01/24/2008 11:00 AM House ECONOMIC DEV., TRADE, AND TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation of an Overview on the Alaska Regional Development Organizations (ardors) | |
| HB272 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 272 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT,
INTERNATIONAL TRADE AND TOURISM
January 24, 2008
11:02 a.m.
MEMBERS PRESENT
Representative Mark Neuman, Chair
Representative Carl Gatto
Representative Kyle Johansen
Representative Wes Keller
Representative Bob Lynn
Representative Andrea Doll
Representative Mike Doogan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: AN OVERVIEW OF THE ALASKA REGIONAL
ECONOMIC DEVELOPMENT ORGANIZATIONS (ARDORs)
- HEARD
HOUSE BILL NO. 272
"An Act extending the termination date of the Alaska
regional economic assistance program; and providing for
an effective date."
- MOVED CSHB 272(EDT) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 272
SHORT TITLE: AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
SPONSOR(s): REPRESENTATIVE(s) STOLTZE
01/04/08 (H) PREFILE RELEASED 1/4/08
01/15/08 (H) READ THE FIRST TIME - REFERRALS
01/15/08 (H) EDT, FIN
01/24/08 (H) EDT AT 11:00 AM CAPITOL 106
WITNESS REGISTER
MICHAEL CATSI, Executive Director
Southwest Alaska Municipal Conference (SWAMC)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview on the
Alaska Regional Development Organizations (ARDORs).
MARTY METIVA, Executive Director
Mat-Su Resource Conservation and Development Council
Wasilla, Alaska
POSITION STATEMENT: Answered questions during the
overview on the Alaska Regional Development
Organizations (ARDORs).
SHELLY WRIGHT, Executive Director
Southeast Conference (SEC)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the
overview on the Alaska Regional Development
Organizations (ARDORs).
REPRESENTATIVE BILL STOLTZE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 272 as the sponsor.
ACTION NARRATIVE
CHAIR MARK NEUMAN called the House Special Committee on
Economic Development, International Trade and Tourism
meeting to order at 11:02:28 AM. Representatives
Doogan, Keller, Gatto, Doll, and Neuman were present at
the call to order. Representatives Lynn and Johanson
arrived as the meeting was in progress.
^Presentation of an overview on the Alaska Regional
Development Organizations (ARDORs)
11:02:47 AM
CHAIR NEUMAN announced that the first order of business
would be the presentation of an overview on the Alaska
Regional Development Organizations (ARDORs).
11:04:47 AM
MIKE CATSI, Executive Director, Southwest Alaska
Municipal Conference (SWAMC), presented an overview on
the Alaska Regional Development Organizations (ARDORs).
He informed the committee that ARDORs account for 90
percent to 95 percent of the state's rural and urban
population. The area not covered, apart from the North
Slope Borough, is sparsely populated; however, ARDORs
can form in rural areas, also. The ARDORs are formed
around areas of commonality by stakeholders who have
the desire to be involved in such an organization. Mr.
Catsi advised that, nationally and globally, economic
development theories and programs are trending towards
regionalization; in Alaska, it is the ARDORs that
implement programs on a regional level. There is also
the ability to work on development on a local level by
lending logistical and administrative support and by
partnering with local economic development
organizations. The ARDORs role is to reduce duplicity
and to increase the efficiency and effectiveness of
development programs.
11:06:28 AM
CHAIR NEUMAN asked for a description of some ARDORs
projects.
11:06:44 AM
MR. CATSI responded that each ARDOR works with
different partnerships and on different levels in its
own region. The ARDORs board members come from a
diverse range of backgrounds and represent Alaska's
main economic, demographic, public, and private
business sectors. Some ARDOR charters also require an
ethnic balance of board members as well.
11:07:39 AM
MR. CATSI continued to explain that the flexibility of
the ARDORs programs allows for the creation of
partnerships with different organizations, businesses,
and state and federal agencies which meet the
development needs of each region. The Alaska Regional
Economic Assistance Program is funded by the Alaska
Industrial Development and Export Authority (AIDEA)
earnings. He pointed out that this program allows
ARDORs the flexibility to work on projects, programs,
and issues specific to each region; in fact, each ARDOR
program is structured differently to meet differing
needs. Accountability is built into the system; all
ARDORs must apply for funding each year through the
grant program that is administered by the Department of
Commerce, Community, & Economic Development (DCCED).
The grant paperwork must show upcoming activities, a
work plan, and demonstrated progress.
11:09:26 AM
MR. CATSI further described the funding sources for the
program. Based on FY 07, he indicated that the state
ARDOR's grant was $691,995, or [13] percent of the
collective total budget. Funding programs vary widely
for each region. He opined that funding for each
region is leveraged at levels from at least 3:1 to as
high as 8:1; in fact, ARDORs leverage funding at a
higher rate than many other state programs.
11:11:04 AM
MR. CATSI informed the committee that the ARDORs and
their partners are asking for a five year
reauthorization in order to better plan programs and
projects. Mr. Catsi asked the committee for an
amendment to HB 272 to extend the sunset date to five
years. He then showed the committee several slides
depicting a variety of past, and current, ARDORs
accomplishments.
