Legislature(2003 - 2004)
02/05/2003 01:30 PM Senate CRA
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ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 5, 2003
1:30 p.m.
MEMBERS PRESENT
Senator Thomas Wagoner, Chair
Senator Alan Austerman
Senator Robin Taylor
Senator Georgianna Lincoln
Senator Kim Elton
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
Confirmation Hearing: Commissioner, Department of Community and
Economic Development- Edgar Blatchford
CONFIRMATION ADVANCED
PREVIOUS ACTION
No previous action to record.
WITNESS REGISTER
Edgar Blatchford
Department of Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Confirmation candidate
ACTION NARRATIVE
TAPE 03-1, SIDE A
CHAIR THOMAS WAGONER called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:30 p.m. Members
present were Senators Austerman, Elton and Chair Wagoner.
Senator Lincoln arrived momentarily.
The matter before the committee was the confirmation hearing of
Commissioner Edgar Blatchford. He asked him to step forward and
tell members about himself.
EDGAR BLATCHFFORD, Commissioner of the Department of Community
and Economic Development, informed members he has lived in
Seward, Alaska most of his life. After graduating from Alaska
Pacific University in 1973, he received his law degree from the
University of Washington Law School. He returned to Alaska as
the Alaska Native Claims Settlement Act was being further
implemented and began working as a lobbyist for Chugach Alaska
Corporation on land trade in Prince William Sound. During that
time he purchased the Seward weekly Phoenix Log and when he
wasn't working for Chugach Alaska Corporation, ran what became a
chain of newspapers in rural Alaska.
In the 1980's he received a Master of Science degree from
Columbia University Graduate School of Journalism. He returned
to Alaska to work for Chugach Corporation to coordinate the
litigation against all parties involved in the Exxon Valdez oil
spill.
In 1990 he began serving in Governor Hickel's cabinet as
Commissioner of the Department of Community and Regional
Affairs. With a change of administration, he went to the
University of Alaska, Fairbanks (UAF) and taught rural
development courses. He then transferred to the University of
Alaska, Anchorage (UAA) to teach journalism.
He served on the council and as vice-mayor and mayor for the
City of Seward. He is currently on leave from UAA to accept the
commissioner position.
The Department of Community and Economic Development (DCED) has
gone through various amalgamations since 1959 when it started.
There was a Department of Commerce and a separate Department of
Economic Development and in 1970 Governor Eagan created the
Department of Community and Regional Affairs (DCRA). Its primary
mission grew out of the constitutional responsibility to have a
local government agency to deal with issues and the lack of
local government in the Unorganized Borough, but the Legislature
attached other responsibilities to it in the 1970s and 1980s. In
the 1990s it merged with the Department of Commerce and Economic
Development into one large department with four divisions.
DCED provides basic services to Alaskans. It provides consumer
protection through the division of banking, securities &
corporations and the division of insurance and professional
occupations and business licensing. It also promotes economic
development through domestic and international promotion of
tourism. It actively promotes the sale and acceptance of
seafood, timber, minerals and other products. The department
administers loan programs through the division of investments
and works with communities to create local opportunities for
local people.
The department houses the Alaska Seafood Marketing Institute
(ASMI), Regulatory Commission of Alaska (RCA), Alaska Industrial
Development & Export Authority (AIDEA) and Alaska Energy
Authority (AEA), Alaska Aerospace Development Corporation
(AADC), Alaska Science & Technology Foundation (ASFT), Alaska
Railroad Corporation (ARRC). The department currently has 507
employees and costs the state approximately $32 million per
fiscal year with staff in Juneau, Anchorage, Fairbanks, Tok,
Kotzebue, Nome, Dillingham, Bethel and Kodiak and Bellevue,
Washington. The FY 03 budget is $151 million and the
unrestricted general fund portion of that is $41 million or 27
percent of the budget.
DCED includes two percent of the statewide, unrestricted general
funds. The department administers about $74 million in grants to
municipalities, unincorporated communities, and non-profits.
Funding sources for the grants include but aren't restricted to
the general fund, federal funds, Power Cost Equalization,
Science and Technology Foundation endowment earnings, and inter-
agency receipts. State revenue sharing or Safe Communities grant
programs amount to about $29 million for 2003.
SENATOR AUSTERMAN asked whether he had evaluated the
restructuring effects of HB 40.
COMMISSIONER BLATCHFFORD admitted he hadn't had the time to
analyze the impact of the amalgamation of the two departments,
but that he is partial to the old DCRA responsibilities of being
an advocate for municipalities. When state government impacts
communities, the municipalities need to participate in the
decision making process.
SENATOR AUSTERMAN requested a written analysis on the effects of
HB 40 at some point before the end of the legislative session
because when a move of that sort is made, it is important to
critique the action.
COMMISSIONER BLATCHFFORD assured him he would receive a copy of
his remarks and analysis.
SENATOR ELTON welcomed the Commissioner back to Juneau.
He asked for an interpretation of the transition team intent
regarding restoring road construction authority to the governor
rather than leaving that authority with the Legislature.
