Legislature(2011 - 2012)BELTZ 105 (TSBldg)
02/01/2011 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Alaska Department of Commerce, Community, and Economic Development Overview | |
| Denali Commission - "sustainable Rural Communities" | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 1, 2011
3:37 p.m.
MEMBERS PRESENT
Senator Donald Olson, Chair
Senator Thomas Wagoner
Senator Linda Menard
Senator Johnny Ellis
MEMBERS ABSENT
Senator Albert Kookesh
COMMITTEE CALENDAR
PRESENTATION: ALASKA DEPARTMENT OF COMMERCE, COMMUNITY, AND
ECONOMIC DEVELOPMENT OVERVIEW
- HEARD
PRESENTATION: DENALI COMMISSION - "SUSTAINABLE RURAL
COMMUNITIES"
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SUSAN BELL, Commissioner
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Gave an overview of the Department of
Commerce, Community, and Economic Development.
JOEL NEIMEYER, Federal Co-Chair
Denali Commission
Anchorage, Alaska
POSITION STATEMENT: Presented the Denali Commission's report on
sustainable rural communities.
ACTION NARRATIVE
3:37:34 PM
CHAIR DONALD OLSON called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:37 p.m. Present
at the call to order were Senators Menard, Wagoner and Chair
Olson. Senator Ellis arrived shortly thereafter.
^Presentation: Alaska Department of Commerce, Community, and
Economic Development Overview
CHAIR OLSON announced the first order of the business would be
to hear an overview from the commissioner of the Department of
Commerce, Community, and Economic Development (DCCED).
3:38:19 PM
SUSAN BELL, Commissioner, Department of Commerce, Community, and
Economic Development (DCCED), said the mission of DCCED is to
promote a healthy economy, strong communities and protect
consumers in Alaska. She turned to her presentation.
Slide two included an organizational chart that showed the six
corporate entities housed within the department, which include:
Alaska Aerospace Corporation (AADC); Alaska Energy Authority
(AEA), Alaska Industrial Development Export Authority (AIDEA),
Alaska Seafood Marketing Institute (ASMI), Regulatory Commission
of Alaska (RCA), and Serve Alaska. It also included the five
core divisions: Banking and Securities, Corporate Business &
Professional Licensing, Community & Regional Affairs, Economic
Development, and Insurance.
She said that DCCED has 538 employees with offices located in
Anchorage, Fairbanks and Juneau; as well as western and
northwestern regional hubs in Kotzebue, Nome, Dillingham, and
Bethel. Alaska Aero Space Corporation (AADC) operates out of
Kodiak and the Division of Economic staff operates the Public
Lands Information Center in Tok. Finally, ASMI [Alaska Seafood
Marketing Institute] has offices located in Juneau and Seattle.
Slide 4 illustrated DCCED's FY12 budget request of $204,178,400
and broke it down into four core areas of economic growth:
sustainable energy, strong communities, consumer protection, and
economic growth.
Slide 5 described which entities were grouped into these core
areas:
· Economic development included the Division of Economic
Development, AADC, Alaska Industrial Development Export
Authority (AIDEA), and ASMI. Together these entities
coordinate, develop, and promote programs for sustainable
economic growth.
· Sustainable energy programs are executed by the Alaska
Energy Authority (AEA). The division's focus is on the
development of sustainable energy systems and reducing the
cost of energy, in particular in rural Alaska.
· Strong communities programs are predominately run by the
Division of Community and Regional Affairs (DCRA) and Serve
Alaska (the AmeriCorps Vista program). The division assists
communities in achieving maximum local self-governance and,
through Serve Alaska, helps foster volunteerism.
3:42:10 PM
SENATOR ELLIS joined the committee
COMMISSIONER BELL continued with the consumer protection program
which includes: the Division of Banking and Securities, Division
of Insurance, Division of Corporations, Business and
Professional Licensing, and the Regulatory Commission of Alaska.
She explained that these entities work together to license,
regulate and enforce consumer protection and provide a stable
business climate.
