Many legislators reacted cautiously during a Canelos briefing, and Senate President Lyda Green, R-Mat-Su, expressed criticism.

The Denali Commission is a joint federal-state agency that coordinates funding for infrastructure programs mostly in rural Alaska. Funding for the commission, now 10 years old, is mostly federal although the Legislature appropriated $7 million in capital funds last year as a contribution to certain projects.

Canelos said Congress has reduced the commission’s appropriations in recent years. It will be $100 million this year, down from $140 million in recent years.

Canelos said the Denali Commission’s success in tackling rural projects like bulk fuel tank rebuilds, power plant modernizations, rural health clinics, training and other programs with tightly focused coordination of federal programs is now being studied as a model by the United Nations and U.S. military in Third World rural economic development.

However, there is increasing criticism in Washington, D.C., over the lack of any sustained state funding. The model for the Denali Commission, the Appalachian Commission, covers several states, each of which make substantial contributions to programs.

Senate President Green said she was concerned about the idea of tying the state capital budget too tightly into the Denali Commission. One worry lawmakers have is that it would somewhat dilute the Legislature’s responsibility for appropriations since decisions on Denali Commission projects are made by appointed members of the Commission and approved by the U.S. Secretary of Commerce.