2014 Spring Alaska Native Magazine Section 1

Spring 2014 - 12th Edition

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“A place where thinking and working together would happen” The Troth Yeddha’ Legacy celebrates Alaska’s first peoples by dedicating a prominent space on the Fairbanks campus that will: • Host a park and indigenous studies center designed to honor Alaska Native peoples. • Establish a new level of academic focus on Alaska Native cultures and indigenous studies, building on UAF’s decades of work in these fields. • Provide a welcoming place and a physical sense of belonging for Alaska Native students, leaving a legacy for generations to come.

Honor. Vision. Legacy.

“Our people used to come to this hill to pick troth. They would paddle up the creek, Troth Yeddha’ No’, and camp by the lake, Troth Yeddha’ Mene’. Troth Yeddha’ was an important meeting place. The grandfathers used to come to talk and advise one another. When they learned this place would be used for a school, the university, they came here one last time. They decided that the school would be good and would carry on a similar traditional use of the hill. The hill would continue being a place where thinking and working together would happen.”

Chief Peter John of Minto, 1994 Rural Student Summit, UAF

To learn more about how you help or to make a gift, please contact: Drena McIntyre, consultant/advisor, Troth Yeddha’ Legacy, UAF College of Rural and Community Development, dmmcintyre@alaska.edu, 907-347-1534 Becky Lindsey, lead major gift officer, UAF Development, becky.lindsey@alaska.edu, 907-474-5535

Naturally Inspiring The University of Alaska Fairbanks is accredited by the Northwest Commission on Colleges and Universities. UAF is an affirmative action/equal opportunity employer and educational institution. UAF photos by Todd Paris and JR Ancheta. Produced by Marketing and Communications. 04/2014

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Youth Leadership and Making Smart Choices

by Teri Mahaney, PhD Founder, Heal Bullying Project

Recently, I established Heal Bullying, a non profit to help targets of bullying. My intention is for it to become a social movement youth to youth - with youth being the leaders. So I started reviewing youth leadership programs, looking for ideas. Most of the research is about sports programs. For instance, a youth who plays sports is 25% more likely to run for political office, which means they are more confident and competitive. But does that mean they can lead -- vision, problem solve, communicate, motivate? Many of the other programs focus on self esteem. I was surprised that very few youth leadership programs have skill based training. With this in mind, I reviewed the leadership courses I have designed and taught to managers in organizations ranging from the Department of Defense to the Girl Scouts (and am currently teaching at the National University graduate school of business). One skill / course stands out above all the rest, as a favorite of mine and my students.

It is PROACT, a decision making model.

The PROACT model can be used at any level of complexity - from asking yourself “Is it time to change jobs?” to a large company asking itself “Should we outsource our human resources?” I’ve had high school seniors use it to choose the best college, and I’ve had US Navy personnel use it to make hard resource allocation decisions. The first three elements of this model are the same as many other decision making models. But PROACT has two added elements that assure a better decision /solution to a problem. I LOVE teaching and using this model! The term PrOACT is an acronym of the five core elements of the decision model. • Problem • Objectives • Alternatives • Consequences • Tradeoffs Problem: The way a problem is defined determines the possible solutions for the problem. It’s not helpful to solve the wrong problem very efficiently. For instance, when my grandson, Tyler, was relentlessly bullied, I needed to define the problem. I started out defining it as “his problem,” and coached him to change his behavior -- be more assertive, report it to an adult, etc. He did all this, and the bullying got worse. I had committed the most common error in decision making: I had solved the wrong problem. The problem wasn’t his behavior: it was the school’s culture of bullying and the administrator’s ineffective handling of it. For instance, when Tyler reported one extreme incident of bullying to the Vice Principle, she criticized him for taking so long to tell her, called and asked me why I didn’t teach him to avoid those situations, and as far as we know, never confronted the bullies. So I re-defined the problem, and by then, I had two of them: (1) the negative impact on Tyler from being bullied, and (2) the school’s “culture” that supported bullying. After you define the problem(s), you ask yourself what you want to accomplish -- what your objectives are. Objectives: With my two problems defined, I moved to setting objectives. My first priority was Tyler, and my objectives were to help him heal from the negative effects of bullying, and to protect him from further bullying. My second priority was to protect other students from being bullied like Tyler was, and my objective was to change the school culture to do that. Once you set your objectives, you ask yourself how you are going to achieve them? You brainstorm different alternatives. Alternatives: If you don’t create alternatives, you’re not really making a decision: you’re just taking action. And the more alternatives you can dream up, the better chance you have at making a good decision and getting a good solution to the problem. THINK BIG for this. I often ask friends to brainstorm with me, especially my more creative friends who come up with ideas that help me think bigger. And I take time out as I go along, so more ideas can bubble up. Some of my alternatives for Tyler’s healing were to have him (1) enter into a mediation program with the bullies (2) talk to a counselor, and (3) listen to a Change Your Mind SuperSleep® healing CD. My alternatives to protect him from further bullying were to (1) transfer him to another school, and (2) take martial arts training. Photo: Earth seen from Apollo 17

Some of my alternatives for changing the school culture to protect other students were to (1) meet with the principal, (2) meet with the district personnel / Board of Supervisors, (3) meet with the PTA, (4) go to the press, (5) sue the school (most of my colleagues suggested this), (6) offer my training at no charge (7) write a management analysis of the school culture and show how it supports bullying rather than stops it (two of their students had committed suicide). These first three elements of the PROACT model -- define the problem, set the objectives, and create the alternatives -- are in most other decision making models. Two additional elements make PROACT much more effective than other models, however. They are consequences and trade-offs.

Teri Mahaney with Tyler

Consequences: Once you've come up with your alternatives, you think about the consequences for each of them. I have my students create a simple consequences table which lays out: if I do this, the consequence could be this. And we go over possible unintended consequences - the things we would never have guessed might happen. For instance, Henry Ford never thought his Model A might lead to wars over oil rich countries / areas. That’s an unintended consequence.

