Legislature(1997 - 1998)
01/15/1997 08:00 AM House CRA
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* first hearing in first committee of referral
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HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
January 15, 1997
8:00 a.m.
MEMBERS PRESENT
Representative Ivan Ivan, Chairman
Representative Fred Dyson
Representative Scott Ogan
Representative Joe Ryan
Representative Reggie Joule
MEMBERS ABSENT
Representative Al Kookesh
Representative Jerry Sanders
COMMITTEE CALENDAR
Overview: Department of Community & Regional Affairs
Commissioner's Office - Division of Community and
Rural Development
PREVIOUS ACTION
No previous action to record
WITNESS REGISTER
MIKE IRWIN, Commissioner
Department of Community & Regional Affairs
P.O. Box 112100
Juneau, Alaska 99811-2100
Telephone: (907) 465-4700
POSITION STATEMENT: Gave overview of the Department of
Community & Regional Affairs
ACTION NARRATIVE
TAPE 97-1, SIDE A
Number 000
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs
Standing Committee meeting to order at 8:03 a.m. Members present
at the call to order were Representatives Dyson, Ogan, Ryan and
Joule. Members absent were Representatives Sanders and Kookesh.
CHAIRMAN IVAN first reviewed a prepared list of procedural
guidelines which the Community and Regional Affairs Committee (CRA)
would follow and introduced the committee aide, Mr. Tom Wright and
the committee secretary, Ms. Jamie Foley. He noted that the CRA
Committee would meet Monday, Wednesday and Friday of each week at
8:00 a.m. and discussed how the committee would conduct business
when considering bills before it and what documents are required.
Number 390
MIKE IRWIN, COMMISSIONER, DEPARTMENT OF COMMUNITY & REGIONAL
AFFAIRS came forward to testify and initially introduced members of
his staff who were present including Deputy Commissioner Lamar
Cotton; Administrative Services Director Remond Henderson; Pat
Poland, Director, Municipal & Regional Assistance Division; Percy
Frisby, Director, Division of Energy; Kim Metcalfe-Helmar, Special
Assistant; and Yvonne Chase, Director, Division of Community &
Rural Development.
COMMISSIONER IRWIN referenced the overview documents he provided to
the committee members which included flow charts and other
information to help synthesize what the department does. He then
gave a CRA historical overview. At its inception the department
was established to assist the legislature under its constitutional
mandate to sit as the assembly for the unorganized borough.
Commissioner Irwin noted that the department now principally
specializes in providing services and needed technical assistance
for the more remote communities in Alaska and it has slowly evolved
into providing a more holistic approach to community and economic
development in rural Alaska.
Number 710
COMMISSIONER IRWIN noted the Division of Energy specifically and
its purpose of helping communities produce affordable energy at the
most efficient level. He also outlined that the division has
helped rural communities with bulk fuel facilities from an economic
standpoint as well as from a safety perspective. Commissioner
Irwin then mentioned some organizational charts which align the
department's programs to the mission that they have come to
understand they're aspiring to, more especially, a decision was
made to move what some would believe the department's economic
development functions into their Municipal and Regional Assistance
Division.
Number 890
COMMISSIONER IRWIN continued that there were two reasons for this
change. Firstly, economies in rural Alaska are difficult to apply
programs toward and he harkened back to his experience as Executive
Director of the Alaska Natives Commission when he was responsible
for assisting communities to have sustained true economies. He
said this was the one nut they never really cracked. Commissioner
Irwin said when he came to the department he felt that he needed to
try and align as best he could the various programs which they
provide to try and make sure the most strategic applications of
their different resources were available at the community level and
the regional level; i.e. grants, economic development loans, etc.,
including technical assistance.
COMMISSIONER IRWIN outlined as the second reason for this change
was welfare reform. In rural Alaska, he noted, it will be
difficult to help move people from welfare to work simply because
of the non-availability of jobs and in some instances because of
the training which will be needed, child care assistance which will
be necessary, etc. He felt as though these programs needed to run
efficiently in order to dovetail these resources to the effort that
the legislature and the governor have undertaken in respect to
welfare reform.
Number 1044
REPRESENTATIVE FRED DYSON asked if the department was involved in
Health and Public Safety issues.
Number 1058
COMMISSIONER IRWIN stated that the department's main involvement
with this subject matter is through the department's energy
division and he went on to note the emergency electrical service
which the department provides to rural communities. He also noted
the environmental public health area of bulk fuel and how many of
these facilities don't meet Coast Guard standards. The department
works with the communities and the Coast Guard on these types of
issues.
