Legislature(2017 - 2018)BELTZ 105 (TSBldg)
01/26/2017 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Strategy for Alaska's Economy | |
| Anchorage Economic Development Corporation | |
| Kenai Peninsula Economic Development District | |
| Southeast Conference | |
| Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 26, 2017
1:31 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Shelley Hughes, Vice Chair
Senator Kevin Meyer
Senator Berta Gardner
MEMBERS ABSENT
Senator Gary Stevens
COMMITTEE CALENDAR
STRATEGY FOR ALASKA'S ECONOMY
Alaska Regional Development Organizations
Department of Commerce, Community and Economic Development
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record.
WITNESS REGISTER
BILL POPP, President & CEO
Anchorage Economic Development Corporation (AEDC)
Anchorage, Alaska
POSITION STATEMENT: Presented information on the Anchorage
Economic Development Corporation regional development plan.
TIM DILLON, Executive Director
Kenai Peninsula Economic Development District (KPEDD)
Kenai, Alaska
POSITION STATEMENT: Provided information on the Kenai Peninsula
Economic Development District economic development plan.
SHELLY WRIGHT, Executive Director
Southeast Conference
Juneau, Alaska
POSITION STATEMENT: Presented information on Southeast
Conference's role in economic development.
MEILANI SCHIJVENS, Economic Planner
Rain Coast Data;
Member
Southeast Conference
Juneau, Alaska
POSITION STATEMENT: Presented information on the Southeast
Conference economic development plan.
ROBERT VENEBLES, Energy Coordinator
Southeast Conference
Juneau, Alaska
POSITION STATEMENT: Presented information on the Southeast
Conference energy goals.
CHRIS HLADICK, Commissioner
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Participated in the presentation titled
"Northern Opportunity," Alaska's Comprehensive Development
Strategy.
BRITTENY CIONI-HAYWOOD, Director
Division of Economic Development
Department of Commerce, Community and Economic Development
POSITION STATEMENT: Participated in the presentation titled
"Northern Opportunity," Alaska's Comprehensive Development
Strategy.
ETHAN TYLER, Manager
Division of Economic Development
Anchorage, Alaska
POSITION STATEMENT: Participated in the presentation titled
"Northern Opportunity," Alaska's Comprehensive Development
Strategy.
ACTION NARRATIVE
1:31:40 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:31 p.m. Present at the call to
order were Senators Gardner, Hughes, Meyer, and Chair Costello.
^Strategy for Alaska's Economy
Strategy for Alaska's Economy
1:32:19 PM
CHAIR COSTELLO said the committee will continue to focus on the
economy by looking at the regional development plans. The
question members should consider is if the state should have a
strategic vision to move forward with an eye to a resilience in
the economy. She welcomed Bill Popp.
^Anchorage Economic Development Corporation
1:34:58 PM
BILL POPP, President & CEO, Anchorage Economic Development
Corporation (AEDC), shared AEDC's mission, which is to grow a
prosperous, sustainable, and diverse Anchorage economy. The
vision is for Anchorage to be the number one city in America in
which to live, work, and play by 2025. The focus is on
Anchorage, but AEDC believes what is good for others is also
good for Anchorage.
He stated that the municipality faces a lot of challenges.
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Anchorage is now the 20 most expensive city in the nation at
130.2 percent of the national cost-of-living average. It is the
ththth
6 highest for groceries, 20 for housing, 112 for utilities,
thrd
36 highest for transportation, and it remains the 3 most
expensive city for healthcare at 143.5 percent of the national
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average. It is the 5 most expensive for miscellaneous goods and
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services at 125.8 percent, and the 7most expensive place to
buy a Big Mac. This shows the difficulty of attracting new
outside investment.
MR. POPP related that AEDC offers services to businesses and
growth-focused programs, such as research and analysis reports,
national and international business attraction methods,
assistance to new and existing businesses seeking to invest in
Anchorage, and support for entrepreneurship and relative
programs and initiatives.
