Legislature(2005 - 2006)BELTZ 211
02/04/2005 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB77 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 77 | TELECONFERENCED | |
SB 77-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
CHAIR GARY STEVENS announced SB 77 to be up for consideration
and explained that it is an act to extend the termination date
of the ARDOR program (Alaska Regional Development
Organizations).
He asked Ms. Ayers to come forward.
WANETTA AYERS, executive director for the Southwest Municipal
Conference (SWAMC), explained that they represent the Pribilof
Islands, the Aleutian Chain, the Alaska Peninsula, Bristol Bay,
and Kodiak. She referenced the annual report that outlines the
accomplishments of the 11 ARDOR programs across the state.
Flexibility is built into the program so that the various ARDORs
can develop the type of program that is needed in a particular
region. The report outlines how each of the ARDORS is involved
in business retention and expansion, workforce development,
market development, infrastructure development, economic
planning, and research.
1:31:45 PM
Collectively the ARDORs developed a three-tier funding formula
to provide financial incentives for growing individual programs.
It's a reward system for developing more funding from the local
community and increasing the organization's ability to do
economic development by implementing specific, regional
strategies.
She further explained that all certified ARDORs participate in
the first 70 percent of available funds. ARDORS in Tier II
participate in the next 20 percent of the funds and the ones
that reach the third level participate in the final 10 percent.
1:32:44 PM
She reported that in 2004, every $1 the state invested generated
$8 in local, federal, private sector or earned income money for
economic development. She assured members there is great
economic opportunity in both the existing programs and in
expanding the partnership between ARDORs and the state to
develop a comprehensive statewide economic development strategy
to continue to work on improving the economic situation and the
quality of life throughout Alaska.
1:33:39 PM
CHAIR GARY STEVENS remarked that he finds the leveraging issue
particularly important and asked her to explain how it works and
where the additional money comes from.
WANETTA AYERS referenced page 2 of the annual report and said
the Department of Commerce, Community, & Economic Development
(DCCED) looks at the ability to generate funds from sources that
are unique to each ARDOR. For example SWAMC receives per person
dues from each municipality and flat fee dues from associate
members in the private sector.
Some ARDORs don't have membership, but they might have a tax
base in the local community. Each ARDOR is different and each
develops a funding formula that works.
The total combined ARDOR budget is about $5.5 million. The state
is investing $650,000 in the program, which is an 8 to 1
leverage of state funds.
1:35:19 PM
CHAIR GARY STEVENS questioned whether the ARDOR grant, other
state funds and non-state funds amounted to approximately $5.5
million.
MS. AYERS said it did.
1:35:36 PM
SENATOR JOHNNY ELLIS paid tribute to former Senator Arliss
Sturgulewski as one of the original ARDOR program architects. He
then expressed appreciation for US Senator Steven's ability to
"bring my federal tax dollars home to Alaska."
1:37:00 PM
He asked Ms. Ayers whether she ever had an experience in which
federal money inexplicitly appeared or whether a system exists
for coordinating appropriations.
WANETTA AYERS replied they typically look to the Denali
Commission for the coordination function, but SWAMC did receive
special 11th hour earmarked funds to help mitigate a $130
million economic loss caused by a federal fisheries closure. It
was a last minute earmark and they had no advance warning that
the funds were coming, she said.
They have discussed broadband deployment and believe that is a
vital component for economic development. She acknowledged that
it would be advantageous if the compartmentalized funding
streams that come into the state could be pooled and reviewed on
a statewide basis. She advised she is a member of the taskforce
the Legislature established last year to work on that issue.
She suggested the state develop better outreach and provide a
better profile for small businesses by changing its web presence
from a governmental/department perspective to a market
perspective. She emphasized that it's confusing for small
businesses to have to navigate multiple department web pages.
For example, opening a wilderness lodge entails visiting the
Department of Environmental Conservation (DEC), the Department
of Labor and Workforce Development (DOLWD), the Department of
Commerce, Community, and Economic Development (DCCED) at the
very least. Some of the difficulty could be alleviated with one
stop shopping.
She concluded, "There are multiple streams of federal funds and
other situations too that maybe could be coordinated better.
