NEWS: Capital Budget Delivers Schools, Ports, and Infrastructure Funding to Southeast Alaska
Capital Budget Delivers Schools, Ports, and Infrastructure Funding to Southeast Alaska
SITKA, AK - The Governor signed the capital budget into law Wednesday evening. This year’s capital budget is primarily focused on addressing deferred maintenance issues burdening the state. Most projects included in this budget were selected from priority lists developed by the Governor’s administration.
"I’d like to thank the Governor for his willingness to meet and work together. We all want Alaska to move forward and prosper. It is important that we take care of the infrastructure we have to ensure public safety and support continued economic activity," said Senator Bert Stedman (R-Sitka), Capital Budget Chair of the Senate Finance Committee.
Below are the capital budget highlights for Senate District A and Southeast Alaska.
Senate District A Highlights
K-12 Deferred Maintenance
Every year, the Department of Education creates and prioritizes a list of maintenance projects requested by school districts. Our schools need to be safe and structurally sound learning environments, and it’s wise to address maintenance issues before they get worse and cost more to fix.
This capital budget includes $93.6 million for K-12 school maintenance, which funds the first 33 projects on the priority list. Five of those projects are in Senate District A, totaling $3.7 million:
- Craig – Elementary & Middle Schools Rehabilitation
- Ketchikan – Schoenbar Middle School Drainage & Gym Floor Replacement
- Petersburg – Aquatic Center Sewer Line Repair
- Petersburg – Middle & High School Security & Access Renovation
- P.O.W. – Kasaan & Whale Pass Schools Renovation
The capital budget includes a contingency provision, which provides that if the price of oil averages over $80/barrel, an additional $10 million will be appropriated for K-12 deferred maintenance. This funding will address the next five projects on the priority list, including the Klawock gymnasium roof replacement.
Port Electrification for Cruise Ships
Alaska is working towards providing shore power infrastructure for large cruise ships. This will allow the ships to shut down their diesel engines while in port, eliminating air emissions and reducing associated noise.
This capital budget includes $9.1 million each for Ketchikan and Juneau to begin developing shore power capabilities for large cruise ships.
Head Tax Funding
The cruise ship head tax is collected annually by the state and distributed to port communities visited by large cruise ships. After revenue is shared with those communities, any remaining funds stay in the account and accumulate over time.
Fiscal year 2020 was the last time these funds were appropriated, and since then, $37.5 million has accumulated. This budget appropriates the $37.5 million to communities based on cruise passenger volume.
Communities in Senate District A receiving funds and those amounts are:
- Ketchikan - $6,875,000
- Sitka - $4,500,000
- Hoonah - $3,000,000
- Wrangell - $375,000
- Petersburg - $125,000
- Klawock - $125,000
Southeast Region & Statewide Highlights
Mt. Edgecumbe High School
After years of vetoes that reduced funding, Mt. Edgecumbe High School will receive much-needed funding this year to improve the educational experience of young Alaskans. With the help of numerous stories in the press highlighting the state’s neglect, these long-overdue investments are finally moving forward.
Mt. Edgecumbe is receiving $24.3 million for:
- Student Housing Upgrades
- Main Academic Building Exterior Envelope
- Boys & Girls Dorm Window Replacement
- Dining Hall & Kitchen Renovation
- Dormitory Furniture Replacement
- Mattress Replacement
- Campus-Wide Laundry Machine Replacement
University
Every year, the University Board of Regents submits a deferred maintenance priority list. This budget funds slightly more than half of the University’s request, providing $32.5 million to address the top 18 projects on that list. Four of those projects are in Senate District A, including three at the Ketchikan Campus and one project at the Sitka Campus.
Marketing
The Alaska Travel Industry Association will receive $3 million to promote Alaska’s tourism industry.
The Alaska Seafood Marketing Institute will receive $4 million for marketing efforts to support Alaska’s commercial fishing industry.
Renewable Energy Fund Projects
Each year, the Alaska Energy Authority develops a priority list of renewable energy projects for potential funding. This budget allocates $14.5 million toward this effort, funding the top nine projects on that list. The Southeast Alaska Power Agency (SEAPA) was second on the list and is receiving $2 million for grid resiliency.
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