Legislature(1997 - 1998)
02/18/1997 01:43 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 35
"An Act extending the termination date of the Alaska
regional economic assistance program; and providing for
an effective date."
Representative Austerman provided members with a sponsor
statement. He observed that the Alaska Regional Development
Organizations program was created in statute in 1988.
Commonly referred to as ARDOR's, they are private, nonprofit
corporations formed by local initiative to promote private
sector economic development within their designated regions.
The ARDOR program has led to the formation of 11 regional
development organizations such as the Southwest Alaska
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Municipal Conference, the Southeast Conference, the Lower
Kuskokwim Economic Development Council and the Anchorage
Economic Development Corporation. He maintained that the
nearly two hundred representatives of local political,
social and economic interests, who serve on ARDOR boards of
directors, are working together to lead their regions to
greater economic self-sufficiency.
The original legislation had a sunset clause that ended the
program in 1993, but was extended until the end of fiscal
year 1997. He stated that it is in the best interest of the
State of Alaska to continue the ARDOR program to ensure the
ongoing economic viability of Alaska's various regions.
Representative Austerman provided members with the Alaska
Regional Development Organizations' Annual Report, March
1996 (copy on file). He noted that the last page shows
funding sources generated by program. State funding was a
little more than $600 thousand dollars in FY 97. The
addition of private funds resulted in a total budget of
$6,585 million dollars in FY 97.
PAUL FUHS, ALASKA ARDOR ASSOCIATION spoke in behalf of HB
35. He pointed to the ARDOR program as an example of a
successful private/public partnership. He emphasized the
importance of local implementation and coordination of
projects. He observed that state funding comes through
Alaska Industrial Development and Export Authority (AIDEA)
program receipts. The Governor has proposed $620 thousand
dollars for the ARDOR program in FY 98. He observed that a
local match is required.
Representative Martin expressed his opposition to HB 35. He
questioned what the ARDOR's do that cannot be done by local
Chambers of Commerce and Rotary Clubs.
Mr. Fuhs emphasized that ARDOR's provide a private/public
cooperative effort to look for infrastructure on a regional
level. He gave examples of ARDOR programs. He maintained
that Chambers of Commerce would not provide coordinated
services. He stated that the Alaska ARDOR Association would
welcome a legislative audit.
MARY STADUM, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA MUNICIPAL
CONFERENCE testified via the teleconference network in
support of HB 35. She observed that the Conference was
founded before the ARDOR program was established. She
reviewed services provided by the Conference. She stressed
that ARDOR's bring local Chambers of Commerce together with
other organizations.
(Tape Change, HFC 97-32, Side 1)
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Ms. Stadum emphasized that ARDOR's allow people to work
together and share resources. She noted that leaders in
small communities wear many hats. She noted that the
Conference passed two resolutions in expressing support for
the ARDOR program.
ALICE RUBY, COUNCIL MEMBER, CITY OF DILLINGHAM testified via
the teleconference network in support of HB 35. She
maintained that the program has allowed them to work on a
grass roots level to provide information, networking,
technical assistance and to serve as a catalyst for economic
development and diversification. She gave examples of ARDOR
activities.
DONNA TOLLMAN, EXECUTIVE DIRECTOR, COPPER VALLEY ECONOMIC
DEVELOPMENT COUNCIL, GLENNALLEN testified via the
teleconference network. She urged support of HB 35. She
observed the affects of reductions to the ARDOR program.
She stressed that the Council, through a contract for
welfare to work programs, helps to develop self efficiency
plans for residents. The Council also helps small
businesses to create development plans. She noted that the
Council is involved in tourism and child care.
Representative Martin maintained that activities performed
by the Council should be done by government. Ms. Tollman
emphasized the distance of the region from the Palmer
office.
In response to a question by Co-Chair Hanley, Ms. Tollman
noted that the Council received its contract for the welfare
to work program through the Department of Community and
Regional Affairs.
JAMES ELSON, CHAIRMAN, KENAI PENINSULA BOROUGH ECONOMIC
DEVELOPMENT DISTRICT, KENAI testified via the teleconference
network. He spoke in support of HB 35. He observed that he
has served as a volunteer of the local ARDOR organization.
He stressed that state funding has allowed them to obtain
good professional staff. He pointed out that ARDOR's also
receive private funding. He stressed that jobs have been
created through economic development efforts. He recounted
accomplishments of the Kenai Peninsula Borough Economic
Development District.
SHERRY BIGGS, KENAI PENINSULA BOROUGH ECONOMIC DEVELOPMENT
DISTRICT, KENAI testified via the teleconference network in
support of HB 35. She emphasized that Kenai has a very
diversified economy. She stressed that there needs to be a
regional approach. She maintained that ARDOR provides a
bridge between government and private enterprise.
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Mr. Elson observed that ARDOR's can contract directly with
the State without going through the competitive bid process.
JAMES WINCHESTER, EXECUTIVE DIRECTOR, PRINCE WILLIAM SOUND
ECONOMIC DEVELOPMENT COUNCIL, testified via the
teleconference network in support of HB 35. He maintained
that the Council is about providing jobs. The Council has
three main areas of activities, small business development,
infrastructure development projects, and economic recovery
projects. The Council has a $3.0 million dollar budget and
2 and half full time staff positions.
PATRICIA DEMARCO, PRESIDENT, ANCHORAGE ECONOMIC DEVELOPMENT
CORPORATION testified via the teleconference network in
support of HB 35. She emphasized the importance of the
ARDOR program as an integrating force across the State.
She stressed efforts to provide year-round jobs. She noted
that planning functions are not easily funded by private
sector initiatives. She reviewed ARDOR projects implemented
by the Anchorage Economic Development Corporation.
IKE WAITS, ARDOR PROGRAM, DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS observed that the program is a way to
stretch state funds for regional economic development. He
spoke in support of the ARDOR Program.
BERNE MILLER, EXECUTIVE DIRECTOR, SOUTHEAST CONFERENCE
testified in support of HB 35. He provided members with
written testimony (copy on file). He stressed that the
program relies on local and regional decision making about
what is important. In response to a question by Co-Chair
Hanley, Mr. Miller acknowledged that the Conference existed
before it received state ARDOR funding. The Southeast
Conference's total FY 97 budget is approximately $225
thousand dollars.
Representative Kohring expressed concern with the State's
participation.
Mr. Miller stated that the Conference helps show
organizations how to execute projects as quickly and
economically as possible.
Co-Chair Hanley clarified that ARDOR's are non-profit
groups. Individual regional organizations administer the
program.
Co-Chair Hanley acknowledged the benefit of the ARDOR
program. He pointed out that many of the regional
organizations would continue to exist without state funding.
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He emphasized that funding may be reduced. He clarified
that each ARDOR receives $55.0 thousand dollars. He asked
why all ARDOR's receive the same funding.
Mr. Fuhs noted that the original appropriation to the ARDOR
program was $1.6 million dollars. The Governor's FY 98
request is $620 thousand dollars. He maintained that equal
funding is the most fair. The required local match varies
based on capability.
Representative Martin pointed out that $55.0 thousand
dollars pays for one position per ARDOR. He spoke against
continuing the program.
Mr. Fuhs observed that private business does not want to be
over regulated. He added that government working with
business for economic development "makes all the difference
in the world."
Representative Foster MOVED to report HB 35 out of Committee
with individual recommendations and with the accompanying
fiscal note. Representative Martin OBJECTED. He stated
that the ARDOR program should undergo an audit to determine
if all eleven ARDOR's should be funded. A roll call vote
was taken on the MOTION.
IN FAVOR: Davies, Davis, Foster, Grussendorf, Kohring,
Mulder, Therriault, Hanley
OPPOSED: Martin
Representative Kelly was absent from the vote.
The MOTION PASSED (9-1).
HB 35 was reported out of Committee with a "do pass"
recommendation and with a fiscal impact note by the
Department of Community and Regional Affairs, dated 2/5/97.
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