CHAIR NEUMAN asked for further information about the
training ARDORs provided to 650 individuals.
11:12:40 AM
MR. CATSI relayed that there has been training to teach
e-commerce and mixed level business assistance.
11:12:55 AM
CHAIR NEUMAN further asked how an entrepreneur gets
assistance.
11:13:30 AM
MR. CATSI said that an entrepreneur can approach
economic development organizations at the local or
regional level.
CHAIR NEUMAN surmised that the assistance would include
the development of business plans and marketing.
11:13:48 AM
MR. CATSI stated that the assistance will vary with
each regional organization.
CHAIR NEUMAN recalled that the committee recently met
with international business leaders and asked whether
ARDORs can assist with the international promotion of
trade.
11:14:15 AM
MR. CATSI said that SWAMC can facilitate connections
between producers and international marketers.
11:14:40 AM
CHAIR NEUMAN asked how the organizations outreach to
the community.
MR. CATSI noted that members attend other
organization's meetings, publish e-newsletters, hold
monthly board meetings, maintain contact with like
organizations, and hold an annual conference.
11:15:52 AM
CHAIR NEUMAN invited representatives from other ARDORs
to speak.
11:16:39 AM
MR. CATSI, in response to a question from a member,
said that each ARDOR received a grant in the amount of
approximately $50,000 in FY 07. Although each ARDOR is
different, the collective average was that the grant
money was leveraged 800 percent.
11:16:59 AM
REPRESENTATIVE GATTO asked for the percentage of the
ARDOR's budget that is used for salaries, personnel and
equipment.
11:17:32 AM
MR. CATSI replied that the SWAMC budget is $300,000;
the grant money of $53,000 was subtracted for wages,
salaries, and the rest.
11:17:39 AM
MARTY METIVA, Executive Director, Mat-Su Resource
Conservation and Development Council (MAT-SU RC&D),
informed the committee that every ARDOR is different.
The budget for MAT-SU RC&D is approximately $200,000
and most of that is directed to day-to-day operations
and salary. He described partnerships between MAT-SU
RC&D and other entities, such as the Chamber of
Commerce, the municipalities and the unincorporated
municipalities. As a non-political organization, MAT-
SU RC&D has facilitated the formation of an
entrepreneurial mentorship to help entrepreneurs to get
their businesses started and, more importantly, to
become sustainable over the long term. The MAT-SU RC&D
also sponsors an annual economic development summit
with training and funding assistance available to small
businesses.
11:19:35 AM
REPRESENTATIVE GATTO asked Mr. Metiva whether issues
with the Palmer Hay Flats will come under the
conservation part of the MAT-SU RC&D.
11:20:04 AM
MR. METIVA answered that his office is addressing that
issue with the long term goal of working with the Hay
Flats to try to develop the property into a tourist
destination.
11:20:23 AM
CHAIR NEUMAN noted that there are efforts to make it
more accessible.
11:20:44 AM
REPRESENTATIVE GATTO asked Mr. Metiva for his vision of
the property in five to ten years.
11:21:09 AM
MR. METIVA opined that birding is a low-impact and
renewable resource industry that could make the
property an attraction for tourists. In addition, the
Mat-Su Convention & Visitors Bureau is considering
developing a visitor's center there. He listed many
opportunities for tourism at that location.
11:22:26 AM
REPRESENTATIVE KELLER stated that he was impressed by
the projects the ARDORs are working on for his
district. He asked how often the regional offices get
together.
11:23:32 AM
MR. METIVA replied that his executive committee meets
monthly, the entire council meets quarterly, and there
is a board meeting annually.
11:24:04 AM
REPRESENTATIVE JOHANSEN asked how tourists get to the
Palmer Hay Flats.
11:24:50 AM
MR. METIVA answered that most are in transit to Denali
National Park and Preserve as an extension of cruise
and motor coach tours; there are also air and road
travelers.
11:25:31 AM
REPRESENTATIVE JOHANSEN surmised that tourism has an
economic impact on the [Mat-Su] ARDOR.
11:26:04 AM
MR. METIVA said yes.
11:26:11 AM
REPRESENTATIVE GATTO noted that cruise ships contribute
to the state's treasury. He asked whether a portion of
that money is available to enhance the Palmer Hay Flats
area if the Hay Flats visitors begin their trip on a
cruise ship.
MR. METIVA said he did not have the expertise to answer
that question.
11:27:12 AM
REPRESENTATIVE JOHANSEN stated that federal guidelines
must be defined in order to answer Representative
Gatto's question.
11:27:39 AM
SHELLY WRIGHT, Executive Director, Southeast Conference
(SEC), informed the committee that SEC is an ARDOR and
enjoys the advantages of cross culture and
communication with the rest of the state that the
program provides. She stated that ARDORs keep in
touch regularly to pool resources and ideas. Southeast
Conference is broad based and partners with many
economic organizations and small business
organizations, but does not participate in training for
individuals. She noted that SEC can refer individuals
to sources of assistance but is more involved in
regional energy and transportation issues. Ms. Wright
pointed out that her office is in the process of
creating a website to support entrepreneurs.
