AMHS funding looking at $9.5 million cut

A number of public hearings on Alaska Marine Highway System’s operating budget have been scheduled this week, allowing ferry users the opportunity to give their input to state legislators as they draw up a budget.

In a media release, Southeast Conference highlights the ferry system’s importance to the region’s communities, and further warns of a possible $9.5 million cut to AMHS being weighed as the Legislature finds ways to address a $3.5 billion deficit anticipated for the 2016 fiscal year.

If that sized cut goes ahead as planned, service would be affected across the region and one of AMHS’ 11 ferries would have to be taken off of the schedule entirely.

The release points out the year’s summer schedule has already been published and largely booked, and that a number of area businesses have contractual obligations based on this schedule. Other businesses use the system to transport fish and other commodities.

The SEC release further reminds legislators the state has funds in reserve to aid the transition posed by cuts. According to the site http://www.AlaskaBudget.com, the state has just over $61 billion in savings, $21 billion of which can be used to offset a fiscal gap.

At current spending levels, these funds would cover only three years’ worth should oil revenues dry up completely. With the projected declines in oil revenue these savings are anticipated to last through 2030.

“While we recognize the state needs to take measures to address the current revenue downturn cutting off the main transportation corridor to the coastal communities of Alaska is not the answer,” the release states.

“AMHS cannot absorb a cut of this magnitude in a single year without serious, long-term impairment of the system that means harm to the entire coastal region. Southeast Conference was formed over 57 years ago to help facilitate the creation of the Alaska Marine Highway System and has been a strong advocate for it ever since,” the release states.

Public hearings are being held via teleconference this week as legislators with the House Finance Committee collect public testimony for the new operating budget. Written comments can still be submitted by email to lhscfin@akleg.gov.