Below are consequences tables for my objectives for Tyler.

OBJECTIVE:

Help Tyler heal from the negative effects of bullying.

ALTERNATIVE

CONSEQUENCE

enter into a mediation program with bullies

the school wouldn't cooperate

attend counseling

could be helpful; not guaranteed; could be costly; requires transport to and from

listen to a Change Your Mind SuperSleep® CDs or MP3

guaranteed healing based on past experience with Change Your Mind SuperSleep® CDs

OBJECTIVE:

Protect Tyler from further bullying.

ALTERNATIVE

CONSEQUENCE

change the school culture

takes up to 2 years; depends on district commitment to changes; depends on existing personnel wanting to change or new personnel having the skills

transfer schools

very difficult to get district approval; other bullied students were denied transfer; Tyler can walk to and from this school: I would have to drive him to and from another school

take martial arts training

could improve his feeling of safety; costly, requires transportation to and from; unintended consequence: he might be overconfident and fight

Tradeoffs: What do I trade with each of these, meaning what do I “lose” to ”gain” something, and is it worth it to me? This is when values and priorities are considered, which we cover while we are learning the objectives part of the model. My tradeoffs for Tyler’s healing were: I wasn’t willing to wait two years for the school culture to change, so I felt I had to transfer him. My tradeoffs for helping him be protected were: I wasn’t willing to risk his thinking he could take on bullies and fight them, so I didn’t enroll him in martial arts.

4 Table of Contents

Table of Contents Articles 2 - Youth Leadership and Making Smart Choices. by Teri Mahaney PhD. 6 - ANCSA - Regional Assn. Economic Report 2009-2012

Directory & Resources 14 - Alaska Native Regions 20 - Alaska SBA 8A Firms 21 - US Congressional Delegation 24 - Federally Recognized Tribes - Alaska 26 - Federally Recognized Tribes - Lower 48 29 - Fairbanks - Bus Map 30 - Anchorage - Bus Map 31 - Category Index 32 - Yellow Pages A-Z

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MESSAGE FROM THE PUBLISHER

Thanks for using our publication. In this edition we continue with the Heal Bullying series and Teri's progress with a real solution to the bullying epidemic. If you know a parent whos child has been bullied please tell them about www.HealBullying.com for a solution. Thanks also to the ANCSA Regional Association who has allowed us to publish their 2009-2012 Economic Report. This is an excellent report written by Bob Poe worth reading more than once. Great job to our sales team, Rico, Taj, Michael, Romenette, Dianna, Fraix and Harvie at our call center who work tirelessly to keep your listings up-to-date and make sure your orders are perfect. Our heartfelt thanks to our clients and advertisers who make this publication possible. Please let them know you found them here.

Warmest regards, Jim Cocallas, Publisher

P.S. To find out how to contribute to Heal Bullying please call me at 907-830-8198

12Credits: Cover Photo - Carl Donohue of Skolai Images,

Authors: Teri Mahaney and Bob Poe Printing: Journal Graphics

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Youth Leadership - Heal Bullying 5

Youth Leadership and Making Smart Choices I followed through with the other alternatives: he talked to a counselor weekly during the summer: he transferred to a new school: and I made a healing CD for him, using my Change Your Mind SuperSleep® program. These worked well, and he appears to be free of the issues around being bullied: his self esteem is better than before: his grades are up: he has settled into his new school well. His new school is very pro-active about preventing bullying, and they watch out for Tyler. I volunteer as a Parent on Campus to help. Here is a consequences table for my objective to change the school culture to protect other students. OBJECTIVE:

Change the school culture to protect other students

ALTERNATIVE

CONSEQUENCE

meet with the principal

could be helpful: not guaranteed

meet with the district/Board of Supervisors

could be helpful: not guaranteed

meet with the PTA

could be helpful: not guaranteed

go to the press

could be helpful: not guaranteed; Tyler embarrassed; lots of drama and agner / resentment

bring a lawsuit against the school

offer my management training at no charge

could be helpful: not guaranteed; takes 2+ years; takes money or free attorney; could get class action suit; years of drama and negativity; Tyler embarrassed school personnel could resent me and not participate in change; takes weeks of preparation

write a management analysis could be helpful; not guaranteed; of the culture that supports could provide a working model for bulling change for the school district; no drama / embarrassment; takes 2-3 weeks of my time My tradeoffs for changing the school culture were: bringing a lawsuit against the school had too many negatives for no immediate or certain results; going to the press had too many negatives for no immediate or certain results: offering a training course for free had too many negatives for no immediate or certain results. So I took action on the other alternatives. My meeting with the principal brought no changes: my meeting with a board member ended with her telling me the Principal needed more support: my meeting with the district level student services administrator ended with a warning I was going “to piss off important people and I would learn it was a very small town:” my meeting with the PTA president revealed one of the students who committed suicide was her housekeeper’s daughter - a straight A student - yet she had no interest in getting involved.

Continued from page 3

The remaining alternative was to write a management analysis. I wrote the analysis - 38 pages - and delivered 9 copies throughout the school and district office. There was no response. I waited until summer break so there couldn’t be any retaliation against Tyler. Then I set up a public comment at the Board of Supervisors meeting and started the rumor I was going to the press. Immediately, the Superintendent called me and got involved to smooth things over. Tyler’s transfer was approved: his old school has a new principal, vice principal, and counselor who works closely with the students with “issues.” While this problem solving story has a happy ending, it still has lessons and unintended consequences. As I told the Superintendent, my lesson from this is that I will never again wait that long “to get in everybody’s face.” Being an advocate for change for our youth in this system seems to require force. My unintended consequences keep coming. The first one was to create the non profit, Heal Bullying, to help other targets of bullying heal their hurts and gain new confidence and skills. The website, www.healbullying.org, has 6 FREE MP3s to do that:

(1) I Stand Up to Bullying

(2) I’m Over the Hurt

(3) I’m Smart About Social Media

(4) I Feel Good About Myself

(5) I Get Along at School

(6) I Hang Out With the Right Kids.