He explained that AEDC's strategic efforts are focused in three
key areas: Live, Work, Play Initiative, Comprehensive Economic
Development Strategy, and the Airport Business Development
Initiative. Live, Work, Play is the community redevelopment
initiative focused on strengthening community foundational
elements, which undermine economic efforts if they are weak.
These include safety, housing, education, arts, recreation, and
the health and diversity of the community.
He said that the Comprehensive Economic Development strategy
takes advantage of the improved community foundations and is
focused on economic development. The strategy is set for
completion in the fall of 2017. It is a grassroots planning
process that will lay down a five-year set of initiatives, such
as downtown revitalization and a U-Med Innovation District.
He turned to the Airport Business Development Initiative, which
is entering its fourth year. He termed the airport the "crown
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jewel" in the state's overall economy. Last year it was the 4
busiest cargo airport on the planet. He said AEDC spent 18
months focusing on global supply chains as potential business
operations in Anchorage. The four that rose to the top were
pharmaceuticals, especially clinical trials, automotive
electronics, consumer electronics, and aviation parts.
Pharmaceuticals was the most likely opportunity.
MR. POPP said that for the last 18 months, AEDC has been
focusing on analyzing pharmaceutical industry needs and
expectations. They also have been working to align private and
public partnerships and looking at industry cost trends. He
predicted that the new business facilities would be small with
10 to 25 employees. He noted it was a long-term project.
1:45:15 PM
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MR. POPP related that AEDC is entering its 30 anniversary year.
It is a 10-person operation with a 65-member board. The 2017
budget is estimated at $1.8 million cash and in-kind and direct
government funding of about $250,000, fully from the
Municipality of Anchorage. The remainder is private sector
sourced.
He concluded, "There are no easy wins in either economic or
community development." He stressed that investments in both
efforts are critical to community development and must go hand-
in-hand with economic development strategies. He suggested
thinking of it as a private/public project, not a public/private
project.
1:47:28 PM
CHAIR COSTELLO thanked Mr. Popp for his work.
SENATOR HUGHES asked for the names of the other three cities
that are higher than Anchorage for health care. She also asked
why pharmaceuticals rose to the top in the study of industry
possibilities for Anchorage.
MR. POPP respond that Fairbanks is first, Juneau second, and
Kodiak is fourth for the cost of health care. The next closest
city was Boston at 20 percent above the national average. He
stressed that expensive health care is a substantial problem and
contributes to a lack of competitiveness for business in the
state.
He explained that pharmaceuticals are a target because 25-30
percent of the cost of developing a drug comes from the cost of
doing clinical trials. Most companies are trying to develop new
drugs for distribution around the world, not in the U.S. market.
The FDA requires U.S. sourced materials for clinical trials.
That puts Alaska in an interesting position. If pharmaceuticals
can be based in Anchorage, they can distribute to major market
places for clinical trials in several Asian countries in one
airplane ride, which is a major risk reduction.
1:52:03 PM
CHAIR COSTELLO asked him to comment on the relationship between
Anchorage's economy and the rest of the state. All the
economists agree that Alaska is experiencing a recession. She
referred to a map showing how job growth varies, depending on
location.
MR. POPP said the relationship is symbiotic. If Fairbanks is
suffering, there is less coming through the Port of Anchorage
for that destination. The same applies throughout the state, but
to a lesser extent to Southeast and the Aleutian chain. AEDC saw
a "bubble" that just burst - the professional and business
services sector, mainly in Anchorage. He recalled the history of
project-oriented spending. Two-thirds, or 1,600, of job losses
last year were centered in that sector. About another 900 jobs
were lost in construction.
CHAIR COSTELLO said most of the job losses were in the private
sector, primarily oil and gas and construction. She pointed out
that job loss varies around the state. The legislature has been
interested in knowing how much of the capital budget dollars are
unspent, due to the five-year time limit. She provided an
example from her district. She suggested that knowing the
balance is helpful information.
