In a Friday hearing, members of the Alaska Senate spoke critically about a proposed new ferry terminal in Juneau, questioning why the project would be worth its multimillion-dollar cost.
Earlier this year, state legislators planned to divert $62 million from a variety of transportation projects in order to pay for the state share of federal transportation grants worth between $500 million and $600 million.
Lawmakers included the diversion in their budget for the year, but Dunleavy vetoed the maneuver, sayingthat the “funding is either still obligated in the original project or has been fully expended and is unavailable for reappropriation.”
That left legislators’ spending plan partially unfunded.
One of lawmakers’ biggest targets this past spring was DOT’s plan to build a new ferry terminal in Juneau, roughly 30 miles north of the existing terminal in Auke Bay, in Juneau at a place called Cascade Point, which would shorten ferry runs to Haines and Skagway.
Legislators sought to divert $37 million from an account intended to fund that new terminal, but Dunleavy vetoed the transfer and the Department of Transportation subsequently signed a $28.5 million contract for work on the terminal.
In October, the state’s ferry advisory board concluded that the project likely did not make economic sense.
“Do you agree with that study?” asked Sen. Jesse Bjorkman, R-Nikiski, during Friday’s hearing of the Senate Transportation Committee.
“Can you please make the case to the Alaska people why you think investing this money … in the Cascade Point project makes fiscal sense for Alaskans?”
Anderson responded that “as a public agency, we’re more than economics. In this case, there’s this idea of saving people time with a much shorter run, saving money, the cost of operating that ship, we’re saving fuel. It’s less carbon emissions. I mean, there’s a lot of good benefits to shorter ferry runs.”
Lawmakers didn’t have the votes to override the governor’s vetoes, which means that when they reconvene in January, they’ll have to come up with a new way to fund construction work this summer.
According to documents presented to the committee on Friday, the Alaska Department of Transportation has “deferred” about 25 projects 1-3 years “to remain within available match.”
Without new money, “fewer projects will move to contract award, limiting construction activity.”
Ryan Anderson, commissioner of the Alaska Department of Transportation and Public Facilities, told the transportation committee that his agency is prioritizing “shovel ready” projects, those that are about to go to construction.
“As we go and prioritize projects through this year, we’ll continue that action, and we’ll be ready. That’s really how we’re looking at this program,” he said.
Correction: The opportunity to override Dunleavy’s transportation funding vetoes passed in August when legislators didn’t take up the issue during a special session. A previous version of this article stated that an override was still possible.