The Alaska Industrial Development and Export Authority (AIDEA) is a state owned corporation with a longstanding track record of funding projects that are fiscally irresponsible and environmentally devastating. They subsidize economically risky resource extraction projects with incredibly limited legislative or public oversight. In the case of the Ambler Road and Arctic Refuge oil and gas leases, AIDEA has thrown away tens of millions of dollars without any legislative approval backing those spending decisions—cutting the public and the legislature out of the process.
AIDEA has overly focused on extractive megaprojects and ignored their primary mandate. Their extractive focus has utterly failed to create economic growth or jobs. In total, AIDEA has cost Alaskans $10 billion with its poor investment choices (Erickson & Associates, 2022).
- AIDEA received a net total of $301 million of public money from the State of Alaska, while AIDEA’s development projects have lost $233.3 million
- They performed poorly, earning an average of 3.8% on its investments (as contrasted with the Permanent Fund’s 9.4%). Its project “investments” specifically have earned negative 2.6%
- Alaskans would have collected $1.3 billion more in their PFD checks if AIDEA’s money had been invested in the Permanent Fund and disbursed
Some of AIDEA’s “investments:”
- Risky and uncertain Ambler Road
- Major bidder for Arctic Refuge Oil Leases despite lack of expertise in this field
- Healy “Clean” Coal ($89M loss)
- Anchorage Seafood Processing (>$25M loss)
- Skagway Ore Terminal
- Pt. McKenzie Port
- Dead End Rail Spur at Pt McKenzie
- Mustang project ($70M loss)
AIDEA's willingness to invest in projects that don't make money set them apart from typical corporations. It not only wastes money that our state desperately needs, but it keeps unnecessary and unprofitable extraction projects alive that pose incredible risk to our beloved lands, water, and wildlife.
AIDEA is sitting on hundreds of millions of dollars while our state budget crumbles. AIDEA shouldn’t be calling the shots on how that money gets spent, without legislative approval and public involvement. It is time for that money to be appropriated to things that benefit Alaskans.
Legislative oversight is needed to ensure transparency and accountability. In fact, Alaska’s Constitution requires it; that’s why the spending power is vested in the legislative branch of our government—not AIDEA. AIDEA was never meant to be the owner and operator of megaprojects and they are not above state law. AIDEA has proven that they cannot be trusted to make economically sound decisions with our state’s money or for Alaska’s future.
HB124 is an AIDEA reform bill currently moving through the house. Sign up for email updates to learn about testimony opportunities.