Legislature(2025 - 2026)BARNES 124
01/23/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Division of Community and Regional Affairs | |
| Presentation(s): Introduction to Alaska's Local Governments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
January 23, 2025
8:00 a.m.
MEMBERS PRESENT
Representative Rebecca Himschoot, Co-Chair
Representative Donna Mears, Co-Chair
Representative Carolyn Hall
Representative Ky Holland
Representative Justin Ruffridge
MEMBERS ABSENT
Representative Mike Prax
COMMITTEE CALENDAR
OVERVIEW: DIVISION OF COMMUNITY AND REGIONAL AFFAIRS
- HEARD
PRESENTATION(S): INTRODUCTION TO ALASKA'S LOCAL GOVERNMENTS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SANDRA MOLLER, Director
Division of Community and Regional Affairs
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the Division of
Community and Regional Affairs.
NILS ANDREASSEN, Executive Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Presented an introduction to Alaska's Local
Governments.
ACTION NARRATIVE
8:00:12 AM
CO-CHAIR HIMSCHOOT called the House Community and Regional
Affairs Standing Committee meeting to order at 8:00 a.m.
Representatives Mears, Hall, Holland, Ruffridge, and Himschoot
were present at the call to order.
^OVERVIEW: Division of Community and Regional Affairs
OVERVIEW: Division of Community and Regional Affairs
8:03:58 AM
CO-CHAIR HIMSCHOOT [announced that the first order of business
would be an overview of the Division of Community and Regional
Affairs].
8:04:56 AM
SANDRA MOLLER, Director, Division of Community and Regional
Affairs, Department of Commerce, Community & Economic
Development (DCCED), gave a PowerPoint presentation, titled
"Division of Community and Regional Affairs (DCRA)
Municipalities in Alaska," dated 1/23/25 [hard copy included in
the committee packet]. She began by sharing DCRA and DCCED's
mission and detailing the makeup of the division's four program
groups: Mapping Analytics, and Data Resources; Grants and
Funding; Local Government Assistance; and Commissions. She
outlined the Local Boundary Commission (LBC), the Alaska
Minerals Commission, and Serve Alaska, which is the state
commission for volunteerism that leverages state funds to
enhance programs to nonprofits with a large return on
investment. In response to questions from committee members,
she explained that the LBC provides local assistance by working
with communities that are interested in redefining its
boundaries or reclassification. She stated that community
profile maps were created in the 1980s, which created the
baseline for many projects.
8:22:20 AM
MS. MOLLER, in response to additional questions about grants and
funding, called the committee's attention to slide 20,
explaining that there are 22 grant programs within the division
totaling $1.2 billion. The division is considering receipt of
six more programs, which would bring the total value to over $2
billion. She spoke to several of the 22 programs in further
detail, including the Community Development Block Grant (CDBG),
Payments in Lieu of Taxes (PILT), the Community Assistance
Program, and others. Of the 12 grant administrator positions, 2
are vacant. She advocated for lean processes in addition to
implementing checks and balances and leveraging strategic
partnership within communities for disaster relief.
8:35:24 AM
MS. MOLLER resumed the presentation by describing the different
categories of local governments and municipalities, as well as
their powers and duties. She touched on the history of city
formation in Alaska, starting with Skagway in 1900 and most
recently, Whale Pass in 2017. Similarly, she summarized the
history of borough formation, noting that in 1963, a number of
mandatory boroughs were created by the legislature. Most
recently, the LBC received a petition from Hoonah, which was
approved by the commission and is currently in the
reconsideration phase. She noted that the legislature acts as
the assembly for the unorganized borough. After the census,
DCRA coordinates with the Department of Education and Early
Development (DEED) to readjust and reapportion the Regional
Education Attendance Areas (REAA). In 2020, DCRA redrew the
boundaries of the Yukon-Koyukuk School District and the Yukon
Flats REAA. In response to a series of follow-up questions from
Co-Chair Himschoot, she affirmed that in the process of
redrawing the REAA boundaries, one school was placed in a new
district.
8:42:21 AM
MS. MOLLER gave an overview of the Community Database Online
(CDO), which, in partnership with other state departments and
census information, offers data that can be used and extracted.
