AIDEA pays consultant again for 'independent' analysis that remains secret

Northern Economics completed an “independent” $250,000 economic analysis of AIDEA nearly two years ago and was paid in full, but AIDEA says the report has never been released because the contractor did not finish it.

It will be released any day now, like the Dunleavy fiscal plan and the Trump health care plan.

The AIDEA claim that the report was never finished appears to be a lie.

Northern Economics finished a “long form report” and gave it to the Alaska Industrial Development and Export Authority in early 2024, but the Dunleavy administration did not like the results and refused to release the analysis.

Northern Economics filed its last invoice on March 3, 2024, according to billing records released by AIDEA.

The company says it “performs meaningful unbiased analyses throughout Alaska and around the world.”

AIDEA did not take legal action against Northern Economics for not finishing the report, which is why I believe that AIDEA kept the document secret because it did not like the results.

A year ago AIDEA approved a contract amendment that said the chief investment officer of AIDEA would give Northern Economics instructions on revisions it wanted to the independent report by last June.

Now comes news that AIDEA paid Northern Economics $18,434 in September—which was not in the original contract—to revise the “independent” report.

“The payment was made so the draft report could be updated to reflect FY 24 and FY 25 financial results and other important topics the legislature and public should have,” said AIDEA Executive Director Randy Ruaro.

AIDEA first hired Northern Economics to counter what it claimed was “disinformation” in a 2022 report by Gregg Erickson and Milt Barker that was highly critical of AIDEA’s economic record. But even before AIDEA hired the contractor it announced: “AIDEA Debunks Report and Announces Independent Economic Analysis.”

On February 2, 2023, AIDEA announced that it had hired “Northern Economics to Conduct Independent Analysis of AIDEA.”

“Our team of economists is the best in the business and we look forward to providing this third-party unbiased economic analysis of AIDEA as quickly and thoroughly as possible,” Marcus Hartley, president of Northern Economics, said in the 2023 press release.

It’s pretty clear that the finished document did not do enough debunking to suit the Dunleavy administration and Northern Economics was directed to revise the unbiased economic analysis.

Ruaro has made it clear that he thinks the independent report by Northern Economics needed more material about AIDEA’s positive impact on Alaska.

Erickson said that he and Barker were paid a total of $55,000 for a September 2022 report, “AIDEA Cost & Financial Performance— A Long, Hard Look,” and three reports released in 2024.

Your contributions help support independent analysis and political commentary by Alaska reporter and author Dermot Cole. Thank you for reading and for your support. Either click here to use PayPal or send checks to: Dermot Cole, Box 10673, Fairbanks, AK 99710-0673.