COMMISSIONER BLATCHFFORD explained the transition team meant to
work closely with local communities and look at ways to
streamline project procedures particularly in rural Alaska. His
interest is to work with private landowners to look for ways to
access their natural resources if they so desire. The team
looked at ways to foster economic development in rural Alaska
and determined it would be beneficial to develop a rural sub-
cabinet from DCED, Department of Natural Resources (DNR) and
Department of Transportation and Public Facilities (DOT&PF).
SENATOR ELTON saw no mention of local communities when he read
the report. He did see a prerogative of one branch of government
in its support role of funding projects, but realizes that was
not the intent of the transition team.
COMMISSIONER BLATCHFFORD assured members the team in no way
intended to encourage the Administration to bypass the
legislative process.
SENATOR LINCOLN agreed with the Commissioner on the
restructuring of DCRA.
In the State of the State address, Governor Murkowski said he
has asked DCED to work with Native regional corporations to
determine how the state might be able to help in resource
development. The Governor said "...a close working relationship
between the state and Alaska Native Corporations can provide the
economic engine for rural Alaska...." Senator Lincoln assured
the Commissioner Native Corporations provide the economic engine
for all of Alaska. She asked for specifics on how the department
intends to initiate the process.
COMMISSIONER BLATCHFFORD replied the idea of working with land-
based corporations began with passage of the Alaska Native
Claims Settlement Act (ANCSA). It is a fair attempt to provide
an avenue for Alaska Natives to participate in economic
opportunities in Alaska. The team suggested the state has an
obligation to work with regional and village corporations to
look at priority projects because this area of the state is
growing rapidly and some type of economic development is
necessary or the state will suffer the consequences. This is the
reasoning behind the formation of the tri-agency sub-cabinet,
but there is not desire to impose any effort on any corporations
unless invited.
SENATOR LINCOLN asked about the status of the second deputy
commissioner position established to focus on rural affairs.
COMMISSIONER BLATCHFFORD replied they are currently looking at
all exempt and partially exempt positions. Attention is focused
on rural Alaska needs and the department recognizes that the
natural resource base for the state is located there. He is
undecided whether the department should have two deputies, one
deputy, or another division. Currently just one position is
filled.
SENATOR ELTON noted the transition report suggested HB 184
issues should be revisited because it aligns the division of
insurance regulations with a Graham Leach Bliley Act. Consumers
must opt-in or opt-out on sharing financial and health
information, which has very real privacy implications. He asked
whether the department would revisit opt-in opt-out for
individuals doing business in the State of Alaska.
COMMISSIONER BLATCHFFORD said the intent of the division of
insurance is to protect the consumer. The insurance industry is
in a state of crisis and the department is looking at all
insurance issues. They are paying very close attention to the
industry as a whole and to what insurance consumers are saying.
SENATOR ELTON thought changing the opt-in opt-out provisions
would require new legislation not regulatory change.
SENATOR LINCOLN said a constituent submitted the following
question for her to ask: "How do you perceive the role of DCED
and the office of fisheries and management and division of
international trade and development in our state's fisheries?"
She asked him to include ways he believes the department can
improve and support the fishing industry in his answer.
COMMISSIONER BLATCHFFORD stated he has worked on fishing related
issues his entire career and the industry is in a state of
crisis today. He and his department will be a part of the
ongoing discussions of how to assist fishermen and the
processing industry. It is a huge issue and although suggestions
have been made, none have, as yet, found firm footing. The focus
is to protect the fisherman, protect communities and find ways
that everyone's interests are fairly and adequately served.
SENATOR LINCOLN asked Senator Austerman whether she needed to
follow up on the response.
SENATOR AUSTERMAN replied it is too early in the Administration
to give a concrete answer.
SENATOR LINCOLN noted the 129 communities she represents dot the
map and she is nervous about further cuts to rural Alaska when
she hears that some agencies may need impact statements
detailing outcomes of a five to ten percent cut. She asked where
the Commissioner sees cuts that rural Alaska can absorb.
COMMISSIONER BLATCHFFORD said there is no definitive answer at
this time. He assured her he takes the responsibility to head
the agency seriously and is dedicated to providing local
services to the Unorganized Borough. Any cuts would be fairly
and honestly addressed.
SENATOR AUSTERMAN noted some things have been added to the
department that are not tied to the Alaska State Constitution
and legislators would like to hear how involved the state and
department should be in these areas. He asked for a report on
those types of agencies at a later date.
COMMISSIONER BLATCHFFORD replied they are flexible in their
thinking.
SENATOR ELTON highlighted some of his special interests
concerning the department:
· Sometimes the department hasn't some a very good job of
setting milestones toward goals and then measuring progress
toward those goals. As a leader, it's important to have a
good measuring stick and he hopes that is part of the
management strategy.
· He is a firm proponent of the ardor approach to economic
development. Homegrown efforts, based on the region, are
sometimes more important than top down initiatives. He is
frustrated at the micro managing of some affiliated
agencies.
· He complemented the Commissioner on the management team he
is bringing in and expressed the hope he would keep the
equally good managers already in place.
There was no further testimony.
CHAIR WAGONER asked for a motion.
SENATOR AUSTERMAN made a motion to forward Edgar Blatchford's
name as Commissioner of the Department of Community and Economic
Development to the full Senate for confirmation.
There being no objection it was so ordered.
There being no further business to come before the committee,
Chair Wagoner adjourned the meeting at 2:10 p.m.
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