It's not necessarily an ARDOR function, but it's something we've
talked to the Denali Commission about."
1:39:08 PM
SENATOR ELLIS reemphasized his appreciation for the federal
money coming to Alaska, but better coordination and more
communication about how it all fits would be helpful. "I think
Senator [Ted] Stevens has an outstanding vision for the future
of our state, but it concerns me that it seems compartmentalized
and [that there seems to be] a lack of communication sometimes."
He urged working in a more coordinated way to better use those
tax dollars.
WANETTA AYERS agreed and said Alaska is fortunate to have US
Senator Ted Stevens in Washington D.C. and she appreciated
Senator Ellis' mention of Ms. Sturgulewski because she too had
tremendous vision when the program was established.
1:40:15 PM
CHAIR GARY STEVENS noted that Representatives Cissna joined the
meeting. He said she and Representative Neuman are members of
the House CRA Committee and were welcome to pose questions.
1:40:34 PM
REPRESENTATIVE MARK NEUMAN asked which community councils are in
Tier I.
WANETTA AYERS told him the Lower Kuskokwim Economic Development
Council is the only ARDOR in the Tier I category.
REPRESENTATIVE NEUMAN asked how many are in Tier II
1:41:04 PM
WANETTA AYERS replied she might miss some but included are:
Prince William Sound, Fairbanks North Star Borough, Mat-Su RC&D,
and three others.
REPRESENTATIVE NEUMAN asked whether a program exists to help
other councils to rise to the top tier.
WANETTA AYERS said they do have a program and one criterion for
moving up is to conduct a peer review. The review panel consists
of an individual named by the program manager, an individual
from the ARDOR that's being reviewed, and a director from a
different ARDOR. The ARDOR that's reviewed gathers information
showing how they're meeting the criteria within the tiers and
the panel gives an evaluation. The process is designed to get
everyone to the same level.
1:42:12 PM
WANETTA AYERS said the best outcome would be to have all ARDORs
be a Tier III so the funding would be level.
CHAIR GARY STEVENS questioned whether ARDORs could move up or
down between the tiers.
WANETTA AYERS explained that when an organization is certified
as an ARDOR, it is a Tier I. It maintains that certification for
18 months while establishing regional economic development
strategies. After that, the ARDOR has two years to satisfy Tier
II criteria. Depending on the resources in the community and/or
the scope of the program, the ARDOR may stay in Tier II
indefinitely. Moving into Tier III requires the ARDOR to
continue growing its program until it is working in all four
main areas of economic development. Those include business
retention and expansion, workforce development, infrastructure
and market development
1:43:31 PM
CHAIR GARY STEVENS asked whether she was with SWAMC when the
Bristol Bay salmon issue arose.
WANETTA AYERS said she's been involved a long time and a number
of salmon issues have come up.
CHAIR GARY STEVENS clarified he was referring to the
extraordinary situation in which funds were transferred at the
eleventh hour and then had to be distributed. That situation, he
said, was beyond the scope of what an ARDOR is usually expected
to do.
WANETTA AYERS agreed then mentioned the $30 million Stellar Sea
Lion mitigation funds referenced earlier. US Senator [Ted]
Stevens helped them get $30 million and then Board President
Wayne Stevens helped devise a way to distribute the funds and
mitigate the losses. SWAMC took less than a year and used less
than one percent for administrative costs. "SWAMC is rightfully
proud of its performance in responding to that challenge," she
concluded.
1:45:01 PM
MURRAY WALSH, Southeast Conference President, identified himself
as a planning consultant with firsthand knowledge of what it
takes to get any development started in Alaska. He described
ARDORs as organizations that provide important services that
aren't a natural function of local government. He urged members
to maintain the services across the state.
He referred to the Southeast Conference and pointed out that for
every $1 it receives in ARDOR funds, it receives $18 in other
funds including membership contributions. Board members
volunteer their time and meet twice a year. He reported that two
hundred people attended last year's Southeast Conference summit.
1:47:56 PM
CHAIR GARY STEVENS noted that Robert Wells with the Mat-Su ARDOR
and John Parker with the Kenai Peninsula Borough Economic
Development District were in the audience.