My second unintended consequence was to create a youth leadership class using this PROACT model, redesigning it to be relevant to the issues of today’s youth. I’m starting by designing and teaching a class for MANA, a youth leadership mentor program for hispanic girls. I want to create culturally sensitive materials for other groups as well, so our youth are served with the highest quality leadership training we can provide. They are facing challenging times, and making smart choices will be an important skill. I want to support that!

Teri Mahaney, PhD lived in Alaska for more than ten years. She is the worlds leading expert on theta brain research and healing. She lives in Carlsbad California with Tyler. Teri's sites: www. HelenasHope.com | www.ChangeYourMind.com | www.TeriMahaney. com Please visit www.HealBullying.org to learn more and help your child, nephew, niece, grandson or granddaughter or a friend who has been bullied and needs healing.

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FROM ANCSA REGIONAL ASSOCIATION ANCSA Regional Association - Economic Report 2009-2012 6MESSAGE laskaâ&#x20AC;&#x2122;s Native Corporations are unique inscholarships. the world. DYHUDJHG QHDUO\ SHUFHQW RI QHW LQFRPH Ă&#x201C; DW D WLPH ZKHQ ANCSA - Regional Corporations In the last two years this has averaged nearly 75

Signed into law by President Nixon on December 18,

the average American company dividend payout rate is

percent of net income â&#x20AC;&#x201C; at a time when the average American "as unique as the people we1971, represent." the Alaska Native Land Claims Settlement Act (ANC- 32 percent. Between 2009 and 2012, ANCSA Regional

