SalmonState on AIDEA CEO Alan Weitzner’s departure
The Susitna watershed, which is threatened by a proposed industrial access road on which AIDEA plans to spend $440 million of Alaskans’ money. Photo by Travis Rummel.
HOMER—SalmonState has learned that Alaska Industrial Development and Export Authority (AIDEA) CEO Alan Weitzner has resigned. This September, SalmonState released a report from long-time Alaska economists Milt Barker and Gregg Erickson showing that AIDEA’s project decisions are as much politically driven money losing gambles as they are investments. AIDEA has not only mostly failed to create jobs or wisely invest state funds, it has cost Alaskans more than $10 billion over the years.
“Our report made it clear that AIDEA continues to waste enormous amounts of our money on projects such as the proposed West Susitna Access Project and has not created nearly enough jobs to justify its enormous losses over its lifespan,” said SalmonState executive director Tim Bristol. “Funds that keep AIDEA afloat could instead be used for things Alaska truly needs: law enforcement, schools, road maintenance, or higher PFDs, not highly speculative gold projects pumped by foreign junior mining companies. Now is the perfect time for decision-makers and the public to take a close look at AIDEA, and to demand Alaskans’ money be used for the benefit of Alaskans.”
Since it funded its first project 35 years ago, AIDEA has:
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
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%.
Subsidized a large number of projects that flounder or founder
Cost the state $10 billion with its poor investment choices (If that $301 million had been invested in the Permanent Fund, the state would have $11.4 billion — $10 billion more than it does currently.)
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.
Demonstrated “fundamental flaws” such as insufficient or unattractive deal flow; overly generous subsidies; and being beholden to outside influence, which has led to its poor performance.
A one-page summary of the report is here. The 17-page executive summary is here. The full report is here. Read our September 27, 2022 press release, which includes quotes from the economists who authored the report, here.