The Advisory Board on Alcoholism and Drug Abuse, through the Alaska Department of Health and Social Services, contracted with McDowell Group to update prior studies on the economic costs of alcohol and drug abuse in Alaska. Alcohol and drug abuse impacts Alaska's economy in a variety of ways. It can lead to greater health risks and death, impaired physical and mental abilities, crime, greater reliance on public assistance, and a number of other adverse effects. This study addresses tangible economic costs such as lost earnings or costs of government programs. However, there are mental and emotional costs that result from alcohol and drug abuse that are extremely difficult to measure and are not included in this report.