Slide 7 discussed DCCED's different economic development
programs.
She explained that, recently, the department created the
Division of Economic Development by merging the Division of
Investments and Office of Economic Development. Through this
merge DCCED is working on strengthening and realigning the
following programs: finance, marketing, research, business &
technical assistance, and outreach & coordination.
Through the financing section DCCED has given 268 loans,
totaling $20.3 million and look forward to being able to offer
information about these financing programs not only from Juneau
but also Anchorage and Fairbanks. She noted that this creates
greater outreach across the state and better interaction with
the business community.
She added that some of the other economic development programs
include the licensing of the "Made in Alaska" logo, which aids
in marketing products from Alaska, and the Alaska Film Office.
She said the tourism program includes managing the qualified
trade association contract with Alaska Travel Industry
Association, which focuses on product development and training,
and coordinating with the industry in market research. This
allows DCCED to provide information to communities and policy
makers.
DCCED also works with the minerals, forestry, seafood,
agriculture, and transportation industry.
Other small programs that DCCED works with are the Alaska
Regional Development Organizations (ARDORs), which help create a
statewide approach to economic development.
Slide 9 included the three other entities that are housed within
the economic development program area: AADC, AIDEA, and ASMI.
3:46:15 PM
SENATOR MENARD said that less than an hour before, through an
Executive Order [EO 115], the Alaska Aerospace Corporation was
moved from DCCED to the Department of Military and Veterans
Affairs (DMVA).
COMMISSIONER BELL replied that the DCCED understands that the
House and the Senate have a 60-day window in order to indicate
whether the legislature does not concur with the EO. For this
period DCCED will continue providing administrative services and
interacting with AADC.
CHAIR OLSON asked, if the EO moves forward, whether it would be
a blessing or a curse.
SENATOR MENARD informed the committee that the EO did pass
unanimously out of the [Senate Labor and Commerce Standing]
Committee.
COMMISSIONER BELL replied that DCCED recognizes that AADC
clients are predominately military and the department believes
that by being in the DMVA these individuals will have greater
access to key contacts, sustainability funding, and launches.
She continued with her presentation.
Slide 10 summarized the sustainable energy programs at DCCED.
These programs are executed by the Alaska Energy Authority
(AEA), run by newly announced Executive Director, Sarah Fisher-
Goad. In the last year AEA completed the Alaska Energy Pathway
document which helps the state and communities understand the
energy resources that it has and the investment it would take to
achieve statewide goals. AEA has a number of programs that help
strengthen the energy utilities in the state and reduce the
cost. Some of the core programs include:
· Renewable energy development
· Technical assistance
· Bulk fuel facility upgrade and loan programs
· Rural power system upgrades
COMMISSIONER BELL continued that the Renewable Energy Fund
grants are of great interest right now. There is currently $150
million for 133 authorized projects, which AEA is working to
distribute. Also, from a training standpoint, more than 50 rural
residents were trained to manage and operate their rural
infrastructure. AEA also manages the Power Cost Equalization
Program, with nearly $32 million distributed last year. Finally,
within this legislative session there is legislation that is
focused on positioning AEA to have its own employees and greater
administrative separation from AIDEA. The idea, she explained,
is to make sure that AEA has the right structure and the right
people in order to help address our critical energy needs.
3:50:41 PM
SENATOR MENARD asked if the [Alaska] renewable energy is on
Round IV.
COMMISSIONER BELL replied yes.
SENATOR MENARD asked Commissioner Bell to confirm that the
governor put $20 million into the December 15 budget [for AEA].
COMMISSIONER BELL answered that the governor put $25 million
into the budget and she is aware of the legislature's interest
in that.
SENATOR ELLIS said that the commissioner is correct; there is
interest within the legislature. He pointed out that, in order
to reach their goal of $250 million, there is supposed to be $50
million in the budget per year for five years. At $25 million
per year this goal will not be reached.
