Politics

Alaska ferry service faces dramatic new cuts under proposed budget

JUNEAU -- The Alaska ferry system, which just persuaded Gov. Bill Walker to restore a 6 percent budget cut he proposed, has now been hit with a proposed 10 percent cut by a legislative subcommittee.

The cuts would have dramatic impact, ferry supporters said, as the Alaska Marine Highway System has many fixed costs and cutting service is one of the only ways to save money.

But Rep. Steve Thompson, R-Fairbanks, said the ferry and other reductions in the transportation budget "reflect the need to bring the state of Alaska's budget more in line with its fiscal situation."

Thompson is co-chair of the powerful House Finance Committee and also serves as chair of the subcommittee that made the ferry cuts Thursday morning.

A cut of that magnitude would "dramatically change the way the Alaska Marine Highway System operates," said Mary Siroky, administrative services director for the Department of Transportation and Public Facilities.

She said it would mean taking ferries out of service and reducing service to communities.

"There will be times, as this is laid out, there will be communities that had expected service that will find there will be weeks there is no service," she said.

ADVERTISEMENT

For example, no replacement vessels will be available to fill in if mechanical problems occur or during Coast Guard-required annual overhauls, Siroky said.

That could leave Kodiak without ferry service for several weeks as the Kennicott gets an extended layup and the Tustumena is not available, she said.

Members of the subcommittee, including some who supported the cuts, questioned the department's strategy for slashing costs.

Why would you lay up a vessel during the popular travel seasons when ferries see less ridership during the winter, asked Rep. Liz Vazquez, R-Anchorage.

Summer is when the busier routes are served by two vessels, Siroky replied, and a cut then leaves a community with at least basic service instead of none.

"The only other option would be to have no service in the winter," she said.

Juneau legislators broke news of the proposed cuts to a tribal gathering later Thursday.

"We have some real concerns with some of the cuts," said Rep. Cathy Munoz, R-Juneau. She's a member of the House Finance Committee but doesn't serve on the subcommittee that made the cuts.

"The Marine Highway System is the lifeblood of our region," Munoz said.

House Speaker Mike Chenault, R-Nikiski, a member of the committee, questioned the department's claims that laying up vessels still had costs for some crew members to watch and maintain them, as well as moorage fees.

Thompson lamented the short time legislators had to analyze and understand the budget and to make cuts.

Rep. Sam Kito, D-Juneau, sought to amend the budget proposal to replace some of the lost ferry system revenue by transferring money from other parts of the department's budget.

Saying he had "serious concerns about the viability" of the ferry service under the proposed cuts, Kito suggested increases to airport landing fees to offset some of the lost money.

But Rep. Shelley Hughes, R-Palmer, opposed the amendment, saying she'd lived in a ferry-dependent Southeast community and in aviation-dependent Fort Yukon, where she was sometimes weathered in.

"It is part of the lifestyle, and that is a choice people make when they live in these different communities, she said.

Hughes urged the ferry system to cut bureaucrats and shore-side middle managers rather than service to Alaskans.

Kito's amendment was voted down along caucus lines.

ADVERTISEMENT

Thompson acknowledged the cuts were difficult.

"We tried to be fair," he said. "It costs about $120 million to maintain the highway system that had 99 percent of the vehicle traffic, and $160 million to maintain a ferry system that has about 1 percent of our vehicle traffic," he said.

The transportation budget was adopted 5-2 along caucus lines, with the Republican majority supporting the cuts.

Thompson's staff said the total budget for the department included a $30.7 million cut to a total budget of $612 million.

ADVERTISEMENT