Legislature(2005 - 2006)SENATE FINANCE 532
05/01/2005 01:00 PM Senate FINANCE
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | SB 24 | TELECONFERENCED | |
+= | SB 156 | TELECONFERENCED | |
+= | HB 182 | TELECONFERENCED | |
+= | HB 91 | TELECONFERENCED | |
+= | HB 119 | TELECONFERENCED | |
+ | HB 136 | TELECONFERENCED | |
+ | SB 135 | TELECONFERENCED | |
+= | SB 108 | TELECONFERENCED | |
+ | SB 121 | TELECONFERENCED | |
+ | SB 122 | TELECONFERENCED | |
+ | HB 35 | TELECONFERENCED | |
+ | HB 75 | TELECONFERENCED | |
+ | HB 132 | TELECONFERENCED | |
+ | HB 156 | TELECONFERENCED | |
+ | HB 230 | TELECONFERENCED | |
+= | SB 46 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
= | HB 19 | ||
= | HB 15 | ||
CS FOR HOUSE BILL NO. 119(FIN) "An Act extending the termination date of the Alaska regional economic assistance program; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. KACI SCHROEDER, Staff to Representative William Thomas Jr., the bill's sponsor, and Committee Aide to the House Community & Regional Affairs Committee, explained that the bill would reauthorize the Alaska Regional Economic Development Organizations (ARDORs) assistance program through 2010. This program, which began in 1988, currently provides approximately $50,000 annually to each of the eleven ARDORs in existence today. These non-profit organizations are comprised "of local volunteers working together to promote economic development within their regions". ARDOR activities include working with other economic development activities in their regions, collecting and distributing economic information, and being a liaison between the region, the State, and the federal government. Ms. Schroeder noted that each ARDOR could use the funds they are provided, as they deem appropriate. The Legislature has repeatedly reauthorized the ARDOR program since its inception. Co-Chair Wilken opined that while some ARDORs are doing a good job, others are simply taking the money and "having meetings". He noted that he had previously expressed concern in this regard, and that he was pleased that three ARDORs had dissolved. As a result, additional funds had been provided to the remaining ARDORs that "are trying to do a good job". Nonetheless, he preferred that the ARDOR program be extended three years rather than the five-years proposed in this legislation, as a shorter timeframe would allow for more Legislative oversight of the ARDOR activities. Co-Chair Wilken also asked whether some component of the program is being expanded as a halftime position appears to have been added in the Department of Commerce, Community and Economic Development $650,000 Fiscal Note #2 dated April 6, 2005. Ms. Schroeder deferred to the Department of Commerce, Community and Economic Development. 2:40:35 PM KATHRYN DODGE, Executive Director, Fairbanks North Star Borough Alaska Regional Economic Development Organization, testified via teleconference from an offnet site in support of the bill on behalf of the 11 ARDORs existing in the State. The bill would allow ARDORs to continue their economic development activities. In addition, the proposal to extend the program for a five-year period rather than the historical every-other year reauthorization period would allow the program to concentrate on development activities as opposed to concentrating on whether or not the program would be reauthorized. Ms. Dodge disclosed that ARDORs return nine dollars for each State dollar "invested" in the program. In addition, the program has implemented an accountability program which "defines what a highly performing ARDOR does; measures and rewards the activities and programs"; and assists ARDORS in improving their performance. She urged that the bill be moved out of Committee. Co-Chair Green commented that while ARDORs have accomplished "some very good things", she, like Co-Chair Wilken, has some reservations. Rather than the program continuing as an entitlement program, she would prefer it being a competitive grant program. The Department of Commerce, Community and Economic Development and other program analysts have communicated to her that the initial program funding was intended to be "start-up" money; there was no intent to support the program indefinitely. She agreed with Co- Chair Wilken that the reauthorization timeframe should be shortened. While some mechanism might currently exist, she would like a process instilled through which both the Legislature and the Department would be provided information about the ARDOR decision- making process, activity follow-up procedures, and the end result of the activities. 2:42:56 PM SALLY SADDLER, Legislative Liaison, Department of Commerce, Community and Economic Development, communicated that approximately one-third of the Department's professional local government specialists provide support and coordination for the ARDOR program. The half-position referenced by Co-Chair Wilken would provide administrative staff to support those individuals. The Department focused on the accountability concern for approximately the past one-and-a-half years, and as a result, a performance accountability system has been developed. The system has been implemented and has provided incentives for performing ARDORS, while placing the "non- performing ARDORs on a two-year notice that their funding might be in jeopardy". Co-Chair Green asked whether funding has ever been withheld from any ARDOR. Ms. Saddler responded in the negative, as the performance system was just recently implemented. A non-performing ARDOR would be provided a one to two-year timeframe in which to "correct, remedy, and improve performance" before any action would be taken. Co-Chair Green asked that a sample of the performance system guideline be provided. Ms. Saddler responded that she would provide a copy of the "FY06 ARDOR Tier Application" [copy on file], which lists "the criteria for the different" ARDOR tiers. Funding is based upon tier level. Co-Chair Green ordered the bill HELD in Committee. 2:45:04 PM
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