MR. POPP relayed that professional and business services lost
direct local jobs, as well as oil and gas sector jobs. They are
still sorting out the losses on the North Slope with 25 to 30
percent being non-resident. He noted that Anchorage is just
starting to see an impact to the non-resident workforce because
there has not yet been a significant spike in first-time
employment, the housing market is healthy, and there has been a
net migration to the Mat-Su Borough due to high costs and lack
of affordable housing in Anchorage.
CHAIR COSTELLO said she appreciates the clarifications. It was
surprising to hear from economists that housing in Anchorage
hasn't been challenged.
^ Kenai Peninsula Economic Development District
CHAIR COSTELLO welcomed Tim Dillon from the Kenai Peninsula
Economic Development District.
2:00:52 PM
TIM DILLON, Executive Director, Kenai Peninsula Economic
Development District (KPEDD), provided information on the Kenai
Peninsula Economic Development District's economic development
plan. He said KPEDD is a two-person Alaska Regional Development
Organization (ARDOR) with a 12-person board. He related that
KPEDD has been seeing job losses of 2.4 percent. They had a
small decline in construction in the specialty trades, but saw a
small bump in heavy construction employment due to the new
Soldotna hospital building. The population in the district was
up .65 percent.
He explained that KPEDD is a 501c(4) with funding sources from
the Kenai Peninsula Borough, the U.S. Department of Commerce and
Economic Development Administration, and the renewed
organization ARDOR from the state. He spoke of another funding
asset called the "incubator", 20 offices and acreage that
provide rental income. He noted their sister organization, Kenai
Peninsula Opportunities, a 501c(3), which contains the
construction academy.
2:03:26 PM
MR. DILLON discussed KPEED's most recent comprehensive economic
development strategy. The process started in August 2015 and
finished in June 2016 and involved the Board, community focus
groups, and the University of Alaska's Center for Economic
Development. He stressed the importance of buy-in from local
businesses. The plan goes through 2021 and has six broad goals.
The first goal is developing and enhancing regional
partnerships. The second goal is developing infrastructure and
technology. The third goal is workforce and human capital, which
is working with educational and training institutions. The
fourth goal is developing a more robust business climate and
entrepreneurship. He described the micro loan program. The fifth
goal is quality of place. People need to be safe, have good
schools and good recreational opportunities. Goal six is
knowledge creation and dissemination. They put together a
situation and prospects book to help attract business, and
recently held a forum to distribute the information. They have
just formed a partnership with AEDC to produce appropriate data.
2:11:13 PM
CHAIR COSTELLO thanked Mr. Dillon and said he would be hearing
from her.
MR. DILLON spoke of the importance of having stakeholders
involved in the process.
2:12:20 PM
At ease
^Southeast Conference
2:13:52 PM
CHAIR COSTELLO reconvened the meeting. She welcomed the
Southeast Conference members Robert Venebles, Meilani Schijvens,
and Shelly Wright.
2:15:21 PM
SHELLY WRIGHT, Executive Director, Southeast Conference,
presented information on Southeast Conference's role in economic
development. She thanked the committee for hearing from the
Alaska Regional Development Organizations (ARDOR) and for
highlighting the value of a good economy and healthy
communities. She said they have been in existence since 1958 and
their mission is to build strong economies, healthy communities
and a quality environment by forming partnerships and creating a
regional plan that all members can use in their planning
processes. Their motto is "think local and plan regional."
MEILANI SCHIJVENS, Economic Planner, Rain Coast Data, Member,
Southeast Conference, presented information on Southeast
Conference's economic development plan. She said she would
present the current state of Alaska's economy and then provide
an overview of the Southeast Alaska Economic Plan.
She related that Southeast Alaska is 500 miles long and made up
of mainland and over 1,000 islands, with 18,500 miles of
saltwater shoreline. Southeast Alaska has 34 communities, with
10 percent of Alaska's population, about 10 percent of Alaska's
overall economy, 11 percent of all jobs, and 10 percent of all
wages. From statehood to the 1990s, the population and
employment levels in Southeast Alaska more than doubled and its
economy was strong. In the 1990s Southeast lost most of its
timber industry and for the next 16 years, entered a sustained
economic decline. The last year of the decline was 2007, and
from 2008 to 2015 the economy improved.
