The document provides an overview of the Southeast Conference, which promotes strong economies, healthy communities, and environmental protection in Southeast Alaska. It discusses the conference's role in advocating for key regional issues and facilitating consensus. It also summarizes the region's economy, land ownership, employment sectors, and recent economic trends. Finally, it outlines the conference's 5-year economic development plan, which prioritizes objectives like maritime workforce development, energy projects, and securing an adequate timber supply.

1. 2017 OVERVIEW OF
Southeast
Conference SOUTHEAST
CONFERENCEBEST PRACTICES TO INCORPORATE
RESILIENCE INTO THE CEDS

2. TRANSPORTATION
ENERGY
MARITIME
SEAFOOD
MINING VISITORS
TIMBER
Promoting
strong economies,
healthy communities, and
a quality environment in
Southeast Alaska.

3. About Southeast Conference
• Southeast Conference was incorporated
in 1958
• After that success, stayed together to
continue to advocate for issues that are
key to the southeast region as a whole.
• Looks for consensus for the betterment of
the region.
• Members from nearly every community,
chamber of commerce, and economic
development organization in the region.
• Support the Southeast Conference of
Mayors and the Marine Transportation
Advisory Board.
• Southeast Conference is the federally
designated Regional Economic
Development District and the State-
designated Alaska Regional
Development Organization.

4. About Southeast Alaska
• 34 Communities
• 1,000+ Islands
• 500 Miles
• 18,500 shoreline
• 10% of AK
Economy

5. Southeast Alaska Land Ownership
Circle size = Number of Acres
16%
OTHER FEDERAL
ALASKA NATIVE3.4%
2.5% STATE OF ALASKA
0.25% TOWNS
78%
0.05% PRIVATE LAND
OWNERS
TONGASS
TOTAL FEDERAL = 94%

6. Other
7%
Private Health Care
6%
Trade
6%
Seafood
10%
Visitor Industry
11%
Government
35%
Construction
6%
FinancialActivities5%
ProfessionalServices6%
Mining4%Social,Info,Timber4%
Southeast
Alaska
Employment
Earnings
44,763 Jobs
$2.2 billion

7. Yakutat
Haines
Skagway
Juneau
Gustavus
Metlakatla
Ketchikan
Sitka
Angoon
Kake
Wrangell
Petersburg
Hoonah
Tenakee
Hyder
Port Alexander
Elfin
Cove
Point Baker
Edna Bay
Port Protection
Whale Pass
Klawock
Craig
Naukati
Hydaburg Hollis
Thorne Bay
Klukwan
Pelican
Kasaan
Coffman Cove
32
YEARS
Southeast Alaska Economic History

8. 10,00020,00030,00040,00050,00060,00070,00080,000
1959 1991 2007
Changes in Southeast Alaska:
1960 to 2007
32
YEARS
16 YEARS
16 Year Recession

9. 10,00020,00030,00040,00050,00060,00070,00080,000
1959 1991 2007 2015
Changes in Southeast Alaska:
1960 to 2015
32
YEARS
16 YEARS
8 YEARS

10. 1991 2007 2015
Impact the of State Fiscal Crisis
32
YEARS
16 YEARS
8 YEARS ???

11. PLANNING
PROCESS
• EDA Driven Process
• One year
• 27 workshops and
strategic planning
meetings
• 400+ participants
• 100s of ideas for
economic initiatives

12. SWOT Analysis
1,300 hand written comments

13. People & Southeast Alaskan Spirit
Region Collaboration
Seafood Industry
Tourism Sector
Beauty & Recreation Opportunities
Natural Resources
Culture & Heritage
25 50
Strengths
Transportation Costs
Energy Costs
Overreach of Federal Government
Cost of Living & Doing Business
Our Geography & Isolation
Aging or Stagnant Population
Lack of Access to Our Lands
25 50
Seafood & Ocean
Product Development
Tourism
Energy
Mining
Promoting Region
Timber
Growing Foods/Harvesting Plants
Maritime
0 40
Opportunities
Federal Regulations
Dependence on State Budget
Capital Move & Capital Creep
Declining/Aging Population
Natural Disasters/Extreme Weather
Fisheries Declines
Climate Change
0 25 50
Threats
Weaknesses

