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The Alaska Marine Highway System is working faster to hire more crew, trying to fix problems that slowed the process so much the past four years that the state failed to keep up with retirements and resignations. The hiring process was so cumbersome and excessively choosy that the state brought aboard just a few new workers out of 250 applicants forwarded by a search agency over the past year, according to a January report from the recruitment contractor. “Since 2019, AMHS has lost more staff annually than recruitment efforts can replace. F...
A state House committee last week held its first hearing on a bill intended to settle the Legislature’s biggest annual political battle: The amount of the Permanent Fund dividend. The bill, sponsored by Rep. Dan Ortiz, who represents Ketchikan, Wrangell and Metlakatla, would amend state law so that 75% of the annual draw on Permanent Fund earnings goes toward paying for schools and other public services, with 25% designated for the PFD. “Tonight, we’re going to open a can of worms,” Chairman Ben Carpenter, of Nikiski, said at the March 1 meeti...
In a change of plans from just a few weeks ago, the Alaska Marine Highway System reports it lacks enough crew to operate the Kennicott this summer. The loss of the Kennicott from the schedule likely would mean dropping service to Prince Rupert, British Columbia, and the loss of two additional port calls in Petersburg each month, May through September. It also could jeopardize state ferry service to Yakutat on the cross-gulf route, and abandoning plans to run the Kennicott to Bellingham, Washington, once a month to help move the heavy load of su...
Alaska’s senior U.S. senator — and former state legislator — Lisa Murkowski addressed a joint session of the Legislature last week, covering the usual issues of oil and gas, economic development and lots of federal dollars for local projects. Her remarks were pretty routine for anyone who has listened to the annual speeches at the Capitol by Alaska’s two senators over the decades. That’s the comforting thing about Alaska politics — the issues don’t change much. We’re like an old TV sitcom where the characters don’t age and the same problems...
Gov. Mike Dunleavy made a smart decision last week when he issued an administrative order directing state personnel officials to review and change job requirements where appropriate so that applicants could more easily substitute “practical experience” for a college degree. Almost one in six state government jobs were vacant in December, according to the governor’s Office of Management and Budget. The most empty desks were at one of the most important agencies: Almost one in four positions at the Department of Natural Resources were vacan...
An ongoing shortage of crew is the “No. 1 risk factor” for the Alaska Marine Highway System, Transportation Department Deputy Commissioner Katherine Keith told legislators. As of a Feb. 2 presentation to the Senate Transportation Committee, the ferry system was short just over 100 crew for full staffing to efficiently operate the winter schedule, about a 20% vacancy factor for onboard employees. The ferry system, however, is able to run its schedule with crew members picking up extra shifts and overtime to cover the work, and with man...
There might be a way to avoid federal income taxes on the Alaska Permanent Fund dividend. But it would mean admitting that the annual payment to Alaskans is a political decision not at all tied to earnings of the savings account. It could mean changing the name of the PFD to Popular Fall Distribution, to truly disassociate the money from the fund’s investment earnings. If it means avoiding federal income tax on the money, we could learn to call the annual payment most anything. It would mean changing state law. And it would mean discarding the...
Getting caught between a rock and a hard place is easier. At least you can rent a backhoe and move the rock. Getting politically caught between more money for public schools and even more money for the Permanent Fund dividend will be the hardest place for legislators this year. The vote will come down to which is more important for Alaska: A long-needed, substantial increase in state funding for public schools, or the governor’s proposed supersized Happy Meal of a nearly $4,000 Permanent Fund dividend? But putting the dividend first and school...
Organizers are creating programs to start using a $49 million federal grant and $15 million in matching funds to grow Alaska’s shellfish and seaweed farming industry. The money will go toward a statewide effort, though more permit applications were filed for new or expanded farms in Southeast than in any other region 2016 through 2022, according to state statistics. Southeast set a record last year with seven applications for seaweed and shellfish farms, Rachel Baker, deputy commissioner at the Alaska Department of Fish Game, said at last w...
WRANGELL — As the market continues to shift from canned salmon toward more frozen product, “the company wants more frozen pinks,” said Trident Seafoods Southeast regional manager John Scoblic. Which means Trident will freeze pinks along with chums at its Wrangell plant this summer. After a three-year closure due to weak chum returns, Trident plans to reopen its Wrangell plant, buying and freezing salmon in July and August. “We’ll be testing out some new things there,” Jeff Welbourn, Trident’s senior vice president for Alaska operations, s...
Sen. Lisa Murkowski succeeded in convincing her colleagues that the Alaska Marine Highway System deserves more federal funding. The proof of her success in helping to write last year’s federal spending legislation is the $284 million in grants announced last week for new ferries, repairs to old vessels, dock improvements and better service to small communities. The state will need to put up about $105 million in matching funds for the grants. Some of that already has been appropriated and the rest can come during this year’s legislative ses...
Wrangell — After a three-year closure blamed on weak chum returns, Seattle-based Trident Seafoods plans on running its Wrangell processing and cold storage plant this summer. “We’re going to operate in July and August,” focusing on chums and pinks, employing a little over 100 workers for the season, said Shannon Carroll, Trident’s director of public affairs, on Jan. 26. That would be a smaller payroll than in past years, he said. Chum salmon returns to Southeast have improved the past couple of years. In advance of running the processin...
The federal ship has come in for the Alaska Marine Highway System, carrying more than $284 million for upgrades to old vessels, money to help pay for a new ferry, dock repairs, additional service to small communities and even a proposed electric-powered ferry for short runs. The Federal Transit Administration announced the awards last week. The grants were awarded under a competitive application process, but Alaska’s congressional delegation wrote the provisions of the Infrastructure Investment and Jobs Act of 2022 with the intent of s...
Other than still needing crew if it is to put the Hubbard into service for the first time since it was built a few years ago, the Alaska Marine Highway System believes it has enough staff to operate the confirmed runs of its proposed summer schedule this year. The state ferry system has been plagued by staffing shortages the past couple of years due to retirements, resignations and hiring efforts coming up short, temporarily sidelining vessels on occasion. “We’re still really pushing hard on recruitment,” Shannon McCarthy, communications direc...
The state ferry Matanuska will not return to service from its winter overhaul as scheduled next month and will require millions of dollars more of steel replacement work if it is ever to get back to work. In its place, the Alaska Marine Highway System plans to put the Columbia back to sea after almost 30 months in layup status to save money. The loss of the Matanuska will mean more than a month without ferry service for Petersburg. The ship had been scheduled to resume sailings the first week of February to replace the Kennicott, which was...
For the 10th year in a row, more Alaskans moved out last year than new residents moved in. That’s a draining fact, with no real plan to plug the leak. To confirm the Alaska Department of Labor’s statistics about population and persistent out-migration, drive no farther than U-Haul. America’s do-it-yourself movers reported this month on its annual numbers for traffic into states and one-way rentals leaving each state. The traffic count for Alaska is not good. The state fell 25 spots in the nationwide ranking of growth states, from 16th place...
The halibut charter boat fleet in Southeast and the Gulf of Alaska will be able to collectively buy quota shares from commercial fishermen under a provision in the federal omnibus budget bill passed at the end of December. The program would be funded by a fee charged for every angler aboard a halibut charter. Seward’s Andy Mezirow is on the North Pacific Fishery Management Council and has been a champion of the program for a while. He said it’s a long time coming. The program was vetoed by President Donald Trump in his final weeks in office and...
Wrangell — The borough’s target date is 2024 for the sale of the first 22 residential lots in the proposed subdivision of the former Wrangell Institute property upland from Shoemaker Bay. The assembly last month approved $2.2 million for installing utilities and putting in streets across a portion of the 134-acre property, which the borough acquired in 1996. “Our goal is to start construction this fall,” Borough Manager Jeff Good said last week. “That’s our target right now.” The borough is moving closer to receiving its U.S. Army Corps of...
Newly reelected Gov. Mike Dunleavy last week unveiled his proposed state spending plan for the next budget year. By far, the largest single expense in the entire state budget is the Permanent Fund dividend. The governor’s budget proposes no increase in state funding for public schools and a reduction in funding for the university system. No significant increases for road repairs, snow removal, mental health services, or more staff to help the backlog of food stamp applications which has created hours-long hold times for callers needing help. L...
The world will continue to need liquid fuels refined from crude oil for decades. But it likely will need less in the decades ahead as it transitions to renewable energy sources in hopes of stemming the damages caused by a warming planet. Which means oil companies generally are looking for the least risky projects, the environmentally smartest ones, the ones with the quickest payback to recover their investment. No producer wants to sink billions into a new development, only to find that delays, cost overruns and political or permitting...
More people moved out of Alaska than moved in every year between 2015 and 2021. If not for a healthy birth rate, the state population would have shrunk even more than it did. Wrangell has steadily lost population over the past 20 years, with the decline projected to continue. These are not good statistics. Even worse, these are self-fulfilling projections of future economic troubles. Fewer residents means fewer available workers, which means labor shortages for the goods and services people need. Business across the state already suffer from a...
WRANGELL — School districts statewide be looking to the Legislature next year for an increase in state funding, but any boost in the state’s per-pupil formula likely will depend in large part on oil revenues and also Permanent Fund earnings. And neither looks good this month, less than seven weeks before lawmakers are scheduled to convene in Juneau. The state funding formula for K-12 education hadn’t moved in about five years before this year’s 0.5% mini-nudge upward. Meanwhile, districts statewide are facing budget deficits and program...
Restoration of Inter-Island Ferry Authority service from Coffman Cove on Prince of Wales Island to Wrangell and Petersburg would take money. The service ended in 2008, and the two communities will talk about what it would take to bring back the run, how much it would cost and who would pay. The Petersburg borough assembly last month voted unanimously to send a letter to the Wrangell assembly to start talks on possibly restoring the route. Wrangell assembly members at their Oct. 25 meeting directed Borough Manager Jeff Good to talk with his...
WRANGELL—“Not happy” was how Borough Manager Jeff Good described his mood last week when he received word that Wrangell was left off the list of Alaska communities sharing in $27 million in the final round of federal pandemic assistance funding. Wrangell was not alone in receiving nothing. Juneau, Sitka and Anchorage also came up empty. The funding formula was based on federal acreage within each borough, with population and economic conditions, such as poverty levels and unemployment, factoring into the formula. “I think Treasury got it wron...
Workers, families and retirees are not the only Alaskans squeezed by inflation, rising interest rates and tumbling investments. The state is in the same tight spot. And it could get worse. The price for Alaska North Slope crude oil was down to $86.57 a barrel as of last Friday, dropping a third from almost $128 in early June. U.S. benchmark West Texas Intermediate was even lower, at $78.74. The stock market, where the Alaska Permanent Fund invests much of its money, as of Friday was down 20% from the start of the year. Bond and real estate...
