Southwest Alaska Municipal Conference: SWAMC is a municipally-driven organization that promotes responsible growth through economic development programs and policies. How do you feel about the state of the economy in Southwest Alaska?

Alan Austerman: The Southwest Economy is suffering because of the high cost of energy and transportation.

SWAMC: Building off of that first question from a regional perspective, what can we do to strengthen our economy; where do our future strengths lie?

GS: The Coast Guard presence is strong and needs to be encouraged on a national level, particularly in respect to the security and protection of the Arctic.

BE: Continued investment in infrastructure will help to foster industry at all levels in our communities. And these investments should go hand-in-hand with following through on efforts to lower energy costs through more funding for weatherization and alternative energy projects.

There is still huge potential to base more of the fishing industry here in Alaska. I think the growing success of our CDQ entities is instructive in that respect. In addition to making sure our residents maintain or grow their businesses as harvesters, we need find ways to encourage more communities to become larger stakeholders in processing and support industries.

Continuing to improve the educational opportunities available to our kids will also give them the tools they need to pursue rewarding careers right in our backyards- in fields such as fisheries research and management, seafood marketing, and small business management. I also think that expanding the availability of high speed internet access in our region holds great potential for improving educational and business opportunities that can lead to stronger local economies.

AA: To strengthen our economy we must extract a higher dollar value from our natural resources.

SWAMC: There are a number of important issues facing lawmakers next year, from resource development to education to State fiscal planning. What important legislation would you like to see come out of the next session?

BE: Always among my highest priorities is a Capital Budget that invests in infrastructure to foster industry in rural Alaska. While we rely on the hardworking people of our communities to supply the spirit of entrepreneurship and innovation that stimulates our region, the state government can do a lot to make sure that spirit has the resources in which to flourish. We need continued funding for our harbors, additional ports infrastructure, and basic community needs so that everyone benefits-from fishers to processors to support industries and to shippers.

The legislature also should continue improving education funding at all levels so rural kids are better prepared to pursue their ambitions.

And I believe that we need to pass a Coastal Zone Management bill that gives our communities a meaningful say in resource development projects proposed in their areas. If we want a prosperous future, we have to be able to protect, enhance, and responsibly develop the resources that form the basis for our livelihoods.

AA: I have no special legislation planned for this session. I'll be focusing instead on my responsibilities as Majority Leader for the House.

GS: The legislature this year will be focusing on ways to maintain oil flow through the Trans Alaska Pipeline and attempts to move the gas line forward.  Our revenues are primarily based on oil production and we have to make sure Alaska is in a good position to handle any future decline in that revenue.  We have to be ever vigilant in protecting our fisheries industry and water quality which may lead to some legislative resolve this session.  Our state is doing extremely well in comparison to most other states but we must insure we make the right decisions in using the excess revenues we are experiencing, such as saving for the future while building the infrastructure we so desperately need. 

With all the challenges we face, we also have to work at improving our K-12 and University system.  We are experiencing a high drop our rate in both areas and have to find ways to prepare students for college or vocational work.  That means better preparation during K-12 years in math, science and English so that students can compete in the job market or higher education.  We need better counseling services so students know what they need to accomplish to get the jobs they want and we need to find a way to assist those students who excel as well as those who need financial help.  I expect this legislative session to forge a path to a better scholarship program for all Alaskans.

SWAMC: We are still grappling with high energy costs in Southwest Alaska, but strides have been made in recent years all across the state to lower our diesel dependence. Collectively, what sort of projects can we aim for to develop energy capacity in the region?

BE: Just as we have many diverse communities in Southwest Alaska, energy needs and the prospects for increasing capacity vary from one place to another. In Akutan, for instance, exploration this summer confirmed a very promising geothermal source that we hope can soon be harnessed to boost the island's alternative energy output. In Unalaska in recent years, there has been a big increase in power output with the installation of highly fuel efficient generators in the town's new powerhouse.  In Kodiak, the wind generators on Pillar Mountain that now feed the grid are another example. And King Cove has taken the initiative in power development again and again, with innovative, expertly scaled hydroelectric projects that now produce the lion's share of electricity used by the town.

All of these developments were to one degree or another helped along by the state, either as specific capital projects that were included in budget bills or as ventures that competed successfully for funding through the Alternative Energy Grant fund.

In terms of energy development that both lowers our region's reliance on diesel and boosts the availability of power overall, we have only just begun. The state needs to continue the programs, policies, and funding we have put in place in recent years that not only make our communities more competitive and efficient overall, but also give them the ability to grow.

AA: Collectively we must push for more wind, hydro and tidal energy sources. We should be pushing the University of Alaska to do more research for these types of sources and looking for partnerships with utilities.

SWAMC: Our region is obviously dependent upon the health of our fisheries, both for our community coffers and for the livelihoods of individuals and businesses. How can Southwest Alaska communities bring more value home from their fisheries?

AA: First, make sure we have strong sustainable fisheries. Second, we should be working on lowering the cost of energy so that there could be more value added work done to our fishery resource. Third is to work on incentive programs that would encourage processors to do more value-added.

BE: The steady improvement in our salmon fisheries in recent years is a great example of how improving quality and profits go hand in hand. It's important to remember that this progress wasn't achieved through a single sweeping transformation but by many measures that all focus on the same set of goals.

Most immediately, we need to continue efforts to bring down energy costs and bring up prices. Issues I was involved with just this past year at the legislature illustrate this pretty well. The passage of my bill for low-interest loans to fishers for switching out old uneconomical boat engines and gensets for new fuel-efficient ones should help scores of operations, large and small, lower fuel costs and boost profits. Last session's extension of the Salmon Product Development Tax Credit will encourage processors to keep investing in innovations that result in higher prices for fish, and our Fisheries Committee amendment that added ice-making machinery to the list of eligible investments will result in a higher proportion of fish entering the value-added stream.

Also, as I stated earlier, we need to work on ways to make the industry as a whole more Alaskan. This means not only making our harvesting operations more profitable but also encouraging our people to become more directly involved in the processing and support industries, marketing, and fisheries management and research at both the state and federal levels.