A new bi-partisan caucus in the Alaska state legislature aims to encourage innovation and diversify the the state economy.
KYUK, Bethel: A new bi-partisan caucus has formed in the state legislature. This one hopes to nurture business innovation and investment. Caucus co-chair, Democratic Representative Zach Fansler of Bethel, hopes to take the lead from small business development programs like Bethel's Best in the West competition. Best in the West was started in the Bethel region by the University of Alaska Fairbanks, Kuskokwim Campus and the Yupiit Piciryarait Cultural Center, along with others organizations that include the Bethel Native Corporation, Coastal Villages Region Fund, Association of Village Council Presidents, Conoco Phillips, and GCI, among others.
Fansler says just as Best in the West was designed to recognize and give a bit of cash to new innovative entrepreneurs, the new caucus is looking ways to help and encourage innovation and diversification of the Alaskan economy.
"We need to, in my mind, make sure that we're looking at this time, in this kind of fiscal crisis that we're in, at every angle for us to be able to pull ourselves out. And one of those ways is to have innovation to kind of help diversify our economic abilities that we have out there."
The Senate co-chair of the innovation caucus is Republican Mia Costello of Anchorage. Senator's Costello's track record on business development in the House was not always encouraging. She was one of the main sponsors of the bill that killed tax credits for film companies shooting in Alaska.
While both co-chairs see the new caucus as playing a key role in moving the state's economy forward and diversifying, they have not developed any concrete plans as to how to accomplish that yet. They both know money is short right now, and say they are looking to the future.
Fansler says any new measure will have to wait until later in the session, or maybe next session, because both houses of the legislature are struggling with developing a fiscal plan and budget to set the state on a more sustainable path.
"One of our first meetings coming up here in a couple weeks, what is important I think to Senator Costello and myself is that we sit down and we look at this and we say, "what are we doing well". You know a program like Best in the West? Ok, that's a great program. Is there a way we can replicate that elsewhere? Is this something we should be making appropriations for? Now is not the fiscal climate for that, but maybe once we get back on our feet it is something that we look at. What about finding and spurring outside investment? Do we have the proper systems set up within the state? Are there things we can do to attract investment from outside the state? What overall can really be done?
Fansler says part of the reason the state is in tight financial straits is that it has become too dependent on the oil industry to fund government services. He says innovation and diversification is needed to move the state into a secure future economically, and he hopes the caucus can play a role in promoting, recognizing, and eventually investing state funds in innovative startups.
Anna Rose MacArthur contributed reporting to this story.