CHAIR OLSON asked if the commissioner had any insight on how to
get to the goal of $250 million in five years.
COMMISSIONER BELL replied that she would need to follow up with
AEA. She said in her understanding $100 million had been
distributed the first year and the subsequent two rounds of
grants were $25 million.
SENATOR MENARD said part of the problem is that some of the
money awarded has not been spent by the grantees, so these
projects have been pulled out temporarily. In defense of the
governor, she explained, some of those projects have been
discontinued so there is additional money that could be
available.
SENATOR OLSON responded that he was not asking the commissioner
to defend the governor, rather, if the commissioner had some
insight into reaching this goal.
COMMISSIONER BELL replied that by awarding the $150 million this
is between one-third and one-half of the money that has been
implemented.
Slide 11 was an overview of the Division of Community and
Regional Affairs (DCRA):
· Local government assistance staff provides day to day
interaction with local governments in dealing with basic
accounting services, elections, understanding code and
functioning in a sustainable and efficient manner. The
staff also provides training to local elected officials and
planning commission members.
· The Rural Utility Business Advisory program involves 167
communities looking at the role the state can play in
insuring sustainability at the community level.
· DCRA's grant staff administered $1.2 billion in grants for
FY2011 and is active with the distribution of funds such
as: Payment In Lieu of Taxes (PILT); National Forest
Receipts; State Fisheries Business Tax & Landing Tax; and
Community Revenue Sharing.
· Involved in land management and planning.
· The state assessor, located in Anchorage, works with
communities of all sizes throughout the state.
· The community publications include the community database,
Lien Watch, and fuel reports.
· Local Boundary Commission.
· Bulk Fuel Bridge Loan works with communities that are not
eligible for the Bulk Fuel Loan Program run by AEA. This
program helps bring communities back to a level of
sustainability in order to be eligible.
3:58:21 PM
Slide 12 noted the continuing challenges on both the division
and the department level:
· Increased operating costs, staff turnover, and potential
for reduced federal funding
· Lack of infrastructure and the high cost of doing business
in rural Alaska
· Water, electric, and fuel utilities are vulnerable and may
need more regional strategies to insure communities'
success.
· Disparity in the ability to attract and evaluate diverse
economic development projects
· High energy costs negatively impact community viability and
economic development efforts
Slide 13 noted the current implementation of several new local
government specialist positions. This was done by realigning
internal resources and, with the support of the legislature,
adding additional positions in Kotzebue, Nome, and Juneau.
SENATOR MENARD confirmed that there are 538 employees at DCCED.
She asked, with these new positions, what their employment
number will be.
COMMISSIONER BELL answered that the positions were added in the
last legislative session. DCRA has approximately 64 positions.
She said, on a related note, it does have one-time funding for a
land management planning position last year. There are still
more than 50 communities that need to be addressed and this
position is in DCCED's funding request for FY2012. This position
relates to economic development and community sustainability.
She continued by describing the role of Serve Alaska, a small
organization which works closely with DCRA to coordinate the
AmeriCorps Vista program with communities and non-profit
organizations throughout the state. Last year, through the
program, there were more than 300,000 volunteer hours in
education, health, public safety, and the environment.
Slides 14 and 15 gave a brief description of DCCED's Consumer
Protection entities.
Division of Banking and Securities:
· License, charter and examine banks.
· Consumer Education and Protection program.
· Issue mortgage licenses.
Division of Insurance:
· Ensures financial solvency of insurance carriers throughout
the state.
· License and ensure compliance.
· Consumer education and protection.
· Criminal investigations; last year there were more than 300
consumer complaints, which resulted in more than 200,000
additional dollars going to Alaskan consumers and seven
criminal convictions.
She explained that the Division of Insurance takes its mission
very seriously. It has been working with the governor's office,
Department of Health and Social Services and the legislature in
understanding what implications national health care will have
on the state, in addition to its daily responsibilities.
Division of Corporation, Business and Professional Licensing:
· Administer 40 professional licensing programs, with 20
board supported and 20 supported by division staff.