14. Visitor Industry
Market Southeast Alaska to Attract More Visitors.
Improve Access to Public Lands.
Increase Flexibility in Terms of Permit Use.
Increase Yacht and Small Cruise Ship Visitations.
Improve Communications Infrastructure.
Advocate for Adequate Funding to Maintain Existing Recreational
Infrastructure.
Timber Industry
Provide an Adequate, Economic and Dependable Supply of Timber
from the Tongass National Forest to Regional Timber Operators.
Stabilize the Regional Timber Industry.
Work With USFS to Direct Federal Contracts Toward Locally-Owned
Businesses.
Support Small Scale Manufacturing of Wood Products in Southeast
Alaska.
Continue Old Growth Harvests Until Young Growth Supply is
Adequate.
Community-Based Workforce Development.
Update Young Growth Inventory.
Other Objectives
Housing: Support Housing Development.
Food Security: Increase Production, Accessibility, and Demand of
Local Foods.
Communications: Improved Access to Telemedicine in Southeast
Alaska.
Marketing: Market Southeast Alaska as a Region.
Solid Waste: Regional Solid Waste Disposal.
Arts: Increase Recognition of Southeast Alaska’s Thriving Arts
Economy.
Mining: Minerals & Mining Workforce Development.
Attract Research Jobs.
Research: Attract Science and Research Jobs to Southeast Alaska.
Cultural Wellness: Support Development of Activities and
Infrastructure That Promote Cultural Wellness.
Transportation
Minimize Impacts of Budget Cuts to AMHS and Develop Sustainable
Operational Model.
Road Development.
Move Freight to and from Markets More Efficiently.
Ensure the Stability of Regional Transportation Services Outside of
AMHS.
Energy
Work with Federal and State Government to Promote Regional
Energy Projects.
Diesel Displacement.
Support Community Efforts to Create Sustainable Power
Systems That Provide Affordable/Renewable Energy.
Complete Regional Hydrosite Evaluation for Southeast Alaska.
Maritime
Maritime Industrial
Support
Maritime Industrial Support Sector Talent Pipeline: Maritime
Workforce Development Plan.
Increase Access to Capital for the Regional Maritime Industrial
Support Sector.
Harbor Improvements.
Examine Arctic Exploration Opportunities That the Region
as a Whole Can Provide.
Seafood Industry
Mariculture Development.
Full Utilization and Ocean Product Development.
Increase Energy Efficiency and Reduce Energy Costs.
Regional Seafood Processing.
Seafood Markets.
Sea Otter Utilization and Sustainable Shellfish.
Maintain Stable Regulatory Regime.
Promote strong economies, healthy communities, and a quality environment in Southeast Alaska.
Southeast Alaska 5 Year Plan

15. Alaska
Mariculture
Initiative
Marine
Highway
Reform
Project
Market
Southeast
Alaska to
Visitors
Maritime
Workforce
Development
Full
Seafood
Resource
Utilization
Secure
Adequate
Timber
Supply
Diesel
Displacement
7
Priority
Objectives

16. AMHS Reform Project

17. Priority Objective
Promote Regional
Energy Projects

18. Maritime Workforce
Development Implementation

19. Full Resource Utilization &
Ocean Product
Development

20. Mariculture Development

21. Market Southeast
Alaska Visitor
Opportunities

22. Priority ObjectiveSecure an Adequate,
Economic Timber Supply

23. Other
7%
Private Health Care
6%
Trade
6%
Seafood
10%
Visitor Industry
11%
Government
35%
Construction
6%
FinancialActivities5%
ProfessionalServices6%
Mining4%Social,Info,Timber4%
Southeast
Alaska
Employment
Earnings
44,763 Jobs
$2.2 billion
DO W N $29 MI L L I O N -1%
DO W N 885 JO B S I N 2016 -2%
How are we doing?

24. Government wages =
35% of all
employment
State
14%
Local
11%
Federal8%
Government 13,000 Jobs
D O W N 4 50 JO B S I N 2016 -3%

25. 4,500
4,700
4,900
5,100
5,300
5,500
2014 2015 2016 2017
4,740
4,940
5,290
5,500
State Government Job Losses
loss of -750 (-14%)

26. 0
000
000
000
000
1977 1981 1985 1989 1993 1997 2001 2005 2009 2015 2017
Avg. Daily Volume of the Trans Alaska Pipeline System
and Inflation Adjusted Price Per Barrel, 1977-2017
0
7.5
55
2.5
10
1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
How we got here
Average Daily
Volume
Average Price per
Barrel
Oil revenues historically accounted for 90 percent of the state’s unrestricted
revenues

27. Construction Industry 2,030 Jobs
D O W N 9 0 JO B S I N 2016 -4%
$0
$200
$400
FY13 FY14 FY15 FY16 FY17
$47
$107
$183$215
$385
Capital
Appropriations in
Southeast in Millions