11:29:47 AM
CHAIR NEUMAN observed that the SEC model is flexible
enough to work with the unique needs of its region.
11:30:36 AM
MS. WRIGHT stressed that, unlike dedicated funding,
ARDORs funding is available to be used for any specific
regional project without restriction.
11:31:10 AM
MR. CATSI added that representatives of each ARDOR must
attend four teleconferences or meetings per year to
exchange ideas. Thus each region benefits from the
prior experience of another.
11:32:01 AM
REPRESENTATIVE DOLL asked for the reason for the huge
differences in funding each year.
11:32:38 AM
MS. WRIGHT expressed her belief that funding is project
driven and different grants are applied for each year.
11:32:56 AM
CHAIR NEUMAN opined that ARDORs provide expertise for
the average person on the street.
11:33:22 AM
CHAIR NEUMAN thanked the presenters.
HB 272-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
11:33:51 AM
CHAIR NEUMAN announced that the final order of business
would be HOUSE BILL NO. 272, "An Act extending the
termination date of the Alaska regional economic
assistance program; and providing for an effective
date."
REPRESENTATIVE BILL STOLTZE, Alaska State Legislature,
introduced HB 272 as the sponsor. He informed the
committee that the bill will extend the sunset date for
the Alaska Regional Development Organizations (ARDORs)
until July 1, 2011. Representative Stoltze stated that
ARDORs are not subject to audits and must be judged on
the evidence of their annual performance. He opined
that the ongoing performance of each ARDOR has been
satisfactory. He advised the committee that it is
appropriate to have a sunset [date] and that his
preference is for an extension of the sunset for five
years.
11:34:52 AM
CHAIR NEUMAN asked whether Representative Stoltze would
support an amendment to extend the sunset date to five
years.
REPRESENTATIVE STOLTZE said yes. He concluded by
saying that there has been a good presentation on the
ARDORs program and that he hoped the committee will
take the opportunity to change the sunset date by
amendment.
11:37:52 AM
REPRESENTATIVE GATTO called the committee's attention
to page [7] item 3 of the supporting document, Alaska
Regional Development Organizations FY 07 Annual report.
He read:
When averaged the eleven ARDORs raised $6.23
for every $1 of state grant money.
REPRESENTATIVE GATTO pointed out that this is a lesser
return than stated by Mr. Catsi.
11:38:41 AM
MR. CATSI answered that he was unsure of the year
covered in the report. He said that, since the
beginning of the program, each ARDOR has leveraged
funds an average of from 3:1 to 8:1.
11:39:09 AM
CHAIR NEUMAN recalled that projects in different
regions create different amounts of grant requests.
11:39:28 AM
REPRESENTATIVE LYNN offered a conceptual amendment to
HB 272 to extend the termination date for five years,
from 2011 to 2013.
11:39:45 AM
REPRESENTATIVE GATTO objected and stated his support
for sunsets. He expressed his concern about the
state's revenue forecast in three to five years and
encouraged the committee to retain the three year
sunset.
11:40:27 AM
REPRESENTATIVE STOLTZE reminded the committee that the
legislature approves extensions for other boards with
broader powers. He said that he wants to keep these
community organizations at work and the five year date
makes sense. He noted that Alaska's constitution
requires that the program be subject to annual
appropriations regardless of the sunset date.
CHAIR NEUMAN expressed his belief that a five year
extension is crucial to a dependable business plan.
11:42:15 AM
REPRESENTATIVE KELLER opined that the five year
extension will allow for leveraging more money because
it would demonstrate the confidence level that the
state has in the program.
11:42:27 AM
REPRESENTATIVE DOOGAN expressed his understanding that
the ARDORs program has been reauthorized six times.
11:42:59 AM
REPRESENTATIVE STOLTZE said that he was unsure of the
exact date of the last reauthorization. He added that
he does not remember ever hearing a raging debate about
this issue.
11:43:16 AM
REPRESENTATIVE DOOGAN commented that, if the ARDORs
program has been routinely reauthorized a half dozen
times, he did not see a problem with extending the
sunset.
11:43:33 AM
REPRESENTATIVE JOHANSEN said that he supports the
amendment. He reminded the committee that the finance
committee will review the appropriation each year.
11:43:58 AM
REPRESENTATIVE GATTO withdrew his objection.
11:44:05 AM
Hearing no further objection Amendment 1 passed.
11:44:28 AM
REPRESENTATIVE LYNN moved to report HB 272, as amended,
out of committee with individual recommendations and
the accompanying fiscal notes.
11:44:48 AM
Hearing no objections, CSHB 272(EDT) was reported out
of the House Special Committee on Economic Development,
International Trade and Tourism with individual
recommendations and the accompanying fiscal notes.
11:44:55 AM
ADJOURNMENT
There being no further business before the committee,
the House Special Committee on Economic Development,
International Trade and Tourism meeting was adjourned
at 11:44 p.m.
| Document Name | Date/Time | Subjects |
|---|