company dividend payout rate is 32 percent. Between 2009 SA) is arguably the most successful aboriginal land claims set- Corporations paid out a total of $678.4 million in dividends Regional Corporations paid out a total of Alaska's Regional Corporations their shareholders. tlement anywhere. In 1971, Alaska Native peopleand faced2012, some toANCSA ANCSA Corporations are unique from other of the harshest living conditions and lowest economic status inmillion $678.4 in Regional dividends to their shareholders. Ahtna, Incorporated U.S. companies. We are majority owned by Alaska Native the United States. ANCSA Regional Corporations are unique from other AleutThe Corporation people. Our companies truly manage to a triple bottom line Act created 12 Alaska-based Regional Corporations U.S. companies. We are majority owned by Alaska Native Ă&#x201C; Ă&#x;QDQFLDO VRFLDO FXOWXUDO DQG HQYLURQPHQWDO 2I FRXUVH RXU and over 200 Village Corporations, which celebrated their Arctic Slope Regional Corporation FRPSDQLHV PXVW EH Ă&#x;QDQFLDOO\ VWURQJ HQRXJK WR SD\ VLJQLĂ&#x;FDQW people. companies truly manage to a triple bottom line â&#x20AC;&#x201C; 40th anniversary in 2011. Our report limits its scope to the Our Bering Straits Native Corporation dividends and to grow in ways thatenvironmental. provide jobs and growth Of course our performance of the 12 Regional Corporations who represent financial, social/cultural, and to our shareholders and descendants. But we more than shareholders, the majority of whom are Bristol Bay100,000 Native Corporation companiesopportunities must be financially strong enough to pay signifialso maintain a deeply held commitment to the social and Alaska Native people. Calista Corporation cant and line, to grow in ways that payout provide jobs and cultural bottom as evidenced by the dividend This yearâ&#x20AC;&#x2122;s economic report actually represents four dividends growth opportunities to our shareholders and descendants. Chugach Alaska Corporation UDWLRV GLVFXVVHG DERYH DQG RXU FRQWLQXHG Ă&#x;QDQFLDO VXSSRUW IRU \HDUV RI Ă&#x;QDQFLDO GDWD Ă&#x201C; DQG ,W LV D scholarships and social/cultural programs. report of how Alaskaâ&#x20AC;&#x2122;s Incorporated Regional Corporations weathered ouralso But we maintain a deeply held commitment to the social Cook Inlet Region, Regional line, Corporations are also some ofby the the largestdividend payout countryâ&#x20AC;&#x2122;s great recession. While the impact of theand recession, culturalOur bottom as evidenced Doyon, Limited landowners in the world today, but our undeveloped land combined with misguided political pressure on Native 8(a) ratios discussed above and our continued financial support LV QRW FDUULHG RQ RXU EDODQFH VKHHWV DV D ORQJ WHUP Ă&#x;QDQFLDO contracting, placed a great deal of economic stress on our Koniag, Incorporated for scholarships and social/cultural programs. DVVHW EHFDXVH WKH ODQG UHSUHVHQWV WR XV ZKR ZH DUH Ă&#x201C; RXU FRUSRUDWLRQV DV D ZKROH WKURXJK FRQWLQXHG GLYHUVLĂ&#x;FDWLRQ NANA Regional Corporation environmental bottom line. It represents our DQG D JUHDW GHDO RI KDUG ZRUN ZH ZHUH DEOH WR VWD\ SURĂ&#x;WDEOH Our Regional Corporations areculture, alsoour some of the largsubsistence way of life, and a tremendous potential for throughout this period. Sealaska Corporation est landowners in the world today, but our undeveloped land Jason Metrokin Kim Reitmeier future resource development and shareholder/descendant In fact, between 2009 and 2012, gross revenues for Published with permission from the is from not carried on our balance sheets as a long-term financial Board Chair President job creation. ANCSA Regional Corporations grew by 22 percent ANCSA Regional Association thegrown land us who we are â&#x20AC;&#x201C; our We have ourrepresents companies with ato multigenerational $7.34 billion in 2009 to $8.97 billion in 2012. Andasset while netbecause ANCSA Regional Association perspective. Over theline. years, through a long-term investment income was negatively affected by the recession, environmental our average bottom It represents our culture, our subin scholarships, haveaworked hard to build capacity SURĂ&#x;W PDUJLQV UDQJHG IURP SHUFHQW LQ WR D ORZHU EXW Alaskaâ&#x20AC;&#x2122;s Native Corporations are unique in the world. sistence way of life, we and tremendous potential for future rewithin our people. In fact, several of our companies today Jason Metrokin Kim Reitmeier Nixon VWLOO SURĂ&#x;WDEOH PDUJLQ LQ RI SHUFHQW $YHUDJH UHYHQXH Signed into law by President on December 18, 1971, the source development and shareholder/descendant job creation. BOARD CHAIR are run by Alaska Native shareholders who were either very for the four-year period was $8.6 billion, and our average Alaska Native LandPRESIDENT Claims Settlement Act (ANCSA) is arguyoung or werenâ&#x20AC;&#x2122;t even born the time ANCSAwith was signed SURĂ&#x;W PDUJLQ DFURVV WKH IRXU \HDUV UHSRUWHG ZDV SHUFHQW We have grown ouratcompanies a multigeneraably the most successful aboriginal land into law. And the investment have made in scholarships Key toclaims our successsettlement has been the conservativetional way our perspective. Over the we years, through a long-term investanywhere. In 1971, Alaska Native people faced some of the has yielded a strong base of Alaska Native professionals FRPSDQLHV DUH PDQDJHG RXU GLYHUVLĂ&#x;HG KROGLQJV DQG RXU ment in scholarships, we have worked hard to build capacity working in all industries in Alaska and beyond. deepeconomic commitment tostatus directly delivering harshest living conditions and lowest in thethese successes to within our people. In fact, several of our companies today are ANCSA Regional Corporations, as unique as the people our shareholders. In fact, over the last four years Alaska United States. run by Alaska Native we represent. Q shareholders who were either very young Native Regional Corporations have committed an average The Act created 12 Alaska-based Regional Corporaof 62.4 percent of net income to dividends, social/cultural or werenâ&#x20AC;&#x2122;t even born at the time ANCSA was signed into law. programs,which and scholarships. In the last two years this has tions and over 200 Village Corporations, celebrated And the investment we have made in scholarships has yielded their 40th anniversary in 2011. Our report limits its scope to a strong base of Alaska Native professionals working in all the performance of the 12 Regional Corporations who repreindustries in Alaska and beyond. sent more than 100,000 shareholders, the majority of whom are Alaska Native people. 2 This yearâ&#x20AC;&#x2122;s economic report actually represents four ANCSA: What it is, What it isn't. years of financial data â&#x20AC;&#x201C; 2009, 2010, 2011 and 2012. It is a report of how Alaskaâ&#x20AC;&#x2122;s Regional Corporations weathered our countryâ&#x20AC;&#x2122;s great recession. While the impact of the recession, The Alaska Native Land Claims Settlement Act was combined with misguided political pressure on Native 8(a) a settlement of bonafide land claims stemming back to our contracting, placed a great deal of economic stress on our first contact with Western cultures. In the settlement, Alaska corporations, as a whole, through continued diversification Native people received 44 million acres of land in Alaska (12 and a great deal of hard work we were able to stay profitable percent of the stateâ&#x20AC;&#x2122;s land mass) and $962 million, paid over throughout this period. In fact, between 2009 and 2012, gross 10 years, as payment for land that could not be conveyed in revenues for ANCSA Regional Corporations grew by 22 percent the settlement as well as accrued mineral extraction royalties. from $7.34 billion in 2009 to $8.97 billion in 2012. And while Since ANCSA was signed more than 40 years ago, net income was negatively affected by the recession, our average profit margins ranged from 5.4 percent in 2009 to a lower, there has been considerable confusion about what ANCSA, and the companies it created, was intended to accomplish. but still profitable, margin in 2012 of 3 percent. Average revenue for the four-year period was $8.6 billion, and our average Many have asserted that after the settlement all responsibility for the social ills of Alaska Native people fell on the Corporaprofit margin across the four years reported was 4 percent. tions to resolve. But in fact, ANCSA was a land claims settle Key to our success has been the conservative way our ment along similar lines to the 110 million acres conveyed to companies are managed, our diversified holdings, and our the State of Alaska as part of statehood. Unfortunately, this deep commitment to directly delivering these successes to our misunderstanding continues. shareholders. In fact, over the last four years Alaska Native Throughout the four years reported here, ANCSA ReRegional Corporations have committed an average of 62.4 per- gional Corporations paid a total of $678.4 million in dividends cent of net income to dividends, social/cultural programs, and

Visit: www.CBG U SA.c o mNative fo r AlBusiness aska + H w a i i D a ta â&#x20AC;˘ F i nd ÂŠ& 2010 E dit CBG YourUSA, B us iInc. nesâ&#x20AC;˘swww.alaskanativeyellowpages.net â&#x20AC;˘ Wat c h f or our new brand goM obileP age s Alaska &aResource Directory

Financial Results 7 to our shareholders. In fact, ANCSA Regional Corporations, not counting the 176 currently operating Village Corporations, have done considerably better for our shareholders than a sovereign wealth fund would have. Assuming a 5 percent interest rate, the original cash infusion from the first 10 years of ANCSA – $962 million paid out over the first 10 years after the passage of ANCSA – had a present value of $742.8 million. If the original cash infusion from the ANCSA settlement had been invested at the same 5 percent rate for the entire time ANCSA Corporations have been in existence, 42 years, it would be worth $5.8 billion. When compared with the total asset balance for ANCSA Regional Corporations of $6.43 billion, Alaska Native Regional Corporation shareholders are $630 million ahead – and that doesn’t even include Village Corporation assets. We are delivering very real economic benefit to Alaska Native people, but our successes in no way absolve the federal government from its responsibility for all U.S. citizens, people.