28. Seafood Industry 4,365 Jobs
DO W N 500 I N 2016 - 12%

29. Jobs
Board Feet
Timber Industry 315 Jobs
D O W N - 2 %
1983 to 2017

30. Fishing & Seafood
Jobs: -19%
Marine Tourism
Jobs: +13%
US Coast Guard
Jobs: +2%
Marine Transportation
Jobs: -7%
Ship Building, Repairs
Jobs: +39%
Marine Construction
Jobs: -45%
SOUTHEAST MARITIME: 6,386 Jobs -5%

31. 2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Visitor Industry 7,400 Jobs
UP 3 50 JO B S + 6%

32. 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
73,812
74,306
74,460
74,255
74,194
73,644
71,664
71,141
70,504
70,219
71,399
71,712
71,546
72,250
72,214
71,853
73,082
73,812 People Demographics
-500 people -0.7%
(AK up 2,650 0.4%)

33. How to
incorporate
resiliency
into the
CEDS?

34. Southeast Alaska Resiliency Mapping
Weatherizing for the Economic Storm

35. Economic Resiliency Mapping
What Will Southeast
Alaskans Do?

36. Economic Resiliency Mapping
Southeast Alaska Resiliency Mapping
Weatherizing for the Economic Storm

37. What will you do (or what do you think should
be done) to ensure the economic resilience of
your business/industry/community in response
to the impacts of the State budget situation?
(Provide up to 4 responses).
Southeast Alaska
Resiliency Mapping
Weatherizing for the
Economic Storm

38. www.surveymonkey.com/r/SEecon

39. Economic Resiliency Mapping
The survey was taken by more than
200 Southeast Alaska leaders. Just
under half of respondents (43%) own or
operate a business in the private sector.
Respondents from 23 Southeast Alaska
communities, representing 24
different sectors, participated in the
exercise.

40. How concerned are you?
What will Southeast Alaskans Do?
Region
Community
Industry
Business
0% 25% 50% 75% 100%
23%
24%
38%
43%
39%
35%
41%
41%
Significantly concerned Maximum concern
Rate your level of concern about how the State budget crisis will impact your:
79%
59%
62%
84%

41. Economic Resiliency Mapping
#1 Response: Reduce business costs
(private sector only)Cut Costs
Tighten the belt - look for areas to cut. Think lean. Review every expense
category. Reduce operating costs. Become more efficient. Repair vs. buy
new.
Employee Reductions or Hiring Freeze
We are preparing to drop all full-time employees to 32 hours per week, as
well as lay off 20% of employees. Decrease staffing to minimum levels. Hire
freeze. Hire part time only, no full time. May need to lay off employees.
Delay Investments
Will cut back on planned expansion. Limit capital improvements and
expansion in my business for now. Delay spending. Put off all possible
purchases.
Reevaluate Business Operations
We are evaluating programs and implementing efficiencies. Streamlining
processes. Re-evaluate business plan and growth goals. Minimizing delays and
paperwork.
Strengthen Core Functions, Reduce Services
We are closing down operations that don't generate adequate revenue.
Strengthening core departments. Spend less money on things that aren't core
to the mission of my company. Keep pushing to keep customers happy.
Financial Savings
Hunker down and build savings to survive looming recession. We are
conserving financial resources in anticipation of additional cuts to funding. I
assume my taxes will go up so I will plan to save money for that purpose.

42. Economic Resiliency Mapping
Second Top Response: Increase economic
development & planning
Economic Planning and Analysis
Don't panic, plan. Just because the State can not figure out how to plan, it does not prevent us from planning for the
coming changes. This problem needs to be analyzed with a long-term view in mind. Step up the economic development
support to the local organizations. Strategic planning to ensure sustainability. Support economic development initiatives
locally, regionally and statewide. We need to focus on economic development. Work on Southeast Alaska economic plan.
Collaborate
Co-location with similar or compatible industry. Sharing resources with other entities. Greater collaboration and search for
efficiencies. More cooperation for collaboration from organizations on programs. Work with local groups like Chamber and
Southeast Conference to come up with ideas to work together. Work with other entities in town so projects will continue
and costs are shared.
Support Local Businesses
Support local businesses whenever possible. Encourage private sector development while public sector is depressed.
Invest in self-sufficient businesses. Support community efforts to grow business. We need to grow our economy by
supporting local employers and businesses in our community!

