Legislature(2017 - 2018)BUTROVICH 205
01/18/2018 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
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| Start | |
| Presentation: Northern Opportunity Strategy | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 18, 2018
1:32 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Berta Gardner
Senator Peter Micciche
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Senator Natasha von Imhof
Senator Tom Begich
Representative George Rauscher
COMMITTEE CALENDAR
PRESENTATION: NORTHERN OPPORTUNITY STRATEGY
- HEARD
PANEL DISCUSSION: HOW CAN WE BOOST ALASKA'S ECONOMY?
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
MIKE NAVARRE, Commissioner Designee
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Delivered a presentation titled, "Northern
Opportunity Strategy.
BRITTENY CIONI-HAYWOOD, Director
Division of Economic Development
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Delivered a presentation titled, "Northern
Opportunity Strategy.
CURTIS THAYER, President/CEO
Alaska Chamber
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion about how to
boost Alaska's economy.
Jillian Simpson, Vice President
Alaska Travel Industry Association
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion about how to
boost Alaska's economy.
John Springsteen, CEO/Executive Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion about how to
boost Alaska's economy.
Kara Moriarty, President/CEO
Alaska Oil and Gas Association
Anchorage, Alaska
POSITION STATEMENT: Participated in the discussion about how to
boost Alaska's economy.
ACTION NARRATIVE
1:32:38 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Gardner, Stevens, Meyer, Micciche, and Chair
Costello.
^Presentation: Northern Opportunity Strategy
Presentation: Northern Opportunity Strategy
1:33:15 PM
CHAIR COSTELLO stated that today the committee would hear from
Commissioner Designee Navarre and Director Cioni-Haywood about
the Department of Commerce, Community and Economic Developments
(DCCED) economic strategy for the state. Following the
presentation, four panelists would comment on the presentation
and offer their perspectives on how to boost Alaska's economy.
1:34:34 PM
MIKE NAVARRE, Commissioner Designee, Department of Commerce,
Community and Economic Development (DCCED), introduced himself
and Ms. Cioni-Haywood. He explained that this is the first time
that a comprehensive economic development strategy has been
produced for Alaska. The work was done in conjunction with
communities statewide. A steering group representing a broad
cross section of Alaskan businesses, communities, and Native
leaders put together a very good outline. Since then the focus
has been to narrow the priorities. He emphasized the need for
the state to position itself to take advantage of economic
opportunities moving forward.
He offered the caveat that there are government costs associated
with economic development. Thus, it's important to build in an
expectation that there will be a way to recover revenues to pay
for the services that accrue to state government.
1:37:49 PM
At ease
1:39:21 PM
CHAIR COSTELLO reconvened the meeting and welcomed Ms. Cioni-
Haywood to give the presentation on behalf of the department.
1:39:33 PM
BRITTENY CIONI-HAYWOOD, Director, Division of Economic
Development, Department of Commerce, Community and Economic
Development (DCCED), said she would give an overview of Alaska's
first Comprehensive Economic Development Strategy (CEDS) called
Northern Opportunity Alaska's Economic Strategy." This work
started about two years ago, the document is final, and the
division is moving toward implementation.
She explained that this was a collaborative effort and she
wanted to thank the partners including: ARDORs, economic
development organizations, the U.S. Economic Development
Administration, and the University of Alaska Center for Economic
Development.
1:40:44 PM
MS. CIONI-HAYWOOD explained that a comprehensive economic
development strategy is a blueprint for doing economic
development at local, regional, and statewide levels. The
process allows you to engage community leaders, leverage the
involvement of the private sector, and provide that blueprint
for regional collaboration among partners.
MS. CIONI-HAYWOOD advised that nearly every region of the state
has some sort of economic strategy. This process was built using
key components of those regional strategies. Past efforts and
existing regional comprehensive economic development strategies
(CEDS) were used as a foundation. The project was done according
to federal Economic Development Administration guidelines.
She described the efforts involved in developing an action plan.
There was a research piece to assess the conditions, numerous
community and industry forums were held, and two surveys were
conducted. The process was overseen by a strategy committee made
up of private sector partners and leaders throughout the state.
The purpose of the forums was to identify challenges and
opportunities within each region, and get stakeholder buy-in on
the project.
