Legislature(2003 - 2004)
02/11/2003 08:05 AM House CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
February 11, 2003
8:05 a.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Kelly Wolf, Vice Chair
Representative Tom Anderson
Representative Mike Chenault
Representative Ralph Samuels
Representative Sharon Cissna (via teleconference)
Representative Albert Kookesh
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 79
"An Act extending the termination date of the Alaska regional
economic assistance program; and providing for an effective
date."
- MOVED HB 79 OUT OF COMMITTEE
OVERVIEW: DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT
- OVERVIEW POSTPONED
PREVIOUS ACTION
BILL: HB 79
SHORT TITLE:AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS
Jrn-Date Jrn-Page Action
02/05/03 0131 (H) READ THE FIRST TIME -
REFERRALS
02/05/03 0131 (H) CRA, FIN
02/05/03 0131 (H) REFERRED TO CRA
02/11/03 (H) CRA AT 8:00 AM CAPITOL 124
WITNESS REGISTER
SUE STANCLIFF, Staff
to Representative Carl Morgan
House Community and Regional Affairs Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 79 on behalf of the sponsor,
the House Community and Regional Affairs Standing Committee.
JIM CARTER, Executive Director
Kenai Peninsula Economic Development District
Kenai, Alaska
POSITION STATEMENT: Testified in support of HB 79.
SUE COGSWELL
Prince William Sound Economic Development District
Anchorage, Alaska
POSITION STATEMENT: Discussed how the Prince William Sound
Economic Development District has benefited from the ARDOR
program.
WANETTA AYERS, Executive Director
Southwest Alaska Municipal Conference
Anchorage, Alaska
POSITION STATEMENT: Testified that the ARDOR program has been a
rallying point for the Southwest region.
ACTION NARRATIVE
TAPE 03-3, SIDE A
Number 0001
CHAIR CARL MORGAN called the House Community and Regional
Affairs Standing Committee meeting to order at 8:05 a.m.
Representatives Morgan, Anderson, Samuels, Chenault, and Cissna
(via teleconference) were present at the call to order.
Representatives Wolf and Kookesh arrived as the meeting was in
progress.
HB 79-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
CHAIR MORGAN announced that the first order of business would be
HOUSE BILL NO. 79, "An Act extending the termination date of the
Alaska regional economic assistance program; and providing for
an effective date."
Number 0123
SUE STANCLIFF, Staff to Representative Carl Morgan, House
Community and Regional Affairs Standing Committee, Alaska State
Legislature, paraphrased from the sponsor statement, which read:
The Alaska Regional Development Organizations (ARDOR)
Program is the State's contribution to regional
initiatives for developing Alaska's economy. In 1988,
the Legislature recognized that a locally driven
initiative, in partnership with the State, is the most
effective approach to creating and sustaining a strong
and healthy economy. The Legislature established the
ARDOR Program to create a network of organizations to
plan and support economic development at the regional
level.
There are currently 14 ARDOR's. The ARDORs, like
their counterparts nationwide:
· Enable local officials and businesses to
pool their limited resources and work
together on economic development issues,
· Develop partnerships among public, private
and other organizations, and
· Provide needed technical assistance via
direct links with local citizens
It's not the State trying to determine what's best for
the region; rather, it's the residents and those doing
business in the region working together to create
their economic future.
The ARDOR Program is providing a return for the
State's investment. The State provides $620,000 in
grant funds for the ARDOR Program. The
accomplishments of the ARDORs are impressive.
Additionally, the ARDORs have used $620,000 in State
grant funds to leverage over $3.6 million in other
funds.
Board members participation reflects a local
commitment to the ARDOR Program. The 14 ARDOR boards,
each with 10-20 members, constitutes 150 plus local,
civic-minded individuals who volunteer their time to
achieve a stronger economic base in their region.
The original intent of the ARDOR Program was to create
regional entities that could improve the local economy
and eliminate region-wide economic development
barriers. The ARDORs are meeting this legislative
intent. The ARDORs work on a wide range of projects.