43. Economic Resiliency Mapping
Third Top Response:
Reduce government spending & services
Budget Cuts
Become more proactive in reigning in
the growth of government and
governmental regulation. Cut state
spending across the board. Responsible
budget cuts. Spend less in the
community.
Reduce Services
Limit government services in order to
maintain financial sustainability.
Community will cut back on services to
residents. Reduce state transportation
subsidy and services.
Be Frugal
Be Frugal. Purchase at the lowest price
for items and supplies - even if it means
we aren't buying local (which we have
always tried to do in the past). The
borough needs to consider ways to
streamline the services the local
government provides: outsource more,
sell nonessential facilities, shore up
support for critical services, and
prioritize the other services. Tighten our
belts.
Reduce Staff, Delay
Infrastructure Investments,
Reduce Debt
The administration should consider
reducing the full-time work schedule to
37.5 per week. Put a hold on new
infrastructure projects that are not a
priority.

44. Economic Resiliency Mapping
Fourth Top
Response:
Increase
Taxes
Income Tax
Oil Tax Change
Industry Tax
Property Tax
Sales Tax
0 5 10 15 20 25
Tax Increase Needed
Income Tax
Urge all to support a statewide income tax. The state needs to generate revenue through taxation. Require income tax a
priority in the state revenue equation and contingent upon utilizing any portion of the Alaska Permanent Fund. I believe
the State needs to implement tax increases such as an income tax to generate sufficient revenue without cutting state
services significantly. A personal income tax should be considered.
Oil Tax Change
Increase oil company taxes and cut unnecessary government spending. Require oil and gas taxation concurrent with any
taxes from Alaskan contribution to the state revenue equation and utilize the Alaska Permanent Fund. Review oil
contracts. The state needs to responsibly manage its oil industry and stop giving companies huge tax breaks. Fairly tax
the legacy oil industry but don’t drive them out.
Industry Taxes
Small increases to industry taxes - Alaska tax rates are among the lowest in U.S. Seek new revenue streams (taxes) with
an emphasis on trying to generate revenue from outside the community.
Other Taxes

45. Economic Resiliency Mapping
5. Maintain Ferry Services
Continue requesting adequate ferry service for
our remote community.
6. Increased Communication with
Government Officials
Support legislators as they make tough
decisions on how to balance the budget.
7. Restructure PFD to meet fiscal
needs
Restructure the PFD to pay for critical services,
like education. Legislator need to look at all
proposed plans to use the permanent fund
earnings to bridge the fiscal gap.
8. Diversify Economy
State should look to revenue sources outside
oil and gas.
Focus economic development efforts on non-
governmental activities that diversify the local
economy while providing the firm fiscal
foundation the community needs to feel
secure.
9. Make Region More Attractive
Keep attracting outside investment to create
jobs and build responsible projects.
10. Natural Resource Development
Strengthen resource development
opportunities.
11. Focus on Tourism
Increase visitor attendance and understanding
of our unique offerings.
12. Invest in Education
At a minimum, the state needs to remain
committed to educating its youth.
13. Build Roads
Connect more communities via roads if
possible.
14. Increase Non-Federal Land
Holdings
Move more land to private ownership.

46. Annual Business Confidence
“What is the economic outlook for your business or
industry over the next year
(compared to the previous year)?”
Worse
14%
Same
51%
Much Better
5%
Better
27%
62%
32%

47. Annual Private Investment Survey
Energy
Seafood, Commercial Fishing
Mining
Visitor or Tourism Industry
Health Care (includes senior services)
Maritime Industrial
Food/Beverage Industry
Finance/Accounting/Insurance/Real Estate/Legal
Timber and Forest products industry
Other Non profit
Tribal Government
Retail / Wholesale Trade
Professional & Business Services / Consultant
Alaska Native entity
Mariculture
Construction / Architecture / Engineering
Transportation (non tourism)
Arts
Communications / Information Technology
Other
0% 1000000000% 2000000000% 3000000000% 4000000000%
$770,000
$40,000
$65,000
$75,000
$102,500
$300,000
$300,000
$390,000
$1,177,500
$3,000,000
$3,002,500
$3,042,500
$3,320,000
$3,810,000
$4,000,000
$9,025,000
$13,405,000
$25,302,500
$33,847,500
$37,800,000

48. Annual Business Confidence
Skagway
Haines
Ketchikan
0% 25% 50% 75%
Better
Much Better
Sitka
Prince of Wales
Juneau
0% 25% 50% 75%
Worse
Much Worse
Financial Activities/
Real Estate
Visitor Industry
Professional Services
Mining
0% 15% 30% 45% 60%
Better
Much Better
Timber
Construction/Architecture
Engineering
Arts
Retail/Wholsale
0% 15% 30% 45% 60%
Worse
Much Worse
What is the economic outlook for your business or industry?
By Industry By Community

49. Thank You
SOUTHEAST
CONFERENCE