MS. SCHIJVENS explained that, currently, the question is how the
impact of the state's fiscal crisis will impact the regional
economy. Based on the 2016 data, she maintained that the impact
to Southeast Alaska will continue to be a major challenge. In
2016, jobs declined by 1.4 percent or 600 jobs, slightly better
than the state did overall.
She pointed out that Southeast Alaska also lost population in
2016. The loss was about 500 people, 400 of which came from
Juneau alone, the third largest drop in the history of Juneau.
CHAIR COSTELLO asked if the population is currently 73,812,
including an increase during the summer.
MS. SCHIJVENS said yes, there is a huge increase in employment
in the summer. The population is counted as a single number once
a year.
CHAIR COSTELLO asked Ms. Schijvens if she has the data that
shows the summer population increase.
MS. SCHIJVENS agreed that there is a large increase in
employment in the summer due to tourism and growth in certain
industries.
She showed a slide that illustrates Southeast employment as a
percent of all earnings, compared to the state as a whole. The
most important sectors of the economy were government at 35
percent, seafood at 12 percent, and the visitor industry at 9
percent.
CHAIR COSTELLO asked what percentage of the government jobs are
federal.
MS. SCHIJVENS noted that information was on the next slide.
She continued to say that Southeast's "three-legged stool" looks
a lot different than Alaska's because there is no oil and gas
industry employment. In total, oil and gas makes up 11 percent
of all employment earnings. That means that Southeast is more
sensitive to loss of employment and state spending, but less
sensitive to declines in oil and gas development.
MS. SCHIJVENS said federal government jobs equal 8 percent of
all regional wages, and state jobs equal 14 percent of all
regional wages. State government in Juneau accounts for more
than a quarter of all local wages.
She said preliminary job numbers for 2016 are grim with a loss
of 425 jobs in the government sector, almost all state jobs.
Further cuts of 200 Southeast jobs are projected.
CHAIR COSTELLO said legislators are interested in whether the
lost jobs were filled positions.
MS. SCHIJVENS said she doesn't have the breakdown, but she
understands that many of the jobs were lost through attrition.
The number she quoted was the average job numbers over 12
months.
CHAIR COSTELLO said she would continue to look for that
information.
MS. SCHIJVENS reported that 600 jobs have been reduced from 2014
through 2016, an 11 percent reduction. Most of those losses were
from Juneau.
2:24:46 PM
She continued to say that reduced state spending has a negative
impact on private sector jobs. Construction jobs fell by 90 jobs
or 4 percent in 2016. Legislative capital appropriations in the
region have already dropped by 88 percent from FY13 levels.
Projection for 2017 show a loss of another 100 jobs in
construction.
She said timber industry jobs declined by 2 percent, the fastest
declining industry, which is projected to continue to decline
due to a variety of federal factors. She noted that the U.S.
Forest Service manages about 78 percent of the lands in
Southeast Alaska - the Tongass National Forest - while the
federal government manages 94 percent of all lands in Southeast
Alaska.
2:26:28 PM
MS. SCHIJVENS reported that the visitor industry has the
strongest outlook of any industry in Southeast Alaska. There
were 500 new tourism jobs and 1,500 jobs since 2010. One-third
of visitor spending occurs in Southeast Alaska and 2016 was the
best year ever. There were record numbers of visitors on
ferries, by air, and on cruise ships.
CHAIR COSTELLO asked if she had information about the number of
independent travelers who were first cruise ship passengers.
MS. SCHIJVENS said no. She offered to provide that information.
She noted an industry concern due to deep reductions in the
Alaska Tourism Marketing budget.
She related that mining is another growing industry. Maritime
jobs and wages are also bright spots. In Southeast Alaska
maritime wages make up more than a quarter of all workforce
earnings. In the past five years 1,000 jobs were added to the
economy resulting in a 35 percent increase in wage earnings. The
largest component of the maritime sector is the seafood
industry, which accounts for two-thirds of maritime jobs.
