Legislature(2003 - 2004)
02/26/2003 01:35 PM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 62-AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
CHAIR WAGONER asked Mary Jackson to introduce SB 62.
MS. MARY JACKSON, staff to Senator Wagoner, explained SB 62 is
the companion bill to HB 79 and extends the termination date of
the Alaska Regional Economic Assistance Program, which is the
funding source for the Alaska Regional Development Organizations
(ARDOR) program from 2003 to 2008. HB 79 was on the House floor
and would move to the Senate on February 28, 2003. If SB 62 were
to pass from committee that day it would move to the Finance
Committee and be heard simultaneously with HB 75.
In the packets there is a sectional analysis, a list of the
thirteen programs, and a series of questions and answers
regarding the ARDOR program. [See bill file.]
She asked whether there were any questions.
SENATOR LINCOLN asked whether HB 75 had exactly the same
language.
MS. JACKSON replied the language was the same. Although someone
could have asked for reconsideration in order to make a change,
when she left her office a short time ago that had not happened.
SENATOR LINCOLN said she is a big supporter of ARDORs.
SENATOR TAYLOR asked whether Legislative Budget and Audit had
done an audit since this was a sunset issue.
MS. JACKSON wasn't aware of one having been done.
SENATOR ELTON commented the ARDOR is one of the best ways to get
value for the dollar on regional economic development.
Previously he suggested shifting money from the commissioner's
office to make sure some of the economic development decisions
are made in the regions. Although he was not suggesting that
now, he did want it clear this is one of the few state programs
that meets market test. They leverage the money they receive
five fold, which is seldom seen in governmental programs.
Increasing the money given to this program is a sound
investment.
CHAIR WAGONER called for public testimony.
MEILANI SCHIJVENS, Southeast Conference Administrative Director,
urged members to authorize and fully fund the ARDOR program. She
gave the following testimony.
ARDORS use the seed money provided by the state to
build on - leveraging approximately 5 times as much
money for business assistance, infrastructure
development, community assistance, and other
functions.
ARDORS regionally address and support the vast
diversity of economic challenges and opportunities in
our huge state. Here in Southeast, the Southeast
Conference focuses on infrastructure issues, primarily
the AMHS, and the regional electrical inter-tie - In
other areas of the state,
ARDORS are very involved with business assistance,
because that need is unfilled. The NW Arctic ARDOR,
for example, developed an innovative revolving loan
fund utilizing PFD payments as loan guarantees.
ARDORS supply a useful resource to the state and
federal government when it comes to dealing with
regional or multi-regional issues. The South West
AK Municipal Conf ARDOR was designated by the federal
government to disburse over $30 million in Stellar sea
lion regulation mitigation money, and was successful
in getting it done on time with an administrative
overhead under 1%. We work to keep leaders from
across the state informed on regional issues and
problems. Southeast Conference, for example, helps
facilitate meetings of the Southeast Conference of
Mayors, the Southeast Conference of Chambers, and
provides information to the Southeast Caucus.
The Southeast Conference has been around for 45 years.
We have over 100 members, including 29 Southeast
communities. We have 9 committees, and 90 volunteers
who volunteered approximately 10,000 hours this last
year. We leverage 15 times the value of the ARDOR
grant in funding for projects around the region.
Our Ardor was instrumental in obtaining a federal
authorization for a regional electric inter-tie, with
the help of then Senator Frank Murkowski and we are
hard at work on the next steps of that project. For
the last 10 years, we have been working with the state
on a low cost method of collecting household hazardous
waste around the region. Each year we collect
approximately 13,000 gallons of hazardous material
that could have ended up in our ground water or
landfills. All at a very low cost to the state -
approximately $1 per gallon.
ARDORS help bring people in remote regions together.
Our annual meeting in September held on Prince of
Wales Island, attracted more that 200 leaders from
across the region, where collectively they decided to
pursue a whole range of regional projects.
SENATOR GARY STEVENS expressed his overwhelming support of the
ARDOR program.
MS. SUE COGSWELL, representative of the Prince William Sound
Economic Development District, briefly outlined the projects
they are involved in and advised they leveraged $1.5 million in
state funds into over $6 million in Prince William Sound
projects. She urged passage of SB 62.
WANETTA AYERS, Executive Director of the Southwest Alaska
Municipal Conference (SWAMC), spoke in favor of SB 62 on behalf
of the 54 communities and 131 members of SWAMC. SWAMC received
ARDOR designation in 1989 and that funding has provided about 25
percent of their funding over the last few years. They are also
federally designated and save Southwestern Alaska communities
hundreds of thousands of dollars annually by reducing the local
match requirement for many federally funded projects.
Their mission is to increase economic opportunities and improved
quality of life by providing education, networking, and
communication. She noted SWAMC was selected to administer a $30
million Stellar Sea Lion Mitigation Fund. They not only operated
in a timely manner, they kept administrative cost to less than
one percent.
CHAIR WAGONER stated that was the second time he heard the
administrative costs were less than one percent and thought
others could learn from the example.
MR. JIM CARTER, Executive Director of the Kenai Peninsula
Economic Development District (KPEDD), testified in support of
SB 62 and explained the KPEDD ARDOR has been fostering economic
development since 1988. In the next several years they will be
doing everything possible to encourage oil and natural gas
exploration and development on Cook Inlet.
SENATOR TAYLOR complimented him on successful project
management.
MR. DAVID LEONE, Fairbanks North Star Borough Economic
Development Commission representative echoed support of SB 62.
He described ARDORs as an excellent method of fostering a
partnership between state and regional efforts to bring about
economic development. He encouraged expanded use of this
successful model.
There was no further testimony on SB 62.
CHAIR WAGONER asked for a motion to move the bill from
committee.
SENATOR TAYLOR made a motion to move SB 62 and accompanying
fiscal note from committee with individual recommendations.
There being no objection, it was so ordered.
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