The database also offers a number of interactive reports, such
as fuel prices, as well as dashboards, maps, and community
profiles. Community-driven data is also available with detailed
storyMaps for over 400 communities and community profile maps
with parcel, infrastructure, and utility data. She continued
the presentation with a breakdown of DCRA's local government
assistance, which includes elections, Title 29 compliance, Power
Cost Equalization (PCE), and local alcohol availability laws,
for example.
8:46:15 AM
MS. MOLLER, in response to a series of questions from
Representative Himschoot, she reported that there are 17 local
government specialists (LGS) who are deployed across the state
in field offices in Kotzebue, Nome, Bethel, Dillingham, Juneau,
and Fairbanks. There are also specialists in Anchorage who work
with communities on the road system. She highlighted their
weekly training sessions as another way to reach communities.
In response to a question from Representative Ruffridge about
the Coronavirus Capital Project Grant, she explained that the
program offered federal funding to the state through the
governor's office. She acknowledged that DCRA administered the
grant but was not involved with the selection process. Of the
communities selected, Nenana was awarded the largest amount of
money for a clinic and a fire hall. The division is partnering
with the local Tribe and Tanana Chief's Conference (TCC) to get
the project underway, and the funds must be spent by 2026.
Lastly, she encouraged legislators to reach out with questions
or concerns when they arise, which often alleviates extra work
down the road.
8:59:40 AM
The committee took an at-ease from 8:59 a.m. to 9:01 a.m.
^PRESENTATION(S): Introduction to Alaska's Local Governments
PRESENTATION(S): Introduction to Alaska's Local Governments
9:01:26 AM
CO-CHAIR HIMSCHOOT announced that the final order of business
would be the Introduction to Alaska's Local Governments
presentation.
9:01:49 AM
NILS ANDREASSEN, Executive Director, Alaska Municipal League
(AML), gave a PowerPoint presentation, titled "Leaning Local
Strengthening Local Governments Strengthening Alaska" [hard copy
included in the committee packet]. He began by describing the
economic and social impact of municipal government in Alaska and
its priorities. Local governments are political subdivisions of
the state and actively working on behalf of state government
based on the classifications and authorities granted to them.
Local governments have an obligation to tax and have incredible
purchasing power with over $2 billion in expendables in Fiscal
Year 2021 (FY 21); they also fill the gaps between federal and
state government and create a sense of community that attracts
additional residents and supports a visitor industry to combat
outmigration. In response to a question from Representative
Himschoot regarding the function of a county and its revenue
impact, he said boroughs have the following 3 obligations: taxes
for a portion of the state's obligation to fund public
education, planning, and platting.
9:10:29 AM
MR. ANDREASSEN resumed the presentation with an explanation of
Article 10 of the Constitution of the State of Alaska, which
gives emphasis to the maximization of local self-government, and
the statutory authorities provided in Title 29, which describes
the classification, roles, and responsibilities of local
governments. He elaborated on the difference between home rule
the authority to exercise any power not prohibited by statute
- and general law and gave examples of each. He outlined the
core principles of AML and emphasized the power in partnership
between state and local government. He described local
governments' contributions to its four categories of spending:
safety, schools, utilities, and quality of life, all of which
are investments in economic development.
9:43:37 AM
MR. ANDREASSEN, in response to a question from Co-Chair
Himschoot regarding the difference between a unified city and
borough and a city in a borough, he said city and boroughs
administer city powers within one area and borough powers
areawide. He identified four ways to strengthen local
governments and highlighted a correlation between best practice
scores and community assistance, explaining that revenue sharing
was originally conceived as a way to share state resource wealth
with local government. The community Assistance program has
changed in numerous ways since its inception, and funding has
been inconsistent after zeroing out in 2003; nevertheless, AML
supports its continued inclusion in the budget and a baseline
floor of $60 million annually, as well as a long-term
sustainable solution. He concluded the presentation by
reflecting on the following considerations for PERS/TRS: the
level of contribution by municipal employers and their
recruitment, retention, and retirement packages. He emphasized
the importance of fiscal policy so that the state can provide
the services that local communities depend on.
9:59:49 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 9:59 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Alaska Municipal League Presentation_HCRA_1.23.25.pdf |
HCRA 1/23/2025 8:00:00 AM |
Overview and History of Municipalities in Alaska |
| Division of Community and Regional Affairs Presentation__HCRA 1.23.25.pdf |
HCRA 1/23/2025 8:00:00 AM |
Local Governments in Alaska |