The intent of the business forums was to hear from both industry
and individual businesses. The responses were identified
according to region and had questions about backgrounds,
strategies, business confidence, significant barriers, and
opportunities for business and the state.
The individual survey had open-ended questions that asked people
their reasons for living in Alaska, what would make living here
better, what they saw as opportunities, what a prosperous Alaska
looks like, and concerns they had about the economy. The
division received about 800 responses between the two surveys.
1:45:22 PM
CHAIR COSTELLO asked if the survey was available on the
department website, and if the participants were listed.
MS. CIONI-HAYWOOD said the survey results and report are
available at northernopportunity.com but names are not attached.
1:45:59 PM
SENATOR MICCICHE asked how the surveys were distributed to
ensure that a cross section of individual Alaskans and
businesses had the opportunity to participate.
MS. CIONI-HAYWOOD explained that the division used the
SurveyMonkey tool as well as posts to newsletters, radio shows,
Facebook, and other social media platforms.
1:46:53 PM
SENATOR GARDNER asked when the surveys were done, if similar
surveys have been done in the past, and if future surveys are
anticipated so changes can be measured.
MS. CIONI-HAYWOOD said she isn't aware that any surveys were
done in the past. The document requires annual updates and a
complete revision in five years so future surveys are a
possibility. The business survey was conducted from mid-January
to mid-April 2017. The individual survey ran from October 2016
to min-January 2017.
1:48:13 PM
SENATOR STEVENS noted that most of the survey participants were
from Southcentral. He asked what areas are included in that
region.
MS. CIONI-HAYWOOD said it includes the Matanuska Susitna Valley
as well as Anchorage. Higher responses were expected in that
region because it has a higher population than other areas in
the state. She offered to follow up with specific information
about how the areas were grouped.
1:49:23 PM
SENATOR STEVENS asked if Southcentral includes the Kenai
Peninsula.
COMMISSIONER NAVARRE said it almost certainly does.
CHAIR COSTELLO said she would share the follow up information
with the committee members.
1:50:40 PM
MS. CIONI-HAYWOOD said the six goal areas that were identified
through the process were business development, finance &
investment, economic development infrastructure,
entrepreneurship & innovation, economic development capacity
building, and quality of life.
Twenty-eight objectives were developed under the six goals areas
and most of those have multiple action items. For manageability,
10 priorities were set for the first year.
Create stronger alignment between workforce
development and economic development programs and
services.
Grow the impact of Alaska's Visitor Industry in
existing regions and market segments, and increase
the impact of the industry to Alaska communities.
Strengthen existing resource extraction
industries, including the Oil and Gas and the
Mining Sectors.
Maximize employment and opportunity in Alaska's
Seafood Industry.
Maximize opportunities in all aspects of the
Alaska Maritime Sector.
Encourage import substitution with the promotion
of Alaska made products.
Connect rural Alaska to the entrepreneurial
resources of the urban centers and increase tools
and resources available to rural businesses.
Expand use, availability, and knowledge of
microfinance and crowdfunding.
Strengthen and grow the existing Arts Industry in
Alaska.
Reduce the energy cost burden on Alaska
businesses.
1:52:43 PM
CHAIR COSTELLO asked who served on the steering committee.
MS. CIONI-HAYWOOD said she would follow up with the names that
are also listed in the online document.
CHAIR COSTELLO asked if the steering committee took part in
creating the goals and priorities.
MS. CIONI-HAYWOOD replied the steering committee met about once
a month during the time that the department developed the
framework to present ideas and identify areas of concern. She
noted that some of the panelists that are up next were on the
steering committee.
1:54:22 PM
COMMISSIONER NAVARRE highlighted that the priorities may be
narrowed going forward to better meet the objectives of the
Comprehensive Economic Development Strategy (CEDS).
MS. CIONI-HAYWOOD added that working groups will be formed as
the statewide CEDS is implemented to facilitate buy-in among the
partners.
1:55:50 PM
SENATOR MICCICHE asked why the priority to "strengthen existing
resource extraction industries" did not list timber or value-
added.
MS. CIONI-HAYWOOD clarified that both value-added and timber are
priority items. When she presented to the Juneau Chamber, timber
was one of the objectives she highlighted.
1:56:56 PM
SENATOR GARDNER noted that after the Tuesday presentation she
received an email from someone who pointed out that there was no
mention of marijuana as an Alaskan industry. She asked if any of
the marijuana advocates were part of the survey.