· Issue business licenses.
· Register corporations and trademarks.
· Consumer outreach and complaint investigation.
COMMISSIONER BELL explained that the division is working to be
as efficient and responsive to consumer and business
interactions as possible. She stressed that the division is
looking for how it can be a partner and not an impediment to
businesses.
4:05:02 PM
SENATOR WAGONER asked if she could give an example of a case of
consumer outreach and complaint investigation.
COMMISSIONER BELL replied that the division gets complaints
about the various professions that are regulated, which can
range from medical doctors to engineers. She said that she does
have some metrics on this issue that could give him an idea of
the volume, however she could not think of a specific example.
The division did have more than 700 complaints last year, of
which 556 were turned into cases. She explained that the kind of
disciplinary actions that one of the two licensing boards might
take could be a fine, additional education, or monitoring or
auditing to ensure that they are in compliance.
SENATOR WAGONER asked if the division is dealing mainly with
individuals or businesses that are licensed through DCEED on a
professional basis, rather than on consumer protection.
COMMISSIONER BELL answered yes; it is more directed towards
professional business licensing. Broad consumer protection
questions are redirected to the Better Business Borough or the
Attorney General's office.
She continued with the Regulatory Commission of Alaska (RCA):
· Regulates public utilities and pipeline carriers; currently
monitoring 598 active certificates.
· Tariff filings, dispute resolution, regulations.
· Establish PCE [Power Cost Equalization].
· Significant challenges include emerging energy issues,
changing regulatory environment, and viability of rural
utilities.
· FY12 concurrent hearings with FERC [Federal Energy
Regulatory Commission] on TAPS [TransAlaska Pipeline
System].
COMMISSIONER BELL reiterated that the state, as a whole, is
facing significant energy issues and viability of utilities and
rural utilities. Many of the entities within DCCED are
collaborating to figure out where the state should be heading in
the future.
Slide 16 pictured DCEED's budget requests for FY12 of
$204,178,400. The chart showed how the budget is divided between
the corporate and core agencies.
Slide 17 defined DCEED's budget by line item and slide 18 gave a
comparison by fund source for the current fiscal year.
COMMISSIONER BELL concluded that DCCED is very committed to its
mission and "excited to work intra-departmentally, as well as
with other departments".
4:08:58 PM
SENATOR MENARD complimented the commissioner on her
professionalism and presentation.
SENATOR ELLIS commended Dave Worrel's work at the film office
and in making the program a success. He complimented the
commissioner and the governor on their hiring of Roberta Graham.
CHAIR OLSON asked the commissioner to give the committee the
vision that she has for the department under a new
administration. He said that Commissioner Bell is coming into
the department with some monumental issues that are looming on
the horizon, namely, in energy.
COMMISSIONER BELL replied that there is so much opportunity
within DCCED to work with other departments. The beginning of a
new administration, she explained, is always a hopeful and
exciting time. She said she sees so much more potential for
collaboration. In considering the future of the state, economic
development, and community vitality it is necessary to take
action now and have a longer vision. She said that DCCED is
working in small and large ways within the department and with
other departments to try and identify those areas.
CHAIR OLSON said in the past there have been two deputy
commissioners at DCCED, one working in economic development and
the other on rural development. However, he noticed under her
oversight, there will only be one deputy commissioner. He asked
the commissioner to elaborate on her thoughts in going in this
direction.
COMMISSIONER BELL replied that she wanted to make sure, coming
into this position, that they were not artificially breaking the
department. DCCED had recently reduced the number of divisions
by one, by combining the Division of Investments with the
Division of Economic Development. Because of the potential move
of AADC from DCCED, she said that she feels comfortable that she
and one deputy commissioner would be able to address the day-to-
day issues in the department. If the structure turns out to be
short-sided, she noted, she would not hesitate to change that.
CHAIR OLSON asked why DCCED has an office in Seattle.
