03/07/1997 01:30 PM Senate CRA

                                                                               
           HB 35 EXTEND REG. ECONOMIC ASST PROGRAM                           
                                                                               
  CHAIRMAN MACKIE  brought HB 35 before the committee as the next              
 order of business.                                                            
                                                                               
  REPRESENTATIVE ALAN AUSTERMAN , prime sponsor of HB 35, explained            
 the legislation extends the sunset date for the Alaska Regional               
 Development Organizations program (ARDOR), a program that has been            
 in existence since approximately 1988, to the year 2000.   There's            
 currently 11 ARDOR's in the state, and these are private, nonprofit           
 corporations that are working on economic development throughout              
 the state.                                                                    
                                                                               
 Representative Austerman directed attention to an annual report               
 which shows the program received approximately $605,000 from the              
 state in FY 96, and the total budget of the program amounted to               
 approximately $6,500,000.  He also pointed out that the                       
 participants in the program pay a fee to be part of the program               
 which amounted to over $3,000,000 in FY 96.  He said the investment           
 on the state part is well worth the effort.                                   
                                                                               
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  PAUL FUHS  of Juneau testifying in support of HB 35, emphasized that         
 the ARDOR's are public, private partnerships.  He said at least               
 half of these boards are private sector members that really keep              
 their feet on the ground for a practical program.                             
 Mr. Fuhs also pointed out that these ARDOR's were formed when state           
 funds started to go down.  The communities used to fight and                  
 compete against each other for all the state money, and now that              
 there isn't any, they've really changed their thinking to how they            
 are going to make money and how they are going to build an economy            
 in their region.                                                              
                                                                               
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 There being no further testimony on HB 35,  CHAIRMAN MACKIE  asked            
 for the will of the committee.                                                
                                                                               
  SENATOR WILKEN  moved that HB 35 and the attached fiscal note be             
 passed out of committee with individual recommendations.  Hearing             
 no objection, it was so ordered.