Legislature(2003 - 2004)
02/20/2003 01:45 PM House FIN
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HOUSE BILL NO. 79
An Act extending the termination date of the Alaska
regional economic assistance program; and providing for
an effective date.
REPRESENTATIVE CARL MORGAN observed that the Alaska Regional
Development Organizations (ARDOR) Program is the State's
contribution to regional initiatives for developing Alaska's
economy. In 1988, the Legislature recognized that a locally
driven initiative, in partnership with the State, is the
most effective approach to creating and sustaining a strong
and healthy economy. The Legislature established the ARDOR
Program to create a network of organizations to plan and
support economic development at the regional level.
Representative Morgan noted that there are currently 14
ARDOR's in the State. The work of the ARDOR's consist of:
• Enable local officials and businesses to pool their
limited resources and work together on economic
development issues;
• Develop partnerships among public, private and other
organizations; and
• Provide needed technical assistance via direct links
with local citizens.
Representative Morgan pointed out that the ARDOR Program is
providing a return for the State's investment. The State
provides $620,000 in grants funds for the ARDOR Program and
with those funds, the accomplishments are impressive. The
ARDOR's have used $620,000 dollars in State grant funds to
leverage over $3.6 million dollars in other funds. Board
members participation reflects a local commitment to the
ARDOR Program. The 14 ARDOR boards, each with 10-20
members, constitute 150 plus local, civic-minded individuals
who volunteer their time to achieve a stronger economic base
in their region.
The original intent of the ARDOR Program was to create
regional entities that could improve the local economy and
eliminate region-wide economic development barriers. He
stressed that the ARDOR program is meeting legislative
intent. Representative Morgan concluded, the ARDOR's work
on a wide range of projects that assist individuals and
businesses statewide.
Representative Foster voiced his appreciation for the work
accomplished by the sponsor and the program.
WANETTA AYERS, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, SOUTHWEST ALASKA MUNICIPAL CONFERENCE (SWAMC),
ANCHORAGE, testified in support of the proposed legislation.
She noted that Alaska Regional Development Organization
(ARDOR) funds account for 25% of the total funding for
SWAMC. SWAMC provides educational opportunities for 54
communities through conferences, workshops and other
communications. In FY02, SWAMC was selected by Congress to
administer a $30 million dollar program to mitigate economic
losses to communities, businesses and individuals that were
adversely impacted by federal measures to protect the
stellar sea lions. She urged that the Committee support HB
79.
Representative Hawker pointed out that SWAMC was able to
leverage from $48,000 dollars of State money a total budget
of $211,000 dollars. He applauded the commendable work.
SUE COGSWELL, (TESTIFIED VIA TELECONFERENCE), PRINCE WILLIAM
SOUND ECONOMIC DEVELOPMENT DISTRICT (PWSEDD), ANCHORAGE,
urged passage of the legislation. She commented that her
organization has undertaken many projects such as museums,
fishery projects and scientific undertakings. Ms. Cogswell
urged the Committee's support for passage of the
legislation.
JIM CARTER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, KENAI
PENINSULA ECONOMIC DEVELOPMENT DISTRICT (KPEDD), KENAI,
spoke to the history of the ARDOR program in the State of
Alaska. Alaska is at a 'stage' where economic development
is essential. KPEED has attempted to support
entrepreneurial development that affects the quality of life
for local residents. Without these investments from the
State, it would be difficult to continue that level of
service. He urged passage of the legislation.
Representative Hawker pointed out the work done by KPEDD,
which successfully leveraged from a $47,000 dollar State
investment, $265,000 dollars of delivered services through
other funding. He commended that success.
CARL BERGER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, LOWER KUSHKOKWIM ECOMONIC DEVELOPMENT COUNCIL
(LKEDC), BETHEL, voiced support of HB 79. He noted that his
agency exists to provide economic development activity in
Bethel and 26 surrounding villages surrounding that area.
LKEDC has worked in salmon quality management projects.
Additionally, LKEDC has provided 'familiarization' trips for
the travel industry to their region to enhance tourism
business. Mr. Berger urged continued funding of the ARDOR
Program.
Representative Foster voiced his support of the success of
the program run by Mr. Berger.
LOREN GERHARD, POLICY DIRECTOR, SOUTHEAST CONFERENCE,
JUNEAU, requested that the Legislature support continued
funding, especially as the State faces fiscal challenges.
He emphasized that ARDOR's use seed money provided by the
State to build on leveraging approximately five times as
much for business assistance, infrastructure development,
community assistance, and a host of other functions, with a
very low overhead.
Mr. Gerhard pointed out that the reauthorization was
contained in the Governor's Budget, as he supports efforts
to develop local and regional economies. ARDOR's address
the vast diversity of economic challenges and opportunities
in Alaska.
In Southeast, the Southeast Conference focuses on
infrastructure issues, primarily the Alaska Marine Highway
System (AMHS), and a regional electrical intertie. There
are numerous organizations that concentrate on business
development and business assistance, and the Southeast
Conference does not duplicate those efforts. In other
areas, ARDOR's are very involved in business assistance
because the need there is unfilled.
ARDOR's supply a useful resource to the State. ARDOR's are
now tasked by the Governor to apply recommendations to
members regarding the newly formed Alaska Highway Board. It
is useful to have State chartered regional organizations to
help bridge the gap between State bureaucracies and local
communities.
Mr. Gerhard pointed out that many ARDOR's are designated
economic development districts, which lowers match
requirements for communities utilizing Economic Development
Administration funding. Many ARDOR's are also designated
Resource Conservation and Development Councils, a program
that provides them with federal employees of the U.S.D.A.
and resources to pursue targeting of regional projects.
The Southeast Conference ARDOR was instrumental in obtaining
federal authorization for a regional electric intertie with
the help of Senator Frank Murkowski. There is a committee
working on those steps to actually build the next stage of
that project. The seed money made it possible for
soliciting contributions from various communities, State and
federal programs to move the project along.
Mr. Gerhard stated that the ARDOR's help bring people in
remote regions together, where they collectively decide to
pursue a whole range of regional projects. There are over
80 volunteers on 9 committees and subcommittees addressing a
broad range of issues in the region. Without the grant, the
program would be unable to afford the staff, which provides
the value that the membership relies upon.
Mr. Gerhard pointed out that this grant is an important
piece of their budget. The members supply about twice the
amount in dues and other support. Together that money
allows pursuing goals with staff, rent, and teleconferences.
If the ARDOR's were to disappear, millions of dollars of
federal and private grants would no longer flow into the
State.
Representative Hawker voiced his appreciation for the work
done on the shellfish mara-culture activities.
Co-Chair Williams advised that to date, the Governor had not
proposed any budget funding for the ARDOR program or any
program.
Representative Joule pointed out that there is a web site,
which highlights the Alaska Native Arts resulting from ARDOR
funding.
Representative Foster MOVED to report HB 79 out of Committee
with individual recommendations and with the accompanying
fiscal note.
There being NO OBJECTION, it was so ordered.
HB 79 was reported out of Committee with a "do pass"
recommendation and with a new fiscal note by Department of
Community & Economic Development.
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