COMMISSIONER IRWIN continued that the department does have a role
in regards to waste water treatment and clean drinking water
issues. The village safe water program is run out of the
Department of Environmental Conservation. The Department of
Community and Regional Affairs, under the Rural Utility Assistance
Program, makes sure that these utilities are run cost effectively
and managed as capably as possible in order that communities have
safe sanitation and water systems in place.
Number 1224
REPRESENTATIVE SCOTT OGAN referred to a bill which he introduced
last session which would allow for shallow natural gas exploration.
This legislation was targeted primarily at rural communities to
help off-set the declining power cost equalization (PCE) and the
tremendous problem which rural communities face with leaking fuel
tanks. Representative Ogan asked if the commissioner had an idea
of how extensive the leaking storage tank problem is and how much
money it's going to take to rectify this situation.
Number 1266
COMMISSIONER IRWIN stated that the best data which the department
has reflects a cost of $200 million for reclamation and the
installation of upgraded systems for each community.
REPRESENTATIVE OGAN stated that he has been frustrated by the lack
of response to draft regulations pertaining to the previously
referenced bill and he asked for the commissioner's help in
encouraging the Department of Natural Resources to get to work on
this issue. He went on to state why this legislation would be good
for the state.
COMMISSIONER IRWIN added that the Department of Natural Resources
under their capital appropriations received $300,000 to conduct
further study and exploration on coal bed methane. The Department
of Community and Regional Affairs, working with the federal
Department of Energy, has been conducting exploration in the Upper
Kuskokwim and on the Alaska Peninsula. He also added that the
Doyon Unlimited Regional Native Corporation in the interior has
also explored coal bed methane technology. Commissioner Irwin
committed to supplying whatever information he had regarding this
exploration to Representative Ogan.
Number 1467
REPRESENTATIVE JOE RYAN stated that he was interested in the Day
Care Assistance Program. He asked what the total budget of this
program is and how the money is distributed.
COMMISSIONER IRWIN noted that the state's Day Care Assistance
Program's general fund was in the $10 million to 12 million range.
This money is distributed out to 24 different communities
throughout the state via the Local Administrator System. Half of
this money goes into the Anchorage area. Commissioner Irwin said
that he would provide information on how the remaining money is
distributed.
Number 1546
REPRESENTATIVE RYAN referred then to the Block Grant Program and
said he understood that this department has fallen on hard times.
He then asked what the Governor's proposal would be to make up this
division's shortfall.
COMMISSIONER IRWIN stated that last year the funding for this
program, the Rural Development Assistance Grant program, was done
through the capital budget under the Alaska Industrial Development
and Export Authority. He believed that something along this same
lines would be implemented this year. Commissioner Irwin also
noted that there was a net decrease in this budget of $800,000
which reflects a 40 percent decrease in the last two years.
Number 1600
REPRESENTATIVE DYSON noted that several construction trade unions
have represented to him that they are working on some pilot
programs for regional training and construction trades in rural
Alaska. He asked if the commissioner was familiar with what they
were doing and also asked if these types of efforts were supported
by the department.
COMMISSIONER IRWIN responded that he was peripherally aware of some
of these types of programs. He noted that he was one of the
commissioners who, under statute, sits on the Alaska Human Resource
Investment Council. The gentleman hired to be the executive
director of this council comes from the painters union and has many
connections with various unions and apprenticeship programs. This
director is working closely to see how they can partner better with
these unions.
Number 1748
REPRESENTATIVE DYSON wondered why most rural communities he's
worked with have such layered forms of local government. He asked
what the commissioner's perspective on this layering of government
was. Representative Dyson went on to note that some folks he had
spoken to recommended that the section of state law which deals
with government might be revisited in relation to local communities
so the communities could have exactly the sort of government they
see fit.
COMMISSIONER IRWIN responded that the department addresses this
issue just about every day. Many of Alaska's communities are
functioning municipalities since there are advantages of being
organized as such under Title 29. At the same time, some choose to
have active tribal governments, whether under the Indian
Reorganization Act or traditional councils, which allows access to
federal resources. Commissioner Irwin also noted that a few of the
communities have their own school districts as single sites and/or
are situated under regional organizations. He summed up by stating
that these various forms of government can be confusing to people
and strain the natural leadership of any community. The department
seeks to aid communities to function within these overlays of
government.
Number 1948
CHAIRMAN IVAN referred to the handout materials provided by the
commissioner regarding job training programs. He asked the
commissioner to give examples of what these programs are comprised
of in the interior communities.
COMMISSIONER IRWIN stated that these programs do hinge on the form
of government in place for each community. All of the regional
non-profit corporations administer federal funds and they respect
the right of first refusal to provide services. Usually because
the federal government is closer to this clientele they provide
many of the basic types of training. The state does their best to
supplement these programs with additional training.
