More money for Ambler road The Alaska Industrial Development and Export Authority approved a further $700,000 cash infusion to complete permitting for the Ambler industrial road project. The road would be built if a mine is developed in the Ambler Mining District and the developers commit to tolls for use of the road to pay for bonds AIDEA would issue. South32 option decision on Ambler Australia-based South32 will decide in late January whether to exercise its $145 million option to…
Overhaul of state spill planning? State Dept. of Environmental Conservation commissioner Jason Brune has launched a review of Alaska’s oil spill prevention and response rules and is seeking public comment in an initial phase. Alaska has had the strictest spill rules in the nation since the 1989 Exxon Valdez oil spill in Prince William Sound and it is possible the spill program has become outdated and cumbersome, that its costs of compliance do not yield appropriate environmental benefits, and that…
Roadless rule lifted for Tongass? The U.S. Forest Service published a Draft Environmental Impact Statement for a new “Alaska Specific” Tongass National Forest management rule that would replace the USFS “roadless” rule now in force for the Tongass. The Roadless Rule has been criticized in Alaska for putting too much old-growth forest off limits to harvesting, but that was the original goal of the rule put in place nationally in 2001.
Tourism booms – Summer passenger growth sharply up in Anchorage Tourism is booming in Alaska. Summer passenger travel through Ted Stevens International Airport, a key indicator for summer tourism, saw 2.5 percent growth between May and September. It was the second straight year for strong passenger traffic growth at the Anchorage airport. Because the state’s non-tourist economy is still struggling although a three-year recession has ended, what was propelling passenger traffic is the strong 2019 visitor season. New services by…
Employment gains continue in September, but recovery may be fragile Employment ticked up 2,000 jobs in September compared with the same month in 2018, a 0.6 percent gain. The state Department of Labor and Workforce Development has been reporting modest increases in wage and salary employment for the last several months, a signal that the state’s recession has ended for now. Still, the gains are very small and are led by two industries that are still volatile – petroleum and…
Federal highway, airport funds Federal highway construction funding looks to be stable through 2021, state transportation officials told contractors. About $555 million is scheduled to be paid in (federal) FY 2020 and $556 million is scheduled for FY 2021. In addition, there is about $100 million in unspent congressional “earmark” money still available. DOTPF is meanwhile completing work on the FY 2022 Statewide Transportation Improvement Plan, or STIP, the project schedule for that year. The draft will be available later…
Chugach-ML&P decision in March The Regulatory Commission of Alaska is now likely to decide in March on Chugach Electric’s bid to acquire Anchorage’s city-owned Municipal Light and Power. The commission is likely to accept a revised plan after a break in proceedings to allow negotiations. At issue is a proposed premium that Chugach would pay the municipality. The revised plan would have $15 million of the premium go to fund a long-sought addiction treatment center. $50 million Mat-Su LNG project…
Ferry maintenance funds short The 56-year-old state ferry Malaspina goes into indefinite layup in Ketchikan on Jan. 10, after completing its last revenue run Dec. 10. The vessel was due for a major overhaul but costs for that rose to $16 million. Higher-than-expected maintenance on two smaller state ferries, the Aurora and LeConte, have also outstripped the money budgeted, the Department of Transportation and Public Facilities reported, resulting in those vessels being pulled from a schedule of limited winter service…
The U.S. Army Corps of Engineers plans almost $1 billion in Alaska projects between 2020 and 2023, corps officials said at the Associated General Contractors Alaska Chapter annual meeting in Anchorage this week. In military construction, or new projects on bases, between $410 million and $478 million in work is planned. One big project is a runway extension at Joint Base Elmendorf Richardson in Anchorage, which is estimated at between $175 million and $200 million. Civil works projects contracted by…
Shortfall for Medicaid; higher pension costs create problems Whatever else we want to say about state finances and the budget, the annual percent-of-market-value draw on Permanent Fund earnings now authorized in state law is a big deal. The amount paid now and projected forward exceeds state oil income. Now more than half the state budget, or the Undesignated General Fund portion of it, has a revenue source that is more predictable than petroleum, David Teal, director of the Legislative Finance…