The ferry Malaspina makes a rare appearance near downtown Sitka in 2010. A new report suggests a public corporation be formed to manage ferry operations. (Photo by Ed Schoenfeld/CoastAlaska News)
The Alaska Marine Highway System should break into two agencies to prepare for the future.
That’s the conclusion of a new ferry governance study released by the Southeast Conference, a regional development organization. The study examined ferry operations in Alaska and elsewhere.
Report author John Waterhouse said scheduling, pricing and similar management areas would be handled by a public corporation owned by the state.
“Give the folks operating the ferries the flexibility and tools to evaluate their routes and revenues and to really do what they need to do in terms of making the system as efficient and provide as much benefit as is financially possible to the core user groups,” he said.
Waterhouse, of Seattle-based Elliott Bay Design Group, produced the draft report with Juneau-based research firm McDowell Group. He presented it at Monday’s Marine Transportation Advisory Committee.
Dennis Watson chairs the steering committee looking into ferry governance changes. (Photo by Ed Schoenfeld/CoastAlaska News)
Craig Mayor Dennis Watson heads up the committee overseeing the governance study, which began last summer.
He said marine highway assets would remain the property of a state agency.
“The state maintaining ownership and control of the vessels and terminals and what-not allows them to be able to get federal funding to be able to do maintenance and capital improvements on them,” he said.
The study recommends several interim changes.
The changes include include forward-funding the system and giving the marine highway control over labor negotiations.
Those could be difficult to get through the Legislature.
Watson, who manages a small ferry system in southern Southeast, calls the plan a starting point.
“If you create a mechanism that allows you to do a little bit more long-term planning and some of the things … the marine highway has a hard time doing, I think that everybody believes that would be of benefit,” he said.
Marine highway officials said they support the study and any efforts to improve the system.
Report author Waterhouse said the next step will be to develop a business plan.
The ferry governance steering committee meets Tuesday, Nov. 22, to review the report via teleconference.
Spare life rings lean against other parts at the Alaska Marine Highway System in Ketchikan in 2014. The ferry system just released its summer 2017 schedule, which includes fare hikes. (Photo by Ed Schoenfeld/CoastAlaska News)
The Alaska Marine Highway System plans its next round of fare increases to start May 1. That’s when the new summer schedule begins.
Spokesman Jeremy Woodrow said it’s the second year of a five-year effort to equalize ticket prices.
“What we’re trying to do is bring similar distance fares into a similar price across the entire system. So you’re getting what you pay for no matter where you are in the system,” he said.
Most fares are being raised only a few dollars, as shown on the AMHS reservations website. A few are dropping. Some examples, based on rates for one adult passenger:
Juneau-to-Ketchikan will be $4 more (from $122 to $126).
Kodiak-Homer is up $2 (from $83 to $85).
Bellingham, Washington-to-Skagway, one of the longer routes, will increase $13 (from $451 to $464).
Cordova-Whittier will cost $3 less (from $84 to $81).
The new May-to-September schedule was released Wednesday.
Sailings are actually up for the busier months, June through August. But Woodrow said they’re down for the next full budget year, which begins in July.
“Where we’ve been able to reduce the frequency of sailings has been more in the shoulder season. Late April, early May and then late September [is] where we’ve kind of reduced just a week here or there for each ship,” he said.
He said the summer schedule was developed around the governor’s proposed budget. It calls for a 5 percent cut in unrestricted general fund spending.
The Legislature could further reduce the marine highway budget. Woodrow said any such cuts would come out of next fall, winter and spring’s schedules.
Andrew Haden of Wisewood, Inc., a Portland-based design firm, explains how the Ketchikan Airport’s biomass boiler works as it begins running in June 2016. It was partially funded by a U.S. Forest Service wood innovation grant. (Photo by Leila Kheiry/KRBD)
The U.S. Forest Service is offering another round of grants promoting wood-energy projects in Alaska.
Earlier grants have helped design boilers and plan wood-pellet mills in Southeast and Interior communities.
Forest Service Wood Innovation Coordinator Dan Parrent said they’re meant to expand use of blowdowns, mill scraps and similar material.
“We’re looking at ways of utilizing wood that needs to come out of the forest to reduce hazardous fuel loading or for forest health purposes,” he said. “We’re trying to create markets for that material that doesn’t otherwise have strong markets.”
He said most Alaska grants, for up to $250,000 each, go to wood-energy projects. But the program also helps develop new timber products, such as laminates, or expand existing markets.
Grants can go to businesses, organizations and government agencies. Recipients must contribute part of the funding.
Parrent said program guidelines limit how the money can be used.
“It’s mostly for the softer costs. It’s for project development, it’s for designs, it could be used for permitting. … But not for actual construction,” he said.
Applications must be submitted by Jan. 23. Awards will be announced in April.
A number of organizations have been promoting wood-energy projects around the state. One is the Southeast Conference, a regional economic-development group.