COMMISSIONER IRWIN continued that the state is trying to work with
the Community Development Quota Groups which take in 60 Western
Alaska villages under the expanded pollock allocations. The
department will follow their lead on the types of training programs
the state should provide. Generally, the Knowles administration
has as one of it's rural employment and economic development
initiatives, a pilot program to work with the entre-processors
throughout coastal Alaska to try and get more Alaska residents
hired. Certain areas have been targeted, initially the Bethel
region and surrounding villages, and an attempt has been made to
put teams of workers together in a group setting within different
fish ladder facilities. He also noted the fire fighter crews which
have been put together in Western and Northwestern Interior Alaska.
COMMISSIONER IRWIN added that these types of a group approach to
export labor works in many parts of rural Alaska because of the
inherent social connections which people have.
Number 2135
CHAIRMAN IVAN pointed out that mining companies are beginning to
show interest in Alaska projects and said he'd like to see the
department provide this training opportunity to individuals in
order to obtain entry level positions in this industry. He
mentioned Fort Knox specifically. Chairman Ivan also mentioned the
lack of jobs in rural areas and further noted that when the
department attempts to realign their department programs and
possibly relocate their employees he wondered how this affects
rural area jobs. He asked if this eliminated jobs in rural areas.
COMMISSIONER IRWIN responded that physically the department has not
moved one human being from anywhere even in their central office in
Juneau or in their offices in Anchorage. He then gave a run down
of all the department's office locations and noted procedural
changes such as, who works more closely with whom. One point he
neglected to make in his initial presentation was how the
department responds to community needs in light of sudden downturns
in economies, such as Wrangell, Sitka and Ketchikan with their pulp
mill closures as well as with Delta Junction which is loosing Fort
Greely. The department, through a process called the Coordinated
Community Response Partnership, a Knowles initiative, takes the
lead in directing state resources and assets strategically into
these communities in order to assist with the changes that take
place there.
COMMISSIONER IRWIN stated that in trying to figure out how to crack
the nut of economic development in many parts of the state he felt
as though the same logic should apply to clusters of communities
which have never had an economy which could go into a downturn,
namely, rural communities. He noted that essentially these
communities have been in the equivalent of a downturn economy for
decades. He stated that the department doesn't have enough
resources to do the best job possible in all 200 plus communities
in the unorganized borough, but certainly they are closer to
understanding how communities are situated resource wise by
applying the Coordinator Response Partnership structure.
TAPE 97-1, SIDE B
Number 006
REPRESENTATIVE DYSON asked if there was anything to be gained by
working to consolidate the levels of government in rural villages.
COMMISSIONER IRWIN responded that this was a tough issue because
there were so many legal and political considerations to take into
account. He stated that the department doesn't presume to try to
tell any community how they should go about governing themselves.
He supposed there would be some advantages to consolidation, mainly
there wouldn't be the over-taxation of the local leadership.
REPRESENTATIVE DYSON asked if federal law precluded an organization
from receiving federal funds as well as whether federal regulations
preclude the same group of people from serving another function of
government. He wondered if these same people could meet the
requirements of three different jobs and used the example of a
village with three different buildings, three different sets of
staff, all involved in the government of that village. He said he
didn't blame residents for wanting to create jobs, but he said it
seemed like there was duplication.
COMMISSIONER IRWIN noted that the problem was not so much with
duplication of responsibilities, but perhaps, duplication of
activities. In order for the state to give grants to tribal
governments, including revenue sharing to unincorporated
communities, the department must require that a particular tribal
council (if there is no municipal government in place) sign a
waiver of sovereign immunity. This requires that the tribal
council must not discriminate against any citizen in the
application and benefits of a grant. This essentially stands
politically in the way of a good working relationship and is a
result of the state constitution as well as subsequent case law
which dictates this process. Taking this particular example in
mind, it's more efficient for the state to work with municipal
governments, but, again, it's not within the state's purview to
require them to form a municipal government if they don't want to.
Commissioner Irwin then explained what is required of a community
to dissolve a municipal corporation.
Number 188
REPRESENTATIVE DYSON asked if any of the training programs provided
by the state include tourism industry jobs.
COMMISSIONER IRWIN responded affirmatively.
REPRESENTATIVE DYSON asked if the department gets involved in
identifying needed capital project infrastructure to facilitate a
village's economic development.
COMMISSIONER IRWIN again responded affirmatively and added that the
department works with local communities at many levels including
planning and through the department's Division of Energy, they have
technical staff to work with local communities to help design the
best electrical infrastructures. He also noted that the department
advocates for roads under certain circumstances, for example, in
the King Cove area the department has worked to assist this
community. The department doesn't go into a community and
recommend that a road should be built for any reason.
