Alaska's top business stories for 2003: from budget woes, employment and missile defense-to oil, gas and the housing market, Alaskans continue to move forward.

• Author: Martin, Gary L.

The most exciting thing to say about Alaska's economy, over the past 12 months, is that it is still alive and well. Although most economists and politicians will say it could have been more robust, many Americans, from the other states, including California and New York, would gladly trade places with Alaskans.

ECONOMY

"Alaska's economy has been growing quite modestly, but steadily, for about the last five to 10 years," said Richard Strutz, Wells Fargo's regional president in Anchorage. "Since I'm primarily familiar with the western part of the country, I can only compare Alaska's job growth with that region, and over the past couple of years we've had relatively good job growth. But when you average it out, most parts of the West have had higher growth rates over the past decade or so."

He continued by saying Alaska's economy, over the past year, has had no significant issues, such as major layoffs or a big drop in the tech industry, as is the case with other states. Strutz also said that while prices for salmon are down significantly, the other seafood markets are doing okay for such items as halibut, crab and black cod. And, while the tourism industry was slow this past year, before that it had been good for the economy. A very important push to Alaska's economy had been government spending.

"I think the federal spending levels here have been a major factor in this economy and will remain so as it grows," he said. 'And, if you classify the military as part of the government, that's also been pretty good. It too is a growing sector with missile defense and other projects."

Other positive economic factors over the past year include the interest rates, which are still low, leading to an exceptional housing market, and oil that continues to be pumped out of those aging wells, along with the possibility for new exploration.

Besides that, most Alaskans who want to work have jobs, and lawmakers carry on with their efforts resolving state and local economic woes. Moreover, residents also received their Alaska Permanent Fund dividend checks last October, and there are still no statewide sales or income taxes.

STATE BUDGET

Some might say the biggest problem facing Alaskans is the budget deficit. It is not unlike the dilemma that every family faces when it comes to their budget: too many wants, needs and desires and not enough money to spend, while their credit cards are about maxed-out.

That is when difficult choices must be made. The same is true for lawmakers, with the added burden of having to convince colleagues on what is the best solution. Gov. Frank Murkowski and his administration spent countless hours on the issues, before a gavel came down on the final version of the state budget. When it did, some lawmakers left smiling, others left depressed and still others left mumbling to themselves.

The $5.9 billion budget, which took effect July 1, is $137 million lighter than when it arrived at the governor's desk in June. It also was the first time in Alaska's history that the state began a fiscal year on a budget with less money than the previous year.

Wielding his veto pen, like a fisherman flaying an Alaska salmon, Gov. Murkowski removed a quick $44 million by ending the senior citizen Longevity Bonus Program.

That left some 18,000 senior citizens, the youngest being 72, without their $250-per-month stipends.

In its place the governor set up a temporary fund for needy seniors, which started in September and ends next June. Under this program, Murkowski put aside $10 million. That money is a portion of the federal funds Alaska received as part of President Bush's tax-cut plan to help needy senior citizens in America. The governor's plan will provide those seniors, who qualify, with a monthly check of $120, throughout the duration of the program.

Included in the budget cuts was $27 million in the state's capital...