The conference’s energy coordinator Robert Venables said the grants have been valuable.
“It’s been used from Ketchikan to Haines to help some of these projects get vetted out and ready for either implementation or not, if that’s what the feasibility [study] shows,” he said.
Wood has been promoted as a low-cost energy source that causes less environmental damage than fuel oil.
But critics point out that it still releases carbon into the air, contributing to climate change. They also say forests should not be cleared of blowdowns and woody debris, which decays and helps build up soil and feed future trees.
Democrat Jonathan Kreiss-Tomkins, center, campaigns with supporters in Sitka on Election Day, Nov. 8, 2016. (Photo courtesy Jonathan for State House)
Democrat Jonathan Kreiss-Tomkins has won his third term in the state House of Representatives. Voters in Sitka, Petersburg and most Southeast villages gave him a 60-40 victory over Republican challenger Sheila Finkenbinder.
Kreiss-Tomkins said he felt optimistic about his re-election chances. But he didn’t want to be overconfident.
“I work really hard and I do my job well and that record, I think, will be ultimately be reflected in elections,” he said.
His first race was his tightest. In 2012, he beat incumbent Republican Bill Thomas of Haines by only about three dozen votes.
He did better two years later, defeating Petersburg Republican Steven Samuelson by a 60-40 margin. It was about the same this time around.
Republican candidate Sheila Finkenbinder waves to passing cars in Sitka on election day. (Photo by KCAW)
Finkenbinder, his opponent, said she thought she’d do better than she did.
“I had a lot of positive feedback from people who were supporting me. And I was more hopeful than it turned out,” she said.
Finkenbinder campaigned as a candidate who would join a Republican-led House majority, giving her more strength than the incumbent.
And Kreiss-Tomkins has been in the minority for the past four years, which limited his political clout. But a new majority coalition of Democrats, Republicans and independents has formed and he will play a stronger role.
The Sitka Democrat said he doesn’t have a specific to-do list — because he’s a generalist.
“I guess my interest is good ideas – and good ideas of every kind. That might seem like a non-answer. But if I were to look at the bills I’ve introduced over the past four years they’re really kind of A to Z,” he said.
This was Finkenbinder’s first run for public office, but she wasn’t a political newcomer.
She worked as a legislative aide to Rep. Peggy Wilson, a Wrangell Republican whose district used to include Sitka and Petersburg.
She also ran the Greater Sitka Chamber of Commerce and was active in the city’s Republican Party organization.
I Voted Today stickers were popular accessories on Election Day in Alaska. (Photo by Maggie Schoenfeld)
But the future? She’s not sure whether she’ll run again.
“I’m really not ready to answer that at this point. I’m not sure where my life will take me in the next two years. That’s a lot of time,” she said.
Finkenbinder said she wishes Kreiss-Tomkins well. But she hopes he’ll take on her top priority, promoting economic development.
“You can’t just raise taxes and take in each others’ laundry. You have to have an economy,” she said.
She said that should include continued oil development. But there should be a wider focus.
“We need to encourage timber, fisheries, mining, sea otter (products), seaweed. Whatever it is, we need to develop our resources and grow the economy,” she said.
Kreiss-Tomkins said he too wants to create jobs. But they might not be in the same professions.
“I’ve been particularly focused on new small-business entrepreneurship as well as fisheries and maximizing the value of the Alaska fisheries for Alaskans. But that interest extends to all sectors of our resource economy,” he said.
As in all elections, questioned and absentee ballots must still be counted. But that won’t change these results.
Southeast Alaska House and Senate districts are shown on this map. (Courtesy Alaska Redistricting Board)
Southeast Alaska’s nine legislative candidates have raised close to half a million dollars for this year’s campaigns. Five, including a barely-challenged incumbent, have brought in about $50,000 each.
Not all the numbers are in yet. But as of Friday afternoon, the most recent campaign finance disclosure reports showed the total raised at about $440,000.
That’s about 6 percent higher than the 2014 election. But it helps illustrate the long-term growth of campaign fundraising in Southeast.
Juneau’s Christopher Clark said, “I think it’s keeping up with the inflationary trend.” Clark tracks and analyzes state elections.
“There was a time when we looked at $25,000 as being enough to win a House seat provided you were a decent candidate. And now, we’re seeing much, much more money raised,” added Clark. He has worked as a journalist and as a staffer for legislators of both major parties.
Two of Southeast’s five legislative races have no opponent on the ballot, so you’d expect less fundraising.
That’s true for incumbent Juneau Democrat Sam Kito III, a civil engineer and former lobbyist, who is seeking a second full term. His House District 33 represents about half of Juneau and the rest of northern Southeast’s cities.
Kito has raised close to $16,000 but has spent only about a quarter of that money.
But the other incumbent without an opponent on the ballot, Sitka Republican Senator Bert Stedman, has brought in more than $47,000.
