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PRESS RELEASE - For Immediate Release
November 29, 2001

SUBSTANCE ABUSE COSTS ALASKA $614 MILLION A YEAR

New Study from McDowell Group Shows Economic Impacts

The negative economic impacts of alcohol and other drug abuse amount to about $614 million a year in Alaska, according to a new study completed by the McDowell Group for the Governor's Advisory Board on Alcoholism and Drug Abuse (ABADA).

"This is a staggering blow to Alaska's economy, communities and families," said Advisory Board chair Eric Tomasino of Palmer. "Year after year, substance abuse and chemical dependency drain our human and economic resources."

The study looked at five basic ways in which alcohol and other drug abuse cost money: productivity losses, traffic crashes, criminal justice system and protective services, health care and public assistance. Alcohol abuse costs accounted for $453 million per year, while other drug abuse costs were estimated at $161 million annually.

"We have always known that alcohol and other drug abuse exacts a high human toll in Alaska," said Pam Watts, Executive Director of ABADA. "But until now, we had to rely on national studies to estimate the economic costs to our state. This report gives us strong, Alaska-specific data to use."

According to the study, lost worker productivity accounts for more than half of the annual economic impact, $319 million per year. These losses occur when alcohol and other drug abuse results in premature death, reduced efficiency of workers through physical or mental impairment, incarceration for a criminal offenses, or inpatient treatment or hospitalization.

Of the productivity losses, nearly half were due to premature death from alcohol and other drug abuse. The economic loss for 1999 for this cause alone was $172 million, based on an annual average number of deaths related to alcohol and other drug abuse. Between 1994 and 1998, this was an average 224 deaths a year.

The Economic Costs of Alcohol and Other Drug Abuse in Alaska, Phase Two report was prepared for ABADA by McDowell Group, a research-based consulting firm in Juneau and Anchorage, with a grant from the Alaska Mental Health Trust Authority. The ABADA is appointed by the Governor to advise the Administration and Legislature on substance abuse issues.

More Information:

For more information, contact Anne Schultz at the Governor's Advisory Board on Alcoholism and Drug Abuse, (907)465-8920 or (888) 464-8920. Copies of the Executive Summary or the complete study are available from ABADA upon request. Members of the media may also contact Eric McDowell or Jim Calvin at McDowell Group, (907) 586-6126.