COMMISSIONER BELL answered that the Seattle office is part of
ASMI. She explained that this allows the division to be close to
the product, the market and the distribution. She noted that the
executive director and many key personnel are based in Juneau.
CHAIR OLSON returned to slide 7. He asked how DCCED is not
competing with existing banks and whether there is a segment of
society that is ill served by the banking industry.
COMMISSIONER BELL replied that most of the loan portfolio's
value is in commercial fishing programs. However, there are a
number of programs that are underutilized, including: the
Capstone Aviation Program, Rural Development Investment Fund
(RDIF), and the Small Business Economic Development Program
(SBED). She explained that, typically, the reason DCCED steps in
to finance is because of the loan size or it does not fit into a
traditional bank view. Last year, as the microloan bill was
introduced, the department spent time talking with the Bank
Association of the state and individual bankers and this year, a
financing package was introduced by the governor, which includes
reintroduction of the micro-loan, AmeriCulture program, and a
commercial charter fishing quota loan. She explained that the
department believes these loans all fit into a particular niche
that is non-traditional.
4:17:42 PM
CHAIR OLSON asked how many of these loans are in default or
behind in payments.
COMMISSIONER BELL answered she would have to follow up with him
on his question. She said that DCCED's revolving loans are
healthy.
CHAIR OLSON returned to slide 11 which discuss the Bulk Field
Bridge Loan Program. He asked how successful this program has
been in trying to resolve some of the energy issues in rural
communities and what provisions exist for communities so they
can continue to get fuel.
COMMISSIONER BELL answered that the Bulk Field Bridge Loan Fund
is the safety net for communities. She said she would need to
follow up with him in terms of the success and default rates.
However, there is a point where the state steps in and ensures
that fuel gets to communities.
CHAIR OLSON noted that the Bulk Fuel Revolving Loan Fund is at a
set amount, and has remained that way for the last five years.
He asked if she would be in favor of increasing the cap amount
of the loan.
COMMISSIONER BELL replied that she would want to discuss this
with DCRA and AEA staff, as it seems to be a combination of the
fuel storage capacity, the financial condition of the community,
and what programs they have.
SENATOR MENARD said the word "sustainability" comes up
constantly, which she views as participatory, long-term, and
integrated. She asked if there were other terms that the
commissioner would add to the equation when dealing with that
word.
COMMISSIONER BELL answered that it is important to also
recognize the infrastructure, the technical capability, and the
business environment opportunity. She said that across state
government it is important to be working together and towards a
vision.
4:23:42 PM
At ease from 4:23 p.m. to 4:27 p.m.
^Denali Commission - "Sustainable Rural Communities"
Denali Commission - "Sustainable Rural Communities"
CHAIR OLSON announced the next order of business would be a
presentation by the Denali Commission on sustainable rural
communities.
4:27:08 PM
JOEL NEIMEYER, Federal Co-Chair, Denali Commission, said the
Commission was enacted in 1998 and is based on the Appalachian
Regional Commission, one of three regional commissions of note,
which also includes the Denali Commission, and Delta Regional
Authority. The Denali Commission is an independent federal
agency, with ties to many other federal agencies which provide
funding. He noted that the commission tries to have a small
staff and do not do project management. This means that a vast
majority of its projects are farmed out to the state and other
program partners.
In the past twelve years the Denali Commission has received $1
billion to fund 2,100 projects. A vast majority of funding has
gone into energy, health, and transportation.
The Denali Commission Funding Sources FY1999-FY2010 slide shows
the funding, the sources of funding, and how the funding peaked
in FY2006 and has been in decline since. He explained that he is
not allowed to speak of the FY2011 funding until the president
releases it.
He explained that with the other regional commissions it is
important to recognize that these include a number of states,
which means that the commissions have a large number of US
senators and representatives in support of them. On the other
hand, the Denali Commission, being one state, only has three.