ALASKA IS MOVING IN THE

RIGHT DIRECTION

ConocoPhillips is working on three new development projects on the North Slope that represent about $2 billion of investment. These projects will boost production significantly by 2018 to help offset the production decline through TAPS, and will employ hundreds of workers during construction. In addition, we have added two rigs to the Kuparuk fleet. These rigs are already adding production and providing several hundred new jobs for Alaska. That’s what we call moving in the right direction.

including Alaska Native

Financial Results 2009-2012 In 2013, as America began to slowly emerge from the recession that began in late 2007, all 12 Alaska-based ANCSA Regional Corporations emerged in solid shape. Total revenues remained strong, growing from $7.3 billion in 2009 to $8.97 billion in 2012, representing a 22 percent increase over the last four years. More importantly, ANCSA Regional Corporations maintained a positive net income, ranging from a high of 5.4 percent of revenue in 2009 to 3 percent in 2012 – an average of 4 percent. Over the last four years, net income has ranged from a high of $389.5 million in 2010 to a low of $250.8 million in 2011. In 2012 net income increased by 8 percent to $270.9 million. All 12 ANCSA Regional Corporations were among the top 49 Alaska-owned companies (Alaska is the 49th state) ranked by gross revenues, representing 56 percent of all revenue earned, 53.1 percent of the Alaska employment provided and 58.1 percent of the worldwide employment generated by Alaska’s top companies (2011 data). When top performing ANCSA Village Corporations are included in the list of ANCSA companies on Alaska Business Monthly’s Top 49ers list includes 20 Native-owned companies. Alaska’s Native Corporations represent 73.6 percent of the gross revenue reported, 62.4 percent of the Alaska jobs provided, and 83.3 percent of worldwide employment among the top 49 Alaska-owned companies.

In 2012, ANCSA Regional Corporations had total assets of $6.5 billion and asset turnover averaged 1.43, indicating a well-managed use of corporate assets. It is important to note here that ANCSA Regional Corporations, which own subsurface rights to 44 million acres of Alaska land, carry only developed land on their balance sheets. The $6.5 billion in assets therefore includes almost none of the land conveyed to ANCSA Regional Corporations in the original land claims settlement. Shareholder equity represented an average over the four-year period of 61.9 percent of total assets, indicating a prudent use of debt leverage to magnify the ability of ANCSA Regional Corporations to both earn dividends for their shareholders and build shareholder equity. From a shareholder perspective, over the four-year period covered in this report, our companies earned an average return on shareholder equity of 9.16 percent. Additionally, the managers of the ANCSA Regional Corporations maintained a solid financial position in their use of debt leverage over the four years reported – total debt ratio averaged 38.14 percent, debt-to-equity ratio averaged 61.65 percent and the equity multiplier averaged 1.62 – all measures of an appropriate mix of debt and equity. Diversification of sources of revenue has resulted in continued revenue growth. Between 2009 and 2012, the proportion of revenue stemming from 8(a) contracting with the federal government had dropped from a high of 45.67 percent of revenue in 2009 to 34.99 percent in 2012. In contrast to many Native-owned companies in the Lower 48 U.S. states, our investment portfolios do not include any gaming operations. This trend is likely to continue as our companies move to higher margin opportunities outside of the government contracting arena. (see table on page 9)

8 ANCSA Regional Association - Economic Report 2009-2012 Managing to a triple bottom line Our companies truly manage to a triple bottom line â&#x20AC;&#x201C; financial, social/cultural, and environmental. Of course our companies must be financially strong enough to pay significant dividends and to grow in ways that provide jobs and growth opportunities to our shareholders and descendants, but we also maintain a deeply held commitment to the social/ cultural and environmental bottom lines. As the Governmental Accountability Office (GAO) found, â&#x20AC;&#x153;corporations provide a wide variety of monetary and nonmonetary benefits to their shareholders and other Alaska Natives. Monetary benefits include shareholder dividends, Elder benefits, scholarships, memorial benefits, shareholdersâ&#x20AC;&#x2122; equity, and charitable donations.â&#x20AC;&#x153; We have grown our companies with a multigenerational perspective. Over the years, through a long-term investment in scholarships, we have worked hard to build capacity within our people. In fact, several of our companies are run today by Alaska Native shareholders who were either very young or werenâ&#x20AC;&#x2122;t even born at the time ANCSA was signed into law. And the investment we have made in scholarships has yielded a strong base of Alaska Native professionals working in all aspects of our organizations. Over the last four years Alaska Native Regional Corporations have paid out an average of 62.4 percent of net income to dividends, social/ cultural programs, and scholarships. In the last two years this has averaged nearly 75 percent of net income â&#x20AC;&#x201D; at a time when the average American company dividend payout rate is 32 percent. Between 2009 and 2012, ANCSA Regional Corporations paid out a total of $678.4 million in dividends to their shareholders. Our Regional Corporations are also some of the largest private landowners in the world today, but our undeveloped land is not carried on our balance sheets as a long-term financial asset because the land represents to us who we are â&#x20AC;&#x201C; our environmental bottom line. It represents our culture, our subsistence way of life, and a tremendous potential for future resource development and shareholder/descendant job MANAGING TO A TRIPLE BOTTOM LINE creation.

XU FRPSDQLHV WUXO\ PDQDJH WR D WULSOH ERWWRP OLQH Ă&#x201C; Ă&#x;QDQFLDO VRFLDO FXOWXUDO DQG HQYLURQPHQWDO 2I FRXUVH RXU FRPSDQLHV PXVW EH Ă&#x;QDQFLDOO\ VWURQJ HQRXJK WR SD\ VLJQLĂ&#x;FDQW GLYLGHQGV DQG WR JURZ LQ ZD\V WKDW SURYLGH jobs and growth opportunities to our shareholders and descendants, but we also maintain a deeply held commitment to the social/cultural and environmental bottom lines. $V WKH *RYHUQPHQWDO $FFRXQWDELOLW\ 2IĂ&#x;FH *$2 found, â&#x20AC;&#x153;corporations provide a wide variety of monetary DQG QRQPRQHWDU\ EHQHĂ&#x;WV WR WKHLU VKDUHKROGHUV DQG RWKHU $ODVND 1DWLYHV 0RQHWDU\ EHQHĂ&#x;WV LQFOXGH VKDUHKROGHU GLYLGHQGV (OGHU EHQHĂ&#x;WV VFKRODUVKLSV PHPRULDO EHQHĂ&#x;WV shareholdersâ&#x20AC;&#x2122; equity, and charitable donations. â&#x20AC;&#x153; We have grown our companies with a multigenerational perspective. Over the years, through a long-term investment in scholarships, we have worked hard to build capacity within our people. In fact, several of our companies are run today by Alaska Native shareholders who were either very young or werenâ&#x20AC;&#x2122;t even born at the time ANCSA was signed into law. And the investment we have made in scholarships has yielded a strong base of Alaska Native professionals working in all aspects of our organizations. Over the last four years Alaska Native Regional Corporations have paid out an average of 62.4 percent of net income to dividends, social/cultural programs, and scholarVKLSV ,Q WKH ODVW WZR \HDUV WKLV KDV DYHUDJHG QHDUO\ SHUcent of net income â&#x20AC;&#x201D; at a time when the average American company dividend payout rate is 32 percent. Between 2009 and 2012, ANCSA Regional Corporations paid out a total of $678.4 million in dividends to their shareholders. Our Regional Corporations are also some of the largest private landowners in the world today, but our undeveloped land is not carried on our balance sheets as a ORQJ WHUP Ă&#x;QDQFLDO DVVHW EHFDXVH WKH ODQG UHSUHVHQWV WR XV ZKR ZH DUH Ă&#x201C; RXU HQYLURQPHQWDO ERWWRP OLQH ,W UHSUHVHQWV our culture, our subsistence way of life, and a tremendous potential for future resource development and shareholder/ descendant job creation.

Alaska's Economic Engine In many ways the Alaska Native Claims Settlement Act and the corporations created under the law are Alaskaâ&#x20AC;&#x2122;s best kept secret. ANCSA has resulted in the establishment of many of Alaskaâ&#x20AC;&#x2122;s largest Alaska-owned companies. All 12 ANCSA Regional Corporations were among the top 49 Alaska-owned companies (Alaska is the 49th state) ranked by gross revenues, representing 56 percent of all revenue earned, 53.1 percent of the Alaska employment provided and 58.1 percent of the worldwide employment generated by Alaskaâ&#x20AC;&#x2122;s top companies (2011 data). When top performing ANCSA Village Corporations are included, the list of ANCSA companies on Alaska Business Monthlyâ&#x20AC;&#x2122;s Top 49ers list includes 20 Native-owned companies. Alaskaâ&#x20AC;&#x2122;s Native Corporations represent 73.6 percent of the gross revenue reported, 62.4 percent of the Alaska jobs provided, and 83.3 percent of world-wide employment among the top 49 Alaska-owned companies. Not only is the success of Alaska Native Corporations critical to the future of Alaska Native people, we are critical to the economic success of Alaska. For most of the stateâ&#x20AC;&#x2122;s history, state and local officials have worked to attract companies from outside of Alaska to locate here â&#x20AC;&#x201D; with little success. Alaska is our home. We care very much about the stateâ&#x20AC;&#x2122;s future. Alaska Native people have built a substantial base of companies headquartered in Alaska. We have a deep commitment to hiring and developing our shareholders and their descendants â&#x20AC;&#x201D; most of whom live in Alaska. Still, not all of our employees are Alaska Native. Along with creating jobs for our shareholders and descendents, we are committed to creating jobs in Alaska for all Alaskans. And we employ thousands of Americans in virtually every state.

ANC's net income has ranged from a high of $389.5million in 2010 to a low of $250.8 million in 2011. In 2012 net income increased by 8 percent to $270.9 million.

Net Income

Net Income paid out in Dividends, Scholarships & Nonprofit Contributions

(in thousands)

400,000

(in thousands)

350,000 300,000 39.86%

250,000 200,000 150,000

52.28%

60.14%

47.72%

24.32%

26.82%

75.68%

73.18%

100,000 50,000 0

2009

2010

2011

2012

2011 Donations to non-Native Charities Donations to Native nonprofit efforts Total Scholarship Funds Awarded Total Dividends Paid to Shareholders

We have grown our companies with a multigenerational perspective.

2012

Economic Parity: Improving The Lives of Alaska Natives 9 ANCSA REGIONAL CORPORATION FINANCIAL ANALYSIS 2009-2012 2009 - 2012 Financial Analysis

Total Revenue 8(a) Contract Revenue 8(a) Revenue as Percent of Total Revenue Total Net Income 4VS½X 1EVKMR

2009

Percent Change from 2009-2010

2010

Percent Change from 2010-2011

2011

Percent Change from 2011-2012

2012

Averages 2009 - 2012

$ $

7,232,098,186 3,303,111,410

15.85% 8.68%

$ 8,378,568,884 $ 3,589,981,081

0.92% -15.86%

$ 8,455,926,848 $ 3,020,641,783

6.11% 3.93%

$ 8,972,864,816 $ 3,139,378,700

$ 8,259,864,684 $ 3,263,278,244

45.67% 397,492,677 5.50%

-6.19% -2.01% -15.42%

42.85% 389,504,403 4.65%

-16.63% -35.61% -36.20%

35.72% 250,811,171 2.97%

-2.06% 8.00% 1.78%

34.99% 270,879,859 3.02%

39.51% 327,172,028 3.96%

Total Assets Return on Assets Total Asset Turnover

5,050,011,149 7.87% 1.43

8.91% -10.02% 6.38%

$ 5,499,862,729 7.08% 1.52

11.07% -42.02% -9.13%

6,108,481,052 4.11% 1.38

5.21% 2.65% 0.86%

$ 6,426,656,335 4.21% 1.40

$ 5,771,252,816 5.67% 1.43

8SXEP 7LEVILSPHIV )UYMX] 7LEVILSPHIV )UYMX] EW Percent of Total Assets 6IXYVR SR )UYMX] 8SXEP (IFX 6EXMS (IFX XS )UYMX] 6EXMS )UYMX] 1YPXMTPMIV

3,245,722,360

10.18%

$ 3,576,262,833

1.04%

3,613,403,930

6.41%

$ 3,845,123,091

$ 3,570,128,054

64.27% 12.25% 35.73% 55.59% 1.56

1.17% -11.07% -2.11% -3.24% -1.16%

65.02% 10.89% 34.98% 53.79% 1.54

-9.03% -36.27% 16.79% 28.38% 9.92%

59.15% 6.94% 40.85% 69.05% 1.69

1.14% 1.49% -1.66% -2.77% -1.13%

59.83% 7.04% 40.17% 67.14% 1.67

61.86% 9.16% 38.14% 61.65% 1.62

154,741,214

26.11%

195,147,565

-16.68%

162,597,825

2.01%

38.93%

28.70%

50.10%

29.39%

64.83%

-5.55%

13,414,606

12.40%

15,077,970

-56.10%

6,619,757

15.60%

3.37%

14.70%

3.87%

-31.82%

2.64%

7.04%

19,824,449

17.62%

23,317,482

-19.84%

18,692,168

22.36%

4.99%

20.03%

5.99%

24.49%

7.45%

13.30%

1,708,944

-58.33%

712,167

167.39%

1,904,229

-3.49%

0.43%

-57.47%

0.18%

315.24%

0.76%

-10.64%

0.68%

0.47%

47.72%

26.03%

60.14%

25.84%

75.68%

-3.31%

73.18%

62.05%

8SXEP (MZMHIRHW 4EMH to Shareholders 8SXEP (MZMHIRHW EW Percent of Net Income

8SXEP 7GLSPEVWLMT Funds Awarded 7GLSPEVWLMTW EW Percent of Net Income

(SREXMSRW XS 2EXMZI 2SRTVS½X )JJSVXW (SREXMSRW XS 2EXMZI 2SRTVS½X )JJSVXW EW Percent of Net Income

(SREXMSRW XS 2SR 2EXMZI 'LEVMXMIW 7GLSPEVWLMTW ERH 'LEVMXEFPI +MZMRK EW 4IVGIRX SJ 2IX -RGSQI 4IVGIRX SJ 2IX -RGSQI 4EMH 3YX MR (MZMHIRHW 7GLSPEVWLMTW ERH 2SRTVS½X 'SRXVMFYXMSRW

Economic Parity: Improving the Lives of Alaska Native People ANCSA embraced an inclusive model to settle indigenous land claims. For the most part it avoided separating Alaska

Native people from other Alaskans. This approach, combined with embracing a Western corporate model, has had a significantly positive effect on the lives and well-being of Native people in the state. Economic parity has been demonstrated repeatedly as the most effective way to enable disadvantaged groups to gain equality. ANCSA Corporations have enabled many people with Alaska Native heritage to achieve economic parity. Prior to ANCSA, Alaska Native people faced some of the harshest living conditions and lowest economic status in the country.

165,862,349

61.23%

7,652,528

51.83%

2.83%

22,871,882

1,837,829

10,691,215 3.27%

8.44%

169,587,238

21,176,495

6.47%

1,540,792

33 In 1971: • The average life expectancy was 35 years • Infant mortality was twice the national average • The average formal education was eight years, only 9 percent had completed high school and less than 1 percent had completed college • 21 percent of villages had no schools • Alaska Native unemployment was 60 percent

From a statistical standpoint, the population of Alaska Native people has more than doubled in the last 30 years. “Alaska Natives have more jobs, higher incomes, and more education than ever. Alaska Natives are a growing

1 0 ANCSA Regional Association - Economic Report 2009-2012 workforce in Alaska estimated to grow 11 percent by 2020.”1 “Ownership of Native households increased from 34 percent to 42 percent in the 1990s. And Native women are the only group in Anchorage for whom real earnings has increased between 1990 and 2000.”2 And from an educational perspective, “All ANCSA regions in the 1990s demonstrated growth in Alaska Native high school and college attainment, declines in Native unemployment, gains in Native per capita income, and declines in Native poverty. Notably, the growth in Native adults possessing college degrees has been most pronounced in the four ANCSA regions containing the five most active participants in the 8(a) Program.”3 ANCSA Corporations employ and do business with a broad range of Alaskans and non-Alaskans. This simple fact has helped Alaska Native people develop business relationships and friendships with many non-Native people, and vice versa. Economic mutual benefit has also proven to be an extremely effective force helping Alaska Native residents participate in the broader population. This has been particularly true in urban Alaska. 1 (ISER – Understanding Alaska: People Economy and Resources) 2 (ISER – Anchorage at 90: Changing Fast, With More to Come) 3 (Native American Contracting Under Section 8(a) of the Small Business Act Economic, Social and Cultural impacts, Jonathan B. Taylor)

The Myths and Facts about 8(a) Contracting In the late 1980s, Section 8(a) of the Small Business Administration Act was changed to provide special consideration for Alaska Native Corporations and American Indian Tribes. ANCSA Corporations would be eligible to negotiate federal contracts of any size through direct award. These changes were in recognition by the federal government that Alaska Native Corporations represented whole communities of socially and economically disadvantaged individuals, each of whom could be individually eligible for SBA 8(a) status. In recent years, in large part due to their substantial success in federal contracting, ANCSA Corporations have been under close political scrutiny by U.S. senators representing districts with large federal contracting sectors. But after an extensive review by the U.S. Governmental Accountability Office (GAO) into the governance practices and benefits provided to shareholders, the GAO had no substantive negative findings. The report summary states “GAO found that the corporations provide a wide variety of monetary and nonmonetary benefits to their shareholders and other Alaska Natives. Monetary benefits include shareholder dividends, Elder benefits, scholarships, memorial benefits, shareholders’ The Myths and Facts about 8(a) Contracting equity, and charitable donations. Nonmonetary benefits – often offered in partnership with village corporations, tribal organizations, and nonprofit organizations within the region – include employment opportunities, cultural preservation, land management, economic development, and advocacy on behalf of Alaska Natives and their communities.” While 8(a) procurement has become important to ANCSA Corporations, it still represents a mere 1.26 percent of all federal contracting. During the last four years, the ratio of 8(a) to total revenue has ranged from a high of 45.67 percent

in 2009 to the current ratio in 2012 of 35 percent. With typical profit margins on federal government contracts of less than 5 percent, 8(a) contracts are not a path to great wealth, but they have been a successful path to cash flow and capacity development within the ANCSA Corporations – Regional and Village. Alaska Native Corporations represented whole communities of socially and economically disadvantaged individuals, each of whom could be individually eligible for SBA 8(a) status. Native 8(a) Spending FY 2011 Native 8(a) Spending Federal Contract Spending

$6.8 Billion 1.266% $536.8 Billion 98.734%

Conclusion The Alaska Native Land Claims Settlement Act (ANCSA) arose in a perfect storm – a moment when the federal government, the newly formed state of Alaska, the oil and gas industry and the early conservation movement all had reason to reach agreement. Alaska Native land claims struggles began as soon as outsiders started arriving in the territory. Early leaders fought to enact legislation assuring Native peoples’ role in shaping Alaska’s future. Federal leadership from many including Sen. Ted Stevens, Secretary of Interior Stewart Udall, and President Richard Nixon were critical to the success of ANCSA. And it was those early Alaska Native visionaries who saw the opportunity at this moment in time to create a new model of self-determination. The Alaska Native Claims Settlement Act has changed the destiny of Alaska Native peoples and the destiny of Alaska itself, and we are humbly grateful to all who gave their energy and spirit to make ANCSA a reality. It has shaped who we are today and will empower us to create a vibrant tomorrow. Certainly, ANCSA has faced external challenges, and there have also been internal issues to resolve. But Alaska Native leaders, through a strongly held vision, found ways to work together for the common good – then and now. As an example, natural resource revenues are today shared among all the ANCSA Corporations through 7(i) provisions built upon a collective belief in the sharing of resources, to the benefit of all, held by many of our Native peoples. Key to our success has been the conservative way our companies are managed, our diversified holdings, and our deep commitment to directly delivering these successes to our shareholders. In fact, over the last four years, Alaska Regional Corporations have committed an average of 62.4 percent of net income to dividends, social/cultural programs, and scholarships. In the last two years this has averaged nearly 75 percent of net income — at a time when the average American company dividend payout rate is 32 percent. Between 2009 and 2012, ANCSA Regional Corporations paid out a total of $678.4 million in dividends to its Native shareholders. All 12 Alaska-based ANCSA Regional Corporations were among the top 49 Alaska-owned companies (Alaska is the 49th state) ranked by gross revenues, representing 56 percent of all revenue earned, 53.1 percent of the Alaska employment provided and 58.1 percent of the worldwide

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employment generated by Alaska’s top companies (2011 data). When top performing ANCSA Village Corporations are included, the list of ANCSA companies on Alaska Business Monthly’s Top 49ers list includes 20 Native-owned companies. Alaska’s Native Corporations represent 73.6 percent of the gross revenue reported, 62.4 percent of the Alaska jobs provided, and 83.3 percent of worldwide employment among the top 49 Alaska-owned companies. It is success neither our Elders, nor the young visionaries who were so relentless during the creation of ANCSA, could have imagined. Native Corporations have reversed the Alaska economic model of the past by establishing their headquarters in Alaska, doing business worldwide and bringing the profits home. From the start, our leaders envisioned ANCSA as a multigenerational creation. They invested in educational assistance to help create future Alaska Native leaders and a qualified workforce for the corporations and their affiliated nonprofits. Now, Alaska Native people who grew up under the promise of ANCSA are taking the reins of some of Alaska’s largest corporations in large part due to the sacrifice and investment in the future made by our early leaders. The Alaska Native Claims Settlement Act is a model of indigenous rights and empowerment. In most places throughout the world, indigenous peoples do their best to survive inhospitable economies and colonial cultures in which they have little opportunity to participate or shape their own destinies. In Alaska, our Native peoples truly lead the development of the economy, society and culture. We are unique in the world. To those who came before us, to those who today are leading the way and to those who will shape our future – We deeply thank you. ■

ANCSA Regional Association The ANCSA Regional Association exists to promote and foster the continued growth and economic strength of the Alaska Native Regional Corporations on behalf of their shareholders. The Board of Directors includes one representative from each of the 12 Alaska-based Native Regional Corporations as well as the Alaska Federation of Natives. These members represent the highest level of each corporation’s management. ANCSA Regional Association P.O.Box 240766 Anchorage, Alaska 99524 907.339.6052 - www.ancsaregional.com About the author - Bob Poe is an Assistant Professor of Business Administration at the University of Alaska - Anchorage. Over his 33 year career in Alaska he has held several top management positions in both the private and public sectors. From a public sector perspective he has served four Alaska Governors in a variety of cabinet and sub-cabinet leadership roles. He holds a BS and an MBA in Finance from the University of Missouri – St. Louis. Publisher's note: This report is published with permission from the ANCSA Regional Association. We thank the ANCSA Regional Association for graciously providing this content. To view the full report with profiles and articles about each of the Alaska Native Regional Corporations, please visit: http://ancsaregional.com/publications

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