In 2016 the regional fishing industry experienced a rough year
due to a lower pink salmon run and lower prices, but it is
expected to improve in 2017.
2:30:02 PM
MS. SCHIJVENS stated that Southeast Conference released its
five-year plan about 6 months ago. It builds on Southeast
Alaska's strengths and creates a blueprint for economic growth.
She emphasized the importance of ownership of the plan by the
people for which it is being developed. She shared the strengths
and weaknesses, opportunities and threats that were quantified.
She said the economic resiliency strategies are to reduce
business costs, continue to focus on economic development,
reduce government spending, increase state revenues through a
mix of taxes, and maintain ferry services.
SENATOR GARDNER noted the apparent lack of importance of
maintaining the ferry system.
MS. SCHIJVENS explained that the number of responses is
reflected in the size of the font. She reinforced the importance
of maintaining the ferry system.
SENATOR GARDNER suggested that the first two items cannot happen
unless the fifth one happens.
MS. SCHIJVENS agreed.
2:34:11 PM
MS. SCHIJVENS noted 47 objectives for growing the economy. Of
those, eight were prioritized for a work plan moving forward:
1. AMHS Reform Project and support longevity
2. Promote regional energy projects
3. Diesel displacement
4. Maritime workforce development implementation
5. Full seafood resource utilization and ocean product
development
6. Grow Alaska Mariculture Initiative.
7. Market Southeast Alaska visitor opportunities
8. Secure an adequate economic timber supply from the federal
government.
SENATOR GARDNER asked about an Alaska Seafood Marketing
Institute (ASMI) project to develop value-added seafood products
for export.
MS. SCHIJVENS said they are working to develop a variety of new
seafood products such as human-grade protein powder and smoked
salmon ice cream. She listed other specific areas that are a
focus.
SENATOR GARDNER asked if the Alaska Symphony of Seafood is in
Seattle.
MS. SCHIJVENS replied it will be in Juneau this year.
SENATOR HUGHES asked if the focus on liquid natural gas will
affect the seafood marketing office in Tokyo and have an
economic impact on Southeast Alaska.
MS. SCHIJVENS said she didn't have a specific answer.
She mentioned Southeast Conference's goals of strengthening the
mariculture, tourism, and timber industries in Southeast Alaska.
SENATOR GARDNER asked if anyone is working on exporting timber
in the round or value-added products in the timber industry.
MS. SCHIJVENS said the Viking Mill is the last mid-size mill in
Southeast Alaska and the goal is to have maximum production
taking place. When there is an economic timber sale, there is
enough high-quality wood for Viking to process without the need
to export it.
MS. WRIGHT added that there are a lot of small businesses that
are developing wood products, but, for a thriving timber
industry there is a lot of work to do.
2:43:27 PM
SENATOR MEYER said it seems that mining potential is great in
Southeast Alaska. He asked why mining isn't a priority.
MS. SCHIJVENS said they have a mining objective, but it isn't in
the top eight. Mining is not something Southeast Conference can
work on or move forward.
MS. WRIGHT added that the 8 priorities are the focus this year,
and if there is any mining activity on Prince of Wales Island
next year there could be a focus on mining.
CHAIR COSTELLO asked Ms. Wright to clarify whether Southeast
Conference's plan is driven by an economic analysis or
priorities of members.
MS. WRIGHT explained that Southeast Conferences' initiatives
were based on objectives important to regional members. Right
now, the 8 objectives were of the highest importance, but they
are fluid and reevaluated every six months.
SENATOR GARDNER asked if there is any development on Prince of
Wales Island of rare earth minerals.
MS. WRIGHT said the developers are having trouble with
investment in these economic times.
SENATOR HUGHES thanked the presenter. She pointed out that the
revenue from the oil and gas industry is what has paid for state
government and it is important to be sensitive to the health of
that industry. She asked what Southeast Conference's strategy
for energy legislation is and whether they are putting forth a
bill this session.
2:50:43 PM
ROBERT VENEBLES, Energy Coordinator, Southeast Conference,
presented information on Southeast Conference's energy goals. He
responded that their focus is mostly on federal energy bills,
however, they are supportive of Alaska Energy Authority's work.