MS. CIONI-HAYWOOD agreed that marijuana is an emerging sector
within the state and is starting to contribute to the tax
revenue. She wasn't sure if any of those businesses participated
in the survey, but it was not one of the industry groups. She
acknowledged that this emerging sector may play a larger role
moving forward. She shared that the department does not believe
that there is opportunity for both growth and innovation within
the existing sectors.
2:04:27 PM
MS. CIONI-HAYWOOD reviewed some of the implementation activities
such as hosting the Alaska panel "North to Opportunity" at
Cambridge House; cultivating a collaborative partnership between
the Alaska Grown and Made in Alaska programs; and developing the
energy implementation team to leverage nonstate funds.
Encouraging new federal infrastructure investment for rural
broadband opportunities is also an important factor in
developing a strong, diverse, and resilient economy.
She noted that the final report can be downloaded at
northernopportunity.com.
2:05:43 PM
SENATOR MEYER asked how to measure success in meeting the
priorities.
MS. CIONI-HAYWOOD said the working group will be formed in the
next month and one of the topics will be to develop metrics to
identify success.
COMMISSIONER NAVARRE reiterated that to attract investment to
Alaska and keep investment in Alaska we have to realize where
the burden is going to fall. Another component is quality of
life issues, which requires a strong education system and a
strong social structure.
2:07:54 PM
SENATOR STEVENS commented that Alaska's seafood industry has
always been controlled by outside interests. Even now seafood
leaves the state with just primary processing. Some of it is
processed in China. He stressed that Alaska has got to find a
way to benefit more from that resource.
COMMISSIONER NAVARRE agreed and added that investment capital is
necessary to support those sorts of initiatives.
MS. CIONI-HAYWOOD shared that residency is a requirement to
utilize funds from the commercial fishing revolving loan fund.
She estimated that about Alaska residents hold 75 percent of the
permits.
CHAIR COSTELLO highlighted that equity crowd investing is a
program that allows Alaskan businesses to raise up to $1 million
through $10,000 contributions from individual Alaskans. She
opined that intellectual property and the innovation of Alaskans
is key to growing the economy.
SENATOR GARDNER noted that the Commissioner listed a stable and
predictable tax structure, educational strategy, social
structure, and state investment as requirements to encourage
investment in the state. She asked if any of that is possible
without the umbrella of a durable and stable fiscal plan.
COMMISSIONER NAVARRE said that when he talks about an economic
foundation he's talking about a fiscal plan that meets the needs
to take advantage of opportunities now and into the future. He
said he like to see more focus on a common plan for five or
ten years in the future, but long-term planning often runs up
against short-term election cycles. "One of the reasons I took
this role when the Governor offered it is to try to help with
some of that in order make sure that we don't lose sight of the
long-term when we focus our attention on the short-term."
SENATOR GARDNER said she asked because she wanted that on the
record.
2:12:50 PM
SENATOR MICCICHE said it's important for Alaska to get tougher
and require more value-added processing. He opined that carrots
and sticks are necessary to break the persistent cycle of
resources leaving the state in essential raw form.
COMMISSIONER NAVARRE expressed partial agreement and reiterated
that encouraging investment and growing the economy has
associated costs. Having a comprehensive plan in place leads to
more investment predictability and opportunity to meet both
challenges and opportunities.
2:14:46 PM
CHAIR COSTELLO thanked the presenters.
2:15:16 PM
At ease
2:18:34 PM
CHAIR COSTELLO reconvened the meeting and welcomed the
panelists. She asked each one to highlight their industry or
area of expertise with a slight focus on the question of how to
expand the Alaska economy. She also encouraged them to comment
on anything they heard from the economists on Tuesday or during
the department's presentation today.
2:20:09 PM
CURTIS THAYER, President/CEO, Alaska Chamber, Anchorage, stated
that the Alaska Chamber is a nonprofit trade association that
was established in 1953 as the voice of large and small
chambers. It is the only statewide membership organization that
represents all the business sectors from Ketchikan to Barrow.
The common goal is to make Alaska a viable and competitive place
to do business.