The investment manager has a write-in challenger, Petersburg handyman Michael Sheldon, who has only raised $100 running for his Senate District R campaign.
All the Southeast races had competition two years ago. But Clark said unopposed candidates aren’t uncommon.
“Southeast does have some history. Pretty much, if you like the guy who’s in there or the woman who’s in there, then you will see they don’t get that opposition,” he said.
Financial disclosure forms show Stedman, who’s seeking his fourth full term, has spent most of what he’s raised. A lot went to campaigning with two fellow Republicans who are challenging a Democrat and an independent for House seats in his district.
One is Sitka GOP member Sheila Finkenbinder, a former legislative aide and executive director of her city’s chamber of commerce.
Finkenbinder has brought in more than $35,000 so far and most has been spent.
It’s less than half of the $75,000 raised by incumbent Sitka Democrat Jonathan Kreiss-Tomkins, who has worked with his town’s fine arts camp.
He’s seeking his third term representing House District 35, which includes his hometown, Petersburg, Kake, Angoon and about 15 other villages.
Kreiss-Tomkins has spent about 70 percent of what he’s raised.
Stedman has also been campaigning with Ketchikan Republican Bob Sivertsen, a retired city employee who’s challenging independent incumbent Dan Ortiz, also of Ketchikan.
Sivertsen has raised a little more than $35,000 on his own. But another $40,000 has gone into a separate committee supporting his candidacy. The main contributor is The Accountability Project, a conservative, Anchorage-based political action committee.
Clark can’t recall that happening before.
“In some ways, that’s almost par for the course up north, up in the Southcentral area, in those highly competitive races that are happening right now,” he said. “But here in Southeast, that’s something we haven’t seen. I think they are indicative of what people see as probably the closest race we have here.
House District 36 one-term incumbent Ortiz, a retired teacher, called the PAC contributions “dark money.” Campaign finance reports show he brought in a little more than $70,000 and he has spent the majority of that amount.
Constitution Party candidate Ken Shaw raised about $330 and spent about a third of it.
The final Southeast race, in House District 34, pits Republican incumbent Cathy Muñoz, a former gift-shop owner, against Democrat Justin Parish, who works with special-needs students.
The district is based in Juneau’s populous Mendenhall Valley and includes some other capital city neighborhoods.
Muñoz, who is seeking her fourth term, has the fundraising lead with $82,000. She’s spent about 70 percent of that amount.
Parish has raised close to $40,000, about half of Muñoz’ total. The latest finance reports, filed with the Alaska Public Offices Commission, show he’s spent about half of that.
Rep. Sam Kito III is running for re-election to his downtown Juneau-based House seat. (Photo by Ed Schoenfeld/CoastAlaska News)
Juneau Democrat Sam Kito III is running for his second full term representing state House District 33. That includes the capital city’s downtown, Douglas, Haines, Skagway, Klukwan, Excursion Inlet and Gustavus.
Kito was appointed to his House seat in 2014 after then-Rep. Beth Kerttula stepped down.
The 18-year Juneau resident, who was born in Anchorage, is a civil engineer who has worked on transportation projects around the state.
He’s spent this year’s election season talking about state budget issues.
During a forum at this fall’s Southeast Conference meeting in Petersburg, he said that includes a variety of taxes and capping Permanent Fund dividends.
“I do appreciate the work that Gov. Walker has put into his fiscal sustainability plan, because we need to look at a lot of different sources of revenue to try and balance the money that we’ve lost because of low oil prices,” he said.
Rep. Sam Kito III addresses the Alaska House of Representatives in 2014. (Photo by Skip Gray/360 North)
Kito said it’s important to continue essential services, such as schools, the university and the state ferry system.
He said action must be taken during the upcoming legislative session to bring in new revenue. That, he said, will help keep the state out of a recession.
“If we do have increases in oil prices down the road, and we already have a sustainable fiscal plan, then that money can be used to bolster our Permanent Fund and result in increased Permanent Fund dividends,” he said.
The Juneau Democrat said any new revenue must be spent responsibly.
But reduced PFDs, new taxes and other options buy the state time.
“Balancing the budget doesn’t mean providing a whole lot of extra money for state agencies to do what state agencies do, which is to provide public services through the state of Alaska to residents,” he said. “It raises enough money so that we can have those discussions about whether or not we’re spending adequate money on education, spending adequate money on health care or spending adequate money on transportation.”
The past few years’ state budget cuts have hit municipalities and school districts.
“It’s something that I think we need to honor, in order to make sure that in these financial times that are getting difficult, we’re not putting excess or undue pressure on the local governments,” he said.
This is Kito’s second time on the ballot. He won a contested election in 2014. But this time around, he has no officially recognized opposition.
Haines Libertarian William ‘Bill’ McCord has announced a write-in campaign for the seat. But elections officials say those votes won’t be counted, because he hasn’t lived in Alaska long enough to qualify for the ballot.
Reports on other Southeast Alaska House and Senate races: