Alaska development authority defends role in job creation, outlines projects and risk policy

ANCHORAGE — At a joint hearing of the House and Senate State Affairs Committees on April 1, Director Randy Raro, executive director of the Alaska Industrial Development and Export Authority, told legislators ADA’s mission is to promote economic growth and job creation in Alaska and described the authority’s recent finances, projects and risk-management steps.

Raro said ADA operates under statute (AS 44.88.010) and Alaska constitutional provisions on resource development and that its work is distinct from the Alaska Permanent Fund because ADA focuses on economic development and job creation while the Permanent Fund is intended to conserve revenue for future generations. “When ADA is successful with a project like the Red Dog mine, the returns from that project show up in our dividend,” Raro said.

The presentation matters because legislators continue to debate ADA’s performance, the size and scope of state support for development projects, and the tradeoffs between risk, public dollars and long-term returns. Several committee members pressed ADA on program oversight, investment returns, project selection and community engagement.

Raro summarized ADA’s history and statutory basis, noting early legislative action in the 1960s (Senate Bill 153 in 1961; House Bill 14 in 1967) that led to the authority’s present mandate in AS 44.88.010. He described the authority’s current fiscal position and recent activity: ADA reported roughly $1.49 billion in net position for fiscal year 2024, made roughly $150 million to $200 million of new investments in the most recent year, and recorded what he described as the “highest statutory net income in the history of ADA” at about $65 million. The board set the 2026 dividend at $20 million.

Raro provided a breakdown of the net position, saying about $500 million of that total is loan participation program (LPP) loans; $200…