The Denali Commission has partners in the federal, state, and
non-profit areas. In the past, concerns were raised in Congress
about whether the state's partnership with the commission has
been "robust enough." This issue was raised because with the
other regional commissions there is legislation that requires
those states to contribute, whereas the originating act for the
Denali Commission did not. In response to this concern, the
commission did an analysis for the last five years and of the
$478 million the commission funded to 899 projects, there was
state funding of $106 million. Of the $106 million, about $10
million dollars went directly to the Denali Commission, while
the remaining amount went towards projects that were jointly
funded. He explained that what he really likes about this
analysis is of the 899 commission projects funded, the state
provided project management for 412 of the projects under seven
different state agencies.
He continued that for every $4 the state spends, the commission
spends $1. This, he explained, is an important "story" because
of the $2.4 billion that the state has invested into Denali
Commission programs for rural Alaska, the commission has
invested $.6 billion. He said that this collaboration is very
complimentary.
4:34:14 PM
MR. NEIYMEYER explained that there are four significant programs
to be noted. These programs have been worked on since the start
of the Denali Commission and include the following:
· Energy Program
· Health Facilities Program
· Transportation Program
· Training Program
Government coordination should also be included as an important
and significant aspect to the Denali Commission. This
coordination is the collaboration across federal and state
agencies with municipalities, tribes and non-profits. He
emphasized that it is with government coordination that the
commission can have its most important impact in the development
of rural Alaska.
He explained that the energy program includes bulk fuel, which
is its mainstay of the program. He noted that an important thing
to remember about rural Alaska is that diesel will always be a
necessity. However, it may be possible to provide diesel energy
that is more effective and efficient or other alternatives that
lower the use of diesel.
He said the vast majority of the work the Denali Commission has
done in health is in primary care. The commission has also done
some additional work in senior assisted living, domestic
violence, and hospital programs.
He continued that there are two parts to the Transportation
Program: surface roads and waterfront ports & harbors. From what
he has observed, there is a lot of work being done on road
improvement, but not as much opportunity for waterfront
projects.
Lastly, in the training program the commission tries to train
individuals in rural settings to work on the projects that the
commission funds.
MR. NEIYMEYER said there are some significant points that he
wanted to share with the legislature including:
· $3 Million in State Funding for FY11
· Transportation Program -- FY2011 projects
· Health Program -- Suite of four projects
· Energy Program -- Emerging technologies and FY11
· Sustainable Rural Communities
He explained that Governor Parnell put $3 million in the capital
budget for the Denali Commission last year. This allocated money
was not specified for a particular project, but rather, an
investment into the seven Alaskans who make the funding decision
for the commission. He said that about half of the money from
the capital budget will go to energy projects and the other half
to waterfront projects. With the $3 million partnership grant,
there are seven projects for power generation, which have been
proposed by AEA. With regard to the transportation program, he
explained, there are proposed mooring projects in up to 17
communities to be funded in 2011 and 2012. In the final analysis
for transportation, the waterfront projects have a secured
matching fund from the state. However, with the roads program,
it is estimated that the commission is $500,000 short of the
cost share match.
MR. NEIYMEYER continued with that with regard to the health
program the commission is looking into a suite of four behavior
health projects. He explained that, historically, the commission
has received a significant amount of money from the Health
Resources and Services Administration. As that funding has
diminished it was the deliberate action of the commission to
begin putting the remaining money into primary care. However,
the commission has a small amount of money left over for
behavioral health. He explained that because the commission will
not be receiving any more funding, it wants to figure out how to
best leverage this money and move forward. The Health Steering
Committee, in partnership with the Department of Mental Health
Trust, made the recommendation of the following projects:
· Yukon-Kuskokwim Elder Assisted Living Facility
· Tundra Women's Coalition
· Nugen's Ranch
· Seeds of Change
He noted that there is no additional state funding that is
required for these projects, just some legislative change.
Within the energy program, he shared with the committee some of
the pending energy program changes in federal legislation. Last
year, the federal OMB [Office of Management and Budget] insisted
that a cost-share match be included for the Denali Commission.
