Military money in Alaska: colossal contributor to the economy.

• Author: Freeman, Louise
• Position: MILITARY

[ILLUSTRATION OMITTED]

Although the gold rush put Alaska on the map at the turn of the twentieth century, it was the military that built Alaska. From the 1940s to the 1960s, the military not only constructed roads, ports, airfields, bases, and naval stations, but also built up the population by bringing thousands of airmen, soldiers, sailors and contract workers to the undeveloped territory, many of whom stayed to raise their young families.

The military dominated the Alaska economy for two decades, after which it entered a period of what many people assumed was a permanent decline in the late 1960s. Radar sites closed and the number of military personnel shrank while other industries such as gas and oil and seafood boomed.

STRATEGIC POSITION

After 9-11, everything changed. Suddenly, Alaska's strategic position was once again recognized and a build-up began, with both money and personnel pouring into the state. This build-up accelerated in 2004-05 with the start of the Iraq War. Today, more than 8 percent of the population of the state is military, including dependents. In Fairbanks, home to Fort Wainwright Army Base and Eielson Air Force Base, military personnel and their dependents make up 22.9 percent of the population; in Kodiak, home to Kodiak Coast Guard Station, it is 18 percent, and in Anchorage, home to Joint Base Elmendorf Richardson (JBER), it is 10.7 percent.

"One in four or five Alaska residents has a tie to the military--either they are in the military, are a veteran, or have a family member in the military. This rate is unmatched anywhere else in the U.S.," said Uriah Orland, public affairs officer for the Alaskan Command.

Although there has been some drop-off in defense expenditures since 2007, the military is still a major player in Alaska and is currently the single largest employer in the state. Nationally, the military accounts for only 1 percent of the work force, but in Alaska it is 6 percent.

HIGHEST PER CAPITA

The over-all economic impact of the military on Alaska is impossible to determine, but in 2009 (the latest year for which statistics are available) Alaska was number one in the nation in per capita defense spending, with $8,652 per Alaska resident versus the national average of $1,711. In 2009, the U.S. Defense Department spent $2.3 billion on payroll and $3.5 billion on procurement of materials, equipment and supplies in Alaska.

The Fairbanks Economic Development Corp. (FEDCO) estimates the nearby presence of...