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Portrait of Senator Jerry Ward Representative John Cowdery
Senator Jerry Ward

716 W 4th Avenue, Suite 450
Anchorage, AK 99501-2133
Phone: (907) 269-0106
Fax: (907) 269-0109
Send E-Mail

Rep. John Cowdery

716 W 4th Avenue, Suite 320
Anchorage, AK 99501-2133
Phone: (907) 269-0222
Fax: (907) 269-0223
Send E-Mail

Privatization Commission
Prepares Final Report

Co-Chairs Recommend Process Continues

For Immediate Release: December 14, 1999
Contact: Senator Jerry Ward at (907) 269-0106
Representative John Cowdery at (907) 269-0222

Anchorage -- Senator Jerry Ward (R-Anchorage/Kenai) and Representative John Cowdery (R-Anchorage), Co-Chairs of the Commission on Privatization and Delivery of Government Services, announced on Tuesday a list of 20 recommendations voted upon by the Commission for review by the legislature and the administration. They also announced their intention to explore new ways to continue the Commission's mission for a thorough review of hundreds of other proposed recommendations.

The Commission met 13 times over an 18-week period. They solicited public participants to work in 20 different subcommittees that focused on each department in state government, the University of Alaska, the legislature, and the court system. Additional panels focused on the state-owned hydroelectric projects, the Alaska Railroad Corporation and the Alaska Housing and Finance corporation.

Through various stages of this process approximately 250 Alaskans volunteered to work on the subcommittees. Collectively, they participated in more than 200 meetings. They made over 400 recommendations concerning privatization and delivery of government services. The Committee adopted 20 of those recommendations for immediate consideration by the legislature and the administration. The complete text of all recommendations can be obtained at the privatization website, http://www.privatizealaska.org.

"The volume of work involved in the subcommittee reports is extraordinary. We have never seen such a prolific contribution by Alaskan citizens to their state government," said Senator Ward. "The sheer volume of work product in fact makes it nearly impossible to assimilate all the information received in the time available."

Because time grows short and the list of proposed recommendations is long, the Committee Co-Chairs plan to pass on the 20 approved recommendations and forward the remaining subcommittee recommendations to the legislature and administration for future consideration and the creation of some procedural mechanism to study these suggestions.

"While the Commission itself expires December 31st, the privatization process itself is far from over. The 20 recommendations approved by the Commission must be dealt with by the legislature and the administration," said Representative Cowdery. "I look forward to working with the commissioners, subcommittee chairs and volunteers who have been active in this process in the months ahead to ensure the work they've begun receives a fair and thorough review."

Accompanying this release is a Master List of Recommendations. They are cross-referenced to each department and subcommittee report.

"All the Committee members would like to express their appreciation for the opportunity to constructively involve themselves in state government," said Senator Ward. "They also wish to express their deepest appreciation for all the participants who volunteered hundreds of hours of their own time to participate in this process."

"Understanding state budget documents and attempting to build consensus among a wide range of concerned Alaskans with sincere and diverse viewpoints has made our efforts a challenging exercise for all participants," said Representative Cowdery.

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Executve Summary
Findings and Recommendations
to the Governor and the Legislature

By: Commissioner Tom Fink.

Pursuant to CSSB 33, the Commission on Privatization and Delivery of Government Services makes the following report. CSSB 33 states that the annual cost of state government is exceeding the annual revenue and that our commission's to study government services and make determinations along the following lines;

  1. Services that should be eliminated.
  2. Services that ought to be contracted out to private organizations.
  3. Services that ought to be performed by local government or regional service organizations.
  4. Services that ought to be performed by the federal government.
  5. Services that ought to be consolidated for efficiency purposes.
  6. Services that can most effectively and efficiently be delivered by the state.

This commission appointed 20 subcommittees to review the various elements of state government. There were about 250 people active on these subcommittees. Each subcommittee returned a report and, in the aggregate, made 305 recommendations for changes. The commission considers most of the recommendations to be very valid and ought to be followed by the state government.

In an attempt to zero in on a limited number of those recommendations, each commissioner was asked to prepare a list of recommendations that he or she wanted to take up in the full committee. The committee then took up, discussed, and voted upon those recommendations that each committee member put forward during our meeting. The commission member did not put forward all of the items which were listed on each of their personal privatization recommendations list.

The following 20 recommendations received majority approval of the commission members:

  1. The Commission recommends giving 250,000 acres to the University of Alaska.
  2. The Commission recommends selling the Matanuska Maid dairy and associated facilities.
  3. The Commission recommends changing DWI laws so that most offenders will be electronically monitored along with community service, but without requiring incarceration.
  4. Charter Schools: The Commission recommends the legislature enact revised charter school laws that provide for educational choice by:

    • increasing the number of charter schools allowed in Alaska;
    • extending the contract period from five to ten years;
    • require school districts to provide equal funding for charter school students in their district, and;
    • provide school facilities equal to other schools in their district without impeding their creation or development.

  5. The Commission recommends vouchers for K-12 education to parents at maximum 75 percent of the per pupil cost in each district with standards limited to reading, writing and arithmetic.
  6. The Commission recommends the University of Alaska determine the true cost/benefit of providing utilities at the three main campuses.
  7. The Commission recommends determination of the true cost/benefit to privatizing property management functions of all University of Alaska buildings.
  8. The Commission recommends putting up state land for sale similar to open to entry for oil leases.
  9. The Commission recommends the legislature devise a task-based budget format and require, by statute, that the governor's budget be submitted in that format.
  10. The Commission recommends issuing a Request for Proposal for the purpose of all collection of Court Systems-fines.
  11. The Commission recommends privatizing the collection of delinquent child support debt owed to the State of Alaska.
  12. The Commission recommends selling or soliciting proposals for a sale of:

    • Electric Intertie, for fair market value;
    • Four/Dam pool, for fair market value;
    • Bradley Lake, for fair market value.
    • Either get a consultant to try to find an economical method of sale or request proposal ideas from potential buyers.

  13. The Commission recommends withdrawing AHFC from the secondary mortgage market wherein taxable bonds or assets of AHFC would be used.
  14. The Commission recommends the legislature pass a law making land available for homesteading.
  15. The Commission recommends the Legislature consider an ongoing effort for the Delivery of Government Services in the most effective and cost-efficient manner and provide the public with budgeting and performance measures of government services.
  16. The Commission recommends The Alaska Railroad implement a vegetation control program including use of herbicides.
  17. Telephony: The Commission recommends privatizing; turning over to an Alaska company with core competency in telephone service, but seeing to it that bush and emergency service continue to be provided as at present.
  18. The Commission recommends that any privatization efforts insure that there is a cost savings to the state on an immediate and long-term basis.
  19. The Commission recommends a statute that labor contracts may not contain language restricting privatization activities.
  20. The Commission recommends that legislative sessions be held in Anchorage, Alaska.

Also included with this report is the subcommittees' and commissioners' master list of 408 recommendations, in all. A copy of each subcommittee's full report is provided with a list of their members and chairmen.

We did not vote on all the subcommittees' recommendations, as time did not permit a full review. The Privatization Committee did meet with each of the subcommittees to receive their written and oral reports.

We recommend that the administration and the legislature follow through on the recommendations of this commission and that the appropriate legislative committees review all of the recommendations of the subcommittees.

This commission expires on December 31, 1999, but all the members of this commission and the members of the subcommittees are available to the legislature or the Governor.

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