02/07/2001 03:20 PM House L&C

                     ALASKA STATE LEGISLATURE                                                                                 
            HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                       
                         February 7, 2001                                                                                       
                             3:20 p.m.                                                                                          
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW:  ALASKA SCIENCE AND TECHNOLOGY FOUNDATION                                                                             
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
01-14, SIDES A & B                                                                                                              
                                                                                                                              
CALL TO ORDER                                                                                                                 
                                                                                                                                
REPRESENTATIVE  LISA MURKOWSKI,  Chair, called  the House Labor  and                                                            
Commerce Standing Committee meeting to order at 3:20 p.m.                                                                       
                                                                                                                              
PRESENT                                                                                                                       
                                                                                                                                
Committee members  present were Representatives  Murkowski,  Halcro,                                                            
Meyer, Rokeberg, and Hayes.                                                                                                     
                                                                                                                              
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                              
JAMIE KENWORTHY,  Executive Director, Alaska Science  and Technology                                                            
Foundation  (ASTF), discussed  the economic  performance,  addressed                                                            
the ASTF  business  survey, and  answered questions  from  committee                                                            
members.                                                                                                                        
                                                                                                                                
MR. KENWORTHY  noted that  the benchmarks  illustrate how Alaska  is                                                            
performing against  other states.  He reported that  Alaska is doing                                                            
well  with Internet  usage and  high school  graduates.   Alaska  is                                                            
about average  on per-capita income,  but last in terms of  the rate                                                            
of  income growth.    He concluded  by  saying  that Alaska  has  no                                                            
venture capital, no industry.                                                                                                   
                                                                                                                                
MR. KENWORTHY  remarked that  Alaska's economic  base includes  oil,                                                            
timber,  seafood,  and  tourism.   Traded  goods  and  services  are                                                            
Alaska's base.   He noted that the state was at one  time two-thirds                                                            
dependent  on federal  spending for  its economic  base, and  is now                                                            
one-third dependent.   Oil is now  about 43 percent of our  economic                                                            
base.  He clarified  that the base measures wealth  as much as jobs.                                                            
                                                                                                                                
MR. KENWORTHY  noted that  tourism, air cargo,  seafood, and  mining                                                            
are  expanding industries.    In fact,  Alaska  is doing  better  in                                                            
seafood and  mining than  other places.  He  also noted that  Alaska                                                            
has no private-sector wealth  and no sustainable market economy.  He                                                            
remarked, "Alaska is not getting richer."                                                                                       
                                                                                                                                
MR.  KENWORTHY  referred  to the  results  of  the ASTF  survey  and                                                            
reported  that  Alaskans  believe  they  have  a  good-to-excellent                                                             
quality of life.   They also believe that the state  of Alaska lacks                                                            
a  sustainable  market  economy.    In fact,  when  referring  to  a                                                            
successful economy  not being dependent on one industry  on the ASTF                                                            
survey, Alaska  scored very poorly  because it is so reliant  on the                                                            
oil industry.   Respondents acknowledged  the need for a  long-range                                                            
fiscal  plan,  but only  as  part of  a larger  overall  picture  to                                                            
improve the state's economy.                                                                                                    
                                                                                                                                
MR. KENWORTHY  concluded by stating that Alaska needs  to find a new                                                            
way of doing  business.  "We" need  to find an industry,  whether it                                                            
is gas,  oil, or timber;  make a commitment  to quality; and  find a                                                            
way to  capture skilled and  talented workers  and keep them  in the                                                            
state.                                                                                                                          
                                                                                                                              
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
CHAIR  MURKOWSKI   announced  that  the  subcommittee   on  aviation                                                            
insurance,  chaired  by  Representative  Halcro,  would  report  its                                                            
findings at the March 21, 2001 meeting.                                                                                         
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                              
CHAIR  MURKOWSKI adjourned  the House  Labor  and Commerce  Standing                                                            
Committee meeting at 4:45 p.m.                                                                                                  
                                                                                                                                
NOTE:   The meeting  was  recorded and  handwritten  log notes  were                                                            
taken.   A copy  of the tape(s)  and  log notes may  be obtained  by                                                            
contacting  the  House Records  Office  at  State Capitol,  Room  3,                                                            
Juneau, Alaska   99801 (mailing address), (907) 465-2214,  and after                                                            
adjournment of the second  session of the Twenty-Second Alaska State                                                            
Legislature  this  information  may be  obtained by  contacting  the                                                            
Legislative Reference Library at (907) 465-3808.