They aren't introducing any stand-alone bills, but they support
the bills going through Congress.
2:52:51 PM
At ease
^ Department of Commerce, Community and Economic Development
2:55:09 PM
CHAIR COSTELLO reconvened the meeting. She welcomed Commissioner
Hladick, Britteny Cioni-Haywood, and Ethan Tyler from the
Department of Commerce, Community and Economic Development.
2:56:07 PM
CHRIS HLADICK, Commissioner, Department of Commerce, Community
and Economic Development (DCCED), said the initiative they have
in DCCED will fit nicely with what other Alaska Regional
Development Organizations (ARDORs) have been working on. He
thanked the committee for hosting this discussion and Senator
Hughes, Bill Popp, Shelly Wright, Tim Dillon, Meilani Schijvens,
and Chris Naoroz for sitting on the initiative steering
committee.
COMMISSIONER HLADICK shared his experience coming to Juneau
after 25 years in rural Alaska where costs are high. Addressing
Senator Costello's previous question about how much money was
left in the grants pipeline, he said when he arrived in Juneau
in 2015, there was $2.1 billion in the pipeline, and now there
is about $900 million left, $500 million of which is encumbered.
He said there would be a report released next week on capital
grants.
He noted that any money spent in rural Alaska comes back to the
major population centers. Now, there is a paradigm shift
regarding loan programs and there is a lot of work to be done;
the question is how to get the work done. Those projects return
money to the economy. He explained that the Comprehensive
Economic Development Strategy (CEDS) is developed by the
Division of U.S. Economic Development Administration and has
received funding support from a $100,000 grant. It is a process
that works and will be a tool for the state to focus on getting
the most results.
SENATOR MEYER talked about the tie-in to the oil and gas
industry, stressing that is where construction and other jobs
come from, as well as funding for education and capital
projects. He suggested a need to education people about where
the state gets its money.
3:01:15 PM
BRITTENY CIONI-HAYWOOD, Director, Division of Economic
Development, Department of Commerce, Community and Economic
Development (DCCED), said she would address what a comprehensive
economic development strategy is and the department's branding
effort. She stated the following:
Economic development planning through a CEDS serves to
engage community leaders, leverage involvement from
the private sector, and establish a strategic
blueprint for collaboration moving forward. A CEDS
provides a capacity-building foundation by which the
public sector, by working in conjunction with other
economic actors, individuals, businesses, and
industries, creates an environment for original
economic prosperity. A CEDS is the result of regional-
owned planning processes and designed to build the
capacity and to guide us in our economic prosperity
and resiliency for an area or a region.
She added that most of the ARDORs have this process in place.
The Division of Economic Development brings it up to a statewide
level.
3:02:56 PM
MS. CIONI-HAYWOOD pointed out that the CEDS needs to incorporate
the concept of resiliency - the ability to avoid, withstand, and
move past from either economic shifts or natural disasters. The
CEDS named Northern Opportunity is going to build on past
efforts and existing regional CEDS as the foundation. The
project is guided by the U.S. Economic Development
Administration and is funded by a grant for the initial phase.
The process is overseen by a Strategic Committee comprised of
industry and community leaders. She concluded that the Division
is partnering with the ARDORs and other economic development
organizations.
3:03:56 PM
ETHAN TYLER, Manager, Division of Economic Development,
presented said he will discuss the branding opportunity called
Northern Opportunity. He explained that the approach is one of
inclusiveness; it is a bottom-built strategy. There is a
research component to assess the economic conditions and
engagement in community forums, visiting with communities and
business leaders around the state. They have conducted industry
forums and will set up a business survey to gather information.
He spoke of the Strategy Committee that provides information and
represents the diversity of Alaska by region and industry. The
group has been helpful, almost like a nonprofit board of
directors.
3:07:38 PM
MR. TYLER listed the community forums they have completed and
those that are in progress. The point of the outreach is to have
broad-based stakeholder participation.
