Aidea are losers and alaskans are losing
The Alaska Industrial Development and Export Authority (AIDEA) threw away billions of dollars that belong to Alaskans and shielded themselves from any consequences. For decades, they’ve played Wall Street, gambling our money on risky projects backed by their friends at the top, then quietly falling back on state bailouts when plans go bust. All the while, hardworking Alaskans face underfunded education, deteriorating roads, defunct ferries, energy insecurity, and more.
Who are these Losers?
AIDEA was established in the 1960s as a public corporation, funded, maintained, and staffed by the State of Alaska. Their mission is to invest in and establish economic opportunities in Alaska. Instead, they’ve gambled away billions of dollars that could’ve been used to help Alaska thrive, while their governor-appointed board insulates themselves from accountability and scrutiny.
AIDEA’s 3.8% annual rate of return is well below the average 10% return for the US stock market and Alaska Permanent Fund’s historical 9.4% rate of return.
To shield themselves from the losses, they lobbied the legislature to give them more authority and less oversight.
WHAT ALASKA HAS LOST
$10B in lost revenue
since 1980
$294 M of AIDEA investments since 1987 have been written-off as “worthless”
Just 218 jobs
created from
2008 to 2023
Since 1980, AIDEA has received a net $301 million in Alaska’s public dollars. Yet, rather than benefiting everyday Alaskans, they lose out by making risky gambles to help outside corporations and well-connected friends because they’re shielded from any consequences. Project after project has gone bust, and they’ve lost billions gambling away Alaska’s money.
AIDEA’S LOSING STREAK
AIDEA poured $72 M, plus a $22 million bailout from the state, into the failed oil field project.
Source: Alaska Beacon
AIDEA poured $72 M, plus a $22 million bailout from the state, into the failed oil field project.
Source: Alaska Beacon
$150 M in public funding was given to the failed coal plant by AIDEA. No clean power was produced.
Source: GVEA
$150 M in public funding was given to the failed coal plant by AIDEA. No clean power was produced.
Source: GVEA
Built with public funds, not currently operating. $6.9 million spent for 49% acquisition from Suneel; sold to Alaska Railroad.
Source: AIDEA 2016 Annual Report
Built with public funds, not currently operating. $6.9 million spent for 49% acquisition from Suneel; sold to Alaska Railroad.
Source: AIDEA 2016 Annual Report
Large loans in excess of $363 million approved by AIDEA’s board created at most 15 new full-time Alaska resident jobs a year. 94% of these jobs would have been created anyway without AIDEA.
Large loans in excess of $363 million approved by AIDEA’s board created at most 15 new full-time Alaska resident jobs a year. 94% of these jobs would have been created anyway without AIDEA.
$39 million spent on the facility, plus an additional $65 million earmarked by the legislature. Terminal is not operating and unlikely to operate again.
$39 million spent on the facility, plus an additional $65 million earmarked by the legislature. Terminal is not operating and unlikely to operate again.
What is now ChangePoint Church off of Raspberry Road operated briefly as a fish processing plant at the expense of $23.5 million until AIDEA’s borrower went bankrupt.
Source: AIDEA meeting minutes
What is now ChangePoint Church off of Raspberry Road operated briefly as a fish processing plant at the expense of $23.5 million until AIDEA’s borrower went bankrupt.
Source: AIDEA meeting minutes
HOW ALASKANS CAN WIN
A winning Alaska means our legislators finally hold AIDEA accountable and invest in our state. If AIDEA’s $301 million in appropriated funds had been invested in the Permanent Fund, Alaska would be more than $10 billion richer.