Native corporations’ success not a thing of past

VICTORIA BARBER

December 04, 2008 at 9:12AM AKST

Despite a widespread pessimism about the economy, falling oil prices, and the loss of one of Alaska’s most powerful advocates — Sen. Ted Stevens — Sheri Burretta, president of the Association of Alaska Native Claims Settlement Act (ANCSA) Presidents and CEOs, said that the fiscal future of Native corporations was not all gloom.

“Unfortunately, some (corporations) have portfolios that are not doing too well,” said Burretta at a recent forum for the Anchorage Chamber of Commerce. “To me the answer is opportunity— lemons to lemonade. Looking for opportunity instead of being depressed about the situation.”

Burretta’s economic report of ANCSA corporations looked back to a more promising time — 2006, a year during which Burretta said Native corporations’ revenue grew by 22 percent, from about $4.4 billion to about $5.4 billion. The corporations employed 39,746 employees, with 15,467 Alaska employees receiving a payroll of about $660 million.

“The data was gathered in a detailed survey, done each year. … We’re a little behind,” said Burretta, who called ANCSA corporations an “often unrecognized economic powerhouse in the state of Alaska and Anchorage.”

Though worldwide economies have struggled to maintain stability in recent months, “do Native corporations expect growth in the coming year? Absolutely,” said Burretta. Though she didn’t give specifics as to how the growth would be achieved, she eluded to the proposed Alaska gas line.

“When thinking about a gas line, everyone looks to that for economic benefit … how we can look at potentially investing,” Burretta said. “I don’t hang my hat on the situation happening with the oil industry.”

Nevertheless, challenges are ahead for the corporations. ANCSA corporations’ claim to 8(a) status under the of the Small Business Adminstration Act, which gives preference for Alaska Native, Native Hawaiian organizations and American Indian tribal corporations in federal contracting awards, came under fire this year.

California Democrat Rep. Henry Waxman of the U.S. House, who chaired the Committee on Oversight and Government Reform, attacked Native corporations’ privileged status and tried to insert provisions in a number of bills that would either limit the size of federal contract awards or ANCSA corporation’s ability to win contracts without bidding against other firms. Burretta said that in 2006, ANCSA village and regional corporations received 47 percent of their revenues from 8(a) contracts.

That the amendments were defeated is in part due to the efforts of Stevens, Alaska’s longtime senator who was voted out of office. When asked whether she was concerned about Waxman continuing the fight to limit ANCSA privileges under 8(a), she said she’d heard that the congressman had moved to a different committee.

“Hopefully he’ll just … go away,” she said.

In a question and answer period following Burretta’s presentations, one audience member asked her what was keeping her up at night.

“People moving to Anchorage and not having the ability to be self-sufficient, because that dribbles down to the kids,” Burretta said. “Instead of waiting until these people are at their wits end, how do we help them help themselves, and prevent kids from going into foster care.”

Victoria Barber can be reached at 907-348-2424 or 800-770-9830, ext. 424.