MR. THAYER reviewed the sectors of the economy that have
experienced job loss. He said everyone agrees that Alaska is in
recession, but there are also positive things happening in the
economy. There is increased oil production on the North Slope
and prices have stabilized; there are record-sized discoveries
on the North Slope; there is movement on the LNG line; and
offshore, ANWAR and NPRA are now open. There is new opportunity
in resource development that wasn't on the horizon 18 months
ago. Mining has the potential to double in size if current
projects advance; military investment is expanding at JBER; and
tourism is up.
He echoed Commissioner Navarre and emphasized the need for
fiscal and regulatory policies that attract investment. He
opined that the state can help in some areas and it needs to
stay out of the way in others. He said that since the federal
tax bill passed, there are companies that have billions of
dollars to invest. "Let's make Alaska a place they want to
invest those billions of dollars."
2:24:35 PM
JILLIAN SIMPSON, Vice President, Alaska Travel Industry
Association, Anchorage, stated that ATIA is the industry trade
association comprised of 700 members representing small and
large tourism businesses in Alaska. ATIA is also the contract
manager for Alaska's Tourism Marketing Plan and thus works
closely with the Tourism Marketing Board and Britteny Cioni-
Haywood, the director of the Division of Economic Development.
MS. SIMPSON reported that from 2011 to 2016 the volume of
visitors increased 19 percent and the cruise industry led the
way. Capacity increased 3 percent in 2017 and is expected to
increase 7 percent in 2018. This sub-sector makes up just over
half of Alaska's visitors and business is now year round. The
independent market grew from 2011 to 2016 but stopped in 2017
and has become stagnant.
She said it may or may not be a coincidence, but independent
travel dropped when the Alaska tourism marketing budget was
dramatically decreased. Alaska now ranks 48th in the U.S. for
destination marketing. A recent report also showed that the
decrease in funding has resulted in a decrease in visitor
spending. She pointed out that direct spending could have
increased another $57 million last year had the marketing levels
remained at the historic levels. That would have resulted in an
additional 600 jobs. She emphasized that destination marketing
requires funding and thanked the committee for the bill it
introduced last year.
2:29:31 PM
CHAIR COSTELLO asked if she had information about the average
amount individual travelers spend on a visit to Alaska.
MS. SIMPSON replied average spending in 2016 was $1,051 per
person, excluding transportation. She offered to follow up with
specific numbers for each subcategory such as highway and ferry
travelers and people who arrive by plane.
2:31:18 PM
SENATOR GARDNER asked if she has data or opinions about how cuts
to the ferry system budget combined with cancellations and
rescheduling have affected independent traveler numbers.
MS. SIMPSON said ATIA has identified it as a factor and cause
for concern. Visitation by ferry has dropped over 8 percent,
whereas other independent travel is down just 1 percent. ATIA
hears that it is extremely challenging to use the ferry because
of those issues. An ATIA board member sits on the Marine
Transportation Advisory Board (MTAB) and another is on the
steering committee because a stable, functioning ferry system is
such an important part of the visitor industry.
2:32:39 PM
SENATOR MICCICHE asked what percentage of visitors arrive on
cruise ships and what percentage are independent travelers.
MS. SIMPSON said that in the summer 55 percent of visitors are
cruise travelers, 45 percent arrive by air, and 5 percent drive
the highway or take the ferry. Responding to another question,
she said there were about 2 million visitors last year.
CHAIR COSTELLO asked what percentage of cruise visitors return
the following year as independent travelers.
MS. SIMPSON said 40 percent of visitors have been to Alaska
before, and 16 percent have taken a cruise to Alaska.
SENATOR GARDNER asked if somebody travels to Alaska by ferry and
flies home is counted as an air traveler.
MS. SIMPSON said they would appear as a ferry/highway visitor.
Someone who takes a cruise is a cruise visitor, someone who is
on a plane one way is an air visitor, and someone who takes the
ferry or drives the highway is a ferry/highway visitor. She
clarified that someone who takes the ferry one way and flies the
other way would fall in the air category. That's where most
visitors fall. ATIA developed the definitions to correctly
identify cruise visitors.
SENATOR STEVENS asked if there is a correlation between unrest
in the world and numbers of travelers who come to Alaska.
MS. SIMPSON reported that 84 percent of Alaska visitors are
domestic, 7 percent are from Canada, and 9 percent are
international. She noted that a lot of the international growth
is from China.
CHAIR COSTELLO invited Mr. Springsteen to comment and respond to
the presentation from the department.