Traditionally, the base budget has gone to energy, so that often
the commission has funded these projects 100 percent. With this
requirement, the commission will require a 20 percent cost-share
match for economically distressed communities and 50 percent for
non-distressed communities. He said that at this time the
commission does not know how much money it will receive for
energy but has provided the committee with a range of $4.5 to
$15 million for the cost-share match needed.
4:44:33 PM
MR. NEIYMEYER referred the committee to a report produced by the
Denali Commission regarding sustainable rural communities
[titled, Sustainable Rural Communities: A report by the Denali
Commission in coordination with Federal Partners, July 2010]. He
explained that this document addresses how federal agencies can
engage the state in the delivery of federal services to projects
in rural Alaska. The report focuses on the barriers that federal
agencies currently have that prevent efficient delivery of
federal services to rural Alaska.
Findings from the report included the following needs:
· Lead federal agency on projects, which would allow a
community to work with a single agency
· Focus on community engagement
· Solutions in partnership at the federal level
· Regional Approach: finding ways to deliver services more
efficiently
MR. NEIYMEYER said the commission has been receiving public
comments since publishing the report and intends to issue a
supplemental report, after which the commission hopes to
collaborate with the state in order to address these issues.
Finally, he said, the commission is conducting "Listening
Sessions" in order to receive feedback from the state and
communities in Alaska. There are three fundamental questions
that the commission is asking:
· What is the commission doing right?
· What isn't it doing?
· How can it improve?
MR. NEIYMEYER said that these questions are important because
the commission is going to be reauthorized. The listening
sessions will allow the commission to give suggestions to the
congressional delegation when it rewrites the act.
4:49:26 PM
SENATOR MENARD thanked Mr. Neiymeyer for his presentation. She
commended the commission in aiding Nugen's Ranch, a detox center
in Wasilla.
SENATOR ELLIS said it is an incumbent upon legislators to listen
to what is happening on a federal level in regards to the Denali
Commission. He asked if Mr. Neiymeyer could speak to what forces
are at play in this discussion and how the state can enhance its
relationship with the federal government.
MR. NEIYMEYER answered that the federal OMB [Office of
Management and Budget] is supportive of the collaborative work
that the Denali Commission does and understands that a certain
amount of funding is required in order to do so. However, the
OMB does have some concerns about the agency. On the
congressional level there is very strong support with the
delegation, but other states are upset by the funding being
received by a single state.
He said it is important to provide the data showing how that
partnership has been strong. He said he thinks there will be an
expectation in Washington, DC to move to more intentional
investments.
He explained that if talk occurs on funding on a project level
the commission and the state can collaborate in creating a list
of projects that has impact. He noted that in the future
conversations should begin earlier.
CHAIR OLSON inquired about the Denali Commission's decrease in
funding since the peak in FY2005 and FY2006. He asked if this
funding decrease has been the same for the Appalachian Regional
Commission and the Delta Regional Authority.
MR. NEIYMEYER answered no. The Appalachian Regional Commission
and the Delta Regional Authority have been flat lined. He
explained that as the Denali Commission has seen a 20-30 percent
annual decrease, the other regional commissions have seen a one
to two percent decrease or increase annually.
CHAIR OLSON said as the trajectory decreases there will be no
more funding for the commission in the next few years. He asked
how the commission can protect itself from this.
MR. NEIYMEYER answered that the commission must continue to add
value. He explained that there is a certain amount of money that
allows them to be out in the field and engaged on the regional,
tribal, and state level. He said "if we're not out there doing
work, then what do we have to add?" There is a certain amount of
money that is needed to continue doing this kind of work and he
said that he hopes that the commission does not fall below this
amount so that it can continue doing so.
4:57:49 PM
There being no further business to come before the committee,
Chair Olson adjourned the meeting at 4:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Denali Commisstion - Sustainable Rural Communities 2-1-11.pptx |
SCRA 2/1/2011 3:30:00 PM |
|
| DCCED overview powerpoint 2-1-11.PDF |
SCRA 2/1/2011 3:30:00 PM |