1:48:18 PM
WAYNE STEVENS, President and CEO of the Alaska State Chamber of
Commerce, stated for the record that he is related to Vince
Stevens and no other Stevens in the state.
He expressed support for the reauthorization and funding of the
ARDOR program so they could engage in economic development
planning, strategizing, and implementation through effective
public/ private sector collaboration on local, regional, and
state levels. He advised that he also sent a letter to the
committee stating support for SB 77.
He told members that he was SWAMC board chair in 2002-2003
during the Stellar Sea Lion mitigation years and that US Senator
Ted Stevens was very helpful.
He urged members to pass SB 77.
1:50:02 PM
CHAIR GARY STEVENS asked him to elaborate on the Stellar Sea
Lion mitigation project because it was such an extraordinary
situation that went far beyond what is typically expected of an
ARDOR.
1:50:15 PM
WAYNE STEVENS explained that at the close of the 2001 session US
Senator Ted Stevens inserted language in a bill awarding SWAMC
$30 million to mitigate Stellar Sea Lion issues related to the
fishery that closed as a result of the lawsuits brought in a
Seattle court.
The board had to make fair and equitable decisions while
recognizing that hundreds of millions of dollars would never be
mitigated. The board is justifiably proud that it received the
authorization and was able to disburse $30 million in just over
a year and used less than one percent for overhead.
1:51:59 PM
CHAIR GARY STEVENS stated that it's remarkable that the program
was completed with so little cost.
1:52:20 PM
CHAIR GARY STEVENS asked Ms. Saddler to come forward.
SALLY SADDLER, Legislative Liaison for the Department of
Commerce, Community and Economic Development (DCCED), reported
that the department is excited about the partnership it has with
ARDORs because economic development isn't just a grassroots
function or a top down function. Successful economic development
requires both working together. ARDORs are poised to coordinate
and ensure a coordinated economic development strategy around
the state.
DCEED is well pleased with the performance-based system ARDORs
have developed. Each is unique and has taken on the flavor of
the region it serves to fill a niche and to work with other
partner organizations.
She urged the committee to pass SB 77.
1:53:35 PM
CHAIR GARY STEVENS called for questions and commented that he
was sorry Mayor Whitaker wasn't available, but he was sure he
supports the program.
SENATOR BERT STEDMAN announced he has concern about stretching
the authorization out to 2013 and suggested reining it in to
address accountability.
CHAIR GARY STEVENS asked Ms. Ayers to return to the witness
stand to justify the eight year extension.
1:54:32 PM
MS. AYERS told members that Legislative Budget and Audit
indicated eight year cycles are cost effective and anything less
than that for this level of review wouldn't be cost effective.
"You always have the annual budget process as a discipline tool
for any program you think is not performing," she said.
The ARDOR program received a two year authorization last time
because Senator Wilken had performance related questions. Those
were addressed by initiating the tier formula.
In conclusion she said, "We look to your leadership on that
issue, but more than anything, I think, it was that LB&A
recommendation that we had heard - that eight years was what was
cost effective for the state."
1:55:40 PM
CHAIR GARY STEVENS asked whether Senator Stedman had further
comments.
SENATOR STEDMAN opined that eight years is too long and he would
prefer a two year extension. He emphasized that he is
comfortable with the program, but he doesn't believe it's a
burden to return for reauthorization every two years. "I just
hate to extend programs out that far," he said.
1:56:48 PM
CHAIR GARY STEVENS pointed out that it is a finance issue.
SENATOR ELLIS stated that if an amendment were offered, he would
like Pat Davidson, the legislative auditor, to speak to the
issue.
1:57:41 PM
CHAIR GARY STEVENS said he assumed that the Finance Committee
would look at that issue and noted that Senator Stedman sits on
that committee. He asked the committee their preference.
1:58:10 PM
SENATOR STEDMAN said he didn't object to moving the bill forward
and he would address the extension at a later time.
1:58:35 PM
SENATOR ELLIS stated that was his preference.
1:58:45 PM
CHAIR GARY STEVENS asked for a motion.
1:59:02 PM
SENATOR ELLIS motioned to move SB 77 from committee with
individual recommendations and attached fiscal note. There being
no objection, it was so ordered.
| Document Name | Date/Time | Subjects |
|---|