2:38:13 PM
JOHN SPRINGSTEEN, CEO/Executive Director, Alaska Industrial
Development and Export Authority (AIDEA), Anchorage, reported
that in 2017 AIDEA investment supported 1,385 permanent jobs and
575 construction jobs. AIDEA increased its net position by $5.8
million to $1.317, declared a $12.8 million dividend to the
state, and funded $108 million in loan participations with
partner banks for business and industry statewide.
He stated that AIDEA provides financial support to stabilize,
grow, and diversify Alaska's economy through lending and
investment. However, it has capacity constraints and limited
tools to stimulate the economy which leads AIDEA to believe that
it is critical to have a performance requirement attached to any
incentive that is offered. AIDEA funds are used to support
business and industry by lending and investing throughout the
state for growth in Alaska tourism, industrial access to natural
resources, expansion of industrial infrastructure and keeping
Alaska's existing and future businesses resilient through access
to affordable long-term capital.
He listed recent AIDEA loan participations to demonstrate that
it has been active throughout the state and in the major sectors
of Alaska's economy.
• $8.2 million to rebuild the Totem Inn in Valdez to support
tourism and industry
• $165 million conduit revenue bond issue to provide a new
clinic and upgrade the hospital in Bethel
• $5.4 million for a business center in Anchorage that
supports existing business
• $1.3 million for a multi-use building in Wasilla that
supports new business
• $1.2 million to support industry in Fairbanks
• $20 million for Huna Totem Corporation Icy Strait Point
to support tourism.
2:42:31 PM
CHAIR COSTELLO noted that the committee heard on Tuesday about
the importance of growing what we have. She asked him to comment
on the 5.4 million investment in Anchorage.
MR. SPRINGSTEEN explained that this is a commercial loan that
supports existing general business. Access to AIDEA's relatively
low rate and long-term fixed capital allows this and other
businesses to be more resilient.
CHAIR COSTELLO asked him to talk about the governance philosophy
that AIDEA uses. "Has it changed, and what is your expectation
of your future impact on Alaska's economy?"
MR. SPRINGSTEEN said each of the 735,000 Alaskans are
shareholders and the legislature and governor are their
representatives. The board is shared with the Energy Authority
and is composed of the commissioners from revenue and commerce
and five successful Alaskan business people. AIDEA has three
funds and two special assignments. Most of the business is done
through the Revolving Loan Fund. The Sustainable Energy and
Transmission Supply Fund is capitalized with several million
dollars, and the Arctic Infrastructure Fund is not funded. The
special assignments under AIDEA's purview are the Interior
Energy Project and the Ambler Mining District Industrial Access
Project. He said AIDEA has also added steps to its review of
project developers and partners and a more discrete six-factor
model to evaluate potential partners that it uses in day-to-day
business.
CHAIR COSTELLO asked if he had reviewed DCCED's Northern
Opportunity strategy.
MR. SPRINGSTEEN said yes; he was a participant.
CHAIR COSTELLO asked how AIDEA gets its customers.
MR. SPRINGSTEEN explained that they work with the ARDORS
throughout the state and will continue to work with the
Department of Commerce and Economic Development. AIDEA is
opportunistic and wants to be a pathway to capital for good
projects. He thanked the committee for the invitation today,
which he views as a good way to get their message out.
2:48:25 PM
SENATOR MEYER asked if there was a reason he didn't mention the
two projects that AIDEA participated in through the Oil Tax
Credit Program.
MR. SPRINGSTEEN said he was speaking to recent projects. He
clarified that AIDEA is supportive of the oil and gas industry
and reiterated that the incentives need to be tied to the
performance requirement.
SENATOR MEYER asked if AIDEA has metrics to measure its
successful and unsuccessful investments.
MR. SPRINGSTEEN quipped that they take the view that all their
investments are successful. He acknowledged that wasn't always
the case in the past and that's part of the reason they
instituted more disciplined practices.
2:51:26 PM
CHAIR COSTELLO noted that during the Tuesday meeting Dr.
Guettabi with ISER suggested localizing the supply chain in
Alaska. She asked how AIDEA could help with that.
MR. SPRINGSTEEN said import substitution would make Alaska more
self-sufficient and resilient. He cited the examples of
hydroponics and the facility in Anchorage that collects and
tests blood.