Number 303
REPRESENTATIVE OGAN stated that the house majority has a plan to
reduce the budget by $60 million this year. He said that it will
be tougher this year because before they hadn't made such
significant cuts in the operating budget as they will have to do
this session. He asked the commissioner if there was anything he
could see such as a program which could be eliminated or statutes
which needed revision to let the committee know.
COMMISSIONER IRWIN responded that the department would work with
the committee and noted that the department's internal budget
dictates where they will attempt to respond to the climate of
downsizing. He then generally noted the small size of CRA's budget
which was within an $8.5 million to 9 million range. They expect
to take about an additional 7 to 8 percent cut. He generally
outlined the department's efficiency based on how it is now
organized and the benefits which their programs bring to the state.
Number 538
REPRESENTATIVE OGAN referred again to the storage tank situation in
Alaska. He noted that if a community has a multi-million liability
because of a leaking storage tank and they're aware that power cost
equalization's days are numbered, he thought it would be worthwhile
to invest money in alternative fuel sources. He noted natural gas
as an alternative. He asked the department to start thinking in
this vein.
COMMISSIONER IRWIN stated that the department does look at these
alternatives for rural communities since they administer the PCE
program. He mentioned the wind energy project located in Kotzebue
and Deering as a viable alternative for some communities.
Number 676
REPRESENTATIVE RYAN inquired about the Human Resources Development
Council and how it mimics a federal program. He felt as though it
was a very effective program, although the legislature set up a
committee to oversee it which seems very unwieldy and asked for any
recommendations from the commissioner to rectify this situation.
COMMISSIONER IRWIN noted that the council is more efficient now
since three councils were combined to form it and gave an overview
of what these were; i.e., the State Job Training Council, the
Governor's Council on Vocational Education and the Employment
Security Council, all of which were large governing bodies
themselves. What the legislature attempted to do was to
consolidate these and in so doing, obviously, there were a lot of
different constituencies which needed to be recognized. He stated
that they were trying to make this council run more efficiently
through an executive committee structure.
Number 855
REPRESENTATIVE RYAN referenced three villages in the interior,
Venetie, Artic Village, and Chalkyitsik which have problems with
alcohol. These three villages have gone dry and have had a good
success ratio, but unfortunately Fort Yukon, which as an organized
city needs to raise revenue supports a liquor store. If these
villages were allowed to operate with tribal councils along with
elders making decisions, they would probably do a better job than
the governments imposed on them presently. He asked if there were
any efforts made in the department to allow these people, if they
choose, to get rid of the burdens of organized government.
COMMISSIONER IRWIN said he was very familiar with these villages
since he is from Nenana and worked for native corporations in the
area. He said historically, the Fort Yukon liquor store had been
an issue. As for disassembling a municipal form of government,
under state statute, communities have a fundamental right to
dissolve their municipal corporations if they so choose. Community
and Regional Affairs is tasked with helping them manage the
dissolution process.
Number 1175
REPRESENTATIVE IVAN asked the commissioner to state what the
department has accomplished in the last two years and what plans
would the commissioner forecast for the department in light of
budget constraints
COMMISSION IRWIN stated he was proud of the fact that the
department has been able to continue to provide essential technical
assistance to rural communities in a very professional and
organized way, while at the same time keeping their people
energized in the field. He mentioned that many of their employees
spend lots of time on the road. The commissioner also mentioned
regulation changes for the Day Care Assistance Program. Initially,
there was some distrust by the day care providers concerning how
the state was implementing the previous regulations. Through face
to face discussions the parties were able to change the regulations
which met the needs of all the different constituencies as well as
address their concerns.
COMMISSIONER IRWIN added that these changes enabled the department
to provide better service in the face of welfare reform. The Day
Care Assistance Program is another guarantee that the working poor
don't slip into the welfare rolls. The commissioner felt as though
the department had a good program altogether, yet, they don't have
nearly enough resources to get what needs to be done. He also
mentioned what the department's been able to accomplish in
addressing the bulk oil storage situation.
Number 1525
REPRESENTATIVE REGGIE JOULE noted that coming from a district where
he is able to observe what DCRA contributes to a community with the
personnel on staff, the state is certainly getting "the bang" for
their dollar. He commended the staff for traveling to remote sites
in order to provide services which go "above and beyond" to meet
the needs of communities. Representative Joule also commended the
department on their efforts in training for mining operations in
Alaska. He stressed that this effort develops a local qualified
work force.
REPRESENTATIVE IVAN noted that there would be some forthcoming
overviews from the department during the next scheduled committee
meeting.
ADJOURNMENT
REPRESENTATIVE IVAN adjourned the House CRA meeting at 9:25 a.m.
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