Some, like Anchorage's "Military Hub Study" have
regional or statewide impacts. Other projects, such
as the Arctic Development Council's Revolving Loan
Fund, assist individuals and businesses.
This legislation would extend the sunset date to July
1, 2008.
[original punctuation provided]
CHAIR MORGAN explained that the reason for the sunset date of
2008 was in order for the ARDOR program to continue two years
into the next administration. Therefore, the transition [during
an administration change] would be easier. Chair Morgan turned
to the $650,000 fiscal note and pointed out that in the past
each ARDOR has received about $47,000. The ARDORs do a lot with
that $47,000, especially in Bush Alaska, he said.
Number 0531
MS. STANCLIFF pointed out that of the $650,000, $30,000 is for
the in-house administrative costs of running the program. The
$620,000 is what is divided among the 14 ARDORs.
REPRESENTATIVE CHENAULT inquired as to the cost of this program
in the past.
MS. STANCLIFF answered that the amount of $620,000 hasn't
changed for some years and doesn't change if an ARDOR drops off
or comes on. All the ARDORs would [equally] share the $620,000.
In further response to Representative Chenault, Ms. Stancliff
explained that the state sees returns through the local
economies that put [funds] into the local community and thus
take the burden off the state.
Number 0689
REPRESENTATIVE WOLF asked if it's common for ARDORs to drop off
or come on board.
MS. STANCLIFF responded that it's not common although it has
happened. A couple of ARDORs have been lost, one of which is
back on-line and the other is being worked on [in order to get
it back on-line].
CHAIR MORGAN informed the committee that most of the folks
involved in the ARDORs are volunteers. The ARDORs that are lost
are usually in Bush Alaska. Chair Morgan mentioned that he was
a board member for an ARDOR and it was a lot of work. He
emphasized that the returns are realized locally.
Number 0810
REPRESENTATIVE SAMUELS asked if the $3.6 million in leveraged
funds is $3.6 million instead of money or is it $3.6 million in
loans coming in from outside for the projects.
MS. STANCLIFF answered that the [$3.6 million] represents the
ability to leverage other federal funds coming in for various
programs.
CHAIR MORGAN pointed out that in his district, there was the
need for good aerial maps. With [ARDOR money], more money was
leveraged from the Bureau of Indian Affairs (BIA), which
produced the aerial maps.
Number 0965
JIM CARTER, Executive Director, Kenai Peninsula Economic
Development District, related that the Kenai Peninsula Economic
Development District was probably the first ARDOR in 1988. He
informed the committee that some ARDORs work on projects that
alleviate poverty, deal with fire suppression or medical clinics
while other ARDORs address larger development projects such as
the Southeast Conference. On the Kenai Peninsula, the ARDOR
tries to work with small business development and community
initiatives. Mr. Carter noted that the $40,000-$47,000
represents about 20 percent of the [Kenai Peninsula Economic
Development District's] budget. As has been mentioned, those
funds are used to leverage other funds that are directly spent
in the communities in the borough. He also informed the
committee that last year the Kenai Peninsula Economic
Development District had its first funding summit. During the
summit 13 communities presented 20 projects to the various
funding agencies like the United States Department of
Agriculture (USDA) and the Denali Commission. He mentioned that
the communities attending the summit were underserved rural
communities such as Tyonek, Point Graham, and Seldovia. The
cost of the summit was about $2,000 [which resulted in] follow
up of about $10,000. Mr. Carter announced that the Kenai
Peninsula Economic Development District supports the committee's
endeavors with HB 79.
Number 1168
REPRESENTATIVE ANDERSON inquired as to the amount of funds, in
addition to the $47,000, the Kenai Peninsula Economic
Development District received in 2002.
MR. CARTER explained that the Kenai Peninsula Economic
Development District is [financially] supported by other
planning and capacity-building grants. The Kenai Peninsula
Economic Development District provides a 50:50 match to the
$47,000. Therefore, the district has to look elsewhere for that
match. Mr. Carter pointed out that the Economic Development
Administration (EDA) and the U.S. Department of Commerce require
a match as well and thus the ARDOR funds are used as a match for
those federal funds, which are then used as a match to the ARDOR
funds. That $47,000 in ARDOR funds leverages $59,000 in federal
funds [in the Kenai Peninsula Economic Development District].
