Koyukuk Census Area and Northwest Arctic Borough followed, with transfer dependency rates of 41.8% and 39.7% in 2022, respectively.
Compared to 1970, Kusilvak Census Area increased by 38.5%, while Yukon-Koyukuk Census Area and Northwest Arctic Borough have increased by 41.8% and 25.3%, respectively, showing sustained reliance on government transfers. Residents in Kusilvak Census Area received an average of $19,331 in transfers per capita, with Yukon-Koyukuk Census Area and Northwest Arctic Borough close behind at $27,183 and $21,940, respectively.
For comparison, the statewide average was 20.6% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $14,153 per resident in 2022, compared to $11,542 nationwide.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In Alaska, reliance on government transfers was just 3.7% (or $1,267 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 20.6% (or $14,153 per capita) in 2022, reflecting a total increase of 16.9% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Alaska included:
- Social Security: $2,746 (19.4% of total transfers)
- Medicare: $1,903 (13.4% of total transfers)
- Medicaid: $3,397 (24% of total transfers)
- Income Maintenance Programs: $1,572 (11.1% of total transfers)
With 13.9% of the population aged 65 and older, Alaska has a demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Alaska, reliance on government transfers has similarly increased from 3.7% (or $1,267 per capita) in 1970 to 20.6% (or $14,153 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| Borough | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Aleutians East Borough | 7% | -0.9% | 7% | $4,487 | $942 | $4,487 |
| Aleutians West Census Area | 7.9% | 1.6% | 7.9% | $5,483 | $1,591 | $5,483 |
| Anchorage Municipality | 18.8% | 6.8% | 16.5% | $14,211 | $5,487 | $13,289 |
| Bethel Census Area | 37.9% | 9.9% | 37.9% | $18,453 | $5,571 | $18,453 |
| Bristol Bay Borough | 9.6% | 1.2% | 6.1% | $15,040 | $5,689 | $13,100 |
| Chugach Census Area | 16% | 16% | 16% | $11,312 | $11,312 | $11,312 |
| Copper River Census Area | 23.8% | 23.8% | 23.8% | $14,302 | $14,302 | $14,302 |
| Denali Borough | 27.2% | 5.3% | 27.2% | $32,870 | $12,555 | $32,870 |
| Dillingham Census Area | 26.5% | 8.8% | 26.5% | $16,165 | $5,766 | $16,165 |
| Fairbanks North Star Borough | 19.8% | 6.9% | 17.3% | $13,388 | $5,336 | $12,486 |
| Haines Borough | 25.3% | 5.7% | 25.3% | $21,659 | $10,174 | $21,659 |
| Hoonah-Angoon Census Area | 28.9% | 7% | 28.9% | $19,323 | $6,809 | $19,323 |
| Juneau City and Borough | 15.4% | 5.5% | 11.8% | $12,125 | $4,749 | $10,519 |
| Kenai Peninsula Borough | 25.4% | 8.8% | 25.4% | $15,546 | $5,868 | $15,546 |
| Ketchikan Gateway Borough | 22.3% | 7.5% | 16.5% | $16,250 | $5,606 | $14,447 |
| Kodiak Island Borough | 19.5% | 8.1% | 17% | $13,937 | $6,293 | $13,048 |
| Kusilvak Census Area | 52.7% | 10.7% | 38.5% | $19,331 | $5,194 | $17,367 |
| Lake and Peninsula Borough | 27.3% | 8.9% | 27.3% | $18,355 | $6,956 | $18,355 |
| Matanuska-Susitna Borough | 20.1% | 7.3% | 14.3% | $11,653 | $4,672 | $9,862 |
| Nome Census Area | 33.1% | 6.1% | 19.5% | $20,529 | $6,406 | $18,176 |
| North Slope Borough | 12.1% | 5.3% | 12.1% | $9,058 | $2,859 | $9,058 |
| Northwest Arctic Borough | 39.7% | 8.1% | 25.3% | $21,940 | $6,770 | $19,578 |
| Petersburg Borough | 27.6% | 11.5% | 27.6% | $20,214 | $9,460 | $20,214 |
| Prince of Wales-Hyder Census Area | 30.5% | 8.6% | 30.5% | $16,210 | $6,490 | $16,210 |
| Sitka City and Borough | 17.8% | 6.1% | 17.8% | $14,256 | $5,621 | $14,256 |
| Skagway Municipality | 18.4% | 10.6% | 18.4% | $13,898 | $5,690 | $13,898 |
| Southeast Fairbanks Census Area | 26.7% | 6.7% | 26.7% | $16,143 | $5,810 | $16,143 |
| Wrangell City and Borough | 35.3% | 12.9% | 35.3% | $21,540 | $9,525 | $21,540 |
| Yakutat City and Borough | 22.9% | 7.5% | 22.9% | $14,644 | $4,273 | $14,644 |
| Yukon-Koyukuk Census Area | 41.8% | 8.8% | 41.8% | $27,183 | $7,966 | $27,183 |
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