2:53:01 PM
SENATOR STEVENS asked the amount of AIDEA's startup funding and
the cumulative dividends it has paid the state.
MR. SPRINGSTEEN said the initial capitalization was $380
million. It's grown to $1.317 billion and $392.8 million has
been paid in dividends. The return is about 5 percent a year.
CHAIR COSTELLO thanked Mr. Springsteen. She asked Ms. Moriarty
to tell the committee where the industry is today and to respond
to the presentation from the department.
2:55:10 PM
Kara Moriarty, President/CEO, Alaska Oil and Gas Association
(AOGA), Anchorage, stated that AOGA is a private trade
association that represents most companies that produce,
explore, refine, and transport oil and gas in the state. She
shared the good news that oil production is on track to increase
for the third year in a row, and that the pipeline has the
capacity for a lot more. Recent discoveries on state land
onshore and alignment with the federal government is also good
news. Historic changes have occurred in the past year for the
National Petroleum Reserve-Alaska (NPRA) that could yield up to
9 billion barrels of recoverable oil. Last month an historic
vote allowed for two lease sales in Section 1002 of the Arctic
National Wildlife Refuge (ANWR). The 2016 data indicates that
110,000 jobs and about one-third of the wages in the state can
be attributed to the oil and gas industry. This sector is the
largest taxpayer to the state and will be 65-75 percent of the
unrestricted general fund this fiscal year. The challenge is
that there is a shortfall because this is no longer 65 percent
of the budget. Nevertheless, AOGA's perspective that the oil and
gas industry can continue to be an economic driver for the next
40-50 years.
MS MORIARTY said AOGA was involved through most of the Northern
Opportunity process and she sent the business survey to all AOGA
member companies. She reviewed the Northern Opportunity report
recently and agreed with the oil and gas industry action items
listed on page 17. They are achievable and measurable. "We stand
ready to continue to be a strong partner with the state."
3:00:12 PM
SENATOR MICCICHE asked how the "Save Our Salmon" initiative to
increase the cost of permitting and the proposed oil tax
revision will boost the economy. Both are ongoing efforts in the
building this session.
MS. MORIARTY said AOGA's perspective is that both proposals will
stifle industry's ability to grow and neither will add more oil
into the pipeline.
SENATOR MICCICHE mentioned the relative dearth of adding value
to natural resources before export. He then asked Mr.
Springsteen what kind of debriefing AIDEA does now to ensure it
doesn't repeat mistakes like the failed fish finishing facility
in Anchorage and the problems that developed with the Cook Inlet
program to incentivize investment with tax credits. "I never saw
a debriefing on either of those projects and I'd really like
that just in supporting your mission going forward."
3:04:33 PM
MR. SPRINGSTEEN explained that the AIDEA board is working to do
a better job of acknowledging risk, establishing necessary
safeguards, and ensuring that returns are appropriate. Regarding
value-adding activities, he said it's worked fairly well to play
an intermediary role between communities and industry. He cited
the example of Graphite One outside Nome. He noted that some of
the challenges are the costs of transport and energy.
3:07:19 PM
SENATOR MEYER asked Mr. Thayer how Alaska can diversify its
economy, so it isn't as heavily dependent on the oil and gas
industry as its main source of revenue.
MR. THAYER suggested the state get more aggressive in soliciting
new businesses to invest and/or relocate here, restore the
state's reputation by fulfilling its obligations such as paying
oil tax credits that are due, and reinvest in the fishing fleet.
SENATOR MEYER suggested looking at how small businesses in
Alaska could be part of the supply chain for oil and gas,
tourism, fishing, and the military. "Grow our own so to speak."
MR. THAYER agreed. He noted that some national corporations
reached out to the Chamber when the military announced that F-
35s were going to Fairbanks. He understands those corporations
have hired some local businesses.
3:12:03 PM
CHAIR COSTELLO shared that all members of the legislature would
receive copies of the annual report that was released to the
joint Armed Services Committee. It has information that is
relevant to the questions that have been raised here today.
She thanked the panelists and expressed appreciation for the
interest Senator Begich has shown in the committee.
3:13:24 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:13 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 1.18.18 Northern Opportunity Strategy SLC.pdf |
SL&C 1/18/2018 1:30:00 PM |
1.18.18 Northern Opportunity Strategy |