Number 1258
SUE COGSWELL, Prince William Sound Economic Development
District, informed the committee that this district has existed
for about two years and before that time the district existed as
a council since 1991. She noted that [the Prince William Sound
Economic Development District] just had a funding summit in
Cordova. This summit was attended by about 70 folks, including
state, federal, and private foundations. Ms. Cogswell estimated
that over the years the Prince William Sound Economic
Development District has saved a little over $500,000 from the
state ARDOR program, which has allowed the district to leverage
about $6 million. Ms. Cogswell informed the committee that one
of the district's current projects is a fisheries processing
plant in Valdez. This plant will enable fishermen to process
their catch of a variety of seafood throughout the year.
Hopefully, the plant will open next fall, she said. She
mentioned that the training would be done in the local college.
REPRESENTATIVE CHENAULT asked if the seafood processor is funded
through a private corporation or is the ARDOR system looking at
funding this.
MS. COGSWELL explained that the vice president of the ARDOR
developed this idea for the processing plant. The processing
plant project will be funded by EDA through the Prince William
Sound Economic District.
Number 1397
REPRESENTATIVE SAMUELS inquired as to who will own, operate, and
hire the workers for this processing plant.
MS. COGSWELL answered that the Valdez fisheries will hire the
workers. Positions will be open to all the fishermen in Prince
William Sound, although they will have to receive training on
the equipment. This training as well as marketing courses will
occur at the college. In further response to Representative
Samuels, Ms. Cogswell confirmed that the training will be paid
for with the leveraged funds. She explained that the district
assisted the City of Valdez, the Valdez fisheries, and the
college with obtaining a mini grant to provide funding to pay
the college to train the workers.
MS. COGSWELL, in response to Representative Wolf, specified that
Nautilus Seafood is the processor in Valdez. Ms. Cogswell
pointed out that a study was performed before this project was
proposed. [The study shows that] the proposed processing plant
won't conflict with the work done at the processors during the
summer because the proposed processor will only process up to
5,000 pounds of product at a time per individual. Ms. Cogswell
offered to send the committee the packet of information on the
proposed processing plant. In further response to
Representative Wolf, Ms. Cogswell confirmed that this project
would [create] a value-added product.
Number 1557
WANETTA AYERS, Executive Director, Southwest Alaska Municipal
Conference (SWAMC), informed the committee that the Southwest
Alaska Municipal Conference represents 54 communities from the
Aleutian, Pribilof, Bristol Bay, and Kodiak Island areas.
Historically, ARDOR funding has accounted for about 20-25
percent of the Southwest Alaska Municipal Conference's budget.
The balance of the budget is comes from EDA funding, private
sector membership, earned income, and other grants that are
leveraged from time to time. These funds have funded projects
ranging from tourism development activities to solid waste
projects. Ms. Ayers said that the Southwest Alaska Municipal
Conference is constantly looking for other granting
opportunities to help the communities.
MS. AYERS highlighted that the ARDOR program has been a
significant rallying point in the Southwest Alaska region. In
fiscal year 2002, the federal government designated SWAMC as the
organization to help mitigate economic losses due to fishing
restrictions in the ground fish fisheries in the region. That
effort resulted in the distribution of over $29 million to
individuals throughout the Gulf coast of Alaska and elsewhere in
the U.S. She pointed out that [the Southwest Alaska Municipal
Conference] did that for less for 1 percent of administrative
costs and over 80 percent of the funds were distributed within
one year.
MS. COGSWELL added that the ARDORs network and work together to
help each other.
Number 1740
REPRESENTATIVE ANDERSON moved to report HB 79 out of committee
with individual recommendations and the accompanying fiscal
note(s). There being no objection, it was so ordered.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:27 a.m.
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