Juneau -- The Alaska Senate Tuesday passed House Bill 40 which combines two existing State departments, Commerce and Economic Development, and Community and Regional Affairs, into a new Department of Community and Economic Development.

"House Bill 40 brings significant savings and efficiencies by reengineering our government, eliminating one commissioner's office with its attendant bureaucracy, and enhancing and streamlining services, particularly to rural Alaska," said Representative Vic Kohring (R-Wasilla/Peters Creek), sponsor of HB 40. "While the missions of the two existing departments are similar - to promote economic development of Alaskan communities - two separate management structures and goals result in a scattered development strategy. A unified development vision and funding resources under one department will better serve both rural communities and the State at large."

The Departments of Commerce and Economic Development and Community and Regional Affairs both have non-development and non-commerce related functions, such as job training and child care programs. Such programs will be moved to the renamed Department of Labor and Workforce Development and the Department of Education and Childhood Development.

"Under their new departments, these important programs can be integrated with existing programs to provide better service to Alaskans," Kohring said. "Thus, this reorganization frees the Department of Community and Economic Development to focus on its main mission: economic development activities throughout Alaska.

"It is becoming increasingly apparent that now is the time for us to look deeper to find the cost savings and efficiencies that low oil prices and declining oil production have made necessary," said Kohring. "At the same time, the efficiencies inherent in this new structure will ensure that government assistance continues, that infrastructure planning is enhanced, and that the State's economic development strategy and project funding is centralized."

HB 40 passed 14-6. The bill will be reconsidered and then returned to the House for concurrence with Senate changes.

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