He provided a snapshot of industry input and listed the industry
groups the Division of Economic Development has worked with.
3:09:08 PM
MS. CIONI-HAYWOOD read the initial vision and mission statement:
VISION
Alaska will have a stable and sustainable economy that
generates quality jobs, capital investment, and new
revenue to benefit the people and businesses of
Alaska.
MISSION STATEMENT
The purpose of Northern Opportunity: Alaska's Economic
Strategy is to arrive at a consensus among Alaskans
regarding our economic future, which will result in
the articulation of priorities and goals for the state
economy. These efforts will promote new investment and
economic opportunity for the benefit of all Alaskans.
3:10:47 PM
She noted their website - NorthernOpportunity.com - which will
have a business survey soon, as well as updates on the process.
She reported that the public survey garnered 600 responses. The
process was representative of the population and reflects
population centers throughout the state.
3:12:45 PM
MR. TYLER addressed the preliminary results of the public
survey. Most of the questions were open-ended, and they are in
the process of analyzing the results. One of the questions asked
why they chose to live in Alaska. Just over one-third cited
nature and the environment as the reason; the second most cited
reason was people and family.
3:14:37 PM
He showed the results of another question they asked about the
biggest opportunities in Alaska. The most responses cited the
visitor industry and resource development - mining, and oil and
gas. In response to the question what would make Alaska a better
place to live, responses showed that wanting a more diverse
economic economy was the top choice, followed by a cheaper cost
of living.
3:16:17 PM
MS. CIONI-HAYWOOD noted they would launch the Northern
Opportunity Business Survey next week. They will look for
background information, business confidence, barriers to
business growth or success, strategies to enhance economic
growth, and what would expand growth going forward.
She said, based on the input they've received, they have
identified preliminary goal areas: finance and investment,
business development, innovation and entrepreneurship,
enterprise infrastructure, and workforce development.
3:21:29 PM
She discussed what comes next in the process. She said they plan
to complete the information gathering and public engagement
process and then draft a document with Strategy Committee input.
After that will be a public comment period of thirty days. The
final strategy will be released and implemented. Yearly updates
will be done based on implementation and changing economic
conditions. There will also be a five-year review and rewrite.
She concluded that the Northern Opportunity process needs a
serious commitment for measurable economic progress and the
growing need for integrated planning and statewide coordination.
3:22:42 PM
COMMISSIONER HLADICK discussed some strategies going forward. He
reported that there have been four initiatives in the last few
years, none of which has gotten to the implementation plan. The
legislature even had an Economic Development Commission for two
years from 2010-2012. After the CEDS is finished, the department
must figure out governance and structure and gage what
public/private partnership looks like. The department must also
gage private enterprise's willingness to become involve and have
an economic summit for industry participation.
He opined that the governance of this CEDS should largely be
outside of state government due to administration turnover. It
needs to be built from the bottom up and have private enterprise
and industry participation for a decade or longer.
CHAIR COSTELLO agreed that the state has failed to diversify the
economy. The equity crowd-investing bill that passed last year
ties into the concept that economic growth happens at a local
level.
She applauded DCCED's work and thanked Senator Hughes for her
work in supporting ARDORs. She stated that the department has
the full commitment of the committee regarding how the state
moves forward. She agreed with Commissioner Hladick's view on
the government's role and said she looks forward to continued
discussions with the department.
She outlined the agenda for next week.
3:27:35 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:27 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2017.01.26 - AEDC Employment Report Ninth Edition.pdf |
SL&C 1/26/2017 1:30:00 PM |
|
| 2017.01.26 - KPEDD Senate Labor & Commerce Committee Presentation.pdf |
SL&C 1/26/2017 1:30:00 PM |
|
| 2017.01.26 - Northern Opportunity DCCED.pdf |
SL&C 1/26/2017 1:30:00 PM |
|
| 2017.01.26 - SEC Annual Report 2016.pdf |
SL&C 1/26/2017 1:30:00 PM |
|
| 2017.01.26 - Southeast Alaska By Numbers.pdf |
SL&C 1/26/2017 1:30:00 PM |