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Web posted Sunday, March 2, 2008

Busting the myths about the Denali Commission
Denali Commission federal co-chair George Cannelos is trying to bust some of the myths about his organization. Here is the abridged version of his mythbusting attempts, offered Jan. 29 to the Legislative Budget and Audit Committee.


Myth No. 1

The Denali Commission is a federal organization that does not need state involvement, coordination or financial investment.

Congress established the commission to be a federal-state partnership. Over the past nine years, the commission has invested nearly $1 billion in more than 600 projects across the state. The commission oversees these projects with the coordination and cooperation of the state Legislature. For the first time last year, the Legislature included $7 million in the capital budget specifically to coordinate with Denali Commission programs.

Myth No. 2

The state of Alaska is not a significant partner of the Denali Commission.

The commission could not carry out its mission without the participation of the state of Alaska. During 2006, the commission funded more than $57 million to state agencies to coordinate and carry out portions of its energy, economic development, health facilities, workforce development and transportation programs. In addition, senior state officials help guide the commission's strategic direction.

Myth No. 3

The Denali Commission invests solely in small remote communities.

Although the commission's focus is on accelerating the delivery of critically needed infrastructure to rural Alaska, it invests throughout the state where it makes sense to do so. The commission has funded projects in Anchorage, Fairbanks, Wasilla, Kenai Peninsula and in some of Southeast Alaska's urban communities.

Myth No. 4

The Denali Commission is a program just for Alaska Natives.

Although the commission invests in many communities populated predominantly by Alaska Natives and partners closely with tribal organizations, all commission programs and projects are available for use by the general public and are not restricted by ethnic heritage.

Myth No. 5

The Denali Commission pours money into rural Alaska without regard for long-term consequences.

The commission is sometimes criticized for not investing fast enough, or for having too rigorous an approval process. The commission has adopted a number of investment guidelines that require, for example, that a proposed project be vetted through a public process and part of an adopted community plan. It often requires a business plan that gives all parties a degree of certainty regarding who will own and operate a project, the course of operations and maintenance funding, etc.

Myth No. 6

The Denali Commission is a pass-through agency for congressional project earmarks.

The commission's federal funding comes from six broad categories of federal appropriations, and not in the form of project earmarks. Project funding is decided locally through a public process. Seven commissioners and six advisory committees provide strategic direction, investment direction and expertise.

Myth No. 7

Federal Funding will keep on coming at very high levels.

After rising from just $20 million in 1999 to $140 million in fiscal year 2006, the commission is experiencing a decline in federal support: $135 million in fiscal year 2007 and up to $111 this fiscal year. Energy and water appropriation fell from $50 million to $21 million. The plan recommends just $10 for legacy bulk fuel and power plant upgrades, and $9 million - almost half - to continue pushing into renewable and alternative energy solutions.

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